Palo Alto City Council
April 11, 2022

1 City Council
Special Meeting
Monday, April 11, 2022
5:00 PM
Council Chambers & Hybrid

AMENDED AGENDA
Additional items and materials are included in red.

Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person.

HOW TO PARTICIPATE

VIRTUAL PARTICIPATION
CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900-6833
The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and s t r e a m e d t o Midpen Media Center at https://midpenmedia.org.

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.

PUBLIC COMMENTS
Public Comments will be accepted both in per son and via Zoom meeting. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your email subject line.

CALL TO ORDER
SPECIAL ORDERS OF THE DAY (5:00 - 5:10 PM)

1. Select Applicants to I nterview for the Parks & Recreation Commission Late Packet Report Added
2 Special Meeting April 11, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

STUDY SESSION (5:10 - 6:10 PM)

2. Annual Earth Day Report Study Session

AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:10 - 6:30 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.

CONSENT CALENDAR (6:30 - 6:45 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.

3. Approval of Contract Number C22181467 with Bureau Veritas Technical Assessments LLC, for an Amount Not to Exceed $359,779 for a City Facility Condition and Electrification Assessment and Use of Brightly Cloud-based Capital Planning Software, Capital Improvement Program Projects (PE -20002 and TE -13004) and Budget Amendments in the Electric Fund and Capital Improvement Fund.

4. Approval of the Economic Recovery Advisory Report as Recommended by the Policy and Services Committee

5. Adoption of a Resolution Authoriz ing an Installment Sale Agreement with the California State Water Resource Control Board for Financing of the Design and Construction of the Secondary Treatment Upgrades Project Funded in Wastewater Treatment Enterprise Fund Capital Improvement Program, Pr oject WQ -19001, at the Regional Water Quality Control Plant

6. Approval of Amendment No. 1 to Professional Services Contract Number S22183902 Teri Black and Company, LLC to Increase the Not- to-Exceed Compensation by $180,000 (to $265,000) and to Extend the Term of the Contract to January 2024 for City Wide Executive Recruitments and Approve a Budget Amendment in the General Fund

7. Approval of Amendment Number 4 to Contract Number C14152163 With Townsend Public Affairs for State Legislative Advocacy to Exte nd the Term for one Additional Year and add $102,000 for a Total Not -to- Exceed Amount of $901,000

8. Easement Vacation at 14244 Amherst Court, Los Altos Hills, CA

9. SECOND READING: Adoption of an Ordinance Dedicating 0.64 Acres of Land Adjacent to 3350 Bi rch Street to Become Part of the Boulware Park (FIRST READING: February 10, 2020 PASSED: 7-0)
Q&A
Q&A
Presentation
3 Special Meeting April 11, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

10. SECOND READING: Adoption of an Interim Ordinance Esta blishing Objective Urban Lot Split Standards and Further Refinements to SB 9 Development Standards; Autho rizing the Public Works Director to Publish Objective Standards Regarding Adjacent Improvements Related to SB 9 Projects; and Direction Regarding Listi ng Properties Eligible for Historic Status (FIRST READING: March 21, 2022 Council Meeting, MOTION PASSED: 6-0, DuBois absent); Adoption of Resolution Approving Objective Standards for Urban Lot Splits CITY MANAGER COMMENTS (6:45 - 7:05 PM)
BREAK (7:05 - 7:15 PM)

ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.

11. TEFRA HEARING: Regarding Conduit Financing for the Silicon Valley International School Project Located at 151 Laura Lane and 1066 East Meadow Circle, Palo Alto, and Approving the Issuan ce of a Tax Exempt Loan by the California Municipal Finance Authority for the Purpose of Financing and Refinancing the Acquisition, Construction, Improvement, Equipping and Maintenance of Educational, Support and Administrative Facilities Owned and Operate d Within the City by Silicon Valley International School (7:15- 7:30 PM)

12. Public Hearing: Adoption of Ordinance Clarifying Ambiguities in Height Transitions, Adding RMD to the list of Residential Districts and Amending the Setback for the RM-40 Zone District (7:30- 9:00 PM)

13. Review and Approval of Workplans for City Council Committees in 2022 (9:00 - 10:30 PM)

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)
AA1. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject:

February 1, 2022 letter from the Law Offices of Randal M. Barnum, representing Andrea Jordan, re allegations of harassment, discrimination and retaliation against the Cities Association and member cities Authority: Potential Exposur e to Litigation Under Government Code Section 54956.9(d)(2) One Case, as Defendant Public Letters
Presentation
Presentation
4 Special Meeting April 11, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

ADJOURNMENT

INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

14. Semiannual Update on the Status of Capital Improvement Program Projects

OTHER INFORMATION
Standing Committee Meetings
Policy & Services Committee April 12, 2022
Public Letters to Council
Schedule of Meetings

AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of the agenda are listed below. Any corresponding materials are appended to the end of the initial packet. If full items have been added to the Agenda, they will be denoted with a number staring with AA, meaning Amended Agenda item.

3. Select Applicants to Interview for the Parks and Recreation Commission Late Packet Report Added
AA1. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject:

February 1, 2022 letter from the Law Offices o f Randal M. Barnum, representing Andrea Jordan, re alle gations of harassment, discrimination and retaliation against the Cities Association and member cities Authority: Potential Exposure to Litigation Under Government Code Section 54956.9(d)(2) One Case, as Defendant 5 Special Meeting April 11, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.

PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

1. Written public comments may be submitted by email to [email protected].

2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom -based meeting. Please read the following instru ctions carefully.

A. You may download the Zoom client or connect to the meeting in - browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be dis abled in older browsers including Internet Explorer.

B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.

C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.

D. When called, please limit your remarks to the time limit allotted.

E. A timer will be shown on the computer to help keep track of your comments.

3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above.

4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first a nd last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted.

CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833 City of Palo Alto (ID # 14229)
Office of the City Clerk
City Council CAO Report
Meeting Date: 4/11/2022
Title: Select Applicants to Interview for the Parks & Recreation Commission
From: Lesley Milton, City Clerk
This report will be a late packet report and will be made available on April 7, 2022. 1 Packet Pg. 6
City of Palo Alto (ID # 14174)
City Council Staff Report
Meeting Date: 4/11/2022
City of Palo Alto Page 1
Council Priority: Climate/Sustainability and Climate Action Plan Title: Annual Earth Day Report Study Session
From: City Manager
Lead Department: Public Works
Recommendation
This report is intended to support discussion and no action is requested.

Executive Summary
Consistent with Council’s adoption of “Climate Change – Protection and Adaptation” as one of the four priorities for calendar year 2022, staff is updating the Sustainability and Climate Action Plan (S/CAP) to help the City meet its sustainabil ity goals, including its goal of reducing greenhouse gas (GHG) emissions 80 percent below 1990 levels by 2030 (the “80 x 30” goal). The S/CAP Ad Hoc Working Group Teams are pursuing a deeper dive into four areas that will advance our residential building e lectrification goals: Engagement, Technology, Finance, and Community Scale.

Cities represent the single greatest opportunity for tackling climate change, as they are responsible for 75 percent of global energy -related carbon dioxide emissions 1. In 2020, Palo Alto emitted an estimated 387,287metric tons (MT) of carbon dioxide equivalent (CO 2e) from the residential, commercial, industrial, transportation, waste, water, and municipal sectors. 2 In comparison to the 1990 base year emissions (which were about 7 80,000 metric tons), that is a

50.4 percent decrease in total community emissions, despite a population increase of 21.8 percent during that same time period. The 2020 GHG inventory includes pandemic impacts - such as reduced vehicular traffic - resulting in emissions reductions that may be temporary. 1 https://www.unep.org/explore-topics/resource-efficiency/what-we-do/cities/cities-and-climate-change 2 Carbon dioxide equivalent is a unit of measure that normalizes the varying climate warming po tencies of all six GHG emissions, which are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF 6). For example, one metric ton of nitrous oxide is 210 metric tons of CO2e.
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City of Palo Alto Page 2
The full 2020 GHG inventory can be found in Attachment A: 2020 Greenhouse Gas Inventory. A full comparison between the 1990 and 2020 inventories can be found in Attachment B: 1990 vs. 2020 Greenhouse Gas Emissions by Sector and Subsector.

Background
In April 2016, City Council adopted the ambitious goal of reducing GHG emissions to 80 percent below 1990 levels by 20303 (the “80 x 30” goal) - 20 years ahead of the State of California 80 x 50 target, and an interim step towards California’s new statewide goal of achieving carbon neutrality by 2045 4. In November 2016 the Council adopted the S/CAP Framework5, which has served as the road map for achieving Palo Alto’s sustainability goals. In December 2017, Council accepted the 2018-2020 Sustainability Implementation Plan “Key Actions” as a summary of the City’s work program6.

In early 2020, the City launched an S/CAP update to determine the goals and key actions needed to meet its sustainability goals, including the 80 x 30 goal. While GHG emissions reduction is not the only goal of the S/CAP, it is the major one. As a result of various City -led initiatives, programs, and activities focused on climate change and sustainability, by the end of 2020 Palo Alto reduced GHG emissions an estimated 50.4 percent from the 1990 baseline, despite a population increase of 21.8 percent during that same time period.

Discussion
The City is fully committed to a sustainable future. The City owns, operates, and maintains a full-service utilities portfolio that provides electric, natural gas, fiber, water, and wastewater services to residents and businesses in Palo Alto. Palo Alto’s continued leadership in advancing sustainability commitments has suc ceeded mainly because of the continued collaboration of community stakeholders, City departments, and the leadership of the City Council.

Staff presented a Progress Report on the Sustainability and Climate Action Plan Update and S/CAP Ad Hoc Committee Work 7 to Council on December 13, 2021. Council and the Utilities Advisory Commission (UAC) held a joint study session 8 to discuss sustainability and utility related items on March 7, 2022.
3 https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=3534&TargetID=268 4 In September 2018, Governor Brown signed California Executive Order B-55-18, setting the goal of achieving carbon neutrality as soon as possible, and no later than 2045. The state is to maintain net negative net emissions after 2045, meaning that GHG sinks must exceed GHG sources. The Executive Order explains that the carbon neutrality goal is layered on top of the state’s existing commitments to reduce greenhouse gas emissions 40% below 1990 levels by 2030 (as codified in SB 32), and 80% below 1990 levels by 2050. 5 https://www.cityofpaloalto.org/civicax/filebank/documents/60858 6 https://www.cityofpaloalto.org/civicax/filebank/documents/63141 7 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/2021/id.-13765-s-cap-update.pdf
8 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220307/20220307pccsmamendedfinal-linked.pdf 2 Packet Pg. 8

City of Palo Alto Page 3

S/CAP and Residential Building Electrification
As the work of the S/CAP Ad Hoc Committee has progressed, it has become clearer that residential building electrification is a key area of focus if the City is to meet the 80 x 30 goal.

Relative to the transition to Electric Vehicles already in process largely due to market forces, Palo Alto is in the very early stages of residential building electrification. Moreover, recent discussions have emphasized the importance of planning and implementing the improvements to the electrical grid necessary to support widespread electrification. The Utilities Department is working to address the grid infrastructure challenge , but it is critical for this work to occur in parallel with electrification effo rts that are part of the strategy for the 80 x 30 goal.

Additionally, the City’s permitting and inspection processes for electrification projects must be able to scale efficiently for broader implementation.

The S/CAP Ad Hoc Working Group Teams are pursu ing a deeper dive into four areas that will advance our residential building electrification goals:
• Engagement. The goals of this team include fine -tuning messaging on residential building electrification and developing a strategy and timeline for engagement. • Technology. The goals of this team include reviewing current and emerging technologies and the ir feasibility for meeting the demands of a typical home and developing a strategy. The team will also consider the influence of electrification technologie s that are implemented on the electrical grid improvements that are needed. • Finance. The goals of this team include prioritizing the most feasible funding strategies and developing a strategy for financing S/CAP Implementation. • Community Scale. The goals of this group include developing a strategy for piloting residential building electrification before full-scale implementation, with an emphasis on ensuring that the strategy begins to build significant momentum while also acknowledging electrical grid imp rovement needs. The team will also evaluate the full - scale implementation plan.

This work will be incorporated into the S/CAP Goals and Key Actions and Three -Year Work Plan.

Grid modernization will be an important part of the teams’ discussions, particula rly the Technology team. The teams will be exploring different available policy options and technologies for managing electric system capacity while making it possible to move forward with residential electrification as rapidly as possible.

Recognizing the importance of the Working Group Team discussions, and acknowledging prior discussions with Council and UAC, the Ad Hoc Committee and staff developed a revised S/CAP timeline and a new residential building electrification timeline. Once the Council identifies a complete set of proposed S/CAP Goals and Key Actions, California Environmental Quality Act (CEQA) evaluation can commence.

The key milestones of the S/CAP and Residential Building Electrification Timeline include:
• April 2022: Launch Climate Pledge
• May 2022: Identify complete set of S/CAP Sustainability area Goals and Key Actions 2 Packet Pg. 9

City of Palo Alto Page 4

• June 2022: Working Group Teams wrap-up recommendations • July 2022: Refine proposed S/CAP Goals & Key Actions and revise Three -Year Work Plan with Working Group recommendations, draft S/CAP Report
• Mid-August 2022: Palo Alto Climate Action Summit, Climate Day of Action • Late September 2022: Council Approval of Proposed S/CAP Goals and Key Actions and revised Three-Year Work Plan, Council review of draft S/CAP Report • Late Septemb er 2022: Council Approval of Building Electrification Pilot and Long -Term Plan
• Late September 2022: Start California Environmental Quality Act (CEQA) evaluation of S/CAP
• March 2023: CEQA review completed
• April 2023: Council certification of CEQA and adoption of S/CAP

Palo Alto’s 2020 Greenhouse Gas Emissions Inventory
Cities represent the single greatest opportunity for tackling climate change, as they are responsible for 75 percent of global energy-related carbon dioxide emissions, mostly from transportation and buildings. The first step for cities to realize their potential is to identify and measure where their emissions come from.

Staff recognizes that these are unprecedented times created by the coronavirus pandemic.

COVID-19 has brought disruption to cities and communities across the globe. On March 16, 2020, six Bay Area Counties - including Santa Clara – issued coordinated shelter-in place orders that were not phased out until more than two months later. The shelter-in place order, as well as changes in how and where people worked, greatly impacted energy use, vehicle miles traveled, and carbon dioxide emissions. The 2020 GHG inventory includes these pandemic impacts, resulting in emissions reductions that may be temporary.

In 2020, Palo Alto emitted an estimated 387,287metric tons (MT) of carbon dioxide equivalent (CO2e) from the residential, commercial, industrial, transportation, waste, water, and municipal sectors.9 In comparison to the 1990 base year emissions (which were about 780,000 metric tons), that is a 50.4 percent decrease in total community emissions, despite a population increase of 21.8 percent during that same time period. Of that 50.4 percent reduction to-date,

47.3 percent of the total reduction came from achieving carbon neutrality for the City’s electricity portfolio, 15.2 percent from reduction in natural gas consumption, 12.3 percent from declines in solid waste emissions, 23.8 percent from declines in transportation emissions, and the remaining reductions from other sources. In comparison to 2019, that is a 19.7 percent decrease in total community emissions. Staff recognizes that COVID-19 has brought disruption to cities and communities across the globe and greatly impacted daily life. The 2020 GHG inventory includes pandemic impacts - such as reduced vehicular traffic - resulting in emissions

9 Carbon dioxide equivalent is a unit of measure that normalizes the vary ing climate warming potencies of all six GHG emissions, which are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF 6). For example, one metric ton of nitrous oxide is 210 metric tons of CO2e.
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City of Palo Alto Page 5

reductions that may be temporary. Without the effects of the pandemic, emissions reductions from the 1990 base year would be closer to 41.5 percent versus the 50.4 percent figure.

A comparison of 1990, 2019, and 2020 GHG emissions is shown in Figure 1. The full 2020 GHG inventory can be found in Attachment A: 2020 Greenhouse Gas Inventory. A full comparison between the 1990 and 2020 inventories can be found in Attachment B: 1990 vs. 2020 Greenhouse Gas Emissions by Sector and Subsector.

Figure 1: 1990 vs 2020 GHG Emissions by Sector

As shown in Figure 2, the two largest categor ies of emissions are transportation and mobile sources (including on -road transportation, airport emissions, off -road vehicles, and Caltrain commuter rail) and natural gas use (including residential, commercial, and industrial). Of the remaining emissions sources as of 2020, roughly 56.1 percent are from on-road transportation,

34.7 percent are from natural gas use, and the remainder are from other sources.

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City of Palo Alto Page 6

Figure 2: 2020 GHG Emissions by Sector

Timeline
The S/CAP update time line is provided in detail in this report’s Discussion section. Community engagement and S/CAP Ad Hoc Committee and Council reviews are scheduled through September 2022, with Council adoption of the of the updated S/CAP expected in April 2023.

Resource Impact
Initiatives will be managed and funded across various departments and funds. Resources for some of the S/CAP initiatives are funded in current budgets ; however it is anticipated that significant investments will be needed to pursue the expansion of S/CAP work across the City.

Additional resources were approved by the City Council during the FY 2022 Mid -Year Budget Review. These investments reflect the highest impact resource requests related to S/CAP communications, beginning to address the impact of electric system infrastructure upgrades, and beginning to address non -residential building electrification. A net addition of 6.25 positions were approved as well as the reclassification of existing resources. - Public Works Office of Sustainability adjustments (1.25 FTE) included reclassifying a 0.75 2 Packet Pg. 12

City of Palo Alto Page 7

FTE Management Analyst position to a 1.00 FTE Manager Environmental Control Program and adds a 1.00 FTE Environmental Specialist position. This work will be supported by the General Fund and various Enterprise Funds. - The Utilities Department adjustments (5.00 FTE) included 1.00 FTE Electric Project Coordinator and 3.00 FTE Electric Project Engineers for increasing workload capacity in the Electric engineering and operations project management work functio ns; 1.00 FTE Utilities Programs Services Manager to focus on commercial energy efficiency and electrification; and 1.00 FTE Senior Engineer for technical oversight and scaling up the electrification program. The elimination of 1.00 FTE Metering Tech resulted in the addition of 5.0 positions to support S/CAP initiatives.

Staff is working with the Office of Management and Budget and the City Manager’s Office to bring forward recommendations related to S/CAP needs as part of the Fiscal Year 2023 Proposed Budget, but most will need to be prioritized in consideration of competing priorities.

Funding and resources will be discussed in greater detail with the S/CAP Ad Hoc Committee.

Policy Implications
The Earth Day Report aligns with one of the top four Counci l Priorities for CY 2022: “ Climate Change – Protection and Adaptation”.

Stakeholder Engagement
Stakeholder engagement on the S/CAP Update is wide -reaching and coordinated with multiple Departments. Efforts include direct engagement, webinars, social media outreach, website updates, Ad Hoc meeting participation, leveraging the City Manager’s communication platforms, and more. Staff developed, and is implementing, an S/CAP Engagement Plan which identifies relevant stakeholders, proposed materials, and desire d meeting milestones and outcomes. Stakeholder engagement is an integral part of the S/CAP Ad Hoc Committee’s mission and one of the four areas of focus of the Working Group Teams.

Environmental Review
Council’s review of this report is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). The final S/CAP Report will be evaluated consistent with CEQA prior to approval by the City.

Attachments:
• Attachment2.a: Attachment A: 2020 GHG Inventory
• Attachment2.b: Attachment B: 1990 vs 2020 GHG Emissions by Sector and Subsector
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Attachment A: Palo Alto’s 2020 Greenhouse Gas Emissions Inventory

1.a. Overview of Methodology for Quantifying Greenhouse Gas Emissions Cities represent the single greatest opportunity for tackling climate change, as they are responsible for 75 percent of global energy-related carbon dioxide emissions, mostly from transportation and buildings. The first step for cities to realize their potential is to identify and measure where their emissions come from. There are two types of Greenhouse Gas (GHG) emissions inventories:

1. Generation-based GHG inventory – This measurement method helps a community understand its level of emissions based on community energy use. It includes 1) direct consumption of energy, 2) consumption of energy via the electrical grid, and 3) emissions from the treatment/decomposition of waste. This is the industry-accepted methodology for quantifying community GHG emissions, with emissions reported by emission source category1.

2. Consumption-based GHG inventory – This measurement method helps a community understand its level of emissions based on consumption. It offers an alternative, more holistic, approach for quantifying emissions within a community, quantifying consumption of goods and services (including food, clothing, electronic equipment, etc.) by residents of a city, with emissions reported by consumption category.

Staff did not complete a consumption-based GHG inventory, though staff believes there would be value in completing one eventually. The California Air Resources Board (CARB) has been tasked with developing an implementation framework and accounting to track consumption- based emissions over time.2 In particular, this framework needs to address how to account for the embodied emissions in the food, goods, and services the community purchases that are not covered by generation-based GHG inventories. While Palo Alto will await State guidance on how to account for these consumption-based emissions reductions, the community can work to reduce these emissions in the meantime.

In 2014, World Resources Institute, C40 Cities Climate Leadership Group (C40) and ICLEI – Local Governments for Sustainability (ICLEI)3 partnered to create global standard protocol for GHG inventories. The official GHG Protocol standard for Cities,4 also known as GPC, provides a robust framework for accounting and reporting city-wide GHG emissions. AECOM utilized this framework when developing our 2020 GHG inventory. It seeks to:

1 There are two reporting frameworks commonly used by cities: the U.S. Community Protocol and the Global Protocol for Communities (GPC). Palo Alto uses the GPC framework. 2 Executive Department State of California. (2019). Executive Order B-55-18 to Achieve Carbon Neutrality. https://www.ca.gov/archive/gov39/wp-content/uploads/2018/09/9.10.18-Executive-Order.pdf. 3 Formerly the International Council for Local Environmental Initiatives, renam ed in 2003 to ICLEI – Local Governments for Sustainability.
4 The GPC is the official protocol specified by the Global Covenant of Mayors and defines what emissions must be reported and how.

2.a
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• Help cities develop a comprehensive and robust GHG inventory to support climate action planning
• Help cities establish a base year emissions inventory, set reduction targets, and track their performance
• Ensure consistent and transparent measurement and reporting of GHG emissions between cities, following internationally recognized GHG accounting and reporting principles
• Enable city inventories to be aggregated at subnational and national levels • Demonstrate the important role that cities play in tackling climate change, and facilitate insight through benchmarking – and aggregation – of comparable data Palo Alto’s first generation-based inventory was completed for 2005 and then extrapolated for 1990 (the baseline year). Beginning in 2010, new community GHG inventories were completed annually, enabling Palo Alto to track progress over time.

The 2020 Palo Alto GHG inventory uses the approach and methods provided by the GPC and was completed by AECOM. Inventory calculations were performed using the ClearPath5 tool.

The City’s GHG inventory conforms to the GPC Basic protocol.

The GPC Basic protocol describes three emissions scopes for community emissions:
• Scope 1: GHG emissions from sources located within the city boundary, such as stationary fuel consumption.
• Scope 2: GHG emissions occurring because of the use of grid-supplied electricity, heat, steam, and/or cooling within the city boundary
• Scope 3: All other GHG emissions that occur outside the city boundary as a result of activities taking place within the city boundary
This inventory follows the city-inducted framework in the GPC, which totals GHG emissions attributable to activities taking place within the geographic boundary of the city6. Under the BASIC reporting level as defined by GPC, the inventory requirements cover scope 1 and scope 2 emissions from stationary energy and transportation, as well as all emissions resulting from waste generating within the city boundary.

1.b. Palo Alto’s 2020 GHG Emissions
We recognize that these are unprecedented times created by the coronavirus pandemic.

COVID-19 has brought disruption to cities and communities across the globe. On March 16, 2020, six Bay Area Counties - including Santa Clara – issued coordinated shelter-in place orders that were not phased out until more than two months later. The shelter-in place order, as well as changes in how and where people worked, greatly impacted energy use, vehicle miles 5 https://icleiusa.org/clearpath/
6 https://ghgprotocol.org/sites/default/files/standards/GHGP GPC 0.pdf

2.a
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traveled, and carbon dioxide emissions. The 2020 inventory includes these pandemic impacts, resulting in emissions reductions that may be temporary.

In 2020, Palo Alto emitted an estimated 387,287 metric tons (MT) of carbon dioxide equivalent (CO2e) from the residential, commercial, industrial, transportation, waste, water, and municipal sectors.7 In comparison to the 1990 base year, that is a 50.4 percent decrease in total community emissions, despite a population increase of 21.8 percent during that same time period. Of that 50.4 percent reduction to-date, 47.3 percent came from achieving carbon neutrality for the City’s electricity portfolio, 15.2 percent from reduction in natural gas consumption, 12.3 percent from declines in solid waste emissions, 23.8 percent from declines in transportation emissions, and the remaining reductions from other sources. In comparison to 2019, that is a 19.7 decrease in total community emissions. Without the effects of the pandemic, emissions reductions would be closer to 41.5 percent.

Of the remaining emissions sources as of 2020, roughly 56.1 percent are from on-road transportation, 34.7 percent are from natural gas use, and the remainder are from other sources. A comparison of 1990, 2019, and 2020 GHG emissions is shown in Figure 1 and Table 1.

The full comparison between the inventories can be found in Attachment A: 1990 vs. 2020 Greenhouse Gas Emissions by Sector and Subsector. Additional existing emissions sources that were missing from the 1990 GHG inventory were included in the 2020 GHG inventory to comply with the GPC Basic protocol (Airport Emissions, Off-road Vehicles, Caltrain Commuter Rail, Composting, and Palo Alto Landfill Gas Flaring). As shown in Attachment A, a total of 25,150 MT CO2e was added from GHG emissions sources that were not included previously, accounting for

6.5 percent of total emissions.

Figure 1: 1990 vs 2020 GHG Emissions by Sector

7 Carbon dioxide equivalent is a unit of measure that normalizes the varying cli mate warming potencies of all six GHG emissions, which are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF 6). For example, one metric ton of nitrous oxide is 210 metric tons of CO2e.

2.a
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Figure 2: 2020 GHG Emissions by Sector
Transportation and mobile sources include emissions from private, commercial, and fleet vehicles driven within the City’s geographical boundaries, as well as the emissions from public transit vehicles and the City-owned fleet. Off-road vehicles include airport ground support, construction and mining, industrial, light commercial, portable equipment, and transportation refrigeration.

Natural gas use includes emissions that result from natural gas consumption in both private and public sector buildings and facilities, and residential, commercial, and industrial sources.

Fugitive Emissions related to natural gas consumption are calculated separately and are discussed in Section 1.d. The City’s electricity supply has been carbon neutral since 2013, when Council approved a Carbon Neutral Electric Resource Plan, committing Palo Alto to pursuing only carbon-neutral electric resources and effectively eliminating all GHG emissions from the City's electric portfolio.

1.c. Transportation and Mobile Sources
In 2020, transportation and mobile sources accounted for roughly 61.6 percent of total 2020 GHG emissions in Palo Alto. As shown in Table 2, transportation and mobile sources consist of:

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Department of Transportation traffic count data8 during the same two-week period starting the Tuesday after Thanksgiving, the data shows that in Santa Clara County, VMT dropped 23.4 percent in 2020 compared to 2019. While the traffic count data is for all of Santa Clara County and not exclusive to Palo Alto, the 23.4 percent reduction in VMT was used to estimate Palo Alto’s 2020 annual VMT. The VTA model used to calculate Palo Alto’s 2019 annual VMT is only updated every few years, so until the model is updated to better reflect changes in VMT due to the pandemic, we are limited in our options for modeling our VMT annually.

If we include the effects of the pandemic on VMT, on-road transportation accounts for approximately 56.1 percent of Palo Alto’s total emissions, with a 25.9 percent decrease from 2019 and a 34.5 percent decrease from 1990. However, these reductions are largely because of the pandemic and may be temporary. If we don’t adjust Palo Alto’s annual VMT to better reflect the effects of the pandemic on transportation, then on-road transportation would account for approximately 62.5 percent of Palo Alto’s total emissions, with a 2.9 percent decrease from 2019 and a 14.1 percent decrease from 1990.

Off-road transportation accounts for approximately 3.9 percent of Palo Alto’s total emissions, with a 2.7 percent increase from 2019. Off-road transportation emissions were not calculated in 1990. It is important to note that most of the off-road transportation emissions are based on models at the County level that were not adjusted to reflect any pandemic-induced activity changes.

Caltrain electrification is a key component of the Caltrain Modernization program9, with Caltrain scheduled to be electrified in 2023. Once the Caltrain Modernization program is complete, most of the Caltrain commuter rail emissions will be eliminated.

1.d Natural Gas Use
In 2020, natural gas emissions accounted for 34.7 percent of total 2020 GHG emissions in Palo Alto, with a 12.5 percent decrease from 2019 and a 30.7 percent decrease from 1990. As shown in Table 3, Palo Alto’s total natural consumption in 2020 was 25,267,739 therms. Residential energy accounts for 17.8 percent of total emissions, commercial energy accounts for 13.8 percent of total emissions, and industrial energy accounts for 3.1 percent of total emissions.

The pandemic drastically affected natural gas consumption. The temporary shelter-in place order, as well as changes in how and where people worked, resulted in major changes in the commercial and industrial sectors, with fewer people staying in hotels, going to restaurants, and going to retail establishments. Natural gas emissions decreased by 19,763 MT CO2e between 2019 to 2020, representing 20.1 percent of total emissions reductions.

City Council unanimously approved Palo Alto’s Carbon Neutral Natural Gas Plan on December 5, 2016. The Natural Gas Plan, implemented on July 1, 2017, achieves carbon neutrality for the gas supply portfolio by 1) purchasing high-quality carbon offsets equivalent to our City and

8 https://dot.ca.gov/programs/traffic-operations/census 9 https://calmod.org/

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2007 but has remained relatively flat the last few years. As part of the 2016 S/CAP Framework, Council adopted a goal of 95 percent diversion of materials from landfills by 203011.

Figure 3: Annual Diversion Rate Percentage

Solid waste emissions accounted for 1.7 percent of total 2020 GHG emissions in Palo Alto, which is an increase of 2 percent from 2019 and a decrease of 87.9 percent from 1990. It must be noted that solid waste emissions were calculated using a different methodology than 1990 for the 2020 GHG inventory.12 In addition, as shown in
Table 4, the 1990 inventory included Palo Alto Landfill Gas Fugitive emissions, whereas the 2020 inventory did not, and the 2020 inventory included composting emissions at the ZeroWaste Energy Development Company’s (ZWED) Dry Fermentation Anaerobic Digestion (AD) Facility in San Jose, CA, composting emissions at the Synagro El Nido Central Valley Composting (CVC) facility in Dos Palos, as well as Palo Alto Landfill Gas Flaring Emissions while the 1990 inventory did not. The increase in solid waste emissions from 2019 is due largely to the increase in composting emissions. The 2019 data source for ZWED compost feedstock is no longer available. The new data source shows an undercount of 2019 ZWED compost by more than double what was previously reported. In addition, compost emissions from wastewater sludge at Synargo was not included in previous GHG emissions inventories, since the wastewater sludge is a new source of emissions related to the decommissioning of the sewage

11 https://www.cityofpaloalto.org/civicax/filebank/documents/64814 12 The 1990 Solid Waste emissions were calculated using the EPA WARM methodolo gy, which includes lifecycle emissions and emissions from landfilling recyclable material; waste was landfilled inside and outside Palo Alto. The 2020 Solid Waste emissions were calculated using the ICLEI (Local Governments for Sustainability) ClearPath to ol, which includes composting and Palo Alto landfill gas flaring emissions; waste is landfilled and composted outside of Palo Alto and methane flared in closed landfill.

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City of Palo Alto (ID # 11097)
City Council Staff Report
Meeting Date: 4/11/2022
City of Palo Alto Page 1
Title: Approval of Contract Number C22181467 with Bureau Veritas Technical Assessments LLC, for an Amount Not to Exceed $359,779 for a City Facility Condition and Electrification Assessment and Use of Brightly Cloud -based Capital Planning Software, Capital Improvement Program Projects (PE -20002 and TE-13004) and Budget Amendments in the Electric Fund and Capital Improvement Fund.

From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that the City Council:
1) Approve and authorize t he City Manager or their designee to execute contract No.

C22181467 (Attachment A) with Bureau Veritas Technical Assessments LLC, for a not to exceed amount of $359,779 for professional services , including $327,072 for basic services and $32,707 for Additional Services by City -approved Task Order, for a City Facility Condition and Electrification Assessment and Use of Brightly (formerly Dude Solutions) Cloud-based Capital Planning Software -as-a-Service, Capital Improvement Program projects (PE-20002 and TE-13004); and
2) Amend the Fiscal Year 2022 Budget Appropriation for the:
a) Electric Fund by:
i) Increasing the Transfer to the Capital Improvement Fund appropriation by $29,887, and
ii) decreasing the ending fund balance by $29,887.
b) Capital Improvement Fund by:
i) Increasing the Transfer in from the Electric Fund estimate by $29,887, and ii) Increasing the City Facilities and Record Plan Management System project (PE - 20002) capital project appropriation by $29,887.

Background
The Kitchell Report conducted in 2008 was the last City-wide facility condition assessment . The American Public Works Association’s accreditation program includes performing facility condition assessments on a regular basis , and completing assessments on a 10 -year cycle is considered an industry best practice. By this standard, the City is overdue for a new condition 3 Packet Pg. 26

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assessment. In addition, previous assessment work has not included evaluating the potential for electrification of natural gas -burning equipment in alignment with the City’s Sustainability/Climate Action Plan (S/CAP).

Discussion
This contract for the City facility condition assessment will include a comprehensive forensic building evaluation that mirror s the City’s asset management hierarchy per American Society for Testing and Materials Uniformat II in all City facilities (Attachment B). The assessment will include 140 City facilities totaling over 2 million square feet , and 47 of those facilities will receive an electrification assessment.

The scope of services to be performed includes:

1. Corrective and deferred maintenance recommendations.

2. Preventative and keep-up maintenance recommendations.

3. Budget estimates for the corrective, deferred, keep-up and preventative maintenance.

4. Estimated schedule for the co mpletion of all recommended corre ctive work and preventative maintenance.

5. Calculation of facility current replacement values and associated facility condition indices.

6. Calculations of remaining lifespans of primary Mechanical, Electrical, Plumbing maintainable assets and remaining lifespa ns of all assets at both the individual and systems level.

7. Energy Efficiency Measures for all facilities with budgets and schedules.

8. Asset inventory of all maintainable equipment per the scope of work including permanent barcoding labels for use by facility staff in work order processes.

9. Capital recommendations for electrification at the 47 facilities receiving an electrification assessment.

10. Schedule and cost estimates for electrification of City facilities to achieve at least an 80 percent reduction in current natural gas usage by 2030.

California must rapidly decarbonize its buildings in order to meet its greenhouse gas (GHG) reduction goals. The City of Palo Alto has adopted a more aggressive timeline for decarbonization than the state. In April 2016, Palo Alto City Council unanimously adopted a goal of 80 percent GHG reduction by 2030 (the 80 x 30 goal), calculated utilizing the 1990 baseline (Staff Report ID# 6754 ). This ambitious goal is 20 years ahead of the State of California’s 80 percent by 2050 target, and in line with the carbon neutrality by 2045 goal. In 2019, Palo Alto reduced GHG emissions an estimated 38.2 percent from the 1990 baseline.

As the current ga s equipment in City facilities reach the end of their life span over the next ten years, they should be replaced with efficient electric alternatives whenever possible. This assessment will provide a scheduled cost estimate and a timeline for facilities where this electrification must occur to achieve 80 percent reduction in natural gas usage at City facilities by 2030.
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Bureau Veritas’s assessment services come with the use of Brightly (formerly Dude Solutions) cloud-based Capital Planning Software-as-a-Service (SAAS) to create detailed reports for “catch- up”, “keep-up” and “electrification” capital planning. Additionally , the Brightly Capital Planning Software has the ability t o be updated as future CIP projects are completed to repair and replace facilities as listed in their reports. Use of Brightly is provided pursuant to the agreement with Bureau Veritas during the term of this agreement only. For continued use after the te rm of this agreement, the City would need to contract separately for the Brightly SAAS.

This agreement is on the City’s professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the co ntractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non -appropriation of funds or amending the contract date to reduce the cost, for example, by reducing the scope of work. The contract may also be temporarily suspended by written notice of the City Manager.

Timeline and Next Steps
Staff anticipates the data collection, pilot assessment, full assessment and deliverables will take approximately one year to complete. The report’s recommendations will be used to develop capital budget recommendations for maintenance of City facilities.

Resource Impact
Based on the scope of the project, funding of $29,887 is recommended to be transferred from the Electric Fund to the City Facilities Assessment and Record Plan Management System (PE - 20002) capital project in the Capital Improvement Fund for the electrification study portion of the project . The remain ing funding is available in the following CIP projects: City Facilities Assessment and Record Plan Management System (PE -20002) and Infrastructure Management System (TE-13004).

The funding allocation is as follows:

Funding Source Contract Additional Services Total Encumbrance PE-20002 $272,690 $27,269 $299,959
TE-13004 $27,212 $2,721 $29,933
Electric Fund $27,170 $2,717 $29,887
Total $327,072 $32,707 $359,779

Stakeholder Engagement
Development of the scope of services for this project included engagement of staff from the following workgroups : Public Works Engineering Services, Facilities, Environmental Services, 3 Packet Pg. 29

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and Sustainability; Utilities Resources Management; and Real Estate Property Management.

Environmental Review
The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15306 of the CEQA guidelines.

Attachments:
• Attachment3.a: Attachment A: Bureau Veritas Technical Assessments LLC.

Contract, C22181467
• Attachment3.b: Attachment B: Facility List
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CITY OF PALO ALTO CONTRACT NO. C22181467

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND

BUREAU VERITAS TECHNICAL ASSESSMENTS LLC
This Agreement for Professional Services (this “Agreement”) is entered into as of the 22nd day of March, 2022 (the “Effective Date”), by and between the CITY OF PALO ALTO , a California chartered municipal corporation (“CITY”), and BUREAU VERITAS TECHNICAL ASSESSMENTS LLC, a Maryland Limited Liability Company, located at 10461 Mill Run Circle Suite 1100, Owings Mills, Maryland 21117 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS
A. CITY intends to conduct a City facility and electrification assessment (the “Project”) and desires to engage a consultant to provide such assessment and online-hosted software-as-a-service (“SAAS” as detailed more fully in Section 14 ) to facilitate the assessment process in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess 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, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in 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 March 6, 2023 unless terminated earlier pursuant to Section 19 (Termination) 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, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not sp ecified 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 CONSULTANT.

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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 shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not to exceed (NTE) Three Hundred Twenty-Seven Thousand Seventy -Two Dollars ($327,072). T he hourly schedule of rates , if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)

In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Thirty-Two Thousand Seven Hundred Seven Dollars ($32,707.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Three Hundred Fifty-Nine Thousand Seven Hundred Seventy-Nine Dollars ($359,779), as detailed in Exhibit C.

“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A . CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this S ection. Additional Services , if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4 .

CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.

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SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the S ervices performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of 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 invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess 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 subcontractors, if any, 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 Services to be furnished by CONSULTANT under this A greement 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 may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement , as amended from time to time . 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 c hange 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 the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject 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. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.

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CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.

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 approval of the C ity Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are:

Brightly (formerly Dude Solutions Inc.) , 11000 Regency Parkway, Suite 110, Cary, NC 27518

CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Matthew Anderson, 180 Promenade Circle, Suite 150, Sacramento, CA 95834, (800)733-0660, [email protected], as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day- to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s P roject Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute P roject Manager 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 CONSULTANT 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 Services or a threat to the safety of persons or property.

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CITY’s Project Manager is Murdo M. Nicolson Jr., Public Works Department, Engineering Division, 250 Hamilton Avenue, Palo Alto, CA , 94301, (650)617-3154, Email [email protected] CITY’s 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. INTELLECTUAL PROPERTY; DATA. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data , calculations, documents, and other materials and copyright interests developed under this Agreement, in any form or media, as unique to this engagement with CITY, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

14.1 Intellectual Property Rights in the SAAS . CONSULTANT and/or its licensor(s), as applicable, retain all right, title, and interest in and to the SAAS, further defined as the online-hosted SAAS to be provided by CONSULTANT to CITY and its Authorized Users (defined below) pursuant to this Agreement , as detailed in Exhibit A (“ Scope of Services ”), including without limitation all Software (defined below) used to provide the SAAS and all graphics, user interfaces, logos, and trademarks reproduced through the SAAS . This Agreement does not grant CITY any intellectual property license or rights in or to the SAAS or any of its components or any Documentation (defined below) except those expressly granted herein. CITY recognizes that the SAAS and its components and the Documentation are protected by copyright and other laws. “Software” means the online-hosted computer software application(s) residing on CONSULTANT-provided servers that CONSULTANT uses to provide to CITY the S ervices detailed in this Agreement, and that CONSULTANT makes digitally accessible to the CITY and its Authorized Users via the internet. “Documentation” means the technical publications relating to the use of the SAAS , such as reference, installation, administrative and programmer or user manuals, made available by Contractor to CITY.

14.2 Grant of Right to Use the SAAS. Subject to the terms of this Agreement, CONSULTANT hereby grants to CITY a non-exclusive, non-assignable license to access and use the SAAS for the term of this Agreement as contemplated herein . The license granted to CITY hereunder includes the right to provide to the CITY’s A uthorized Users access to the SAAS in accordance with this Agreement. “Authorized User” means all persons holding a valid ID and password issued by the CITY pursuant to thi s Agreement. CONSULTANT warrants that it has the right to provide access to the SAAS to CITY pursuant to this Agreement, that CONSULTANT has obtained any and all necessary permissions from third parties to provide the SAAS , and that use of the SAAS by CITY and its Authorized Users in accordance with the terms of this Agreement shall not infringe the copyright of any third party.

14.3 Ownership of Data; Grant of License to City Data . The parties acknowledge and agree that CITY owns the City data, content, documents, materials and other information, in any format or media, collected, stored, imported or inputted into, or gathered by, the SAAS, including without limitation data from third parties (“City Data”); that the CITY has a right to control, access and retrieve City Data at any time during the term of the Agreement, in computer-readable format. The CITY hereby grants to CONSULTANT and its subcontractors, if DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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any, the limited, non- exclusive, non-transferable, revocable rights to access and use City Data during the term of this Agreement solely for the purposes of performing CONSULTANT’s obligations to CITY hereunder and supporting CITY’s use of the SAAS hereunder, as well as to generate aggregated, system-wide collations of industry and business data in a non-attributed, non- identifiable manner for product improvement and product creation that does not identify CITY or detail of its particular data , and as is otherwise expressly permitted under this Agreement. This Agreement does not grant CONSULTANT or it s subcontractors, if any, any intellectual property license or rights in or to the City Data except those expressly granted herein. Upon termination or expiration, if CITY will leave the SAAS , CONSULTANT and CITY shall work together to provide CITY with a copy of City Data in mutually -agreed computer-readable format(s). CITY shall have the option to choose from one of several methods to obtain a copy of City Data. Once such data has been provided to CITY, CONSULTANT shall use , or cause to be used, industry- standard secure means of destruction or erasure of any City Data remaining in its possession and, at the CITY’s request, certify the same.

14.4. Data Security. CONSULTANT will maintain, or cause to be maintained, a data security program for the SAAS that will include reasonable administrative, physical, technical, organizational and other security measures to protect against unauthorized access to, or destruction, loss, unavailability or alteration of, any City Data accessed by CONSULTANT and its subcontractors, if any, in the performance of this Agreement including without limitation City Data processed or stored by the SAAS.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier te rmination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party 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 attorney’ s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under thi s Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

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. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or parti al exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

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, entitled “INSURANCE REQUIREMENTS”. 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 a ll 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 th e 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 days of the CONSUL TANT’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 require d 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.

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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. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination , CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT wi ll deliver to the City Manager on or before the effective date in the n otice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the 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 S ervices provided in material conformity with this Agreement as such determination is 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, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.

19.4. 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, unless made in accordance with Section 17 (Waivers).

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
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303

With a copy to the Purchasing Manager

To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.

CONSULTANT shall provide written notice to CITY of any change of address.

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SECTION 21. CONFLICT OF INTEREST.

21.1. In executing 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 thi s Agreement, it will not employ subcontractors or other persons or parties 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, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.

21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

22.1. As set forth in Palo Alto Municipal Code S ection 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregna ncy, genetic information or condition, 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.

22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as 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, C ONSULTANT shall comply with the following Zero Waste requirements:

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(a) All printed materials provided by CONSULTANT to C ITY 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 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 C ONSULTANT 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 Department’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 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 Cit y, 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. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code , as amended from time to time. 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 S ection shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.

26.1. This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations.

CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY 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, c lassification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq. ), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.) , as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E , entitled “ DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance , including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR.

SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. ( Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

This Project is not a Public Contract Code Section 9204 Public Works Project.

SECTION 28. CONFIDENTIAL INFORMATION.

28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.

CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.

Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreeme nt and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentia lity obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.

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Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.

28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requ irements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.

28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.

28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.

SECTION 29. MISCELLANEOUS PROVISIONS.

29.1. This Agreement will be governed by Ca lifornia law, without regard to its conflict of law provisions.

29.2. 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.

29.3. 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.

29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement expressly supersedes any click-through, click-on, “screen wrap” or other user agreement that may appear on the SAAS application /website. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.

29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.

29.6. In the event of a conflict between the terms of this Agreement and the DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.

29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.

29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.

29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.

SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:

EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
EXHIBIT F: CYBERSECURITY TERMS AND CONDITIONS
APPENDIX A: FACILITY LIST
APPENDIX B: CLASSIFICATION OF BUILDING ELEMENTS – MODIFIED

UNIFORMAT

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

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CONTRACT NO. C22181467 SIGNATURE PAGE

IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.

CITY OF PALO ALTO

City Manager

APPROVED AS TO FORM:

City Attorney or designee

BUREAU VERITAS TECHNICAL

ASSESSMENTS LLC

Officer 1

By:_____________________________

Name:

Title:

Officer 2

By:

Name:

Title:

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Erik Piller
Matt Munter
EVP

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EXHIBIT A

SCOPE OF SERVICES

CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.

Task 1 Facility Condition Assessment (FCA) and Report

Consultant shall provide comprehensive Facility Condition Assessments via detailed inspections and assessments of all facilities to produce an accurate analysis that identifies visible and discernable (through non-destructive means) components and elements requiring maintenance or other planned action. Inspections and assessments shall be done by architectural and engineering professionals or other equivalent facility assessment professional s, such as building surveyors , utilizing the UNIFORMAT II Elemental Classification for Building Specifications, Cost Estimating and Cost Analysis , as used in American Society for Testing and Materials ( ASTM) Facility Assessment Standards as modified to mat ch the City of Palo Alto’s asset hierarchy per Appendix B (Classification of Building Elements – Modified Uniformat).

1.1 On Site Facility Condition Assessment

A. Conduct a detailed on -site facility condition assessment for each facility and infrastructure in the City of Palo Alto. The assessment should be structured and include all necessary information to assign an industry standard building system classification.

B. The on-site assessment will include entering accessible crawl spaces and attic spaces.

Crawl spaces and attic spaces which have suspected environmental hazards will not be entered without approval of the City.

C. The on-site assessment will be performed using both component-level and system-level inspection methods. The assessment team (s) will evaluate each asset to determine whether there is sufficient evidence to warrant complete replacement of the system, or if repairing only portions of the system is preferable or more cost effective.

D. Example: Assessment may indicate the need to r eplace all the windows in a facility, instead of repairing various windows throughout the facility; or that electrical capacity needs to be increased to meet the current and anticipated future needs at a facility.

E. The following minimum assessments will be accomplished:

a. Identify all maintenance, repair, and replacement requirements including recommendations for green or more efficient operations.

b. Recommend upgrades and improvements where applicable, considering efficiency and environmental improvements.

c. Assess real property such as buildings, structures, and utilities and their integral components/systems.

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d. Perform a thorough visual assessment of all architectural, civil/structural, mechanical, electrical, fire, plumbing, and sewer components/systems of each facility.

e. Identify and report all civil, structural, roofs, mechanical and electrical deficiencies and recommended upgrades and improvements.

f. Identify and immediately report to the City components or situations that are considered urgent (endangering life and/property).

g. Document the assessment with high resolution images related to the infrastructure conditions and improvements needed per taining to catch -up or keep-up work.

1.2 This facility condition assessment will focus on the following asset hierarchical system order matching the asset systems in Maintenance Connection (a City of Palo Alto software system).

1. ADA Systems (ADA): This system includes accessible ramps, doors, sidewalks, bathroom stalls, ingress/egress, handicapped accessibility, compatibility, codes and regulations. The ADA systems have been identified in 2019 through the City of Palo Alto’s ADA Transition Plan cost ana lysis and replacement recommendations. The Consultant will not assess ADA Systems, but shall incorporate the findings from the ADA Transition Plan into the assessment of each City facility.

2. Electrical Systems (ES): This system contains all exterior and interior lighting, fuse panels/boxes, GFCI, power sources, conduit, wiring, electric base board heaters, light posts, emergency generators and solar systems.

3. Exterior Envelope Systems (EE): This system consists of doors, roll up doors, windows, siding, keys and locks, and all exterior surface coatings.

4. Fire and Life Safety Systems (FLS): This system includes emergency egress lighting, fire extinguishers, fire suppression systems, defib units, fire axes, safety signage, smoke and CO2 alarms/detectors.

5. Interior Systems (IS): This system includes flooring, interior doors, keys and locks, some interior partitioned windows, interior walls, ceilings and furniture.

6. Mechanical Systems (ME): This system pertains to all HVAC related equipment, air compressors, hot water tanks, exhaust, fans, vents and heating.

7. Other Systems (OT-B): This system includes rodent control, general cleanliness issues, porta potties and other unforeseen items that cannot be classified into the other systems

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8. Plumbing Systems (P L): This system includes all piping pertaining to plumbing fixtures, supply lines, all bathroom fixtures including sinks, toilets, urinals, faucets and drinking fountains.

9. Roofing Systems (R): This system includes sub roofing, roof coatings, sheet metal edging, roof penetrations, roof structures, dormers and all gutters.

10. Site Work Systems (SW): This system involves everything outside and surrounding the building as a means of access, including utilities, sidewalks, signage, fencing, irrigation, storm wate r, retaining walls, sanitary sewer/drainage systems, erosion control, landscaping, and lighting systems.

11. Structural Systems (SS): foundations, basements, slabs, framing, steel columns, rafters and beams.

12. Conveyor Systems (CS): This system includes elevators, library book deposit systems, dumbwaiters.

1.3 Inventory and asset tag all maintainable equipment and systems with barcodes within each building sorted by the asset hierarchical order. This needs to be performed to verify the assets in Maintenance Co nnection are accurately entered into the system. The data collected will be uploaded into the bulk upload template for Maintenance Connection for all inventoried assets per the locations as listed on Facility list:

1. Equipment Type

2. Location

3. Function and area served

4. Manufacturer

5. Model Number

6. Serial Number

7. Capacity if applicable

8. Estimated remaining life

9. Cost to replace or repair

1.4 Maintainable equipment includes but is not limited to the following types of items:

1. Boilers

2. Chillers

3. Cooling Towers

4. Package HVAC Units

5. Major Exhaust Equipment

6. Hot Water Heaters (electric and gas)

7. Air Handling Units and Controls

8. Commercial Overhead Doors/Sliders

9. Emergency Generators

10. Electric Vehicle Charging Stations

11. Drinking Fountains

12. Fire, Life, Safety Equipment: AED’s
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1.5 Analysis of Facility Condition Assessment: The contractor shall evaluate, analyze and provide projections for the following areas:

1. Deficiency costs summarized by building system across all facilities.

2. Deficiency costs summarized by Priority across all facilities.

3. Deficiency costs summarized by Asset Hierarchical Type across all facilities.

4. Deficiency costs summarized by Category type across all facilities.

5. Calculation of the Facility Condition Index (FCI) for each facility.

6. Multi-year annual expenditure forecast for each facility.

1.6 The contractor shall develop a thirty -year expenditure plan, which is a schedule of all capital expenditures and actions required to maintain and repair facilities, including projects developed during the analysis of facility condition information, unconstrained by available funding limitations.

1.7 Deficiency Priorities: Each deficiency and project shall include the following decision - making classifications prioritizing each action according to its criticality and classification type:

Priority 1 Currently Critical: A corrective action plan is needed. Conditions in this category require immediate action to:
• Correct a cited safety hazard
• Stop accelerated deterioration
• Return a facility or equipment to operation

Priority 2 Potentially Critical: A corrective action plan is needed. Conditions in this category, if not corrected expeditiously, will become critical within a year. Situations within this category include:
• Intermittent operations
• Rapid deterioration
• Potential life safety hazards

Priority 3 Necessary - Not yet critical: Conditions in this category require appropriate attention to preclude deterioration or potential downtime and the associated damage or higher costs if deferred further.

Priority 4 Recommended: Conditions in this category include items that represent a sensible improvement to existing conditions. These are not required for the most basic function of the facility.

Priority 5 Appearance: Conditions in this category include finishes that have deteriorated and are required to maintain the required aesthetic standards.

Priority 6 Does Not Meet Current Codes/Standards - “Grandfathered”: Conditions in this category include items that do not conform to existing code, but are “gra ndfathered” in their condition. No action is required at this time, but should substantial work be undertaken in contiguous areas, certain existing conditions may require correction to DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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comply with current code standards.

1.8 Each deficiency identified in the assessment shall be classified in the following:

Category 1 – Security/Safety: When a system requires replacement due to a security or safety risk.

Category 2 - Scheduled Maintenance (Keep -Up): Maintenance that is planned and performed on a routine basis to preserve the condition.

Category 3 - Deferred Maintenance (Catch -Up): Maintenance that was not performed when it was scheduled or is past its useful life resulting in immediate repair or replacement.

Category 4 - Capital Renewal (New): Planned replacement of building systems that have reached the end of their useful life.

Category 5 - Energy & Sustainability : When the repair or replacement of equipment or systems are recommended to improve energy and sustainability performance.

1.9 Facility Condition Assessment Report: Using the data collected during the on- site facility condition assessment and analysis phase, the contractor shall provide a separate comprehensive condition assessment report for each facility. The reports shall contain the following minimum information:

a. Capital requirement costs summarized by building system across all facilities.

b. Capital requirement costs summarized by Priority across all facilities.

c. Capital Requirement costs summarized by Category type across all facilities.

d. Multi-year annual expenditure forecast for each facility.

e. A detailed description of building assets and equipment detailing the observed condition and deficiency cause providing recommendations to correct the deficiency

f. A list of the information provided and collected for each asset, such as equipment type, manufacturer, model number, serial number, capacity and year installed.

g. Digital photographs for each facility and each piece of equipment inventoried.

Exterior photographs will be used for identification and documentation of structural problems, major deficiencies or special conditions. Interior photographs will be used to document critical or unusual conditions. Photographs will be used to explain and/or justify the prioritization of corrective actions.

h. A schedule of annual forecast expenditures itemizing each deficiency against each asset classification of the total cost for the actions required to correct the deficiencies for each facility by building system.

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1.10 Review existing facility condition data, including information provided in the following reports (uploaded to Planet Bids under separate cover):
1) Kitchell Assessment 2009 APWA 40.4
2) Catch-Up Work, Capital Maintenance Report (FY2021)
3) Keep-Up Work, Capital Maintenance Report (25 years)
4) CIP Cost Tracking Report

1.11 Evaluate and document physical conditions, asset effective age, code related deficiencies, estimated remaining service life and determine corrective measures for facilities.

1.12 Provide detailed high-resolution photos of deferred maintenance, such that they are stored and named in a manner that matches the unique identification system as used in Maintenance Connection.

1.13 Prepare preventive maintenance recommendations for facilities.

1.14 Provide budget estimates for all recommended corrective and preventative maintenance measures.

1.15 Provide projected schedule for the completion of all recommended corrective and preventative maintenance measures.

1.16 Deliver electronic and hard copy report with findings and recommendations

1.17 Provide a detailed asset inventory and condition analysis of all major Mechanical, Electrical and Plumbing elements (e.g. size, age, condition, capacity). During the inventory process, the assets shall be tagged with barcodes, for use with Maintenance Connection.

1.18 Provide a detailed summary of the energy efficiency of all gas burning equipment in comparison to the existing building electrical capacity. Current energy consumption per facility will be provided by Staff.

1.19 Special Conditions and Exclusions: Generally, and unless otherwise noted as additional services in the contract:

a. The Facilities Condition Assessment shall not include scientific equipment, furniture or moveable equipment.

b. The Facilities Condition Assessment shall not include Americans with Disability Act requirements (ADA), as that was assessed previously.

c. The Facilities Condition Assessment shall not include asbestos inspection.

d. The Consultant must conduct ALL work of the Facilities Condition Assessment in a manner that is sensitive to the operations, activities and needs of the City of Palo Alto’s staff and occupants.

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e. The Facilities Condition Assessment will not require any dig ging, demolition, disassembly or special testing equipment.

f. If required, the Consultant’s FCA team shall be able to lift ceiling tiles, open access doors or move building components in order to perform the Work. All items that are opened or moved must be returned immediately to its original condition without damage upon completion of the inspection.

Task 2 Electrification Assessment (EA) and Planning

2.1 Evaluate and document physical conditions, each asset’s effective age and estimated remaining lifespans of gas burning assets.

2.2 Evaluate information provided by City on current natural gas usage for each facility.

2.3 For each facility, evaluate and propose energy efficient electric equipment as replacement for current natural gas equipment, including estimating the anticipated electricity usage.

2.4 For each facility, evaluate the existing electrical systems and capacity to determine any necessary upgrade to support electrification.

2.5 For each facility, determine recommended locations for new electrical equipment and identify any space or structural constraints and any required improvements (e.g. rooftop heat pump equipment may exceed allowable structural loading and require retrofit).

2.6 Using information gathered and summarized from 2.1 through 2.5, develop a plan for electrification that results in an 80 percent reduction in natural gas usage at City facilities by 2030, including the following for each facility:

a. Electrical equipment types recommended
b. Electrical capacity and any necessary upgrades
c. Any structural upgrades necessary
d. Natural gas usage reduction for each facility (Therms/Year) e. Cost estimate for equipment, installation, and other costs such as electric and/or structural upgrades needed to support electrification
f. Operating cost impacts including change in energy costs and maintenance impacts g. Incremental capital cost of electrification in comparison to “ business as usual” replacement of existing systems at their end-of-life

Task 3 Capital Planning Software (also referred to in this Agreement at the “SAAS”)

3.1 In performing the Services, the Consultant will utilize, and provide access to the City and its Authorized Users to utilize, Brightly software (formerly Dude Solutions ), a capital planning cloud-based software-as-a-service (also referred to in this Agreement as the “SAAS”) provided by Consultant from its subcontractor, Brightly (formerly Dude Solutions, Inc.). This software will meet the needs of the Facility Condition Assessment (FCA), the Electrification Assessment (EA) , and other services detailed in this Scope of DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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Services. This software combines all the da ta and analysis included in this Scope of Services in all phases of this project and the software shall be able to:

a. Ensure estimate accuracy with industry cost and benchmarking data, such as RS Means®, BCIS, and BOMA to ensure reliable cost projections for deferred maintenance and systems renewal.

b. Will employ multiple cost sources within the software, including third-party solutions and your own cost estimation data.

c. Will streamline cost estimation with a library of building and syste m model templates to estimate the cost of capital asset renewal and replacement.

d. Will estimate system renewal costs and timelines based on both observed condition and asset age.

e. Will forecast long -term costs and explore the impact of different spending levels on facility conditions.

f. Will create multi-year budgets based on organization-wide priorities and strategies.

g. Will develop multiple ranking strategies for different types of assets and compare various budget scenarios, including baseline, deep energy retrofit, and conventional energy retrofit.

h. Will evaluate different project scenarios and develop cost -effective capital projects from prioritized capital needs and from prioritized sustainability goals of the City of Palo Alto.

i. Will benchmark progress using industry - standard benchmarks, such as the Facility Condition Index (FCI), Extended Facility Condition Index (EFCI), Facility Needs Index (FNI) and to compare assets across a portfolio or against industry standards.

j. Will evaluate and prioritize green options by incorporating sustainability requirements into long-term capital plans that meet the needs of the City of Palo Alto’s Electrification and SIP goals.

k. The Consultant will provide an integration between the Capital Planning Software and Maintenance Connection, the City of Palo Alto’s Infrastructure Management System.

The City of Palo Alto may choose to pass one or more Capital Requirements (deficiencies) from the Capital Planning Software to Maintenance Connection to create an associated Work Order. While the Work Order is being executed and completed, the Capital Planning Software will be updated with the work order status and cost. When the Work Order is closed in Maintenance Connection, the Capital Requirement (deficiency) in the Capital Planning Software will be closed, and the FCI will be updated, if applicable.

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3.2 Discovery Workshop: The Consultant will conduct a discovery workshop to assist the City of Palo Alto in determining whether additional software functionality is required. The Consultant will provide recommendations and estimated additional costs for the additional software functionality as a deliverable of the workshop. If City will add any such additional software functionality and if such added functionality will be at an added cost to the City, the Parties shall either add such functionalities and costs pursuant to a Task Order as detailed in Section 4 (Not to Exceed Compensation) of this Agreement, or pursuant to a written amendment to this Agreement in accordance with Section 29.4 herein.

3.3 The Consultant will provide onsite training of City staff to sufficiently utilize the software and to provide annual Services.

3.4 Pursuant to this Agreement, included as a part of the Services at no additional cost, Consultant will provide access to and use of the software for City and its Authorized Users, including:
i) Annual licensing to access and use the software
ii) Annual support for the software
iii) Annual maintenance and updates for the software

3.5 At the conclusion of this Agreement , the City may choose to enter into a software-as-a- service (SaaS) contract with Brightly (formerly Dude Solutions ) for continued access to the software if the City chooses.

3.5 Acceptance Testing

i. The Ci ty anticipates performing formal acceptance testing of all deliverables obtained from Consultant. This acceptance testing will begin upon formal written notification from Consultant to the City that a deliverable has been completed and is ready for testing. Upon receipt of this notification, the City will have fifteen (15) days in which to complete the acceptance testing for the FCA, EFCI, FNI, FNI(e) and all reports deliverables in section 4.0.
ii. In the event the City determines that a deliverable does not m eet the requirements as defined in the contract documents and project documentation, the City will notify Consultant of such in writing, at which time acceptance for that specific deliverable will be suspended. Brightly (formerly Dude Solutions , Inc.) will then have thirty (30) days to satisfy the deficiency, at which time a new acceptance testing period for that deliverable will be available for the City to review the corrections to said deliverable.

Task 4 Deliverables

4.1 Facilities Condition Assessment Report (FCAR) Outline: The Outline and contents of the Facilities Condition Assessment Report (FCAR) shall be as follows.

A. FCAR Cover Sheet: Provide a Cover Sheet that identifies the Facilities Condition Assessment Report, including:

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i. Facilities Condition Assessment Report (Title)
ii. Photo of facility (Satellite or Elevation)
iii. Institution’s Name
iv. Name of project, Address (City-State-Zip Code)
v. Current Date of Report
vi. FCA Vendor Information (Name, Address, Telephone Number, Preparer)

B. Table of Contents: Provide a Table of Contents that includes all components of the Facilities Condition Assessment Report.

C. Executive Report Cover Sheet: Provide a Cover Sheet for the Executive Report that includes:
i. Division I - Executive Report
ii. City of Palo Alto
iii. Name of project, Address (City-State-Zip Code)
iv. Current Date of Report
v. FCAS Vendor Information (Name, Address, Telephone Number, Preparer vi. Elevation Photo of each facility

D. Executive Report per Facility

a) The Executive Report of the Facilities Condition Assessment Report is for the City of Palo Alto. It shall be in accordance with the “Facilities Condition Assessment Report Template”. The information, data and metrics shown in the template are not factual and are for reference only. The Consultant must not deviate from the template’s outline, category, exhibits and appendices.

b) The Executive Report shall be a summary of the Facilities Condition Assessment that includes observations, results and conclusions that describe the current physical condition of the facility, identify and prioritize the critical deficiencies, recommend corrective action, estimate associated costs and provide other relevant data and metrics pertaining to the facility.

c) The Executive Report shall contain information that is accurate, useful and reliable in order to aid the City of Palo Alto in the forecasting, planning and budgeting the repairs, replacements and maintenance needs for the facility for the next thirty (30) years at a minimum.

d) The Executive Report shall describe the level of maintenance and custodial care of the facility according to the Public Works facility Project managers reports.

e) An individualized chart per facility that plots FCI and EFCI versus Building age, that highlights the area to show the “extended Life of a building” by plotting:

1. Facility condition without scheduled maintenance.

2. Facility condition with the scheduled maintenance in the report.

3. An FCI or EFCI of .9 indicates building replacement is needed.

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f) The outline for the Executive Report shall be as follows:

1. General Description: Provide a narrative containing the facility’s name, location, type, square footage, use, age, other attributes and pertinent and historical information describing the facility.

2. General Physical Condition: Provide the overall condition of the facility components and systems describing any Capital improvement and Maintenance critical needs with an estimated cost of repairs and replacements for the next thirty years.

3. Priorities 1 And 2 Needs: Identify and describe all critical Priority 1 & 2 deficiencies, provide corrective actions and associated estimate of costs.

4. Recommendation for Additional Investigations: Identify any facility component or system that the Field Inspector observes may cause concern regarding the soundness of the structure, the systems, and/or threats to the overall health and safety of the occupants, if left uncorrected. and for those that would be improvements through Sustainable methods.

5. Recent Capital Improvements: Describe any recent capital improvements including the year and associated costs as provided by City staff.

6. Current Replacement Value (CRV): Provide current replacement value of the property or facility using one of the accepted methods for calculating the value.

7. Exhibits: Fully complete the following exhibits. Do not modify exhibits. i. Exhibit A Facility Information Form
ii. Exhibit B List of Deficiencies – By Priority & Building Components iii. Exhibit C-1 30-Year Projected CIP Expenses – By Year and/or 5 year increments out 30 years
iv. Exhibit C-2 30-Year Projected Maintenance & Other Expenses – By Year and/or 5 year increments out 30 years
v. Exhibit D Recommendations for Additional Investigations vi. Exhibit E Special Reports (If Applicable) Appendices: Fully complete

8. Appendix A (Facility List) for all recommended CIP Expenses and Appendix B for all recommended Maintenance and Other Expenses (OE) for the next 30 years. Provide estimates of costs for each recommended item. Provide Special Reports for applicable items.
i. Appendix A 30-Year Projected CIP Expenses
ii. Appendix B 30-Year Cost Projected Maintenance & Other Expenses

9. Provide the calculated FCI, EFCI and FNI for each facility.

10. Include photos of all Level 3 and Level 4 UNIFORMAT II deficiencies per DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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facility.

E. Executive Summary Report for all Facilities

1. Provide a detailed summary report for all facilities per 4.1.D above, that is sorted and summarized by:
a. Asset Hierarchy per 1.2 above.
b. Building type as utilized in the CRV calculations
c. Per the condition index scores: FCI, EFCI and FNI

2. A summary table of FCI, age of building, remaining service life (years) with no maintenance and extended service life (years) with “catch-up” and “keep-up”.

F. Electrification Assessment Report

1. Scenario 1: Schedule and cost estimates for electrification of City facilities to achieve at least an 80 percent reduction in current natural gas usage by 2030. This assessment will provide a scheduled cost estimate and a timeline of what facilities this electrification must occur at to achieve the goals of the SCAP per this scenario.

2. Scenario 2: Schedule and cost estimates for electrification of City facilities to achieve at least a 40 percent reduction in current natural gas usage by 2030 and a 80 percent reduction in current natural gas usage by 2040. This assessment will provide a scheduled cost estimate and a timeline of what facilities this electrification must occur at to achieve the goals of the SCAP per this scenario.

3. A report of each facility detailing current gas burning assets:
(i) Electrical equipment types recommended
(ii) Electrical capacity and any necessary upgrades
(iii) Any structural upgrades necessary
(iv) Natural gas usage reduction for each facility (Therms/Year) (v) Cost estimate for equipment, installation, and other costs such as electric and/or structural upgrades needed to support electrification (vi) Operating cost impacts including change in energy costs and maintenance impacts
(vii) Incremental capital cost of electrification in comparison to “business as usual” replacement of existing systems at their end-of-life

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. ( AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $

5. BUDGET CODE

COST CENTER

COST ELEMENT

WBS/CIP
PHASE

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any):

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

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EXHIBIT B

SCHEDULE OF PERFORMANCE

CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified in the table below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.

Milestones
Correlation to
Exhibit A (Scope
of Services)
Completion
No. of Days
from NTP

1. Consultant will work with the Client’s designated Project Manager to facilitate a Kick-Off Meeting and prepare themselves and the Client’s project team for data gathering and the upcoming workshop activities.

Task 1.1 – 2.6 20 days

2. Kick-off Meeting and selection of Pilot Project building Task 1.1 – 2.6 40 days

3. Pre workshop Preparation: Data gathering and review for workshop, review of ADA Transition plan, decision support processes, capital plans, capital work reports, assessment reports, and other information that will be beneficial to the project outcomes. Software installation requirements will be reviewed during the Kick-Off meeting, and access to DSI online Capital Predictor Enterprise resources will be provided.

Task 1.1 – 2.6 70 Days

4. Assessment of Pilot Project Building for both Facility Condition Assessment and Electrification Assessment
Task 1.1 – 2.6 100 Days

5. Pilot Project Draft Report of Deliverables for FCA and EA Task 1.1 -4.1 120 Days

6. Pilot Project Final Approval Task 1.1 -4.1 130 Days

7. Full Assessment of all Buildings, for Facility Condition Assessment scope
Task 1.1 – 1.19 180 Days

8. Full Assessment of all buildings per Electrification Assessment Scope Task 2.1 – 2.6 190 Days

9. Asset Inventory Report and Asset Tagging Task 1.1 – 1.19 220 Days

10. Draft final report of Facility Condition Assessment and electrification assessment
Task 4.1 250 Days

11. Lifecycle Model Training and Model Building Workshop using Brightly (formerly Dude Solutions) capital predictor software Task 3.1 – 3.5 275 Days

12. Final report of Facility Condition Assessment and electrification assessment
Task 4.1 300 Days

13. Consultant to provide final report for Council Task 1.1 – 4.1 360 Days

Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)

The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on -call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.

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EXHIBIT C

COMPENSATION

CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as E xhibit C-1 up to the not to exceed budget amount for each task set forth below.

CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below , provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.

CONSULTANT agrees to complete all Services , any specified reimbursable expenses, and Additional Services (if any, per Section 4) , within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.

BUDGET SCHEDULE
TASK
Correlation to
Exhibit A (Scope of
Services)
NOT TO
EXCEED
AMOUNT
Facility Condition Assessment and Report
Pilot Program: CONSULTANT will perform an assessment of a single building and prepare a written Draft Report for review that meets the scope of work for both the FCA and EA.

Task 1.1 – 2.6 $30,000.00
CONSULTANT Assessment Team will conduct a walk-through survey of all facilities and site to observe systems and components, identify physical deficiencies, and formulate recommendations to remedy the physical deficiencies, perform inventory and barcoding per the scope of work.

Task 1.1 – 2.6 $111,889.00
Delivery of all Facility Condition Assessment reports per the scope of work. Task 4.1 $100,000.00
Electrification Assessment and Planning
Perform the electrification assessment and planning at the facilities with GHG consuming equipment per the scope of work. Task 2.1 – 2.6 $30,000.00 Delivery of the Electrification Assessment reports per the scope of work. Task 4.1 $22,940.00 Capital Planning Software
Consultant use of CPS per Exhibit A (Scope of Services) Task 3.1 - 3.5 $19,400.00 Year 1: Prorated license fee (11/1/22-6/30/22) Task 3.1 – 3.5 $12,843.00 Subtotal for Services $327,072.00
Reimbursable Expenses (if any) $0
Total for Services and Reimbursable Expenses $327,072.00 Additional Services (if any per Section 4) $32,707.00
Maximum Total Compensation $359,779.00
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REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses , such as administrative, overhead, administrative support time /overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in -house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

Reimbursable expenses, if any are specified as reimbursable under this section , will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.

EXHIBIT C-1

SCHEDULE OF RATES

CONSULTANT’s schedule of rates is as follows:

Team Role Hourly Rate
Project Executive $ 175.00
Program Manager $ 135.00
Project Manager I/Assessor $ 115.00 Project Manager II/Assessor/CASp $ 125.00 Quality Control Manager $ 135.00
Technical Report Reviewer $ 105.00 Administrative $ 60.00

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EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS 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, LICE NSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.

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

TECHNOLOGY ERRORS AND OMISSIONS
LIABILITY COVERAGE. THE POLICY SHALL AT A

MINIMUM COVER PROFESSIONAL MISCONDUCT

OR LACK OF REQUISITE SKILL FOR THE

PERFORMANCE OF SERVICES DEFINED IN THE

CONTRACT AND SHALL ALSO PROVIDE
COVERAGE FOR THE FOLLOWING RISKS:
(i) NETWORK SECURITY LIABILITYARISING

FROM UNAUTHORIZED ACCESS TO, USE OF, OR

TAMPERING WITH COMPUTERS OR COMPUTER

SYSTEMS, INCLUDING HACKERS, EXTORTION,
AND
(ii) LIABILITY ARISING FROM

INTRODUCTION OF ANY FORM OF MALICIOUS

SOFTWARE INCLUDING COMPUTER VIRUSES

INTO, OR OTHERWISE CAUSING DAMAGE TO THE
CITY’S OR THIRD PERSON’S COMPUTER,

COMPUTER SYSTEM, NETWORK, OR SIMILAR

COMPUTER RELATED PROPERTY AND THE DATA,
SOFTWARE AND PROGRAMS THEREON.

CONTRACTOR SHALL MAINTAIN IN FORCE
DURING THE FULL LIFE OF THE CONTRACT.

THE POLICY SHALL PROVIDE COVERAGE FOR

BREACH RESPONSE COSTS AS WELL AS

REGULATORY FINES AND PENALTIES AS WELL AS

CREDIT MONITORING EXPENSES WITH LIMITS

SUFFICIENT TO RESPOND TO THESE
OBLIGATIONS.

ALL DAMAGES $2,000,000 $2,000,000
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YES
CYBER AND PRIVACY INSURANCE.

SUCH INSURANCE SHALL INCLUDE COVERAGE

FOR LIABILITY ARISING FROM COVERAGE IN AN

AMOUNT SUFFICIENT TO COVER THE FULL

REPLACEMENT VALUE OF DAMAGE TO,

ALTERATION OF, LOSS OF, THEFT,

DISSEMINATION OR DESTRUCTION OF

ELECTRONIC DATA AND/OR USE OF
CONFIDENTIAL INFORMATION, “PROPERTY” OF

THE CITY OF PALO ALTO THAT WILL BE IN THE

CARE, CUSTODY, OR CONTROL OF VENDOR,

INFORMATION INCLUDING BUT NOT LIMITED TO,

BANK AND CREDIT CARD ACCOUNT

INFORMATION OR PERSONAL INFORMATION,

SUCH AS NAME, ADDRESS, SOCIAL SECURITY

NUMBERS, PROTECTED HEALTH INFORMATION

OR OTHER PERSONAL IDENTIFICATION

INFORMATION, STORED OR TRAMSITTED IN
ELECTRONIC FORM.

ALL DAMAGES $2,000,000 $2,000,000

NO

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 SUBCONTRACTORS, 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 CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.

II. THE CONSULTANT 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 ADDITIONAL INSUREDS:

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.

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

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1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON

OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF 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.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED 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

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Rev. Dec.15, 2020

EXHIBIT E

DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS

This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONSULTANT without proof that CONSULTANT and its listed subcontrac tors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONSULTANT and its listed subcontractors , if any, to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26 (Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement.

CITY provides notice to CONSULTANT of the requirements of California Labor Code S ection 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 contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”

This Project is subject to compliance monitoring a nd enforcement by DIR. All contractors must be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also be registered with DIR. No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with DIR . Additional information regarding public works and prevailing wage requirements is available on the DIR w eb site (see e.g. http://www.dir.ca.gov) as amended from time to time.

CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is required to post all job site notices prescribed by law or regulation.

CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461).

CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of Labor Code Section 1776, including but not limited to:

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, CONSULTANT and its listed subcontractors, in connection with the Project.

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Professional Services
Rev. Dec.15, 2020

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 CONSULTANT and its listed subcontractors, respectively.

At the request of CITY, acting by its P roject Manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the CITY Project Manager within ten (10) days of receipt of CITY’s request.

CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll records to CITY’s Project Manager at the end of each week during the Project.

If the certified payroll records are not provided as required within the 10 -day period, then CONSULTANT 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 CONSULTANT.

Inform CITY’s Project Manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to CITY’s Project Manager within five (5) business days of any change of location of those payroll records.

Eight (8) hours labor constitutes a legal day’s work. CONSULTANT shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violat ion of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours per week, at not less than one and one -half (1&1/2) times the basic rate of pay, as provided in Section 1815.

CONSULTANT shall secure the payment of workers’ compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file with the CITY a statutorily prescribed statement acknowledging its obligation to secure the payment of workers’ compensation to its employees before beginning work (Labor Code 1861).

CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)).

CONSULTANT shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.

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ATTACHMENT F

CYBERSECURITY TERMS AND

CONDITIONS

In order to assure the privacy and security of the personal information of the City's customers and people who do business with the City, including, without limitation, vendors, utility customers, library patrons, and other individuals and companies, who are required to share such information with the City, as a condition of receiving services from the City or selling goods and services to t he City, including, without limitation, the Software as a Service services provider (the "Consultant") and its subcontractors, if any, including, without limitation, any Information Technology ("IT") infrastructure services provider, shall design, install, provide, and maintain a secure IT environment, described below, while it renders and performs the Services and furnishes goods, if any, described in the Statement of Work, Exhibit B, to the extent any scope of work implicates the confidentiality and privacy of the personal information of the City's customers. The Consultant shall fulfill the data and information security requirements (the "Requirements") set forth in Part A below.

A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided to the City, including connection to the City's IT systems; (b) the Consultant's operations and maintenance processes needed to support the environment, including disaster recovery and business continuity planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable environment and service availability to the City. "IT infrastructure" refers to the integrated framework, including, without limitation, data centers, computers, and database management devices, upon which digital networks operate.

In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing, one or more alternate countermeasure options to the Requirements (the "Alternate Requirements" as set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information Security Manager (the "ISM").

Part A. Requirements:

The Consultant shall at all times during the term of any contract between the City and the Consultant:
(a) Appoint or designate an employee, preferably an executive officer, as the security liaison to the City with respect to the Services to be performed under this Agreement. (b) Comply with the City's Information Privacy Policy if such policy is an incorporated attachment to the Agreement.
(c) Have adopted and implemented information security and privacy policies that are documented, are accessible to the City, and conform to ISO 27001/2 – Information Security Management Systems (ISMS) Standards. See the following:
http://www.iso.org/iso/home/store/catalogue tc/catalogue detail.htm?csnumber=4210 3 http://www.iso.org/iso/iso catalogue/catalogue tc/catalogue detail.htm?csnumber=5 0297
(d) Conduct routine data and information security compliance training of its personnel that is appropriate to their role.
(e) Develop and maintain detailed documentation of the IT infrastructure, including software versions and patch levels.

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(f)
Develop an independently verifiable process, consistent with industry standards, for performing professional and criminal background checks of its employees that (1) would permit verification of employees' personal identity and employment status, and (2) would enable the immediate denial of access to the City's confidential data and information by any of its employees who no longer would require access to that information or who are terminated.
(g) Provide a list of IT infrastructure components in order to verify whether the Consultant has met or has failed to meet any objective terms and conditions. (h) Implement access accountability (identification and authentication) architecture and support role-based access control ("RBAC") and segregation of duties ("SoD") mechanisms for all personnel, systems, and Software used to provide the Services. "RBAC" refers to a computer systems security approach to restricting access only to authorized users. "SoD" is an approach that would require more than one individual to complete a security task in order to promote the detection and prevention of fraud and errors.
(i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of the Services' environment design and deployment are known to the City, and (2) it has implemented measures in accordance with industry best practices applicable to secure coding and secure IT architecture.
(j) Provide and maintain secure intersystem communication paths that would ensure the confidentiality, integrity, and availability of the City's information. (k) Deploy and maintain IT system upgrades, patches and configurations conforming to current patch and/or release levels by not later than one (1) week after its date of release. Emergency security patches must be installed within 24 hours after its date of release.
(l) Provide for the timely detection of, response to, and the reporting of security incidents, including on-going incident monitoring with logging.
(m) Notify the City within one (1) hour of detecting a security incident that results in the unauthorized access to or the misuse of the City's confidential data and information. (n) Inform the City that any third party service provider(s) meet(s) all of the Requirements. (o) Perform security self-audits on a regular basis and not less frequently than on a quarterly basis, and provide the required summary reports of those self-audits to the ISM on the annual anniversary date or any other date agreed to by the Parties. (p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's performance of random site security audits at the Consultant's site(s), including the site(s) of a third-party service provider(s), as applicable. The scope of these audits will extend to the Consultant's and its third-party service provider(s)' awareness of security policies and practices, systems configurations, access authentication and authorization, and incident detection and response.
(q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and regulations, and the Confidential Information will be accessible only by the Consultant and any authorized third-party service provider's personnel. (r) Perform regular, reliable secured backups of all data needed to maximize the availability of the Services. Adequately encrypt the City of Palo Alto's data, during the operational process, hosted at rest, and the backup stage at the Vendors' environment (including Vendor's contracting organization's environment).

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(s)
Maintain records relating to the Services for a period of three (3) years after the expiration or earlier termination of this Agreement and in a mutually agreeable storage medium. Within thirty (30) days after the effective date of expiration or earlier termination of this Agreement, all of those records relating to the performance of the Services shall be provided to the ISM.
(t) Maintain the Confidential Information in accordance with applicable federal, state, and local data and information privacy laws, rules, and regulations. (u) Encrypt the Confidential Information before delivering the same by electronic mail to the City and or any authorized recipient.
(v) Provide Network Layer IP filtering services to allow access only from the City of Palo Alto's IP address to the Vendor environment (primarily hosted for the City of Palo Alto).

(w) Offer a robust disaster recovery and business continuity (DR-BCP) solutions to the City for the systems and services the Vendor provides to the City. (x) Provide and support Single Sign- on (SSO) and Multifactor Authentication (MFA) solutions for authentication and authorization services from the "City's environment to the Vendor's environment," and Vendor's environment to the Vendor's cloud services/hosted environment." The Vendor shall allow two employees of the City to have superuser and super-admin access to the Vendor's IT environment, and a cloud- hosted IT environment belongs to the City.
(y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct, indirect or punitive damages whatsoever including, without limitation, damages for loss of use, data or profits, arising out of or in any way connected with the City's IT environment, including, without limitation, IT infrastructure communications. (z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s EXHIBIT “D” INSURANCE REQUIREMENTS.

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APPENDIX A - PE‐20002
FACILITY CONDITION ASSESSMENT AND ASSET INVENTORY BUILDING LIST Asset Name Asset ID  BLDG  (FT^2)  Year
Built  Address  Facility
(BUILDINGS)
Facility
(PARKING

GARAGES)
Inventory and
Asset tagging
Alma Community Room  11‐BLDG‐ACR  200  200 0 0
Animal Services Center: Euthanasia Building 112‐BLDG‐ASC‐EB 203  1986 3281  E. Bayshore Rd. 203 0 0 Animal Services Center: Kitchen/Kennels/Storage 113‐BLDG‐ASC‐KKS 3,268  1972 3281  E. Bayshore Rd. 3268 0 3268 Animal Services Center: Modular Building 114‐BLDG‐ASC‐MOB 2,160  2019 3281  E. Bayshore Rd. 2160 0 2160 Animal Services Center: Office/Clinic  1‐BLDG‐ASC ‐OC 2,186  1972 3281  E. Bayshore Rd. 2186 0 2186 Arastradero Preserve Gateway Facility 9‐BLDG‐APB  969  2003 1530  Arastradero Rd. 1000 0 1000 Art Center  94‐BLDG‐ART                 26,441  2011 1313  Newell Rd. 26441 0 26441 Avenidas Senior Center and Garden Room 103‐BLDG‐SC                 18,925  1927 450  Bryant St. 18925 0 18925 Baylands Athletic Center Grandstands 115‐BLDG‐BACG 2,250  1969 1900  Geng Rd. 2250 0 2250 Baylands Athletic Center Restroom  4‐BLDG‐BAC  2,250  1969 1900  Geng Rd. 2250 0 2250 Baylands Duck Pond Storage 116‐BLDG‐DPS 364  1969 2500  Embarcadero Rd.  364 0 0 Baylands Harbor Master Storage Shed 117‐BLDG‐HMSS 200  1969 2500  Embarcadero Rd.  200 0 0 Baylands Interpretive Center  5‐BLDG‐BIC  3,600  1969 2775  Embarcadero Rd. 3600 0 3600 Baylands Ranger Station  62‐BLDG‐BRS  475  1986 2500  Embarcadero Rd.  475 0 0 Baylands Sea Scout Building 118‐BLDG‐SSB 2,209  2012 2560  Embarcadero Rd. 2209 0 2209 Byxbee Park Restroom  8‐BLDG‐BYX  568  1972 2380  Embarcadero Rd. 568 0 0 Cambridge Parking Garage  100‐BLDG‐PGC                  57,830  1968  475 Cambridge St.  0 57830 57830 Childrens Library  12‐BLDG‐CL  6,043  2007 1275  Harriet St. 6043 0 6043 Civic Center Office Building  10‐BLDG‐CCOB                140,357  1968 250  Hamilton Ave. 140357 0 140357 Civic Center Parking Garage  135‐BLDG‐CCPG                251,508  1970  250 Hamilton Ave.  0 251508 251508 College Terrace Library  14‐BLDG‐CTL  5,050  2010 2300  Wellesley St. 5050 0 5050 Cubberley Building A  17‐BLDG‐CUBBA  5,400  1955 4000  Middlefield Rd. 5400 0 0 Cubberley Building B  18‐BLDG‐CUBBB  5,400  1955 4000  Middlefield Rd. 5400 0 0 Cubberley Building C  19‐BLDG‐CUBBC  5,400  1955 4000  Middlefield Rd. 5400 0 5400 Cubberley Building D  20‐BLDG‐CUBBD  5,400  1955 4000  Middlefield Rd. 5400 0 5400 Cubberley Building E  22‐BLDG‐CUBBE  5,400  1955 4000  Middlefield Rd. 5400 0 5400 Cubberley Building F  23‐BLDG‐CUBBF  5,400  1955 4000  Middlefield Rd. 5400 0 5400 Cubberley Building FH  24‐BLDG‐CUBBFH  1,000  1968 4000  Middlefield Rd. 1000 0 1000 Cubberley Building G  97‐BLDG‐CUBBG  1,500  1968 4000 Middlefield Rd. 1500 0 0 Cubberley Building H  27‐BLDG‐CUBBH  8,115  1955 4000  Middlefield Rd. 8115 0 0 Cubberley Building I (Foothill College) 28‐BLDG‐CUBBI                  13,575  1968 4000  Middlefield Rd. 13575 0 0 Cubberley Building J  40‐BLDG‐CUBBJ  7,875  1955 4000  Middlefield Rd. 7875 0 7875 Cubberley Building K  30‐BLDG‐CUBBK  7,875  1955 4000  Middlefield Rd. 7875 0 7875 Cubberley Building L  31‐BLDG‐CUBBL                 14,415  1955 4000  Middlefield Rd. 14415 0 14415 Cubberley Building M2  32‐BLDG‐CUBB‐M2  4,000  1968 4000  Middlefield Rd. 4000 0 0 Cubberley Building M3  33‐BLDG‐CUBB‐M3  3,900  1968 4000  Middlefield Rd. 3900 0 0 Cubberley Building M4  34‐BLDG‐CUBB‐M4  3,900  1968 4000  Middlefield Rd. 3900 0 0 Cubberley Building P  35‐BLDG‐CUBB‐P  3,610  1968 4000  Middlefield Rd. 3610 0 3610 Cubberley Building S  37‐BLDG‐CUBB‐S  5,650  1945 4000 Middlefield Rd. 5650 0 0 Cubberley Building T1  38‐BLDG‐CUBB‐T1  4,025  1945 4000  Middlefield Rd. 4025 0 0 Cubberley Building T2  39‐BLDG‐CUBB‐T2  4,025  1945 4000  Middlefield Rd. 4025 0 0 Cubberley Building U  42‐BLDG‐CUBB‐U  4,865  1945 4000  Middlefield Rd. 4865 0 4865 Cubberley Building V  43‐BLDG‐CUBB‐V  1,000  1968 4000  Middlefield Rd. 1000 0 1000 Cubberley Covered Walkways  16‐BLDG‐CUBBCW  5,000  1968 4000  Middlefield Rd. 5000 0 5000 Cubberley Gym A  26‐BLDG‐CUBBGA                  14,074  1945 4000  Middlefield Rd. 14074 0 14074 Cubberley Gym B  25‐BLDG‐CUBBGB                  14,074  1945 4000  Middlefield Rd. 14074 0 14074 Cubberley Multi Use Auditorium  98‐BLDG‐CUBB‐MULTI                  13,790  1945 4000  Middlefield Rd. 13790 0 13790 Cubberley Pavilion  36‐BLDG‐CUBB‐PAV                  17,577  1968 4000  Middlefield Rd. 17577 0 17577 Cubberley Theater  41‐BLDG‐CUBB‐TH                 11,800  1945 4000  Middlefield Rd. 11800 0 11800 Downtown Library  46‐BLDG‐DL  8,741  2011 270  Forest Ave. 8741 0 8741 El Camino Park Restroom  47‐BLDG‐ECPR  900  2015 155  El Camino Real 900 0 0 El Camino Park Scorekeeper Facility 121‐BLDG‐ECPSF 329  2015 155  El Camino Real 329 0 0 Fire Station 1  51‐BLDG‐FIRE‐1  10,436                1965 301  Alma St. 10436 0 10436 Fire Station 2  52‐BLDG‐FIRE‐2  8,131                  1965 2675  Hanover St. 8131 0 8131 Fire Station 3  53‐BLDG‐FIRE‐3  6,937                  2019 799  Embarcadero Rd. 6937 0 6937 Fire Station 4  54‐BLDG‐FIRE‐4  2,659                  1954 3600  middlefield Rd. 2659 0 2659 Fire Station 5  55‐BLDG‐FIRE‐5  3,666                  1962 600  Arastradero Rd. 3666 0 3666 Fire Station 6  56‐BLDG‐FIRE‐6  1,500  1500 0 0
Fire Station 8  57‐BLDG‐FIRE‐8  1,569                  1986 3300  Page Mill Rd. 1569 0 1569 Foothills Park Equipment and Storage Building Garage  123‐BLDG‐FPESBG  2,624  1975 3300  Page Mill Rd. 2624 0 2624 Foothills Park Entrance Station 122‐BLDG‐FPES 71  1985 3300  Page Mill Rd. 0 0 0 Foothills Park Covered Equipment Storage 124‐BLDG‐FPCES 2,928  1968 3300  Page Mill Rd. 2928 0 2928 Foothills Park Covered Storage 125‐BLDG‐FPCS 710  1968 3300  Page Mill Rd. 710 0 0 Foothills Park Interpretive Center  58‐BLDG‐FPIC  5,035  1967 3300  Page Mill Rd. 5035 0 5035 Foothills Park Lake Restroom  86‐BLDG‐FPLR  422  1965 3300  Page Mill Rd. 422 0 0 Foothills Park Maintenance Building  48‐BLDG‐FPMB  3,414  1968 3300  Page Mill Rd. 3414 0 3414 DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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FACILITY CONDITION ASSESSMENT AND ASSET INVENTORY BUILDING LIST Foothills Park Oak Grove Restroom  88‐BLDG‐FPOGR  70  1965 3300  Page Mill Rd. 70 0 0 Foothills Park Orchard Glen Restroom  87‐BLDG‐FPORGR  422  1965 3300  Page Mill Rd. 422 0 0 Gamble Garden Center 126‐BLDG‐GGC 8,200  1987 1431  Waverley St. 8200 0 8200 Girl Scouts Building 134‐BLDG‐GSB 6,000  1932 1305  Middlefield Rd. 6000 0 6000 Golf Course Workshop 45‐BLDG‐GCWS 905  1958 1875  Embarcadero Rd. 905 0 0 Golf Course Office  128‐BLDG‐GCO  2,288  1958 1875 Embarcadero Rd. 2288 0 2288 Golf Course Restroom(12th Hole) 129‐BLDG‐GCRR 300  2018 1875  Embarcadero Rd. 300 0 0 Golf Course Pro Shop & Restaurant  59‐BLDG‐GCPSR  8,516  1986 1875  Embarcadero Rd. 8516 0 8516 Golf Course Storage  127‐BLDG‐GCS  397  1958 1875  Embarcadero Rd. 397 0 0 Greenwaste Office Building 130‐BLDG‐GOB 2,256  2007 2000  Geng Rd. 2256 0 2256 Greenwaste Garage 131‐BLDG‐GG 1,560  1950 2000 Geng Rd. 1560 0 1560 Greenwaste Storage 132‐BLDG‐GS 480  1950 2000  Geng Rd. 480 0 0 Greenwaste Workshop 133‐BLDG‐GW 750  1950 2000  Geng Rd. 750 0 0 Greer Park Restroom  49‐BLDG‐GPR  597  1983 1098  Amarillo Ave. 597 0 0 Hoover Park Restroom  70‐BLDG‐HOO  500  2901 Cowper St. 500 0 0 Juana Briones Park Restroom  7‐BLDG‐BRI  129  2014 609  Maybell Ave. 129 0 0 Junior Museum and Zoo  64‐BLDG‐JM
11,955  1941 1451  Middlefield Rd. 11955 0 11955
Landfill Buildings/Sheds 65‐BLDG‐LAND  1,716  2012 2380  Embarcadero Rd. 1716 0 1716 Lawn Bowling Green Clubhouse  106‐BLDG‐LBG  2,400  2010 474  Embarcadero Rd. 2400 0 2400 Lawn Bowling Green Restrooms 136‐BLDG‐LBGRR 1,210  2010 474  Embarcadero Rd. 1210 0 1210 Lot J Parking Garage  101‐BLDG‐PGJ               269,138  2007  520 Webster St.  0 269138 269138 Lot Q Parking Garage  67‐BLDG‐PGQ
48,000  1984  430 High St.  0 48000 48000
Lot R Parking Garage  74‐BLDG‐PGR                 93,930  2003  528 High St.  0 93930 93930 Lot S/L Parking Garage (Bryant Street) 75‐BLDG‐PGSL               229,380  2003  445 Bryant St.  0 229380 229380 Lucie Stern Childrens Theater  13‐BLDG‐LSCHT                  17,619  1936 1305  Middlefield Rd. 17619 0 17619 Lucie Stern Childrens Theater Storage Shed 119‐BLDG‐LSCHTS 569  1932 1305  Middlefield Rd. 569 0 0 Lucie Stern Community Center  68‐BLDG‐LSCC                 12,203  1933 1305  Middlefield Rd. 12203 0 12203 Lucie Stern Community Theater  15‐BLDG‐LSCT                 33,716  1933 1305  Middlefield Rd. 33716 0 33716 Lucie Stern Community Theatre Scene Shop  120‐BLDG‐CTSS  1,823  1972 1305  Middlefield Rd. 1823 0 1823 Mitchell Park Childrens Restroom  80‐BLDG‐MPCR  385  600 E. Meadow Dr. 385 0 0 Mitchell Park Community Center ‐ Bldg B  91‐BLDG‐MPCC‐B                  10,400  2014 3700  Middlefield Rd. 10400 0 10400 Mitchell Park Community Center ‐ Bldg C  92‐BLDG‐MPCC‐C  4,600  2014 3700  Middlefield Rd. 4600 0 4600 Mitchell Park Field House Restroom  108‐BLDG‐MPFHR  1,078  1957 600  E. Meadow Dr. 1078 0 1078 Mitchell Park Library  93‐BLDG‐MPL                 41,000  2014 3700 Middlefield Rd. 41000 0 41000 Mitchell Park Tennis Court Restroom  109‐BLDG‐MPTCR  306  1956 600  E. Meadow Dr. 306 0 0 Mitchell Park Storage/Pool Filter Facility 138‐BLDG‐MPS 1,255  1957 600  E. Meadow Dr. 1255 0 1255 Municipal Service Center Building A  76‐BLDG‐MSC‐A                  29,157  1966 3201  E Bayshore Rd. 29157 0 29157 Municipal Service Center Building B  77‐BLDG‐MSC‐B                  24,777  1966 3201  E Bayshore Rd. 24777 0 24777 Municipal Service Center Building C  78‐BLDG‐MSC‐C                  38,152  1966 3201  E Bayshore Rd. 38152 0 38152 Municipal Service Center Facilities Shop  66‐BLDG‐MSCFS  2,500  3201 E Bayshore Rd. 2500 0 2500 Municipal Service Center Utility Control Center  89‐BLDG‐UCC  5,488  1980 3241  E Bayshore Rd. 5488 0 5488 Municipal Service Center Yard Buildings 29‐BLDG‐MSCY  1,603  3201 E Bayshore Rd. 1603 0 1603 Peers Park Field House and Restroom  79‐BLDG‐PPR  1,082  1940 1899  Park Ave. 1082 0 1082 Rinconada Library  95‐BLDG‐RL                 31,082  2014 1213  Newell Rd. 31082 0 31082 Rinconada Park Restroom  82‐BLDG‐RINC  465  1930 777  Embarcadero Rd. 465 0 0 Rinconada Park Buildings ( Gardeners Shed, Gazebo, Snack Bar) 139 ‐BLDG‐RPB 1,173  1957 777  Embarcadero Rd. 1173 0 1173 Rinconada Pool Building 83‐BLDG‐RP  3,585  1930 777  Embarcadero Rd. 3585 0 3585 Roth Building  96‐BLDG‐RB                 17,784  1932 300  Homer Ave. 17784 0 17784 Seale Park Restroom  107‐BLDG‐SEA  156  2011 3100  Stockton Place 156 0 0 Stanford Palo Alto Community Field Building  81‐BLDG‐SPACF  969  2006 2700  El Camino Real 969 0 0 Thompson Parking Garage  102‐BLDG‐PGT                 55,000  1994  275 Cambridge St.  0 55000 55000 Ventura Community Center  84‐BLDG‐VCC                 21,481  1957 3990  Ventura Ct. 21481 0 21481 WQCP Operations Building 105‐BLDG‐WQCP‐OB 6,670  1970 2501  Embarcadero Way 6670 0 6670 WQCP Administration Building 140‐BLDG‐WQCP‐AB 3,120  1975 2501  Embarcadero Way 3120 0 3120 WQCP Maintenance Building 141‐BLDG‐WQCP‐MB 2,610  1978 2501  Embarcadero Way 2610 0 2610 Williams House 142‐BLDG‐WH 7,978  1907 351  Homer Ave. 7978 0 7978 Winter Lodge 143‐BLDG‐WL                18,118  1956 3005  Middlefield Rd. 18118 0 18118 1,874,176          869350 1004786 1801375
DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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APPENDIX  B
Uniformat II
Modified for City of Palo Alto to match Maintenance Connection Asset Hierarchy Level 1 Level 2 Level 3
Major Group Elements Group Elements Individual Elements A1010 Standard Foundations
A1020 Special Foundations
A1030 Slab on Grade
A2010 Basement Excavation
A2020 Basement Walls
B10 Superstructure B1010 Floor Construction
B2010 Exterior Walls
B2020 Exterior Windows
B2030 Exterior Doors
C1010 Partitions
C1020 Interior Doors
C1030 Specialty Finishes
C2010 Stair Construction
C2020 Stair Finishes
C3010 Wall Finishes
C3020 Floor Finishes
C3030 Ceiling Finishes
D1010 Elevators
D1020 Escalators and moving walks
D1030 Material Handling Systems
D2010 Plumbing Fixtures
D2020 Domestic water Distribution
D2030 Sanitary Waste
D2040 Rain water Drainage
D2050 Special Plumbing Systems
D3010 Energy Supply
D3020 Heat Generating Systems
D3030 Cool Generating Systems
D3040 Distribution Systems
D3050 Terminal and package units
D3060 Controls and Instrumentation
D3070 Special HVAC Systems and Equipment
D3080 Systems Testing and balancing
G3040 Heating Distribution
G3050 Cooling Distribution
D4010 Fire Protection Sprinkler Systems
D4020 Stand‐pipe and Hose Systems
D4030 Fire Protection Specialties
D4040 Special Electrical Systems
D5030 Communication and Security Systems
D5010 Electrical Service and Distribution
D5020 Lighting and Branch Wiring
D5040 Special Electrical Systems
E1010 Commercial Equipment
D30 HVAC
G30 Site Civil/Mechanical Utilities
8 E10 EquipmentE. Equipment and Furnishings…want the
it it it t t it
D.4 Fire Life Safety Systems
D50 ElectricalD.5 Electrical Systems
1 2
3 4
5 6
7 D20 PlumbingD.2 Plumbing Systems
D.3 Mechanical Systems
D40 Fire Protection
C10 Interior Construction
C20 Staircases
C30 Interior Finishes
C. Interior Systems (IS)
D10 Conveying SystemsD.1 Conveyor Systems
B20 Exterior Closure
B. Exterior Envelope Systems (EE)
Modified ASTM UNIFORMAT II
Classification of Building Elements for the City of Palo Alto for the Building Assessment A10 Foundations
A20 Basement Construction
A. Structural Systems (SS)
DocuSign Envelope ID: ED9D1343-8AE1-4A99-ACB6-FD880D91CB27

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ATTACHMENT B
PE‐20002
FACILITY CONDITION ASSESSMENT AND ASSET INVENTORY BUILDING LIST Asset Name Asset ID  BLDG  (FT^2)  Year
Built  Address  Facility
(BUILDINGS)
Facility
(PARKING

GARAGES)
Inventory and
Asset tagging
Alma Community Room  11‐BLDG‐ACR  200  200 0 0
Animal Services Center: Euthanasia Building 112‐BLDG‐ASC‐EB 203  1986 3281  E. Bayshore Rd. 203 0 0 Animal Services Center: Kitchen/Kennels/Storage 113‐BLDG‐ASC‐KKS 3,268  1972 3281  E. Bayshore Rd. 3268 0 3268 Animal Services Center: Modular Building 114‐BLDG‐ASC‐MOB 2,160  2019 3281  E. Bayshore Rd. 2160 0 2160 Animal Services Center: Office/Clinic  1‐BLDG‐ASC ‐OC 2,186  1972 3281  E. Bayshore Rd. 2186 0 2186 Arastradero Preserve Gateway Facility 9‐BLDG‐APB  969  2003 1530  Arastradero Rd. 1000 0 1000 Art Center  94‐BLDG‐ART                 26,441  2011 1313  Newell Rd. 26441 0 26441 Avenidas Senior Center and Garden Room 103‐BLDG‐SC                 18,925  1927 450  Bryant St. 18925 0 18925 Baylands Athletic Center Grandstands 115‐BLDG‐BACG 2,250  1969 1900  Geng Rd. 2250 0 2250 Baylands Athletic Center Restroom  4‐BLDG‐BAC  2,250  1969 1900  Geng Rd. 2250 0 2250 Baylands Duck Pond Storage 116‐BLDG‐DPS 364  1969 2500  Embarcadero Rd.  364 0 0 Baylands Harbor Master Storage Shed 117‐BLDG‐HMSS 200  1969 2500  Embarcadero Rd.  200 0 0 Baylands Interpretive Center  5‐BLDG‐BIC  3,600  1969 2775  Embarcadero Rd. 3600 0 3600 Baylands Ranger Station  62‐BLDG‐BRS  475  1986 2500  Embarcadero Rd.  475 0 0 Baylands Sea Scout Building 118‐BLDG‐SSB 2,209  2012 2560  Embarcadero Rd. 2209 0 2209 Byxbee Park Restroom  8‐BLDG‐BYX  568  1972 2380  Embarcadero Rd. 568 0 0 Cambridge Parking Garage  100‐BLDG‐PGC                  57,830  1968  475 Cambridge St.  0 57830 57830 Childrens Library  12‐BLDG‐CL  6,043  2007 1275  Harriet St. 6043 0 6043 Civic Center Office Building  10‐BLDG‐CCOB                140,357  1968 250  Hamilton Ave. 140357 0 140357 Civic Center Parking Garage  135‐BLDG‐CCPG                251,508  1970  250 Hamilton Ave.  0 251508 251508 College Terrace Library  14‐BLDG‐CTL  5,050  2010 2300  Wellesley St. 5050 0 5050 Cubberley Building A  17‐BLDG‐CUBBA  5,400  1955 4000  Middlefield Rd. 5400 0 0 Cubberley Building B  18‐BLDG‐CUBBB  5,400  1955 4000  Middlefield Rd. 5400 0 0 Cubberley Building C  19‐BLDG‐CUBBC  5,400  1955 4000  Middlefield Rd. 5400 0 5400 Cubberley Building D  20‐BLDG‐CUBBD  5,400  1955 4000  Middlefield Rd. 5400 0 5400 Cubberley Building E  22‐BLDG‐CUBBE  5,400  1955 4000  Middlefield Rd. 5400 0 5400 Cubberley Building F  23‐BLDG‐CUBBF  5,400  1955 4000  Middlefield Rd. 5400 0 5400 Cubberley Building FH  24‐BLDG‐CUBBFH  1,000  1968 4000  Middlefield Rd. 1000 0 1000 Cubberley Building G  97‐BLDG‐CUBBG  1,500  1968 4000 Middlefield Rd. 1500 0 0 Cubberley Building H  27‐BLDG‐CUBBH  8,115  1955 4000  Middlefield Rd. 8115 0 0 Cubberley Building I (Foothill College) 28‐BLDG‐CUBBI                  13,575  1968 4000  Middlefield Rd. 13575 0 0 Cubberley Building J  40‐BLDG‐CUBBJ  7,875  1955 4000  Middlefield Rd. 7875 0 7875 Cubberley Building K  30‐BLDG‐CUBBK  7,875  1955 4000  Middlefield Rd. 7875 0 7875 Cubberley Building L  31‐BLDG‐CUBBL                 14,415  1955 4000  Middlefield Rd. 14415 0 14415 Cubberley Building M2  32‐BLDG‐CUBB‐M2  4,000  1968 4000  Middlefield Rd. 4000 0 0 Cubberley Building M3  33‐BLDG‐CUBB‐M3  3,900  1968 4000  Middlefield Rd. 3900 0 0 Cubberley Building M4  34‐BLDG‐CUBB‐M4  3,900  1968 4000  Middlefield Rd. 3900 0 0 Cubberley Building P  35‐BLDG‐CUBB‐P  3,610  1968 4000  Middlefield Rd. 3610 0 3610 Cubberley Building S  37‐BLDG‐CUBB‐S  5,650  1945 4000 Middlefield Rd. 5650 0 0 Cubberley Building T1  38‐BLDG‐CUBB‐T1  4,025  1945 4000  Middlefield Rd. 4025 0 0 Cubberley Building T2  39‐BLDG‐CUBB‐T2  4,025  1945 4000  Middlefield Rd. 4025 0 0 Cubberley Building U  42‐BLDG‐CUBB‐U  4,865  1945 4000  Middlefield Rd. 4865 0 4865 Cubberley Building V  43‐BLDG‐CUBB‐V  1,000  1968 4000  Middlefield Rd. 1000 0 1000 Cubberley Covered Walkways  16‐BLDG‐CUBBCW  5,000  1968 4000  Middlefield Rd. 5000 0 5000 Cubberley Gym A  26‐BLDG‐CUBBGA                  14,074  1945 4000  Middlefield Rd. 14074 0 14074 Cubberley Gym B  25‐BLDG‐CUBBGB                  14,074  1945 4000  Middlefield Rd. 14074 0 14074 Cubberley Multi Use Auditorium  98‐BLDG‐CUBB‐MULTI                  13,790  1945 4000  Middlefield Rd. 13790 0 13790 Cubberley Pavilion  36‐BLDG‐CUBB‐PAV                  17,577  1968 4000  Middlefield Rd. 17577 0 17577 Cubberley Theater  41‐BLDG‐CUBB‐TH                 11,800  1945 4000  Middlefield Rd. 11800 0 11800 Downtown Library  46‐BLDG‐DL  8,741  2011 270  Forest Ave. 8741 0 8741 El Camino Park Restroom  47‐BLDG‐ECPR  900  2015 155  El Camino Real 900 0 0 El Camino Park Scorekeeper Facility 121‐BLDG‐ECPSF 329  2015 155  El Camino Real 329 0 0 Fire Station 1  51‐BLDG‐FIRE‐1  10,436                1965 301  Alma St. 10436 0 10436 Fire Station 2  52‐BLDG‐FIRE‐2  8,131                  1965 2675  Hanover St. 8131 0 8131 Fire Station 3  53‐BLDG‐FIRE‐3  6,937                  2019 799  Embarcadero Rd. 6937 0 6937 Fire Station 4  54‐BLDG‐FIRE‐4  2,659                  1954 3600  middlefield Rd. 2659 0 2659 Fire Station 5  55‐BLDG‐FIRE‐5  3,666                  1962 600  Arastradero Rd. 3666 0 3666 Fire Station 6  56‐BLDG‐FIRE‐6  1,500  1500 0 0
Fire Station 8  57‐BLDG‐FIRE‐8  1,569                  1986 3300  Page Mill Rd. 1569 0 1569 Foothills Park Equipment and Storage Building Garage  123‐BLDG‐FPESBG  2,624  1975 3300  Page Mill Rd. 2624 0 2624 Foothills Park Entrance Station 122‐BLDG‐FPES 71  1985 3300  Page Mill Rd. 0 0 0 Foothills Park Covered Equipment Storage 124‐BLDG‐FPCES 2,928  1968 3300  Page Mill Rd. 2928 0 2928 Foothills Park Covered Storage 125‐BLDG‐FPCS 710  1968 3300  Page Mill Rd. 710 0 0 Foothills Park Interpretive Center  58‐BLDG‐FPIC  5,035  1967 3300  Page Mill Rd. 5035 0 5035 Foothills Park Lake Restroom  86‐BLDG‐FPLR  422  1965 3300  Page Mill Rd. 422 0 0 Foothills Park Maintenance Building  48‐BLDG‐FPMB  3,414  1968 3300  Page Mill Rd. 3414 0 3414

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ATTACHMENT B
PE‐20002
FACILITY CONDITION ASSESSMENT AND ASSET INVENTORY BUILDING LIST Foothills Park Oak Grove Restroom  88‐BLDG‐FPOGR  70  1965 3300  Page Mill Rd. 70 0 0 Foothills Park Orchard Glen Restroom  87‐BLDG‐FPORGR  422  1965 3300  Page Mill Rd. 422 0 0 Gamble Garden Center 126‐BLDG‐GGC 8,200  1987 1431  Waverley St. 8200 0 8200 Girl Scouts Building 134‐BLDG‐GSB 6,000  1932 1305  Middlefield Rd. 6000 0 6000 Golf Course Workshop 45‐BLDG‐GCWS 905  1958 1875  Embarcadero Rd. 905 0 0 Golf Course Office  128‐BLDG‐GCO  2,288  1958 1875 Embarcadero Rd. 2288 0 2288 Golf Course Restroom(12th Hole) 129‐BLDG‐GCRR 300  2018 1875  Embarcadero Rd. 300 0 0 Golf Course Pro Shop & Restaurant  59‐BLDG‐GCPSR  8,516  1986 1875  Embarcadero Rd. 8516 0 8516 Golf Course Storage  127‐BLDG‐GCS  397  1958 1875  Embarcadero Rd. 397 0 0 Greenwaste Office Building 130‐BLDG‐GOB 2,256  2007 2000  Geng Rd. 2256 0 2256 Greenwaste Garage 131‐BLDG‐GG 1,560  1950 2000 Geng Rd. 1560 0 1560 Greenwaste Storage 132‐BLDG‐GS 480  1950 2000  Geng Rd. 480 0 0 Greenwaste Workshop 133‐BLDG‐GW 750  1950 2000  Geng Rd. 750 0 0 Greer Park Restroom  49‐BLDG‐GPR  597  1983 1098  Amarillo Ave. 597 0 0 Hoover Park Restroom  70‐BLDG‐HOO  500  2901 Cowper St. 500 0 0 Juana Briones Park Restroom  7‐BLDG‐BRI  129  2014 609  Maybell Ave. 129 0 0 Junior Museum and Zoo  64‐BLDG‐JM
11,955  1941 1451  Middlefield Rd. 11955 0 11955
Landfill Buildings/Sheds 65‐BLDG‐LAND  1,716  2012 2380  Embarcadero Rd. 1716 0 1716 Lawn Bowling Green Clubhouse  106‐BLDG‐LBG  2,400  2010 474  Embarcadero Rd. 2400 0 2400 Lawn Bowling Green Restrooms 136‐BLDG‐LBGRR 1,210  2010 474  Embarcadero Rd. 1210 0 1210 Lot J Parking Garage  101‐BLDG‐PGJ               269,138  2007  520 Webster St.  0 269138 269138 Lot Q Parking Garage  67‐BLDG‐PGQ
48,000  1984  430 High St.  0 48000 48000
Lot R Parking Garage  74‐BLDG‐PGR                 93,930  2003  528 High St.  0 93930 93930 Lot S/L Parking Garage (Bryant Street) 75‐BLDG‐PGSL               229,380  2003  445 Bryant St.  0 229380 229380 Lucie Stern Childrens Theater  13‐BLDG‐LSCHT                  17,619  1936 1305  Middlefield Rd. 17619 0 17619 Lucie Stern Childrens Theater Storage Shed 119‐BLDG‐LSCHTS 569  1932 1305  Middlefield Rd. 569 0 0 Lucie Stern Community Center  68‐BLDG‐LSCC                 12,203  1933 1305  Middlefield Rd. 12203 0 12203 Lucie Stern Community Theater  15‐BLDG‐LSCT                 33,716  1933 1305  Middlefield Rd. 33716 0 33716 Lucie Stern Community Theatre Scene Shop  120‐BLDG‐CTSS  1,823  1972 1305  Middlefield Rd. 1823 0 1823 Mitchell Park Childrens Restroom  80‐BLDG‐MPCR  385  600 E. Meadow Dr. 385 0 0 Mitchell Park Community Center ‐ Bldg B  91‐BLDG‐MPCC‐B                  10,400  2014 3700  Middlefield Rd. 10400 0 10400 Mitchell Park Community Center ‐ Bldg C  92‐BLDG‐MPCC‐C  4,600  2014 3700  Middlefield Rd. 4600 0 4600 Mitchell Park Field House Restroom  108‐BLDG‐MPFHR  1,078  1957 600  E. Meadow Dr. 1078 0 1078 Mitchell Park Library  93‐BLDG‐MPL                 41,000  2014 3700 Middlefield Rd. 41000 0 41000 Mitchell Park Tennis Court Restroom  109‐BLDG‐MPTCR  306  1956 600  E. Meadow Dr. 306 0 0 Mitchell Park Storage/Pool Filter Facility 138‐BLDG‐MPS 1,255  1957 600  E. Meadow Dr. 1255 0 1255 Municipal Service Center Building A  76‐BLDG‐MSC‐A                  29,157  1966 3201  E Bayshore Rd. 29157 0 29157 Municipal Service Center Building B  77‐BLDG‐MSC‐B                  24,777  1966 3201  E Bayshore Rd. 24777 0 24777 Municipal Service Center Building C  78‐BLDG‐MSC‐C                  38,152  1966 3201  E Bayshore Rd. 38152 0 38152 Municipal Service Center Facilities Shop  66‐BLDG‐MSCFS  2,500  3201 E Bayshore Rd. 2500 0 2500 Municipal Service Center Utility Control Center  89‐BLDG‐UCC  5,488  1980 3241  E Bayshore Rd. 5488 0 5488 Municipal Service Center Yard Buildings 29‐BLDG‐MSCY  1,603  3201 E Bayshore Rd. 1603 0 1603 Peers Park Field House and Restroom  79‐BLDG‐PPR  1,082  1940 1899  Park Ave. 1082 0 1082 Rinconada Library  95‐BLDG‐RL                 31,082  2014 1213  Newell Rd. 31082 0 31082 Rinconada Park Restroom  82‐BLDG‐RINC  465  1930 777  Embarcadero Rd. 465 0 0 Rinconada Park Buildings ( Gardeners Shed, Gazebo, Snack Bar) 139 ‐BLDG‐RPB 1,173  1957 777  Embarcadero Rd. 1173 0 1173 Rinconada Pool Building 83‐BLDG‐RP  3,585  1930 777  Embarcadero Rd. 3585 0 3585 Roth Building  96‐BLDG‐RB                 17,784  1932 300  Homer Ave. 17784 0 17784 Seale Park Restroom  107‐BLDG‐SEA  156  2011 3100  Stockton Place 156 0 0 Stanford Palo Alto Community Field Building  81‐BLDG‐SPACF  969  2006 2700  El Camino Real 969 0 0 Thompson Parking Garage  102‐BLDG‐PGT                 55,000  1994  275 Cambridge St.  0 55000 55000 Ventura Community Center  84‐BLDG‐VCC                 21,481  1957 3990  Ventura Ct. 21481 0 21481 WQCP Operations Building 105‐BLDG‐WQCP‐OB 6,670  1970 2501  Embarcadero Way 6670 0 6670 WQCP Administration Building 140‐BLDG‐WQCP‐AB 3,120  1975 2501  Embarcadero Way 3120 0 3120 WQCP Maintenance Building 141‐BLDG‐WQCP‐MB 2,610  1978 2501  Embarcadero Way 2610 0 2610 Williams House 142‐BLDG‐WH 7,978  1907 351  Homer Ave. 7978 0 7978 Winter Lodge 143‐BLDG‐WL                18,118  1956 3005  Middlefield Rd. 18118 0 18118 1,874,176          869350 1004786 1801375

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City of Palo Alto (ID # 13915)
City Council Staff Report

Meeting Date: 4/11/2022

City of Palo Alto Page 1

Title: Approval of the Economic Recovery Advisory Report as Recommended by the Policy and Services Committee
From: City Manager
Lead Department: City Auditor

Recommendation
Policy & Services Committee, City Auditor and staff recommends that City council review and approve the corresponding report:

1) Economic Recovery Advisory report and corresponding recommendations for improvement and approve.

Background

Discussion
The OCA performed a review of the City’s long -term financial planning models and inputs and offer recommendations for improvement. This model is know n as the Long Range Financial Forecast (LRFF). This audit activity was conducted in accordance with the FY2021 Audit Plan approved by City Council.

Baker Tilly, in its capacity serving as the Office of the City Auditor (OCA), performed a citywide risk assessment that assessed a wide range of risk areas, including strategic, financial, operational, compliance, technological, and reputation risks. The purpose of the assessment was to identify and prioritize risks to develop the annual audit plan.

During the FY2021 risk assessment, the OCA identified the followings risks which led to this project:
• COVID-19 Response
• Financial Performance/Revenue Generation
• Tax Revenue & Economic Recovery

4 Packet Pg. 75

City of Palo Alto Page 2

Through the audit activity, the OCA identified four (4) recommendations. The Administrative Services Department concurred or partially concurred with each finding and has drafted responses and action plans for each item.

The Office of City Auditor will perform periodic follow up procedures to validate that those recommendations have been addressed as indicated in management responses.

The analysis, observations, and recommendations are summarized in the attached Economic Recovery Advisory report. Please note that the OCA has attached an additional report, intended to be for informa tional purposes only (i.e., no recommendations), that was derived as a result of our work on this project. This supplemental report is entitled the Economic Resiliency Review.

The report was unanimously approved by the Policy & Services Committee.

Timeline, Resource Impact, Policy Implications

Stakeholder Engagement

Environmental Review
Attachments:
• Attachment4.a: Office of the City Auditor - Economic Recovery Advisory - Final Draft
• Attachment4.b: Office of the City Auditor - Economic Resiliency Review - Final Draft
The objectives of the audit activity were to:
1) Review the City’s long-term financial planning models and inputs and offer recommendations for improvement.
2) Identify and evaluate key revenue source categories that present long term risk to the City's financial sustainability and perform scenario analysis. 3) Offer ad hoc advisory assistance during the FY22 budget process.

The timeline for implementation of corrective action plans is identified within the attached report. All corrective actions are scheduled to be implemented by Fall of 2022 as part of the next Long Range Financial Forecast as well as the remaining FY 2023 annual budget process to the extent appropriate.

The Office of the City Auditor worked primarily with the Administrative Services Department and engaged with additional stakeholders, inclu ding the City Manager’s Office and City Attorney’s Office, as necessary.

Environmental review is not applicable to this activity. 4 Packet Pg. 76

3 Economic Resiliency
Review

report, but this section reviews the scope of the document, including categories of recommendations and research.

The OCA provides detailed recommendations in this separate report, include recommendations regarding business and industry attraction, retention, and diversification strategies, housing and workforce findings impacted by COVID- 19 pandemic, and enhancements to livability for residents and business engagement and retention.

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4 Table of Contents
Executive Summary ........................................................................................................................................................... 2 Purpose of the Audit Activity ...................................................................................................................................... 2 Report Highlights ........................................................................................................................................................... 2 Objective ........................................................................................................................................................................... 5 Background ..................................................................................................................................................................... 5 Scope ................................................................................................................................................................................. 5 Methodology .................................................................................................................................................................... 5 Compliance Statement .................................................................................................................................................. 6 Organizational Strengths ............................................................................................................................................. 6 Introduction to City Financials ....................................................................................................................................... 7 Revenue Analysis and Models Review ........................................................................................................................ 8 Economic Resiliency Review ........................................................................................................................................ 33 Appendices ........................................................................................................................................................................ 34 Appendix A: Management Response – Revenue Trends and Model Review .............................................. 34

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8 Revenue Analysis and Models Review

Overview
The City has a robust forecasting process. The Administrative Services Department ensures a smooth process for inputting all relevant information into Long Range Financial Plans (LRFF). The Administrative Services Department updates the financial forecasting model on an annual basis prior to the start of the budget process. These forecasting exercises inform the creation of the budget. The Department includes multiple scenarios to present to Council to inform decisions regarding the formation of the budget. The Administrative Services Department also reviews trends compared to the budget on a quarterly basis. These quarterly reviews are presented to Council.

The OCA conducted a Revenue Trends and Models Review to understand the current state of the City’s forecasting practices. First, the OCA reviewed forecasting and financial models used by the City as well as the inputs those models utilize for their forecasts. This review was specific to Property Tax, Sales Tax, and Transient Occupancy Tax (TOT).

These revenue sources alone account for almost three quarters of the total revenue base.

Following the review of the City’s models, the OCA conducted a deeper review of revenue trends and data analysis for major tax revenue sources of the City, specifically Property Tax, Sales Tax, TOT, Documentary Transfer Tax, and Utility User Tax. The OCA reviewed the revenue sources for the historical performance which contribute to estimates of future performance. The section below describes the methodology and results of these reviews.

Methodology
In review of the City’s models, the OCA first completed a data request to review all existing spreadsheets, documents, and reference materials used by the City in their economic forecasting processes. The OCA also conducted interviews and walkthroughs with members of Administrative Services to ensure full understanding of these documents. The OCA conducted independent best practice research and analysis for each of these revenue categories. Finally, the OCA documented the full understanding of current state of the models and inputs in the tables below, documented all best practices, and detailed any gaps for each revenue category.

In review of these revenue trends, the OCA reviewed economic and financial planning spreadsheets and documents provided by the City, including ACFRs, OpenGov and the internal documents already requested during the review of the models. The OCA also conducted independent research and analysis around state and national projections/economic indicators for each of these revenue categories. Finally, the OCA documented their understanding of each revenue source in the sections below. The sections are broken out by each revenue category and offer historical revenue analysis and future projections where possible.

Analysis
In completing this audit activity, there were a number of elements considered in the analysis. The OCA completed a thorough review of qualitative and quantitative analysis. In regards to qualitative information, the OCA completed interviews with City staff to walk through current-state practices and ensure understanding of documentation. Additionally, the OCA reviewed qualitative best practices from research and internal institutional expertise.

In regards to quantitative information, the OCA also completed a number of analyses and correlations to inform the audit.

For all revenue sources, the OCA completed correlation calculations with the following factors:
• Unemployment (State and City)
• Personal Income (State and County)
• Inflation (Nation, State, Region)
• Consumer Price Index (Nation, State, Region)
• Population (County, City)
• Enrollment (Palo Alto Schools, Stanford)
• Permits for new construction (City)
• Mortgage Rates
• Prime Rates
• Federal Funds Rates

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9 Results
The detailed results of the analysis of revenues are in the sections shown below. There is a section for each revenue source analyzed containing historical performance notes, historical averages, economic indicators with high correlation, and qualitative factors for consideration. Each section also contains graphs showing the revenue sources historical performance and projections based on historical averages and economic indicators. Please see the sections below for a detailed analysis of Property Tax, Sales Tax, Transient Occupancy Tax, Documentary Transfer Tax, and Utility User Tax.

The results from the review of the City’s models are also in the sections below1. The review of the City’s models are only for Property Tax, Sales Tax, and Transient Occupancy Tax.

Overall, the City's forecasting process is thoughtful and thorough. Additionally, the City has a number of highly skilled and sought-after advisors informing their forecasting decisions. The OCA's review confirmed that the City is consistent with industry best practices and uses reliable information. Additionally, the City’s LRFF projections are aligned with Baker Tilly’s recommendations for projections. This may point to Baker Tilly and the Administrative Services Department’s collaboration during the preliminary analysis in March of 2020, both parties completing analysis that are complimentary to one another. Even with the alignment to best practices, there are always opportunities for improvement in the forecasting process. In particular, the OCA has two overarching recommendations for improvement:

1. Naming conventions and workbook narratives. In order to develop an accurate and thorough forecasting model, the City considers a number of data elements from various workbooks. The input from multiple parties is also involved. At the moment, the City doesn't have a consistent naming convention for workbooks, nor does it have narrative or instructions within the workbook itself to describe the flow of information. The City relies on the institutional knowledge of employees to understand how the forecasting information is pulled together. Without consistent naming conventions and information narratives, the City is at risk if key stakeholders in this process were to leave the organization. The OCA recommends developing a consistent naming convention and adding narrative in workbooks, including the purpose of the sheet, from where information is pulled, to where information is pushed, and with whom does the ownership of the spreadsheet lie.

2. Assumptions and "guess-timates". In some cases, the City uses assumptions and rough estimates to consider various scenarios such as percentage growth in situations when supporting data is sparse. This can be a necessary action if no better alternatives exist. However, the OCA learned anecdotally that some of these rough estimates are highly specific, oftentimes having estimated numbers to the hundredths place. If a certain series of inputs are rough estimates, these inputs should not be made to look as though they were calculated. Instead those estimates should be clearly labeled with a short description as to the thought process behind how the estimator arrived at that number. This will help to clarify which values were calculated at one point vs. which values are estimated without a specific calculation.

1 FY20 numbers were used in analyses as FY21 numbers were unavailable for most of the audit period.

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14 Property Tax Current State Model Description
Property taxes make up the largest portion of the City's General Fund revenues and approximately 25% of total revenues (staff report6); fortunately, they were not as negatively impacted by the COVID-19 pandemic as sales tax and TOT. The City expects property tax revenues to grow around 10.2% from FY21 to FY22 and is projecting consistent property tax revenues for the next 3 years.

The following factors determine property tax revenue; net assessed values, transfer of ownership, new construction/declines, and Proposition 13 inflation adjustment. In determining the various scenarios for property taxes the City calculates their base projection which takes into account the major factors outlined. Once a baseline is established, the Treasury Department applies a growth factor and summarized.

Due to the unique economic situation COVID has created, the City crafted several scenarios for their revenue projections.

To determine the various scenarios for Property Tax, the City determines the base projections for the revenues in the workbooks described above, and adjusts the appropriate multipliers to reflect the expected revenues in a 2-3 year recovery period, 3-5 year recovery period (base), and 5-10 year recovery period. These scenarios were presented to Council along with Sales and TOT projections.

The City uses the following inputs when forecasting Property Taxes:
1) Tax rolls received from the County Controller's Office 2) New growth and known decreases, including Proposition 13 3) Historical data on prior year assessed values and collections 4) Regional data on property sales and values (including a review of Zillow) 5) Property tax consultants input

Property Tax Industry Best Practices

The City's property tax projection methods align with what we see with other Baker Tilly clients. They rely heavily on historical data, current tax rolls from the County, and upcoming changes within the local market. Our review confirmed that the City is using reliable information and their practices are consistent with other communities.

Property Tax Observations and Recommendations

In our review, the OCA attempted to find correlations between assessed values and several factors such as the 30-year mortgage rates, Prime Rates, and Federal Funds rates. The strongest correlations the OCA found were between the City's total assessed values and both the Santa Clara County Per Capita Personal Income and California Total Personal Income. There is 99% correlation between total AVs and California's total personal income followed closely by a 98% correlation between the total assessed value and Santa Clara County's per capita personal income.

Based on these correlations, the OCA ran a preliminary regression analysis which showed a projected decrease in total assessed values in 2022 before rebounding back in 2023 and 2024. After running the regression analysis, we looked at the FY16 Financial Report5 which contained historical information back through the Great Recession, which showed total AVs remaining flat from 2009-2013. Taking all of that into account, our prediction is that AVs will remain flat for the next 3- 4 years and the City's base case reflects that outcome.

The most conservative long term assumption, however, would be a projection of linear growth into future years. The conservative assumption appears to align closely to the projections shown in the Long Range Financial Forecast (LRFF) dated December 7th, 2021.

5 Palo Alto’s FY16 ACFR: https://www.cityofpaloalto.org/civicax/filebank/documents/54744

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17 Economic Indicators

The table and graph below display the sales tax revenue projections using economic indicators with a high correlation.

The calculations were done using the same method described in the Property Tax section.

Economic Indicators with High Correlation:
• Personal Income (Santa Clara County)
• Stanford Enrollment
• TOT Revenues (Correlation >85%)

The only projectable economic indicator with a high correlation is Personal Income for Santa Clara County. The two have an R2 value roughly 93% which is enough to say there is a correlation but not enough for total confidence in their relationship moving forward. The OCA projected out the Personal Income for Santa Clara County using growth percentages for 2021-2024 obtained from CA States Personal income projections published by the California Department of Finance in the ‘California Economic Forecast MR 2021-2022’. A growth factor of 4% was then applied to years 2025- 2040.

$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000Thousands
Fiscal Year
Sales Tax Projections Using Economic Indicators
Projection using Santa Clara Personal Income
Fiscal
Year
Projection
using Santa
Clara Personal
Income
2021 $35,726
2022 35,795
2023 37,034
2024 38,346
2025 39,525
2026 40,750
2027 42,025
2028 43,351
2029 44,730
2030 46,164
2031 47,655
2032 49,206
2033 50,819
2034 52,496
2035 54,241
2036 56,055
2037 57,942
2038 59,905
2039 61,945
2040 64,068

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19 Sales Tax Current State Model Description
Sales Tax receipts have taken a significant hit because of COVID-19 and the health regulations implemented as a direct result. The total year over year change from 2019 to 2020 was -16.3% and an addition decrease of -4.7% in 2021. Recent sales tax revenues point to the yearly revenue being $1.5 million, or 5.2%, over 2021 actuals.

The City uses several major factors in their sales tax projections; actual collections received, tax consultant provides a report, previous recessions, unemployment, and local economists.

First, the City receives monthly sales tax information from the State. Their sales tax consultant also provides a report summarizing monthly revenues and providing future projections. The projections are inputted by Treasury and OMB factors in more locally focused insights to get an estimate for current year collections. Once the current year base scenario is established, a growth multiplier is added using inputs described above. Finally, the data is cleaned up and becomes the deliverable for Council.

To determine the various scenarios for sales tax, the City determines the base projections for the revenues in the workbooks described above, and adjusts the appropriate multipliers to reflect the expected revenues/operating margins in a 2-3 year recovery period, 3-5 year recovery period (base), and 5-10 year recovery period. These scenarios were presented to Council along with TOT and Property Tax projections.

Inputs considered when forecasting Sales Tax revenues include:
1) Consultant report - MuniServices 2020Q3
2) Data from the previous recession
3) Unemployment rates
4) State collections - sent monthly
5) Input from local economists

Sales Tax Industry Best Practices

The City's sales tax projection methods align with what we see with other Baker Tilly clients. They rely heavily on historical data, monthly sales tax revenues, and upcoming changes within the local market. Our review confirmed that the City is using reliable information and their practices are consistent with other communities.

Sales Tax Observations and Recommendations

During our review, we looked for correlations between historical sales tax revenues and the following data: Unemployment rates, Santa Clara County Per Capita Personal Income, California Total Personal Income, and historical TOT taxes. The strongest correlations came from Santa Clara County per capita income 85.3%, California total personal income 83.6%, and historical TOT revenues 82.0%. While none of these correlations are in the 90% percentile, they could give insight on future years by leveraging projections from reputable state and national entities to check for consistency with current models. Since TOT and Sales Tax have a reasonably strong correlation, when modeling future years the City may check that both revenue projections are aligned in future years.

As far as historical averages, the 1.46% 20-year average is a conservative estimate, showing $40M in revenue by FY 2040. The Santa Clara Personal Income splits the middle between the 10-year average and the 20-year average with around 3.8% growth. The City’s LRFF estimate of $43 million in sales tax revenues in FY 2032 is plausible based on our analysis.

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24 Transient Occupancy Tax Current State Model Description The TOT was heavily impacted by the COVID-19 pandemic. The City assumes that TOT revenue will continue to suffer until the virus is under control and travel resumes. In particular, the reduction of "business and other non-leisure travel is a driving impact" (Staff Reports)6.

TOT revenue is comprised of four factors; the number of hotels in the City, the number of rooms at each hotel, the average occupancy of rooms, and the average room rate. Applying a 15.5% TOT to those four factors makes up the revenue the City receives from these hotels. The City is expecting TOT to be 57% below pre-pandemic levels in FY22, which is up from FY21 actuals and but still 80% below pre-pandemic levels (prior to FY21). As reported by hotels, room rates have decreased by nearly 50% and occupancy rates have decreased from 80% to 44%.

When forecasting TOT into the future, the City uses a number of factors to determine likely scenarios. First, the City assesses the current state of TOT. This includes detailed information on each hotel, including historical data and information on room rates, occupancy rates, and number of rooms. The City then includes assumptions and analyses from the Treasury department.

Treasury considers a few factors, including historical trends of TOT, regional trends of TOT, and behaviors of tax revenues after past recessions. Treasury's analysis is used to create the City Council Staff Report 6 and Presentation7 with
various scenarios of economic recovery.

To determine the various scenarios for TOT, the City determines the base projections for the revenues and adjusts the appropriate multipliers to reflect the expected revenues/operating margins in a 2-3 year recovery period, 3-5 year recovery period (base), and 5-10 year recovery period. These scenarios were presented to the Council along with Sales and Property Tax projections. In summary, the inputs considered when forecasting TOT are the following:
1) Historical data of number of hotels, number of rooms, average room rate, and average occupancy rate 2) Future hotels according to City Planning
3) Historical recovery data from the past recessions
4) Regional (Northern California) hotel/motel trends
5) Discussions with economists on potential future trends in travel Transient Occupancy Tax Industry Best Practices

Traditionally, the City's forecasting methods are directly in-line with what we've seen with past clients. The analysis relies heavily on historical data, projected growth in rooms, and adjusting for economic conditions. Throughout our research, we also saw similar methods being used in neighboring communities such as Mountain View, San Mateo, and others.

However, through our research, we've also identified additional factors that are worthy of consideration. One such factor is being used by the City of San Jose

8. While much of San Jose's TOT forecasts are similar to the City's methods, San Jose also considers the activity and growth of local events/conventions in their TOT forecasting.

Accounting firm, Ernst and Young (“EY”), also wrote a report about forecasting hotel trends in the age of COVID9. Their thesis discussed the importance of the type of travel a community attracts.

For example, the pace of recovery for a highly professional community will vary from a tourist destination. EY also considers the national unemployment rate as an indicator of travel levels as well as the rise in virtual alternatives.

CBRE writes a report
10 similar to EY, and both reports agree that the hotel quality matters a great deal in forecasting. In CBRE's analysis, luxury hotels are seeing less fluctuation than mid-segment or budget hotels. Finally, Moody's, the credit

6 2/8/21 City Council Staff Report: https://www.cityofpaloalto.org/civicax/filebank/documents/80088 7 2/8/21 City Council Presentation: https://www.cityofpaloalto.org/civicax/filebank/documents/80198 8 San Jose’s Five Year Forecast: https://www.sanjoseca.gov/home/showpublisheddocument?id=69842 9 EY Hotel Forecasting Report: https://www.ey.com/en us/real -estate-hospitality-construction/how-to-better-forecast-recovery-in- the-hotel-industry
10 CBRE Hotel Forecasting Report: https://www.hotelmanagement.net/operate/cbre-adjusts-us-hotel-industry- forecast#:~:text=According%20to%20the%20recently%20released,during%20the%20year's%20second%20half.

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25 rating agency, produces a report on their outlook on hotels11. They believe that leisure and personal travelers will be the first to return. They also believe that business travelers will lag on a macro level, but that it will depend greatly on industry.

Moody's in general is more on the pessimistic side, believing that a full recovery within 3-5 years is unlikely.

In summary, additional inputs found in research not captured in the City's forecasting process are as follows:
1) Size and frequency of local conventions and events
2) National unemployment
3) Hotel market segments and property-specific attributes 4) Demographics of travelers

Transient Occupancy Tax Observations and Recommendations

In regards to forecasting of revenue trends, the OCA concluded that Santa Clara Population, 20-year average, and the linear trend line are a conservative forecast. Those projections are all grouped very closely together and have a reasonable growth pattern. The difficulty is predicting how quickly the revenue will recover to the pre-pandemic levels especially with a varied recovery pattern from historic recessions.

The LRFF dated December 7, 2021, shows a 5-6 year recovery period (FY 2019 – 2025), which is in between the recovery periods for the previous economic downturns, and estimates $37.2 million in revenues for FY 2032. These estimates are just slightly higher than the OCA’s most reasonable estimates described above, which show revenues of $30M -$35M for FY 2032.

The OCA also recommends considering the four factors listed above as additional forecasting inputs, namely; size and frequency of local conventions/events, national unemployment, hotel market segments and property-specific attributes, and demographics of travelers. While some of these inputs may not be possible due to lack of data or lack of applicability to the City, the OCA recommends considering these other inputs to determine if improvements to forecasting can be made. Additionally, where data is available, the City can determine correlations between various factors to determine if there is a relationship between TOT and a given input. Finally, in some cases, the City may find that these factors do not apply specifically to Palo Alto and may disregard certain factors in future forecasts. For example, while San Jose includes analysis around local conventions/events, this is also because they have a much larger convention center. If Palo Alto does not have the same ability to gather data around local conventions/events, it may not be a factor that can be included in a broader analysis.

The City should also reach out to larger hotels to understand if they forecast as well as large businesses and Stanford University to understand their expectations for conferences, business travel, student activity, etc. If a relationship with Stanford to provide such information does not exist, this would be a useful relationship to develop for future analyses that may also benefit the University.

11 Moody’s Hotel Industry Assessment Report: “Consumer comfort vital for travel, tourism dependent sectors’ eventual recovery”

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33 Economic Resiliency Review

Overview
The OCA conducted an review of the City’s economic resiliency in parallel with the Revenue Trends and Models Review.

The OCA included Economic Development subject matter specialists (SMSs) to complete an informational report of the Cities current state of economic resiliency. The City is currently in search for new position(s) focused on economic development. To aid in these efforts, the OCA will provide this Economic Resiliency Review in the form of a separate report.

Methodology
To complete a review of the City’s economic resiliency, the Economic Development SMSs conducted two main tasks. The first task was focused on data analysis of key economic indicators while the second task was the resiliency analysis itself.

In regards to the data analysis, the City has had a recent focus on economic development, given the impacts from the Covid-19 pandemic, such as the reduction in retail sales tax, recent business turnover, and site redevelopment opportunities. The OCA conducted an analysis to assess the City’s economic resiliency current state and uncover opportunities for adjustment or improvement.

Results
The Economic Development SMSs produced a memo specific for informational purposes. This memo was provided as guidance as the City searches for internal economic development personnel. The memo includes three high-level strategic recommendations supported by the economic resiliency analysis. Recommendations focus on the following areas:
− Business/industry diversification strategies
− Housing and workforce findings impacted by Covid-19 pandemic − Enhancements to livability for resident and business engagement and retention, which could include high quality service delivery, recommendations on placemaking or other strategies to build community, and/or business programming

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34 Appendices
Appendix A: Management Response – Revenue Trends and Model Review

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Executive Summary

Purpose of the Economic Resiliency Review
The Economic Resiliency Review was a component of a broader Economic Recovery Advisory audit activity. The purpose of the Economic Recovery Advisory audit activity was to review the City of Palo Alto’s (“City”) long-term financial planning models and inputs, offer recommendations for improvement, identify and evaluate key revenue source categories that present long term risk to the City's financial sustainability and perform scenario analysis. The Office of the City Auditor (“OCA”) also offered ad hoc advisory assistance during the FY22 budget process.

In this particular report, the OCA included economic development subject matter specialists to conduct an Economic Resiliency Review as a resource to the City and any future City employees focused on economic development initiatives.

This report supplements the Revenue Trends and Models Review included in the broader Economic Recovery Advisory report.

Results
The Economic Development SMSs produced this separate report specific to the Economic Resiliency Analysis. This report was provided as guidance as the City searches for internal economic development personnel. The report includes three high-level strategic considerations supported by the economic resiliency analysis. Recommendations focus on the following areas:
− Business/industry attraction, retention, and diversification strategies − Housing and workforce findings impacted by Covid-19 pandemic − Enhancements to livability for resident and business engagement and retention, which could include high quality service delivery, recommendations on placemaking or other strategies to build community, and/or business programming

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Table of Contents
Executive Summary ................................................................................................................................................................. 2 Purpose of the Economic Resiliency Review ....................................................................................................................... 2 Results ............................................................................................................................................................................. 2 Objective ............................................................................................................................................................................. 5 Background ......................................................................................................................................................................... 5 Scope ................................................................................................................................................................................... 5 Methodology ....................................................................................................................................................................... 5 Compliance Statement ........................................................................................................................................................ 6 Organizational Strengths ..................................................................................................................................................... 6 Economic Resiliency Review – Palo Alto ................................................................................................................................. 7 Summary Presentation of Demographic Data & Business Baseline ................................................................................... 7 Population, Income, and Educational Attainment .......................................................................................................... 7 Business Size Profile ........................................................................................................................................................ 9 Employment and Industry Mix ...................................................................................................................................... 10 Labor Force and Commuting Patterns .......................................................................................................................... 13 Retail – Shopping Centers and Key Corridors ............................................................................................................... 14 Economic Resiliency Analysis ................................................................................................................................................ 15 Development Incentives .................................................................................................. Error! Bookmark not defined.

Economic Trends ........................................................................................................................................................... 15 Business Engagement During Covid-19 ........................................................................................................................ 15 Considerations ...................................................................................................................................................................... 17 Business and Industry Attraction, Retention, and Diversification Strategies ............................................................... 17 Housing and workforce findings impacted by Covid-19 pandemic .............................................................................. 18 Enhancements to livability for resident and business engagement and retention ...................................................... 19 Appendix A: Management Response ....................................................................................... Error! Bookmark not defined.

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Index of Figures
Figure 1: Zillow Home Value Index, Palo Alto, 2012-2021 ...................................................................................................... 8 Figure 2: Redfin Median Sale Price, Palo Alto and Santa Clara County, 2016-2021 ............................................................... 8 Figure 3 Palo Alto Top Largest Employers, Good City Company ............................................................................................ 9 Figure 4 California Business Percentage, Esmi/DatabaseUSA.com ...................................................................................... 10 Figure 5 Palo Alto Business Percentage, Emsi/DatabaseUSA.com ....................................................................................... 10 Figure 6 Palo Alto Change in Industry Employment, 2015-2020, US Bureau of Labor Statistics .......................................... 10 Figure 7 Palo Alto 2020 Industry Location Quotient, 2-digit NAICS, US Bureau of Labor Statistics ..................................... 11 Figure 8 Palo Alto 2020 Industry Location Quotient, 6-digit NAICS, US Bureau of Labor Statistics ..................................... 12 Figure 9 Commuting Patterns, US Census, OntheMap, 2019 ............................................................................................... 13 Figure 10 Employed and Living in Palo Alto, US Census, OntheMap, 2019 .......................................................................... 13 Figure 11 Inflow/Outflow Job Counts, US Census, OntheMap, 2019 ................................................................................... 13 Figure 12 Change in Employment by Occupations, US Bureau of Labor Statistics, 2015-2020 ............................................ 15 Figure 13 Location Quotient by Occupations, US Bureau of Labor Statistics, 2020 ............................................................. 15

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Introduction

1 Discussed in Palo Alto Online, “Layoffs. Red tape. Anxiety. Small businesses fight to survive pandemic” 4/17/2020; https://www.paloaltoonline.com/news/2020/04/17/as-costs-mount-small-businesses-fight-to-survive. Accessed 01/05/22 Objective The objectives of the Economic Recovery Advisory audit activity was to:

1) Review the City’s long-term financial planning models and inputs and offer recommendations for improvement.
2) Identify and evaluate key revenue source categories that present long term risk to the City's financial sustainability and perform scenario analysis. 3) Offer ad hoc advisory assistance during the FY22 budget process.

The Economic Resiliency Review is a component of these broader objectives.

Background The OCA performed a citywide risk assessment that assessed a wide range of risk areas, including strategic, financial, operational, compliance, technological, and reputation risks.

The purpose of the assessment was to identify and prioritize risks to develop the annual audit plan.

During the FY2021 risk assessment, the OCA identified the followings risks which led to this project.
• COVID-19 Response
• Financial Performance/Revenue Generation
• Tax Revenue & Economic Recovery
• Current Planning Practices

Additionally, during the risk assessment, Baker Tilly included some examples of potential risks in the future related to this audit:
• Large businesses moving to other locations or decreasing the focus on in-person interactions at headquarters, lowering the daytime population and visitors • Decreasing real estate values due to external factors decreases City revenues from property taxes
• Lost revenue for the City to fund City services with Prop 13 in place • High taxation on residents due to increased property values, especially long term Palo Alto residents, in the absence of Prop 13

Scope To complete a review of the City’s economic resiliency, the Economic Development SMSs conducted two main tasks. The first task was focused on data analysis of key economic indicators while the second task was the resiliency analysis itself.

Methodology The City has recently focused on economic development, given the impacts from the Covid- 19 pandemic, such as the reduction in retail sales tax revenue, recent business turnover1, and resulting site and/or storefront revitalization opportunities. As there is some available data from previous studies, the Economic Development SMSs conducted a mix of data review and alignment from existing studies and additional analysis, including:
− Economic Growth & Employment
− Demographics
− Business/Industry

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− Visual review and locational analysis using maps and other tools

The Economic Resiliency Analysis involved calculating risk to a community’s key economic assets and developing a strategy to buffer risk to minimize or avoid shocks to the economy.

The OCA conducted an analysis to assess the City’s economic resiliency current state and uncover opportunities for adjustment or improvement, including:
− Economic incentives scan
− Regional economic trend scan, including employment and industry location quotient
− Economic resiliency readiness check, including evaluation of steady state and responsiveness factors

Compliance
Statement
This audit activity was conducted in accordance with the Annual Audit Plan. The audit activity was not performed in compliance with the generally accepted government auditing standards (GAGAS). The audit activity was not performed in compliance with GAGAS for two primary reasons:
− The individuals conducting the activity did not meet the CPE requirements. As subject matter experts in construction risk, the team members are not required to obtain government audit CPE. Rather, multiple team members are required to be technically competent construction risk professionals and obtain CPE in construction risk topics.
o Mitigating factor – City Auditor Kyle O’Rourke and Manager Chiemi Perry both adhere to CPE requirements
− The City of Palo Alto Office of the City Auditor has not undergone an External Peer Review in the required 3 year cycle as required by Standards. o Note – the Office of the City Auditor will undergo a peer review at the conclusion of FY22.

We planned and performed the activity to obtain sufficient, appropriate evidence to provide a reasonable basis for our recommendations based on our objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit the objectives.

Organizational
Strengths
During this review, we observed certain strengths of the City regarding economic resiliency.

Key strengths include:
− A high-level of responsiveness and a problem-solving approach to business needs during the Covid-19 pandemic
− A strong baseline for the city’s residential property tax base and supporting demographics to continue to support future growth
− A healthy mix of business sizes, industry specialization, and geographic location of retail and business centers across the city to support the city’s economic resiliency profile

The Office of the City Auditor greatly appreciates the support of the Administrative Services Department in conducting this audit activity.

Thank you!

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Economic Resiliency Review
Introduction
The purpose of the economic resiliency review is to provide a high-level background of baseline conditions and core indicators that the City could consider as an economic resiliency threshold. This review is primarily drawn from secondary research, data, and reports. Unfortunately, there is a lag of data available to truly elucidate the disruption of the Covid-19 pandemic to the core conditions of the local and regional economy.

The intent of this review is to summarize past baseline conditions to prepare the City and its economic development partners to move forward with a new set of challenges and conditions given the ongoing pandemic and long-term changes to remote work and an online retail economy. With that in mind, the City considers itself as embedded within the business community, aligned with other groups that provide support and resources to local businesses, such as the Palo Alto Chamber of Commerce, the downtown business district, the California Avenue business district, property owners and brokers, the Stanford Research Park, and Stanford University. As such, the City should rely on its many partners in economic development to act on strategies, policies, and programming to support economic growth.

Summary Presentation of Demographic Data & Business Baseline To develop a working understanding of the economic baseline, the economic development SMSs reviewed key indicator demographics, including population data, income, educational attainment, housing market data, business, and employment information. These demographic indicators determined a strong profile of economic resiliency.

Population, Income, and Educational Attainment
The City’s population was 68,572 as of the 20202 census data. Between the 2010 and 2020 censuses, the population grew by a steady but modest pace of 6.47% that was above the state average of 6.13%, but below the national average of 7.35% and below the 8.67% increase experienced in Santa Clara County as a whole3. The population is significantly less diverse than Santa Clara County and California. 54.9% identified as “white alone, not Hispanic or Latino” while that number was 30.6% in Santa Clara County and 36.5% statewide4. The City’s younger age brackets are comparable to county and state averages; however, the city has a higher proportion of its population that is 65 years or older at 19.4% while the county and state percentages are 13.9% and 14.8% respectively5.

Palo Alto has very strong personal and family income when compared to the county and state averages. Median household income was $158,271 while Santa Clara County was $124,055 and California was $75,235. Per capita income was even more significant at $92,590 with the county and state averages being $56,248 and $36,955 respectively.

Poverty prevalence was significantly lower as well, with the percent of persons in poverty at 6.10% compared to 7.52% in Santa Clara County and 11.8% in California6.

The city has extremely high education attainment rates. 97.4% of persons age 25 year or older are high school graduates or higher, and 82.8% have a bachelor’s degree or higher7. The city’s extremely high rate of college degrees is of note, being more than double the state average. By comparison, Santa Clara County’s rates are 88.4% and 52.4% respectively, and California’s rates are 83.3% and 33.9% respectively.

2 US Census Bureau, Quick Facts; Palo Alto, CA; 2020 Census 3 US Census Bureau, 2020 Census.
4 Ibid
5 Ibid
6 Ibid
7 US Census Bureau, QuickFacts; Palo Alto, CA; 2015-2019 data

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and the Uplift Local program to quickly utilize outdoor spaces to help expand business activities outdoors for restaurants and fitness businesses.

The Stanford Research Park is a powerhouse economic asset to the City and is an economic driver of jobs, salaries, spending power, business growth, industry diversification, and property tax receipts. While there was some collaboration during the COVID-19 pandemic with strategic support of the small businesses on California Avenue corridor, a more proactive engagement strategy of business retention and attraction could be considered from the city perspective, targeted to the larger industrial and tech businesses located there.

The City views itself as embedded within the business community when it comes to economic development, aligned with other groups that provide support and resources to local businesses, such as the Palo Alto Chamber of Commerce, the downtown business district, the California Avenue business district, property owners and brokers, the Stanford Research Park, and Stanford University. The new economic development staff person is one of many participants within the business development and economic development space, and can only act on the specific decisions, programs, or action steps that can be executed by city staff.

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Considerations
Business and Industry Attraction, Retention, and Diversification Strategies The City and its economic development partners could explore the following considerations for business and industry attraction, retention, and diversification to enhance long-term economic resiliency. Retail and small business corridors warrant different considerations than considerations for larger businesses.

Retail and Small Business Corridor Considerations
While destination retail in the city is doing well, small business corridors, such as California Avenue and University Avenue, have been more vulnerable to impacts of the COVID-19 pandemic and the changing retail environment. The following considerations would support a more proactive approach by economic development partners to attraction and retention of small businesses in walkable, “Main Street” corridors. • A mix of coveted small-scale retail stores and California-based boutique brands can be found here, as well as independently owned restaurants, wine bars, and other small business venues. A strategic approach to corridor planning with intentional placemaking13 tactics could be utilized to address the multi-faceted set of issues on key retail corridors.
• If it benefits the community’s identity and “placemaking” efforts, the City could consider if a more proactive approach to support business retention and attraction on walkable, small business-focused corridors is a priority. Ideas include simplifying the renovation and redevelopment process and fee structure, potential rent subsidies for small businesses, and/or workforce support programs. If an incentive program is considered, the City may require some evaluation criteria, such business plan information, revenue projections, market analysis, customer potential, etc. to qualify for investment. • Another approach to the California Avenue corridor could be to undertake a broader business and retail analysis and develop a more divergent, future-focused redevelopment vision and plan. A new approach could position the corridor for the future economy and an endemic status of Covid-19, where remote work continues to impact localized retail corridors.

• The restrictions on big-box stores or retail chains could be reviewed to see if the current policy still meets the City’s goals in the current retail environment.
• Economic development partners focused on corridor business attraction could collaborate on retail attraction strategies with the owner/operator of Stanford Shopping Center. There may be an opportunity to capture an overflow of retail prospects to locate on University Avenue or California Avenue. • As the population ages, changing demographics that lean towards an online-focused, more diverse population may not have the same brand allegiance to destination retail and/or may have different retail shopping habits.

Consider developing strategies that account for changing retail preferences and trends to ensure the future success of destination retail.

Note: In contrast to the above, the City could choose a less proactive approach, including letting market forces guide what happens in the University Avenue and California Avenue corridors. There may be consequences for the small-scale, walkable businesses on these corridors and a lag in redevelopment efforts as market forces dictate future opportunities.

13 “Placemaking” is used here to reference a process of creating quality places (unique, visually attractive, interesting, often including public art and entertainment) to attract people and activities.

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Larger Business Diversification Considerations
The following considerations summarize the findings on larger business diversification. While the City is doing well in employment in total jobs and jobs within growth industries, continued business retention is an ongoing consideration, especially with the rapidly changing business climate.
• The city’s industry mix is concentrated primarily in two industries, information and health care. Even though these are growth industries, industry diversification can provide economic stabilization and help mitigate the risk associated with the downturn in a concentrated industry. • The percentage of employers with 500+ employees is four times the state average. This provides a workforce that would attract other larger corporations. However, consideration of providing targeted support and incentives to mid-size, small business and entrepreneurs would help diversify workforce and overall industry mix.
• The top occupations based on location quotients by 2-digit NAICS are computer and mathematical at 3.56, legal at 2.95, art/design/entertainment/sports and media at 1.92, and healthcare practitioners and technical at 1.87.

The location quotient by 6-digit industry NAICS are Internet Publishing and Broadcasting and Web Search Portal at 86.72, Blank Magnetic and Optical Recording Media Manufacturing at 56.52 and Radio and Television Broadcasting and Wireless at 35.36. These occupations support a highly educated and skilled workforce, which can be used to support an effort to attract mid-sized businesses and aid in industry diversification.

Housing and workforce findings impacted by Covid-19 pandemic Here are some brief short-term considerations in the areas of housing and workforce, as it relates to issues that emerged and actions taken by the City during the Covid-19 pandemic. • The housing market was stable and continued to grow throughout the pandemic. This helped buffer the City’s revenue streams when retail sales tax, hotel stays, and other growth areas slumped. • The continued growth of housing costs may need to be considered and further analyzed from a business retention and workforce recruitment standpoint.
• Many businesses on the University Avenue and California Avenue retail corridors that depend on office workers and commuters as customers struggled during the pandemic. Additionally, many businesses reported challenges with workforce attraction and retention in city surveys. As the pandemic continues to disrupt daily life and long- term remote work continues, a loss of foot traffic and daytime customers continues to negatively impact Palo Alto’s retail and restaurants on key corridors. A broader strategy of coordination with partners to activate corridor businesses and business support strategies could be explored by the City. A more rigorous analysis using primary research of businesses on these corridors could be conducted to understand the long-term impacts of remote work and new strategies to engage existing residents and businesses to rebuild the customer base.
• As multi-family redevelopment sites become available, the City could consider additional financial and placemaking benefit opportunities in supporting this development. For example, locating multi-family development near transit networks, existing parking structures, or walkable retail corridors to increase foot traffic to existing small businesses that struggled during the pandemic. • The city was highly engaged with local businesses and did a good job with troubleshooting during the pandemic.

Some issues, such as parking and workforce attraction issues, emerged less as a crisis point as a result of the pandemic and more as a systematic issue to address with a long-term operational approach. Therefore, consideration of a strategic approach using urban planning and economic development expertise to address some of these issues may be needed.

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Enhancements to livability for resident and business engagement and retention Palo Alto is a desirable community to live and to work in, which is supported by the strong economic indicators discussed in this report. However, even a successful community needs to look to the future, and to continue to enhance its position for businesses and residents. Some additional considerations to enhance livability to support positive resident and business engagement and retention include:
• Create experiences in downtown spaces and retail locations to attract resident attention and support, increase visitors, and prolong time spent in the walkable “Main Street” corridors, such as California Avenue and University Avenue.
• Enhance opportunities for more and different events in coordination with Stanford, since Stanford enrollment and visitor events have a positive impact on retail sales and hotel stays, as well as adding vibrancy and interest for college students and residents.
• Protect and market natural assets and areas since open space and natural assets are at a premium in the Bay Area and Southern Peninsula.
• Continue dialogue and ongoing engagement with current residents to guide delivery of relevant, high-quality city services.

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City of Palo Alto (ID # 14095)
City Council Staff Report

Meeting Date: 4/11/2022

City of Palo Alto Page 1

Title: Adoption of a Resolution Authorizing an Installment Sale Agreement with the California State Water Resource Control Board for Financing of the Design and Construction of the Secondary Treatment Upgrades Project Funded in Wastewater Treatment Enterpr ise Fund Capital Improvement Program, Project WQ -19001, at the Regional Water Quality Control Plant From: City Manager
Lead Department: Public Works

Recommendation
Adopt a resolution (Attachment A) authorizing an Installment Sale Agreement with the California State Water Resource s Control Board in connection with the financing of the design and construction of the Secondary Treatment Upgrades Project funded in Wastewater Treatment Enterprise Capital Improvement Program, Project WQ -19001, at the Regional W ater Quality Control Plant.

Background
The Regional Water Quality Control Plant (RWQCP) was originally constructed in 1934 and has undergone several expansions and upgrades. A key upgrade in 1972 included construction of a biological treatment process (i .e., secondary treatment). The process consists of four concrete aeration basins (each measuring 120 feet by 135 feet and 20 feet deep). Equipment includes an air blower room and pump stations, which are associated with providing oxygen to the process and recirculating and removing sludge as part of the biological process. The process also includes a standby power generator, electrical switchgear, and motor control centers to provide electrical power for the process equipment. This equipment is between 28 t o 50 years old and beyond its useful life. The current secondary treatment process is not able to remove nitrogen which is a new regulatory requirement to discharge treated effluent to San Francisco Bay.

The Secondary Treatment Upgrades (STU) Project design contract with Brown and Caldwell was approved by Council in October 2018 (SR #9485); the contract was amended in December 2021 (SR #11155). The STU Project design is scheduled to be completed in April 2022. As detailed in a Preliminary Design Report, the secondary treatment process is being upgraded to meet new, more stringent regulations in conjunction with increased influent f low and wastewater loading due to projected increased population in the RWQCP’s service area . The project will also replace aging equipment that is beyond its useful life and in danger of failing. Upgrading the 5 Packet Pg. 132

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secondary treatment process and the ancillary systems is necessary to ensure reliability for continuous use of the secondary treatment units and to ensure compliance with current and future regulations.

California Clean Water State Revolving Fund (SRF) Program The State Water Resources Control Boar d (SWRCB) Division of Financial Assistance administers the Clean Water State Revolving Fund (SRF) program. The SRF program provides low interest financing to agencies for wastewater projects. Under this program, eligible projects can apply for loans with i nterest rates that are approximately half of the State General Obligation rate, resulting in lower project costs and maximizing benefits to ratepayers and partner agencies. On March 2, 2021, Council approved the adoption of reimbursement resolutions to des ignate the amount of project expenditures to be reimbursed by Clean Water SRF proceeds for the funding of the STU Project (SR #11834).

The City has previously obtained SRF loans for the:

• Palo Alto/Mountain View Recycled Water Pipeline project ($9.0 million, 20 -year term, Agreement 07-814-550, executed 10/12/07);
• Ultraviolet Disinfection Facility ($8.5 million, 20 -year term , Agreement 09 -814-550, executed 10/27/09);
• Sludge Dewatering and Truck Loadout Facility ($25.7 million, 30 -year term, Agreement D16-01034, executed 6/7/17); and
• Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project ($19.4 million, 30-year term, Agreement D20-01009, executed 7/12/21).

The SWRCB has completed their review of the City’s loan application for the STU Project, and in conjunction with the City Attorney’s Office, prepared the loan document , or Installment Sale Agreement (ISA). The next step after Council approval is for the SWRCB to complete its internal ISA approval process and gather all required State signatures in the next two to four weeks, and then to present the ISA, in substantially the form included as part of Attachment A, to the City’s Authorized Officer (the City Manager, Director of Public Works, or Manager of the Regional Water Quality Control Plant) for signature on behalf of the City. Designated Palo Alto and SWRCB representa tives must execute the ISA for the City to receive SRF funds. Because financing is not secured until the ISA is approved and executed by both parties, the City will not execute a construction contract for the project in the event the SWRCB does not provide an approved ISA for signature.

The total SRF loan application is for $168,658,977 based on the most recent estimate from the engineer, Brown and Caldwell and includes the costs for planning, design, construction, construction contingency, capital program administration, and construction management . The partner agreements with Mountain View, Los Altos, East Palo Alto Sanitary District, and Stanford University all require modification to document commitment to the project repayment of the SRF Loan. Staff wi ll return to Council at a future date for approval of both the 5 Packet Pg. 133

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construction contract and the modified partner agreements.

Discussion
This project will rehabilitate four concrete aeration basins as well as the blower room and sludge pumping stations . Equip ment will be replaced including, piping and ancillary systems, extending the useful life of mechanical and electrical equipment components by at least another 30 years , while the concrete and steel structure life cycle will be extended by at least another 50 years. The scope of work includes the following for all four basins: replacement of the air bubble diffusers and the piping manifolds in the basins; replacement and automation of influent and effluent flow diversion gates; concrete work to install new flow channels for flow distribution; replacement of air blowers and sludge pumps; installation of two pump stations, a standby generator and an electrical power load center; and replacement of aging motor control centers (i.e., electrical power distribution equipment).

Resolution Authorizing SWRCB Installment Sale Agreement (ISA) The authorizing resolution for the ISA is included as part of Attachment A. The ISA will provide funding in an amount of $168,658,977 based on the estimated cost of the STU project, pending the City’s approval of the construction contract, as well as both parties’ approval and execution of the ISA. The SRF loan interest rate has been locked at 0.8 % for a 30 -year term. The SRF loan will cover construction, construction contingency, planning, design, capital program administration and construction management costs. Costs incurred for the planning and design of this project were funded by the Wastewater Treatment Enterprise Fund Capital Improvement Program (Project WQ -19001), and these expenses will be reimbursed by the SRF loan. The final loan amount will be adjusted at project completion to reflect actual disbursements requested over the course of construction.

The City’s payments under the ISA will be secured by a pledge of and pay able from net revenues of the City’s Wastewater Collection and Wastewater Treatment enterprise funds, on a parity basis with the City’s obligation to repay the SWRCB under four prior SRF financing agreements (the 2007 Ultraviolet Disinfection Facility, the 2009 Palo Alto -Mountain View Recycled Water Pipeline Project, the 2017 Sludge Dewatering and Loadout Facility, and the 2021 Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project).

Statutory Disclosures
Government Code Section 5852.1 requires that certain cost information be disclosed prior to authorizing the issuance of a bond. That statute defines the term “bond” broadly enough so as to likely include the SRF loan financing agreements. The required disclosures are incl uded as Attachment B.

Timeline
The construction contract is expected to be bid in summer 2022, with contract award in fall 2022. Construction is anticipated to begin in early 2023 and work is anticipated to be 5 Packet Pg. 134

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completed by December 2026.

Resource Impact
Palo Alto RWQCP treats the combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and the East Palo Alto Sanitary District. Palo Alto’s share of this project is 38.16% and the other five agencies’ share is 61.8 4%, based on the capacity rights established in partners’ agreements. As the administering agency, the City of Palo Alto has appropriated the funding for this Project in the Wastewater Treatment Enterprise Fund Capital Improvement Program (Project WQ -19001). Total project cost estimates were adjusted when new engineer’s cost estimates and design stages were completed. The requested loan amount reflects securing the initial loan with a conservative total project estimate; the requested loan amount is also hi gher than that reflected in the FY2022 Adopted Capital Budget, which is a less conservative total project cost estimate.

The design and construction of this project, including associated construction management and administrative costs, will be financed t hrough the SRF loan, which is disbursed on a reimbursement basis. Pursuant to SRF policy, the first repayment occurs one year after project completion, which is estimated to be in December 2027. The annual SRF loan repayment, which includes principal and i nterest, will be based on an amortized period of 30 years. Based on a SRF loan amount of $168,658,977, the estimated annual repayments contributed by the City of Palo Alto and partner agencies are summarized in Table 1 below. Partner agencies , including rate forecasting staff in the Utilities Department , are kept apprised of the latest total capital program forecasts, including this project, so that rates can be planned accordingly.

Table 1: CWSRF Loan Repayment Partner Agency Estimates
Contributing Partner Agency Percent Share Annual Repayment1 Palo Alto 38.16% $2,421,600
Mountain View 37.89% $2,404,466
Los Altos 9.47% $600,958
East Palo Alto Sanitary District 7.64% $484,828
Stanford University 5.26% $333,795
Los Altos Hills 1.58% $100,265
Total: 100.00% $6,345,912
Note: 1. Based on CWSRF loan amount of $168,658,977 at 0.8% interest rate for 30-year term

Policy Implications
This recommendation does not represent any change to existing City policies and supports the Comprehensive Plan Policy N.4-16.

Stakeholder Engagement
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This project is part of the RWQCP’s major capital improvement program funded by Palo Alto and the five partner agencies who use the RWQCP for wastewater treatment. The five partner agencies are regularly updated on both the need for and the progress of wastewater treatment capital work. Updates are provided each year at an annual meeting and at other periodic meetings established to inform partner agency staff about the major capital improvement program. With respect to Palo Alto itself, the open meetings on the budget process serve as the main vehicle for engaging the community on both new projects such as this and associated rate impacts.

Environmental Review
Adoption of resolutions authorizing an Installment Sa le Agreement and establishing pledged sources of revenue for repayment of funding, and amendments to the partner agreements are not actions that require CEQA review. These actions do not meet the definition of a project for the purposes of CEQA, under Publ ic Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(4), because they are fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

The STU project is exempt from CEQA under CEQA Guidelines Section 15301, subsections (b) and (e)(1), Existing Facilities, as it involves the repair and maintenance of an existing publicly - owned utility used to provide sewerage treatment services with a minor ad ditions to the existing facilities. A Notice of Exemption was submitted to and recorded by Santa Clara County Clerk-Recorder’s Office (File No. ENV23199).

Attachments:
• Attachment5.a: Attachment A: Palo Alto Resolution 2022 SRF ISA • Attachment5.b: Attachment B: FC 5852.1 Disclosure SRF Loan 5 Packet Pg. 136

NOT YET ADOPTED
2020110601
Resolution No.

Resolution of the Council of the City of Palo Alto Authorizing an Installment Sale Agreement with the California State Water Resources Control Board in Connection with the Financing of a Secondary Treatment Upgrades at the Regional Water Quality Control Plant, Establishing One or More Pledged Sources of Revenue for Repayment of Funding, and
Taking Certain Other Actions Relating Thereto

R E C I T A L S

A. The City of Palo Alto (the “City”) wishes to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, pipelines and other infrastructure at the Regional Water Quality Control Plant (the “Project”).

B. The City intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys (“Project Funds”) provided by the State of California, acting by and through the State Water Resources Control Board (the “State Water Board”).

C. The City previously adopted Resolution No. ___ authorizing an application for financial assistance to the State Water Board and Resolution No . 9945 declaring its intention to use a portion of the Project Funds to reimburse certain capital expenditures made prior to the receipt of Project Funds from available moneys of the City in connection with the Project.

D. The City and the State Water Board now desire to approve a Construction Installment Sale Agreement (the “ 2022 Installment Sale Agreement ”), for the purpose of providing the terms relating to the distribution and repayment by the City of the Project Funds and relating to the City’s payment of certain installment payments.

E. Section 603(d)(1)(C) of the Federal Clean Water Act Amendments require each financing recipient to establish one or more pledged sources of revenue for Clean Water State Revolving Fund (CWSRF) financial assistance.

F. Under the 2022 Installment Sale Agreement , the installment payments payable by the City will be secured by a pledge of and payable from Net Revenues (as defined in the 2022 Installment Sale Agreement) of the City’s Wastewater Treatment enterprise and Wastewater Collection enterprise, on a parity basis with the City’s obligation to pay installment payments under four outstanding agreements with the State Water Board:

i. an Installment Sale Agreement No. SWRCB0000000000D2001009 (the “2021 Agreement”), by and between the City and the State Water Board, executed by the City on June 2, 2021 and the State Water Board on July 12, 2021;

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ii. an Installment Sale Agreement No. D16-01034, dated as of March 20, 2017 (the “2017 Agreement”), by and between the City and the State Water Board , along with an amendment of the 2017 Agreement ex ecuted by the City on September 7, 2017 and the State Water Board on September 13, 2017;

iii. a Project Finance Agreement No. 09 -814-550, by and between the City and the State Water Board (the “2009 Agreement”), along with an amendment of the 2009 Agreement executed by the City on April 17, 2017 and the State Water Board on June 12, 2017; and

iv. a Project Finance Agreement No. 07 -814,550-0, between the City and the State Water Board (the “2007 Agreement”), along with an amendment of the 2007 Agreement executed by the City on April 17, 2017 and the State Water Board on June 12, 2017.

G. The City and the State Water Board have agreed that the installment payments payable by the City under the 2022 Installment Sale Agreement will be secured by a pledge of and payable from Net Revenues on a subordinate basis to the City’s obligation to pay a portion of the debt service on the City of Palo Alto Utility Revenue and Refunding Bonds, 1999 Series A under an Indenture of Trust dated as of June 1, 1999.

NOW, THEREFORE, the Council of the City of Palo Alto hereby RESOLVES as follows:

SECTION 1. Each of the above recitals is true and correct and is adopted by the Council of the City of Palo Alto.

SECTION 2. The City approves the Project Funds in an amount not to exceed $ 169 million with an interest rate not to exceed 2.0%. Resolution No. 9945 is hereby amended to increase the reasonably expected maximum principal amount of the Project Funds as set forth in Section 2 of Resolution No. 9945 from $160 million to $169 million.

SECTION 3. The 2022 Installment Sale Agreement , a copy of which is attached as Exhibit A, is hereby approved in substantially the form thereof with such changes as may be approved by the City Manager, the Director of Public Works or any designee of the City Manager or the Director of Public Works (each an “Authorized Officer ”). Execution by an Authorized Officer of the 2022 Installment Sale Agreement shall constitute conclusive evidence of such Authorized Officer’s approval of all such changes . Each of the Authorized Officers is hereby authorized, together or alone , to execute and deliver the 2022 Installment Sale Agreement. The City Clerk is hereby authorized to attest to the Authorized Officer's signature.

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SECTION 4. The covenants set forth in the 2022 Installment Sale Agreement to be executed in accordance with Section 3 above are hereby approved, shall be deemed to be covenants of the legislative body of the City , and shall be complied with by the City and its officers.

SECTION 5. The City hereby pledges Net Revenues (as defined in the 2022 Installment Sale Agreement) of its Wastewater Treatment enterprise and Wastewater Collection enterprise fund to the payment of amounts owed under the 2022 Installment Sale Agreement, as follows:
(i) on a parity basis with the City’s obligation to pay installment payments under four outstanding agreements with the State Water Board as set forth in Recital F above, and (ii) on a subordinate basis to the City’s obligation to pay a portion of the debt service on the City of Palo Alto Utility Revenue and Refunding Bonds, 1999 Series A under an Indenture of Trust dated as of June 1, 1999. The pledged source of revenue shall remain in effect until such financing is fully discharged unless modification or change of such dedication is approved in writing by the State Water Board.

SECTION 6. Each Authorized Officer and the other officers and staff of the City responsible for the fiscal affairs of the City are hereby authorized and directed to take any actions and execute and deliver any and all documents and certificates as are necessary to accomplish and to consummate the transactions contemplated by the 2022 Installment Sale Agreement.
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SECTION 7. On March 9, 2021, the City filed a determination that construction of the Secondary Treatment Upgrades project is categorically exempt under the California Environmental Quality Act (CEQA) Guidelines, California Code of Regulations (CCR), title 14, division 6, chapter 3, article 9, section(s) 15301, 15302, 15303. The Project involves upgrades including repairs and minor alterations, replacement or reconstruction, as well as construction of a limited number of new small facilities or structures.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM:

Assistant City Attorney City Manager

Director of Public Works

Director of Administrative Services

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ATTACHMENT B

REQUIRED GOOD FAITH ESTIMATES PURSUANT TO
GOVERNMENT CODE SECTION 5852.1

1. True Interest Cost of the 2022 Installment Sale Agreement: 0.8%

2. Finance charge of the 2022 Installment Sale Agreement, being the sum of all fees and charges paid to third parties: $0

3. Amount of Project Funds expected to be received by the City under the 2022 Installment Sale Agreement, net of proceeds for finance charges in (2) above and net of capitalized interest (if any) and reserves (if any) pai d or funded with the Project Funds: $168,658,977.

4. Total payment amount for the Project Funds under the 2022 Installment Sale Agreement, being the sum of (a) installment payments to final maturity ($$190,377,369), plus (b) any financing costs not paid from proceeds of the Project Funds ($0): $ $190,377,369.

*All amounts and percentages are estimates, and are made in good faith by the City based on information available as of the date of adoption of this Resolution.

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City of Palo Alto (ID # 14140)
City Council Staff Report
Meeting Date: 4/11/2022
City of Palo Alto Page 1
Title: Approval of Amendment No. 1 to Professional Services Contract Number S22183902 Teri Black and Company, LLC to Increase the Not -to- Exceed Compensation by $180,000 (to $265,000) and to Extend the Term of the Contract to January 2024 for City Wide Exec utive Recruitments and Approve a Budget Amendment in the General Fund
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that the City Council:
1) Authorize the City Manager or their designee to execute Amendment 1 to S22183902 (Attachment A) with Teri Black and Company, LLC to provide professional executive recruitment services, increasing the existing contract by $180,000 for a total amount not to exceed $265,000 through January 2024; and 2) Amend the Fiscal Year 2022 Budget Appropriation (by a majority vote) for the General Fund by:
a. Increasing the Human Resources Department contractual services appropriation in the amount of $200,000; and
b. Decreasing the General Fund Transition Reserve in the amount of $200,000.

Background
The City of Palo Alto’s Human Resources Department is organized into five major divisions with 16 full -time staff who provide citywide support for recruitment, benefits, employee and labor relations, training, personnel transactions and workers’ compensation. Recruiting firms are retained to be used on an as-needed basis to assist when the City’s internal recruitment team is at capacity and to conduct recruitments that require specialized outreach.

Staff identified the need for contractual recruitment serv ices in the Preliminary Q1 FY 2022 (CMR 13439) and Midyear FY 2022 (CMR 13801) reports to support recommended actions that restored serv ices, including 20 full-time and three part -time positions in 6 Packet Pg. 198

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various departments throughout the City.

Currently the City of Palo Alto has contract (S22183902) with Teri Black and Company, LLC, for executive recruitment services in the amount of $85,000. This contract was established to conduct approximately three (3) executive recruitments, along with consultation that is billed on an hourly basis . The addition of Amendment One will increase the contract by $180,000 to a new amount not to exceed $265,000.

Discussion
This amendment is needed due to constrained staffing resources and additional critical current and anticipated executive vacancies for the City of Palo Alto. Executive recruitments are approximately $30,000 per recruitment and this amendmen t will extend the scope of the contract to include approximately six additional recruitments for a total of nine . The amendment extends the total not -to-exceed amount an additional $180,000 to a total of $265,000 over three years.

In accordance with the Palo Alto Municipal Code, professional service contracts in certain subject matter expertise are exempt from competitive solicitation.

Professional services contracts in relation to personnel matters for: recruitment consultants, workplace investigations, threat assessments, conflict intervention, and industrial safety are exempt from solicitation, under Section 21, 2.30.360(t) of Ordinance 5494.

The contract for Teri Black and Company, LLC, includes a comprehensive recruitment package, including a phased approach for the development of candidate profiles, advertising, outreach, screening, client reporting, interview facilitation and coaching, deliberation assistance, background and reference checks and negotiations.

Consistent with the practices of executive recruitment firms that serve the municipal sector, Teri Black and Company, LLC, provides services to the hiring agency and does not represent applicants or collect fees from candidates.

Resource Impact
Actions outlined in this report require an increase of the appropriation for contract services by $ 200,000 and are offset by the use of Trans ition Reserve as previously outlined, resulting in a remaining reserve of approximately $300,000. The remaining contract costs of $65,000 will be absorbed through FY 2022 funding for the full expense of the contract . The Transition Reserve was established in FY 2021 to support service changes that could not be implemented immediately.

Environmental Review
6 Packet Pg. 199

City of Palo Alto Page 3

Approval of this contract is exempt under the California Environmental Quality Act (CEQA) Guidelines section 15061(b) (3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Attachments:
• Attachment6.a: Attachment A: Teri Black and Company, LLC Contract; S22183902 Amendment #1
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AMENDMENT NO. 1 TO CONTRACT NO. S22183902

BETWEEN THE CITY OF PALO ALTO AND
TERI BLACK & COMPANY, LLC.

This Amendment No. 1 (this “Amendment”) to Contract No. S22183902 (the “Contract” as defined below) is entered into as of March 15, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TERI BLACL & COMPANY, LLC., a California corporation, located at 25500 Hawthorne Boulevard (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing comprehensive recruitment work and support services, as detailed therein.

B. The Parties now wish to amend the Contract in order to add scope of serv ices, extend the term of the c ontract by one year , and increase compensation by $18 0,000, from $85,000 to $265,000.

NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:

SECTION 1. Definitions. The following definitions shall apply to this Amendment:

a. Contract. The term “Contract” shall mean Contract No. S22183902 between CONSULTANT and CITY, dated January 12, 2022.

b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SECTION 2. Section 2. TERM. of the Contract is hereby amended to read as follows:

“The term of this Agreement shall be from the date of its full execution through December 31, 2023 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”

SECTION 3. Section 4. NOT TO EXCEED COMPENSATION. of the Contract is hereby amended to read as follows:

DocuSign Envelope ID: BFBA3613-7DCC-4710-B057-C485E0C24317

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“The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Two Hundred Forty Three Thousand Seven Hundred Dollars ($2 43,700). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)

In addition to the not- to-exceed compensation specified above, CITY has set aside the not - to- exceed compensation amount of Twenty-One Thousand Three Hundred Dollars ($21,300.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Two Hundred Sixty Five Thousand Dollars ($265,000), as detailed in Exhibit C.

“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.

Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULT ANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.”

SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference:

DocuSign Envelope ID: BFBA3613-7DCC-4710-B057-C485E0C24317

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a. Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS.

b. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS.

SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.

SECTION 6. Incorporation of Recitals . The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.

(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)

DocuSign Envelope ID: BFBA3613-7DCC-4710-B057-C485E0C24317

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SIGNATURES OF THE PARTIES

IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.

CITY OF PALO ALTO

City Manager

APPROVED AS TO FORM:

City Attorney or designee

TERI BLACK & COMPANY, LLC

Officer 1

By:

Name:

Title:

Officer 2 (Required for Corp. or LLC)

By:

Name:

Title:

Attachments:

Exhibit A: SCOPE OF SERVICES, ADDED / AMENDED, REPLACES PREVIOUS Exhibit C: COMPENSATION, ADDED / AMENDED, REPLACES PREVIOUS

DocuSign Envelope ID: BFBA3613-7DCC-4710-B057-C485E0C24317 Teri Black
President/Secretary
Joseph E. Brann
Chairman/CEO

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EXHIBIT A

SCOPE OF SERVICES

AMENDED, REPLACES PREVIOUS

CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.

The scope of work presented represents comprehensive recruitments that includes the following services:

Phase I
• Develop ideal candidate profile in partnership with the Client • Design and execute advertising, marketing, and social media campaigns

Phase II
• Produce and distribute recruitment brochure (traditional & electronic mail) • Conduct extensive personal outreach activities

Phase III
• Conduct screening interviews
• Develop and deliver written report to Client (highlighting the results of the recruitment and subsequent screening interviews)

Phase IV
• Design and facilitate candidate interviews with the Client (in-person or via Zoom) • Offer interview coaching sessions and debriefing opportunities to Finalists • Assist Client with final selection deliberations
• Perform background check and assist with reference checks (top candidate) • Facilitate negotiations and transition details

AMENDMENT NO. 1
Amendment No. 1 shall add six additional Executive Recruitments (inclusive of reimbursements) by Task Orders.

Task Orders
Consultant will perform services on a task order basis. Task orders will be developed for specific comprehensive recruitment services.

DocuSign Envelope ID: BFBA3613-7DCC-4710-B057-C485E0C24317

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EXHIBIT C

COMPENSATION

AMENDED, REPLACES PREVIOUS

CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below.

CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.

CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.

BUDGET SCHEDULE

TASK NOT TO EXCEED AMOUNT
Task 1
(Recruitment for Assistant City Attorney for Phases I-IV) $20,000
Task 2
(Recruitment for two Assistant to the City Manager for
Phases I-IV)
$25,000

ADDITIONAL SERVICES
Task 3
(Recruitment for 6 additional Executive Recruitments for Phases I-IV, inclusive of reimbursements)
$180,000
Sub-total for Services $225,000
Reimbursable Expenses (if any) $18,700
Total for Services and Reimbursable Expenses $243,700
Additional Services (if any, per Section 4) $21,300
Maximum Total Compensation $265,000

REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, DocuSign Envelope ID: BFBA3613-7DCC-4710-B057-C485E0C24317

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telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed up to the not-to-exceed amount of: $18,700 NTE as follows.

ASSISTANT CITY ATTORNEY REIMBURSABLE EXPENSES
Advertising $2,200
Recruitment Brochure & mailing $1,500
Administrative support $2,800
Shipping & FedEx $ 600
Background & records checks $ 600
Consultant Travel (mileage + 1 night hotel) $ 800
Project expenses (NTE) $ 8,500

ASSISTANT TO THE CITY MANAGER REIMBURSABLE EXPENSES

Advertising $2,200
Recruitment Brochure & mailing $1,500
Administrative support $3,000
Shipping & FedEx $ 600
Background & records checks $1,200
Consultant Travel (mileage + 1 night hotel) $1,700
Project expenses (NTE) $ 10,200

A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.

B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.

All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.

Placement Guarantee (FULL SEARCH)
If candidates selected and appointed by the City of Palo Alto terminates employment for any reason before the completion of the first year of service as a result of a comprehensive TBC DocuSign Envelope ID: BFBA3613-7DCC-4710-B057-C485E0C24317

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recruitment, the firm will provide Palo Alto with the necessary consulting services required to secure a replacement. Depending on the nature of the departure, professional consulting services will be provided at no charge or a discounted rate of 25-50% of the original fee.

Expenses will be covered by the Client.

Fee for Additional Placements & Discounts (FULL SEARCH) Because of the challenging market for top talent, our clients are increasingly taking advantage of selecting more than one outstanding candidate from a single recruitment that will benefit the organization in a different capacity. In these instances, a $3,500 placement fee per additional candidate placed will apply and will include completion of background check records review as well as reference checking.

DocuSign Envelope ID: BFBA3613-7DCC-4710-B057-C485E0C24317

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City of Palo Alto (ID # 14172)
City Council Staff Report
Meeting Date: 4/11/2022
City of Palo Alto Page 1
Title: Approval of Amendment Number 4 to Contract Number C14152163 With Townsend Public Affairs for State Legislative Advocacy to Extend the Term for one Additional Year and add $102,000 for a Total Not -to-Exceed Amount of $901,000
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that City Council approve the fourth amendment (attached) to the current agreement with Townsend Public Affairs , Inc., for state legislative advocacy services to (1) increase the term length by twelve months from December 31, 20 21 to December 31, 202 2; and, (2) increase the not-to-exceed amount by $102,000 from $799,000 to $901,000.

Background
For many years, the City has contracted for state legislative advocacy services. This Sacramento- based rep resentation allows the City of Palo Alto to have a presence and voice with state representatives, regulators, and their Sacramento staff. Since 2014, the City has contracted with Townsend Public Affairs, Inc. (Townsend), to provide this state representation (CMR 4466).

Staff is in the process of developing a request for proposals (RFP) for these services and this contract extension will allow the City to continue the services wh ile the RFP is conducted in 2022.

Discussion
State legislative advocacy generally, and through Townsend specifically, has been instrumental to the City of Palo Alto ’s sustained presence and voice in Sacramento. For example, the key Townsend advocate, Niccolo De Luca, assisted the City in advocating for legislation and funding to the City from the state.

Staff recognizes that a new procurement process needs to occur for this service the City values.

Staff is currently dra fting the RFP for release in spr ing 2022. This will allow for enough time to solicit and evaluate bids for a start date of January 1, 2023 of any new state advocacy contract.

Staff recommends this contract amendment with Townsend to provide comprehensive state legislative advocacy services. The relationship between the City and Townsend is very effective 7 Packet Pg. 209
City of Palo Alto Page 2
and highly collaborative, with staff of each entity communicating frequently and working as the City Council directed in terms of strategizing on advocacy. As Townsend has worked with t he City for the past 7 years, the firm’s knowledge of what makes Palo Alto unique has deepened.

Leveraging this knowledge and relationship is an important benefit to the City.

Townsend has agreed to continue their existing rates into this next extension, with no increase during this extension. Attachment A sets out Amendment number four, extending the original agreement to December 31, 202 2, preserving the termination clause contained in the original agreement whereby the City may terminate services within 10 days, and noting the flat rates.

Resource Impact
Funding for extending the current contract by twelve months increases the total not -to-exceed amount by $102,000. Funding for state legislative services is included in the annual budget appropriation for the City Manager’s Office reviewed with City Council during the annual budget. Current annual funding for state legislative services in the City Manager’s Office is sufficient to fund this contract extension.

Environmental Review
These services do not constitute a project under the California Environmental Quality Act.

Attachments:
• Attachment7.a: Attachment A: C14152163 Townsend Amendment #4 7 Packet Pg. 210
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AMENDMENT NO. 4 TO CONTRACT NO. C14152163

BETWEEN THE CITY OF PALO ALTO AND
TOWNSEND PUBLIC AFFAIRS, INC.

This Amendment No. 4 (this “Amendment”) to Contract No. C14152163 (the “Contract” as defined below) is entered into as of March 21, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TOWNSEND PUBLIC AFFAIRS, INC., a California corporation, located at 1401 Dove Street, Ste. 330, Newport Beach, California 92660, Telephone (949) 399-9050 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of representation in all state legislative advocacy matters , as detailed therein.

B. The Contract was amended by Amendment No. 1 to extend the term through December 31, 2017 and increase compensation by Two Hundred Four Thousand Dollars ($204,000) from One Hundred Eighty -Seven Thousand Dollars ($187,000) to Three Hundred Ninety-One Thousand Dollars ($391,000) for continuation of services per Exhibit “A” Scope of Services, as detailed therein.

C. The Contract was amended by Amendment No. 2 to extend the term through December 31, 2019 and increase compensation by Two Hundred Four Thousand Dollars ($204,000) from Three Hundred Ninety -One Thousand Dollars ($391,000) to Five Hundr ed Ninety-Five Thousand Dollars ($595,000) for continuation of services per Exhibit “A” Scope of Services, as detailed therein.

D. The Contract was amended by Amendment No. 3 to extend the term through December 31, 2021 and increase compensation by Two Hundred Four Thousand Dollars ($204,000) from Five Hundred Ninety -Five Thousand Dollars ($595,000) to Seven Hundred Ninety-Nine Thousand Dollars ($799,000) for continuation of services per Exhibit “A” Scope of Services, as detailed therein.

E. The Parties now wish to amend the Contract in order to extend the term through December 31, 2022 and increase compensation by One Hundred Two Thousand Dollars ($102,000) from Seven Hundred Ninety -Nine Thousand Dollars ($799,000.00) to Nine Hundred One Thousand Dollars ($901,000) for continuation of services per Exhibit “A” Scope of Services.

NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:

DocuSign Envelope ID: 5EB8A37B-C987-4D9E-9653-322FFB7A3FC4

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SECTION 1. Definitions. The following definitions shall apply to this Amendment:

a. Contract. The term “Contract” shall mean Contract No. C14152163 between CONSULTANT and CITY, dated March 1, 2014, as amended by:

Amendment No.1, dated December 8, 2015
Amendment No.2, dated November 6, 2017
Amendment No.3, dated November 18, 2019

b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows:

“The term of this Agreement shall be from the date March 1, 2014 through December 31, 2022 unless terminated earlier pursuant to Section 19 of this Agreement.”

SECTION 3 . Section 4 “ NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows:

“The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A”, including both payment for professional services and reimbursable expenses, shall not exceed Nine Hundred One Thousand Dollars ($901,000). The applicable rates and schedule of payment are set out in Exhibit “C-1”, entitled RATE SCHEDULE,” which is attached to and made a part of this Agreement.

Additional Services, if any, shall be authorized in ac cordance 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 in Exhibit “A”.

SECTION 4. The following exhibit to the Contract is hereby amended, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference:

a. Exhibit “C -1” entitled “ RATE SCHEDULE , AMENDMENT NO. 4”, AMENDED, REPLACES PREVIOUS.

SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.

DocuSign Envelope ID: 5EB8A37B-C987-4D9E-9653-322FFB7A3FC4

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SECTION 6. Incorporation of Recitals . The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: 5EB8A37B-C987-4D9E-9653-322FFB7A3FC4

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SIGNATURES OF THE PARTIES FOR AMENDMENT NO. 4 TO CONTRACT NO. C14152163

IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.

CITY OF PALO ALTO

_____________________________
City Manager

APPROVED AS TO FORM:

______________________________
City Attorney

TOWNSEND PUBLIC AFFAIRS, INC.

Officer 1

By:_____________________________

Name:__________________________

Title:____________________________

Officer 2

By:______________________________

Name:___________________________

Title:____________________________

Attachments:

EXHIBIT "C-1" entitled “RATE SCHEDULE, AMENDMENT NO. 4” (AMENDED, REPLACES

PREVIOUS)

DocuSign Envelope ID: 5EB8A37B-C987-4D9E-9653-322FFB7A3FC4 President
Christopher Townsend, President
Chistopher Townsend
Secretary

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EXHIBIT “C-1”
RATE SCHEDULE, AMENDMENT NO. 4
(AMENDED, REPLACES PREVIOUS)
Advocacy Services $8,500/Per Month
(106 months @ $8,500.00 = NTE $901,000)
DocuSign Envelope ID: 5EB8A37B-C987-4D9E-9653-322FFB7A3FC4

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City of Palo Alto (ID # 14219)
City Council Staff Report

Meeting Date: 4/11/2022

City of Palo Alto Page 1

Title: Easement Vacation at 14244 Amherst Court, Los Altos Hills, CA From: City Manager
Lead Department: Administrative Services

Recommendation
Staff recommends that the City Council approve the attached resolution ordering the summary vacation of a port ion of a public service easement for sanitary sewer and utilities and incidental purposes located on the single -family property at 14244 Amherst Court, Los Altos Hills, CA.

Discussion
A 20 -foot public service easement for sanitary sewer and utilities and incidental purposes was granted to the City of Palo Alto in the document recorded on February 23, 1961, as Book 5081, Page 520, of Official Records. The use of this easement is restricted to those utilities installed on Improvement Project No. 59 -1, i.e. Foothills 1-A Utilities. The easement was held for the purpose of acquiring, constructing, completing, reconstructing, repairing, maintaining, and operating sanitary sewers and appurtenances and other utilities and appurtenances for the City, together with the right of ingress and egress.

A portion of the easement runs along the eastern perimeter of the parcel located at 14244 Amherst Court, Los Altos Hills, CA. The property owners have requested that the City vacate the approximate 746 square foot portion of the easement that affects their property. The City’s Utilities Department has been notified of the request and concur s with the vacation. This portion of the easement has not been used for the purpose for which it was acquired in more than 50 years, sin ce the utility mains there were abandoned in response to construction of Interstate 280. There are currently no in - place public utility facilities that are in use and would be affected by the vacation. The Town of Los Altos Hills Public Works Department ha s also reviewed the easement vacation and determined that it will not affect the town’s public sewer mains. Therefore, the easement may be vacated in accordance with the summary proceeding authorized in Section 8333 of the California Streets and Highways Code.

Resource Impact
The easement vacation processing fee of $1,761 as set forth in the FY 2022 Municipal 8 Packet Pg. 216

City of Palo Alto Page 2

Fee Schedule has been paid by the property owner.

Policy Implications
The recommendation does not represent any change to City policies.

Environmental Review
The proposed summary vacation of a portion of the public service easement for sanitary sewer and utilities and incidental purposes is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to Title 14 Ca lifornia Code of Regulations Section 15305 as a minor alteration in land use limitations.

Attachments:
• Attachment8.a: Attachment A: Easement Vacation Resolution 14244 Amherst Court RD edits
• Attachment8.b: Attachment B: 2150250 SEWER VACATION
8 Packet Pg. 217
Attachment A

Attachment A - 1

Recorded at no charge in accordance with
Streets & Highways Code Section 8336 at
the request of and when recorded return to:

City of Palo Alto
Real Estate Division
250 Hamilton Avenue
Palo Alto, CA 94301

SPACE ABOVE LINE FOR RECORDER’S USE

APN: 182-41-055
Address: 14244 Amherst Court
Los Altos Hills, CA 94022

SUMMARY VACATION
RESOLUTION NO. _____

RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO

SUMMARILY VACATING A PORTION OF A PUBLIC SERVICE EASEMENT AT 14244 AMHERST COURT, LOS ALTOS HILLS, CA

WHEREAS, Section 833 3 of the Streets and Highways Code authorizes the City Council to summarily vacate a public service easement in any of the following cases: (a) the easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation , (b) the date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was not used continuously since that date , (c) the easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement; and

WHEREAS, there is an existing public service easement that was granted to the City of Palo Alto for sanitary sewer and utilities and incidental purposes in the document recorded as Book 5081, Page 520, of Official Records, that runs through the property located at 14244 Amherst Court, Los Altos Hills, CA 94022; and

WHEREAS, the City of Palo Alto Utilities Department has evaluated and determined that a portion of the easement has not been used for the purpose for which it was acquired for five consecutive years or more and is excess and there are no other public facilities located within this portion of the easement; and

WHEREAS, the Town of Los Altos Hills Public Works Department has evaluated and determined that the easement vacation will not affect the town’s public sewer mains; and

WHEREAS, the City Council of the City of Palo Alto intends to summarily vacate the

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Attachment A

Attachment A - 2

portion of public service easement as more particularly described in Exhibit “A” attached to this resolution and depicted on the plat map attached as Exhibit “B” to this resolution; and

NOW, THEREFORE, the City Council does hereby RESOLVE as follows:

SECTION 1 . This vacation is made under the authority of California Streets and Highways Code Chapter 4 of part 3 of Division 9, commencing at Section 8330 et. seq.

1. The portion of the public service easement described herein on Exhibit “A” and depicted on the plat map attached as Exhibit “B” has not been used for the purpose for which it was acquired for five consecutive years or more and is excess; and

2. There are no other public facilities located within the easement.

SECTION 2. Based upon the findings made in Section 1 of this Resolution and the provisions of Section 8333 of the Streets and Highways Code, the City Council does hereby order that the portion of public service easement as shown on the said Exhibits “A” and “B” shall be summarily vacated.

SECTION 3. The City Clerk, acting by and through the Real Property Manager, is hereby directed to record at the Santa Clara County Clerk-Recorder’s Office a certified copy of this Resolution, including the Map.

SECTION 4. The portion of public service easement for sanitary sewer and utilities and incidental purposes described in Exhibit “A” and depicted in the plat map attached as Exhibit “B” will no longer constitute a public service easement from and after the date of recordation of the documents identified in Section 3 of this Resolution.

SECTION 5 . The Council finds that the summary vacation of the public service easement is exempt from review under the California Environmental Act pursuant to Title 14 California Code of Regulations section 15305 as a minor alteration in land use limitations.

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Attachment A

Attachment A - 3

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

__________________________
City Clerk

APPROVED AS TO FORM:

______________________________
City Attorney or designee
APPROVED:

______________________________
Mayor

______________________________
City Manager

______________________________
Director of Administrative Services

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City of Palo Alto (ID # 14228)
City Council Staff Report

Meeting Date: 4/11/2022

City of Palo Alto Page 1

Title: SECOND READING: Adoption of an Ordinance Dedicating 0.64 Acres of Land Adjacent to 3350 Birch Street to Become Part of the Boulware Park (FIRST READING: February 10, 2020 PASSED: 7 -0)
From: City Manager
Lead Department: City Clerk

This was heard by the City Council on February 10, 2020 for a first reading and was approved 7-

0. No changes were made to the Ordinance; it is now before you for a second reading.

Attachments:
• Attachment9.a: Attachment A: Park Dedication Ordinance 9 Packet Pg. 224

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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto
Dedicating Approximately 0.64 Acres of Land Adjacent to John Boulware Park For Park, Playground, Recreation or Conservation Purposes

The Council of the City of Palo Alto does ORDAIN as follows:

SECTION 1.  Section 22.08.430 of Chapter 22.08 (Park Dedications) of Title 22 (Parks) of the Palo Alto Municipal Code is hereby added to read, as follows:

“22.08.430 Addition to John Boulware Park
That  certain  parcel  of  land  as  delineated  and  described  in  Exhibit  A‐30  and  attached  hereto, formerly  known  as  3350  Birch  Street,  is  hereby  reserved  for  park,  playground,  recreation  or conservation purposes.”

SECTION 2.   The Council hereby finds that dedication of this site as parkland is exempt from  the  requirements  of  the  California  Environmental  Quality  Act  (“CEQA”)  under  CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that  it  will  have  a  significant  impact  on  the  environment.   In  addition,  the  adoption  of  this ordinance is exempt under CEQA Guidelines Section 15308 because it is an action to assure the maintenance,  restoration,  enhancement,  or  protection  of  the  environment  and  15325(f) because it is an action to acquire lands for park purposes.

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SECTION 3.   This ordinance shall become effective upon the expiration of thirty (30) days from its passage.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST:

____________________________     ____________________________ City Clerk          Mayor

APPROVED AS TO FORM:        APPROVED:

____________________________       ____________________________ Deputy City Attorney         City Manager

____________________________
Director of Community Services

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EXHIBIT A‐30
APPENDIX A TO CHAPTER 22.08 OF TITLE 22 (PARKS)

(see following pages)

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City of Palo Alto (ID # 14211)
City Council Staff Report

Meeting Date: 4/11/2022

City of Palo Alto Page 1

Title: SECOND READING: Adoption of an Interim Ordinance Establishing Objective Urban Lot Split Standards and Further Refinements to SB 9 Development Standards; Authorizing the Public Works Director to Publish Objective Standards Regarding Adjacent Improvem ents Related to SB 9 Projects; and Direction Regarding Listing Properties Eligible for Historic Status (FIRST READING: March 21, 2022 Council Meeting, MOTION PASSED: 6 - 0, DuBois absent); Adoption of Resolution Approving Objective Standards for Urban Lot Sp lits
From: City Manager
Lead Department: Planning and Development Services

Recommendation
A. Adopt Interim Ordinance Refining SB 9 Regulations and Authorizing the Public Works Director to Publish Objective Standards Regarding Adjacent Public Improvements Related to SB 9 Projects (Attachment B); and
B. Adopt Resolution Approving Objective Lot Design Standards for Urban Lot Splits

Executive Summary
The first reading of the ordinance and associated lot split standards (Attachments A and B) was considered by the City Council on March 21, 2022. It was approved 6-0, (DuBois absent). No changes were made to the Ordinance; it is now before you for a second reading.

The draft motion, from the draft action minutes, reads:

A. Review and adopt proposed objective standards for urban lot splits. These standards will only apply to qualifying SB 9 projects within Palo Alto (Attachment A) with the flagpole to be at least 10 feet wide;
B. Adopt Interim Ordinance Refining SB 9 Regulations and Authorizing the Public Works Director to Publish Objective Standards Regarding Adjacent Public Improvements Related to SB 9 Projects (Attachment B); and
C. Direct staff to work with the Historic Resources Board to review the approximately 165 local, state and federal eligible properties and make recommendations for listing on the inventory in accordance with the process set forth in the PAMC and collaborate with the Historic Resources Board for community engagement.
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City of Palo Alto Page 2

Through the recommended action, Council accomplishes parts A and B of the motion. Part C will be handled through staff action and subsequent Council action.

The draft action minutes can be found here:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2022/20220321/20220321amccs.pdf

The previous staff report can be found here:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2022/20220321/20220321pccsm-amended-linked- revised.pdf

Environmental Review
This is not a project as defined by the California Environmental Quality Act (CEQA).

Attachments:
• Attachment10.a: Attachment A: Ordinance Modifying Ch 18.42 and Ch 21.10 to Further Implement SB9
• Attachment10.b: Attachment B - Resolution Approving Objective Standards for SB 9 Subdivisions
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Ordinance No. ______

Ordinance of the Council of the City of Palo Alto Modifying Chapters 18.42 (Standard for Special Uses) and 21.10 (Parcel Maps for Urban Lot Splits) of the Palo Alto Municipal Code to Further Implement Senate Bill 9

The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and declarations. The City Council finds and declares as follows:

A. On September 16, 2021, Governor Newsom signed into law Senate Bill 9 (SB 9), which requires, among other things, that local agencies ministerially approve both two-unit construction and urban lot splits on single-family zoned lots.

B. SB 9 authorizes the creation of lots as small as 1,200 square feet and requires approval of two residential units of at least 800 square feet (for a total of 1,600 square feet) each on such lots. This represents a significant departure from existing minimum lot sizes and development standards in Palo Alto’s single-family zones.

C. SB 9 authorizes local jurisdictions to apply objective zoning standards, objective subdivision standards, and objective design standards, subject to certain limitations in statute.

D. On January 24, 2022, the City Council adopted Interim Ordinance No. 5542.

E. The City Council now desires to modify Interim Ordinance No. 5542 to clarify its terms and to adopt additional standards for lot splits.

F. There is insufficient time for consideration of and recommendation on objective standards related to SB 9 by the Planning and Transportation Commission (PTC) prior to action by the City Council. The Council therefore declares that an interim ordinance, pursuant to Palo Alto Municipal Code (PAMC) Section 18.80.090 is an appropriate measure to adopt standards, pending consideration of a permanent ordinance by the PTC.

SECTION 2. Section 18.42.180 (Interim Standards for Two Units on Single Family Zoned Lots Pursuant to Senate Bill 9) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:

18.42.180 Interim Standards for Two Units on Single Family Zoned Lots Pursuant to Senate Bill 9.

[. . .]

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(e) Development Standards.
(1) A project proposing two dwelling units on a parcel in the R-1 or RE districts shall be subject to the development standards set forth in Chapters 18.12 and 18.10, respectively except as provided herein.
(2) All construction pursuant to this section shall comply with objective design standards adopted by the City Council. However, an applicant seeking to deviate from the objective design standards (except to the extent necessary to construct a unit of 800 square feet) may elect to submit an application under the base requirements of Chapters 18.10, or 18.12, including, if applicable, Single Family Individual Review.
(3) If the application of any development standard or design standard would necessarily require that one or more proposed units be less than 800 square feet, such standard shall be relaxed to the minimum extent necessary to allow construction of a unit or units of at least 800 square feet. The Director may publish regulations governing the order in which objective standards shall be waived or relaxed in such circumstances.
(4) Setbacks from side and rear property lines, including street-side property lines, shall be no less than four feet, except in the case of existing non-complying structures or structures reconstructed in the same location and to the same dimensions as an existing structure, in which case existing setbacks less than four feet may be maintained. No setback is required from an internal lot line newly created pursuant to Chapter 21.10, for adjacent or connected structures separated by the new lot line, provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (5) Off-street parking shall be provided pursuant to Chapters 18.52 and 18.54. (6) In the event that a project is proposed on a site that has been subject to an Urban Lot Split under Chapter 21.10, and the project would result in three or more detached units across the two parcels created by the urban lot split, any new units shall not exceed 800 square feet.
(7) Accessory structures, such as garages and shed are permitted consistent with the provisions of the zoning district; however, no accessory structure shall have a floor area exceeding 500 square feet.
(8) The Director of Public Works may promulgate standards for adjacent public improvements, such as curb cuts and sidewalks, in relation to development pursuant to this Section.

[. . .]

SECTION 3. Sections 21.10.030 (Applicability), 21.10.040 (General Requirements), and

21.10.050 (Application and Review of an Urban Lot Split) of Chapter 21.10 (Parcel Maps for Urban Lot Splits in Single-Family Zones) of Title 21 (Subdivisions and Other Divisions of land) of the Palo Alto Municipal Code are amended to read as follows:

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21.10.030 Applicability.

The provisions of this chapter shall apply only to lots in the R-1 district (and R-1 subdistricts) or R-E zone district. Except as modified by this Chapter, all provisions of Title 21 shall apply to an application for urban lot split. An urban lot split is not available in any of the following circumstances:

[. . .]

Section 21.10.040 General Requirements
(a) The minimum size for a parcel created by an Urban Lot Split is 1,200 square feet. (b) The lots created by an Urban Lot Split must be of approximately equal area, such that no resulting parcel shall be smaller than 40 percent of the lot area of the original parcel proposed for subdivision.
(c) Each parcel created by an Urban Lot Split shall adjoin the public right of way by means of a minimum fifteen foot street frontage.
(c) (d) Where existing dwelling units on the property are to remain, no lot line may be created under this Chapter in a manner that would bisect any structure or that would result in more than two dwelling units on any resulting parcel. (d) (e) Newly created lot lines shall not render an existing structure noncomplying in any respect (e.g. floor area ratio, lot coverage, parking), nor increase the degree of noncompliance of an existing noncompliant structure.
(e) (f) Each parcel shall comply with any objective lot design standards for Urban Lot Splits adopted by the City Council.
(f) Utility easements shall be shown on the parcel map, and recorded prior to, or concurrent with final parcel map recordation.
(g) A covenant necessary for maintenance of stormwater treatment facilities shall be recorded prior to, or concurrent with final map recordation. (h) Existing driveways to be demolished shall follow the procedure(s) in 12.08.090 Elimination of abandoned driveway.
(i) A maintenance agreement shall be recorded to ensure shared maintenance of any shared access easements, stormwater treatment, landscaping and private utilities, prior to final parcel map recordation.

The Director of Planning shall determine the appropriate fee required for an application for parcel map for an Urban Lot Split, which may be the fee currently established for a Preliminary Parcel Map or Parcel Map.

Section 21.10.050 Application and Review of an Urban Lot Split (a) The Director of Planning is authorized to promulgate regulations, forms, and/or checklists setting forth application requirements for a parcel map for an Urban Lot Split under this Chapter. An application shall include an affidavit from the property owner, signed under penalty of perjury under the laws of California, that:
(1) The proposed urban lot split would not require or authorize demolition or alteration of any of the housing described in Section 21.10.030, subdivision (e). (2) The proposed urban lot split is not on a parcel described in Section 21.10.030.

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(3) The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map.
(4) The rental of any unit on the property shall be for a term longer than 30 consecutive days.
(5) The resulting lots will be for residential uses only. (b) A parcel map for an Urban Lot Split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Chapter. Unless more specific regulations are adopted by the Director of Planning, the parcel map shall be in the form and include all of the information required of a Preliminary Parcel Map by Chapter 21.12, as well as any additional information required of a Parcel Map by Chapter 21.16. In addition, the face of the Parcel Map shall contain a declaration that:
(1) Each lot created by the parcel map shall be used solely for residential dwellings. (2) That no more than two dwelling units may be permitted on each lot. (3) That rental of any dwelling unit on a lot created by the parcel map shall be for a term longer than 30 consecutive days.
(4) A lot created by a parcel map under this Chapter shall not be further subdivided. (c) Upon receipt of a parcel map for an Urban Lot Split, the Director of Planning shall transmit copies to the city engineer, chief building official, Director of Utilities, chief of police, fire chief, Director of Transportation, and such other departments of the city, and any other agencies, as may be required by law or deemed appropriate. (d) The Director of Planning shall cause a notice of the pending application to be posted at the site of the proposed Urban Lot Split and for notice to be mailed to owners and residents of property within 600 feet of the property.
(e) The Director of Planning shall ministerially review and approve a parcel map for Urban Lot Split if they determine that the parcel map application meets all requirements of this Chapter. The Director of Planning shall deny a parcel map application that does not meet any requirement of this Chapter.
(f) The Director of Planning shall determine the appropriate fee required for an application for parcel map for an Urban Lot Split, which may be the fee currently established for a Preliminary Parcel Map or Parcel Map.

SECTION 4. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespect ive of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

SECTION 5. The City Council finds that this Ordinance is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) for the following reasons.

Under Government Code Sections 66411.7(n) and 65852.21(j), an ordinance adopted to implement the requirements of SB 9 shall not be considered a project under CEQA.

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SECTION 6. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning
and Development Services

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*Not Yet Passed*
Resolution No. ______
Resolution of the City of Palo Alto Approving Objective Lot Design Standards for Urban Lot Splits

RECITALS
A. On September 16, 2021, Governor Newsom signed into law Senate Bill 9 (SB 9), which requires, among other things, that local agencies ministerially approve both two-unit construction and urban lot splits on single-family zoned lots.

B. SB 9 authorizes the creation of lots as small as 1,200 square feet and requires approval of two residential units of at least 800 square feet (for a total of 1,600 square feet) each on such lots. This represents a significant departure from existing minimum lot sizes and development standards in Palo Alto’s single-family zones.

C. SB 9 authorizes local jurisdictions to apply objective zoning standards, objective subdivision standards, and objective design standards, subject to certain limitations in statute.

D. On January 24, 2022, the City Council adopted Interim Ordinance No. 5542.

E. The City Council now desires to modify Interim Ordinance No. 5542 to clarify its terms and to adopt additional standards for urban lot splits.

F. Section 21.10.040(e) of the Palo Alto Municipal Code states that for subdivisions of single family lots in the R-1 district (and subdistricts) or R-E district pursuant to SB 9, “Each parcel shall comply with any objective lot design standards for urban lot splits adopted by the City Council.”

G. On March 21, 2022, the City Council considered and approved the proposed objective standards for urban lot splits sought in connection with SB 9 projects, with a modification standards to reduce the allowable minimum street frontage for “flag lot” subdivisions from 15 feet to 10 feet.

H. The Objective Lot Design Standards for Urban Lot Splits, as modified by the City Council on March 21, 2022, is attached as Exhibit 1.

The Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. The City Council hereby approves the Objective Lot Design Standards for Urban Lot Splits attached as Exhibit 1.
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SECTION 2. The City Council finds that this Ordinance is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) for the following reasons.

Under Government Code Sections 66411.7(n) and 65852.21(j), an ordinance adopted to implement the requirements of SB 9 shall not be considered a project under CEQA.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

Assistant City Attorney City Manager

Director of Planning and Development Services

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EXHIBIT 1

PROPOSED OBJECTIVE LOT DESIGN STANDARDS
a. L
ot Typologies
(1) Side-by-side. One lot line shall divide the property from front to rear, with street frontages for both lots.
(2) Flag Lot. Two property lines shall divide the property to create a new flag lot. The “flagpole” shall be at least 10 feet wide.
(3) Flag Lot with Easement. Substandard lots less than 50 feet in width shall create a 10-foot access easement to create access to the rear lot.
(b) Development Standards
Sid e-by-Side Lots Flag Lot
Lot Split on lot less
than 50 feet in
width
Configuration
All lots shall meet one of the
three typologies as described in
(a)
Flag lot configuration
required on lots
deeper than 200 ft
Typology (a) 3
only
Minimum Lot Size
(sq. ft.) 1,200

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Maximum Lot
Size None
Maximum Lot
Split Ratio 60%/40%
Minimum Street
Frontage (ft) 25 10 Easement
Maximum
Number of New
Lot Lines
2(1)
Shared Driveway Required (2)(3)
(1) One property line may be used to divide an existing lot into two side-by-side lots. Two property lines may be used to create a flag lot. No more than two new lot lines may be added.

The new lot lines, as far as practicable, shall be parallel or at right angles to straight streets or radial to curved streets.
(
2) A shared driveway shall be comprised of a single curb cut that extends for at least 10 ft before branching to two or more parking spaces. A recorded access easement is required. (3) The two lots shall share a single driveway, unless sharing a driveway would require demolition of existing structures proposed to be retained. If sharing a driveway would require such demolition, no more than 2 curb cuts, one per each lot, will be permitted. The curb cuts must be at least 20’ apart per 12.08.060 (a) (9) (A); drive aisle dimensions per 18.54.070 table

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City of Palo Alto (ID # 14048)
City Council Staff Report

Meeting Date: 4/11/2022

City of Palo Alto Page 1

Title: TEFRA HEARING: Regarding Conduit Financing for the Silicon Valley International School Project Located at 151 Laura Lane and 1066 East Meadow Circle, Palo Alto, and Approving the Issuance of a Tax Exempt Loan by the California Municipal Finance Auth ority for the Purpose of Financing and Refinancing the Acquisition, Construction, Improvement, Equipping and Maintenance of Educational, Support and Administrative Facilities Owned and Operated Within the City by Silicon Valley International School From: City Manager
Lead Department: Administrative Services

Recommendation
Staff recommends that Council:

1) Conduct a public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act of 1983 (TEFRA) and the Internal Revenue Code of 1986, as amended; and
2) Adopt a resolution (Attachment A) approving the issuance of the bonds by the California Municipal Finance Authority (CMFA) for the benefit of Silicon Valley International School.

Background

Silicon Valley International School (formerly known as International School of the Peninsula), a California nonprofit public benefit corporation (the “Borrower”) and an organization described in, and exempt from tax under, Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), has requested that the California Municipal Finance Authority (the “Authority” or “CMFA”) obtain a tax -exempt loan or loans in an aggregate principal amount not to exceed $ 50,000,000 (the “Loan”) in one or more series and make one or more loans to the Borrowe r. This is pursuant to a plan of financing to, among other things:
(i) refinance all or a portion of certain outstanding debt obligations of the Borrower, being that certain California Municipal Finance Authority 2021 Tax Exempt Loan (International School of the Peninsula) ( as executed in one or more series, the 11 Packet Pg. 242

City of Palo Alto Page 2

“Prior Loan”), which Prior Loan, among other things, financed and refinanced certain costs of acquiring, improving, renovating, remodeling, furnishing and equipping various portions of the educatio nal facilities of the Borrower located at 151 Laura Lane within the City of Palo Alto, California (the “City”), zip code 94303, which facilities are owned and operated by the Borrower, in connection with the provision of educational and other services in the City,
(ii) finance and refinance certain costs of acquiring, constructing, improving, renovating, remodeling, furnishing and equipping educational facilities to be owned, occupied and operated by the Borrower and located at 1066 East Meadow Circle, Pal o Alto, California 94303 in the City, all in connection with the provision of educational and other services in the City,
(iii) pay capitalized interest on the Borrower Loan, and (iv) pay certain expenses incurred in connection with the issuance of the Borrower Loan (items (i) through (iv), collectively, the “Borrower Project”).

In order for all or a portion of the Loan to qualify as a tax -exempt loan, the City of Palo Alto must conduct a public hearing (TEFRA Hearing), providing the members of the community an opportunity to speak in favor of or against the use of tax -exempt loans for the financing of the project. Prior to the hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA hearing, an “applicable elected representative” of the governmental unit hosting the proposed project must provide its approval of the issuance of the bonds for the financing of the project.

Discussion

Since the facilities to be financed with the proceeds of the CMFA’s deb t are located within the jurisdiction of the City of Palo Alto, the City has been asked to conduct a TEFRA hearing and adopt a resolution (Attachment A) that approves the issuance of the Loan by the CMFA for the benefit of the Borrower.

As cited in the pu blished notice of April 1, 2022, the public hearing is simply an opportunity for all interested persons to speak or to submit written comments concerning the proposal to issue the debt and the nature or location of the facility to be financed; however ther e is no formal obligation on the part of the borrower or the Council to respond to any specific comments made during the hearing or submitted in writing.

The bonds are intended to finance the Project described herein for the acquisition, construction, improvement, equipping and maintenance of certain educational, support and administrative facilities owned and operated within the City by the Borrower.

The CMFA is a joint exercise of powers authority that the City became a member of on April 14, 2008. The Joint Exercise of Powers Agreement provides that the CMFA is a 11 Packet Pg. 243

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public entity, separate and apart from each member executing such agreement. The debts, liabilities and obligations of the CMFA do not constitute debts, liabilities or obligations of the member s executing such agreement. The Loan to be issued by the CMFA for the project will be the sole responsibility of the borrower, and the City of Palo Alto will have no financial, legal, moral obligation, liability or responsibility for the project or the rep ayment of the Loan for the financing of the project. All financing documents with respect to the issuance of the bonds will contain clear disclaimers that the Loan is not an obligation of the City of Palo Alto or the State of California but is to be paid for solely from funds provided by the borrower.

The City is in no way exposed to any financial liability by reason of its membership in the CMFA. In addition, participation by the City in the CMFA does not impact the City’s appropriations limits and will n ot constitute any type of indebtedness by the City.

Outside of holding the TEFRA hearing, adopting the required resolution, no other participation or activity of the City or the City Council with respect to the issuance of the loan will be required. Based on the benefits of the project to the Palo Alto community and the lack of any financial obligations on the part of the City, staff recommends that Council approve the attached resolution.

Resource Impact

As stated, the City will incur no financial oblig ation from approval of the recommendations. The Borrower is requesting the CMFA to issue up to $50 million in bonds through the CMFA. The City will receive a fee for its services when the loan is issued.

Policy Implications

Actions recommended in this r eport are consistent with Council’s prior actions in supporting non-profit financings under the TEFRA (e.g., recently approving tax -exempt financing through the California Municipal Finance Authority for Wilton Court on February 10, 2020 and Silicon Valley International School on September 13, 2021).

Stakeholder Engagement

City staff coordinated with representatives of CMFA to prepare for the TEFRA hearing.

Environmental Review

Action on this item does not constitute a project under Section 21065 of the Public Resources Code.

Attachments:
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• Attachment11.a: Attachment A: Silicon Valley International School TEFRA Resolution
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Attachment A

010-9323-2275/3/AMERICAS

Resolution No. ___

Resolution of the City Council of the City of Palo Alto, California, Approving the Execution of a Tax -Exempt Loan or Loans by the California Municipal Finance Authority for the Benefit of Silicon Valley International School , in an Aggregate Principal Amount not to Exceed $50,000,000 in one or More Series for the Purpose of Financing and Refinancing the Acquisition, Construction, Improvement, Equipping and Maintenance of Certain Educational, Support and Administrative Facilities Owned and Operated Within the City by Silicon Valley International School

R E C I T A L S

A. Silicon Valley International School (formerly known as International School of the Peninsula), a California nonprofit public benefit corporation (the “Borrower”) and an organization described in, and exempt from tax under, Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), has requested that the California Municipal Finance Authority (the “Authority”) obtain a tax -exempt loan or loans in an aggregate principal amount not to exceed $50,000,000 (the “Authority Loan”) in one or more series and make one or more l oans to the Borrower pursuant to a plan of financing (the “Borrower Loan”) to, among other things: (i) refinance the outstanding debt obligations of the Borrower, being the Authority’s 2021A Tax Exempt Loan (Silicon Valley International School) (as execute d in one or more series, the “Prior Loan”), which Prior Loan, among other things, the proceeds of which were used to refinance the Authority’s 2017 Tax Exempt Loan (International School of the Peninsula), the proceeds of which were used to finance and refinance certain costs of acquiring, improving, renovating, remodeling, furnishing and equipping various portions of the educational facilities of the Borrower located at 151 Laura Lane within the City of Palo Alto, California (the “City”), zip code 94303, which facilities are owned and operated by the Borrower, in connection with the provision of educational and other services in the City (the “Cohn School Project”), (ii) finance and refinance certain costs of acquiring, constructing, improving, renovating, r emodeling, furnishing and equipping educational facilities to be owned, occupied and operated by the Borrower and located at 1066 East Meadow Circle, Palo Alto, California 94303 in the City, all in connection with the provision of educational and other ser vices in the City (the “East Meadow Circle Project”), (iii) pay capitalized interest on the Borrower Loan, and (iv) pay certain expenses incurred in connection with the issuance of the Borrower Loan (items (i) through (iv), collectively, the “Borrower Project”); and

B. The facilities comprising the Borrower Project are, or will be when acquired by the Borrower, owned and operated by the Borrower and are located within the territorial limits of the City, a member of the Authority; and

C. Pursuant to Section 147(f) of the Code, the execution of the Authority Loan by the Authority relating to the Borrower Project and the related plan of financing with the Borrower, including the Borrower Loan relating to the Borrower Project, must be approved by the City

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because the facilities comprising the Borrower Project are located within the territorial limits of the City; and
D. The City Council of the City (the “City Council”) is the elected legislative body of the City and is an “applicable elected re presentative” required to approve the execution of the Authority Loan by the Authority relating to the Borrower Project under Section 147(f) of the Code; and
E. The Authority has requested that the City Council approve the execution of the Authority Loan by the Authority relating to the Borrower Project and the related overall plan of financing for the Borrower Project with the Borrower, including the Borrower Loan, in order to satisfy the public approval requirement of Section 147(f) of the Code and the re quirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the Authority, dated as of January 1, 2004 (as amended, the “Agreement”), among certain program participants, including the City; and
F. The aggregate principal amount of the Authority Loan to be issued for the Cohn School Project will not exceed $5,400,000 the aggregate principal amount of the Authority Loan to be issued for the East Meadow Circle Project will not exceed $44,6 00,000, and the aggregate principal amount of the Authority Loan to be issued for the Borrower Project will not exceed $50,000,000; and
G. On April 1, 2022, the Authority’s bond counsel caused a notice to appear in The Daily Post, which is a newspaper of gener al circulation in the City, stating that a public hearing with respect to the execution of the Authority Loan by the Authority and the Borrower Project would be held by the City Council on April 11, 2022; and H. Pursuant to Section 147(f) of the Code, the City has, following notice duly given, held a public hearing on April 11 , 2022 regarding the execution of the Authority Loan by the Authority, and an opportunity was provided for persons to comment on the matter of the Authority Loan and of the Borrower Project; and
The Council of the City of Palo Alto RESOLVES as follows:

Section 1. The foregoing recitals are true and correct.

Section 2. The City Council hereby approves the execution of the Authority Loan by the Authority relating to the Borrower Project and the related plan of financing with the Borrower with respect to the Borrower Loan relating to the Borrower Project. It is the purpose and intent of the City Council that this resolution constitutes approval of the execution of the Authority Loan by the Authority relating to the Borrower Project and the related plan of financing with the Borrower, including the Borrower Loan relating to the Borrower Project, for the purposes of:
(a) Section 147(f) of the Code, by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Borrower Project is located, in accordance with said Section 147(f); and (b) Section 4 of the Agreement.

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Section 3. The approval by the City of the execution of the Authority Loan by the Authority relating to the Borrower Project is neither an approval of the underlying credit issues of the proposed Borrower Project nor an approval of the financial structure of the Authority Loan.

Neither the City nor any department, official or officer thereof shall have any responsibility or liability whatsoever with respect to the Authority Loan, the Borrower Loan, or the Borrower Project.

Section 4. The execution of the Authority Loan shall be s ubject to approval of the Authority of all financing documents relating thereto to which the Authority is a party. Neither the Authority Loan nor the Borrower Loan shall constitute a debt or obligation of the City, and the City shall have no responsibilit y or liability whatsoever with respect to repayment or administration of the Authority Loan or the Borrower Loan.

Section 5. The adoption of this resolution shall not obligate the City or any department thereof to (i) provide any financing with respect to the Borrower Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary with respect to the Borrower Project; (iii) make any contribution or advance any funds whatsoever to the Authority or the Borrower; or (iv) take any further action with respect to the Authority or the City’s membership therein.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk Mayor
APPROVED AS TO FORM: APPROVED:

City Attorney City Manager

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City Council Staff Report
Report Type: Action Items Meeting Date: 4/11/2022
City of Palo Alto Page 1
Summary Title: Council Review of Changes to Height Transitions Title: Public Hearing: Adoption of Ordinance Clarifying Ambiguities in Height Transitions, Adding RMD to the list of Residential Districts and Amending the Setback for the RM -40 Zone District
From: City Manager
Lead Department: Planning and Development Services
Recommendation:

Staff recommends that Council adopt an ordinance proposing changes to height transitions and other development standards (Attachment A).

Executive Summary:

The issue of height transition development standards is related to the objective standards project but focuses narrowly on development standards tables within district regulations in Title 18. This draft ordinance is the first of two ordinances expected in the first half of the year as part of the objective standards project.

Changes to height transitions are proposed for two reasons. First, the language governing height transitions var ies across districts and is sometimes ambiguous; this has resulted in the code being interpreted and implemented different ly over time. Second, community members have expressed concern that these lower height limits generally do not apply to the RM -40 zone district which is a high -density district. Additionally, this report proposes adding the RMD (Two Unit Multiple-Family Residential District) to the list of Residential Zones in title 18.08 and to the PC list of zoning districts where a reduced height is required . Lastly, this report proposes changes to t he RM -40 front and side setbacks to be consistent with all RM zones and to transform the subjective variable setbacks to objective standards . This change is being made at this time since it was a straightforward request by the Council and relates to the development standards tables already being modified herein.
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A near -future second ordinance will address all other aspects of the objective standards project, based on feedback received from the Council on October 4 and November 8, 2021.

Background:

For further details on the larger Obj ective Standards project and its relationship to State Housing Laws and a summary of community outreach completed to date, please review the January 24, 2022 staff report 1. Records from previous meetings described above and the other 13 ARB meetings and three PTC meetings focused on objective standards can be found on the project webpage: bit.ly/ObjectiveStandards

City Council Action
At its January 24, 2022 meeting, the City Council reviewed a draft ordina nce and directed staff to make the following changes:

A. Amend the proposed Ordinance to a 150 ft height transition zone, while leaving the abutting conditions where they already exist;
B. Clarify if projects want to reduce the horizontal transition zone, the y are opting into the discretionary process;
C. Extend the height transition rules in Part A to RM40 adjacent nonresidential buildings; and
D. Investigate 18.38.150 section (b), and to incorporate RMD into the language.

The next section of the report details responses to each motion item, explaining how the item is addressed in the ordinance, this report, or a future ordinance.

Discussion and Analysis:

The following changes have been incorporated in to the draft ordinance based on the Council motion.

A. Amend the proposed Ordinance to a 150 ft height transition zone, while leaving the abutting conditions where they already exist;

Abutting is defined in Chapter 18.04 (2) as follows: "Abutting" means having property or district lines in common. This means that where “abutting” is applied (i.e. for mixed use and residential development in commercial zones), the lower height limit will apply to:

1. Abutting properties (i.e lots sharing property lines or corners), and/or

1 Link to January 24, 2022 staff report: https://www.cityofpaloalto.org/files/assets/publ ic/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220124/20220124pccsm-amended-linked-cq- added.pdf
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2. Abutting zoning districts, (i.e. including parcels separated by a street or alley , as district boundaries are often along the centerline of a street2).

However, where “abutting” is applied, the lower height limit will not apply if the latter parcel is separated by another parcel (i.e., not abutting) . In the current version of the ordinance in Attachment A, City staff r emoved “abutting” where it was proposed to be added to two sets of district regulations: 18.13: RM-20/RM-30/RM-40 and 18.20: MOR/ROLM/RP/GM district regulations. One of the consequences of the motion, as made, is that in these two sets of districts, the lower height limit would apply to the “leapfrog” scenario, as illustrated in Figure 1.

Figure 1: Height Transitions for Parcels Not Abutting (Leapfrog Scenario)

As proposed by the dr aft ordinance, within 150 feet of a site with R -20 zoning, the lower height limit of 35 feet would apply, as shown in light blue —regardless of whether a parcel is abutting or separated by another lot. The dotted lines indicate separate parcels.

Staff was unsure if this was the Council’s intent. If this was the Council’s intent, then the proposed ordinance in Attachment A is correct, as written. If this was not the Council’s intent, then the term “abutting” should be added to the height standard in Chapters 18.13 and 18.20.

Figure 2 illustrates the effects of not including “abutting” in the reduced height standard in Chapter 18.13 and 18.20 regulations (i.e. “leapfrog” scenario) . In this South El Camino Real location, the height transition (i.e. 35 foot he ight limit) would apply in the northern corner the southern CS-zoned parcel, about 15 feet into the property . Since this site is a Housing Element Opportunity Site it is required to meet its density threshold and realistic capacity as calculated in the 5th Cycle Housing Element, which could result in taller building on other portions of the site. The lower height limit would apply to the northern corner of the parcel and the remaining portion of the site could build out up to the maximum height of up to 50 feet.

2 A proposed footnote to each development standards table helps clarify that the 150-foot distance is measured from the property line of the subject site and not from the district boundary, which could be the centerline of the street. 12 Packet Pg. 251

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Figure 2: Applicability of Height Transitions for Parcels Not Abutting (18.13: RM -20/RM- 30/RM-40 and 18.20: MOR/ROLM/RP/GM)

B. Clarify if projects want to reduce the horizontal transition zone, they are opting into the discretionary process;

In general, when applicants request any kind of modification from a development standard or objective design standard, they are opting into a discretionary review process. To vary from the transitional height requirement, an applicant would need to apply f or 1) a variance or 2) a Design Enhancement Exception (DEE) both of which are discretionary processes.

1) Variances are reviewed at the staff level (PAMC Section 18.76.030) . However, in the case of a height transition, it would be very difficult for staff to make the required findings for a variance, which include determining that the site has special circumstances, including (but not limited to) size, shape, topography, location, or surroundings, the strict application of the requirements and regulations prescribed in 12 Packet Pg. 252

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this title substantially deprives such property of privileges enjoyed by other property in the vicinity and in the same zoning district

2) Design Enhancement Exceptions (DEE) at reviewed in the same manner as architectural reviews (PAMC Section 18.76.050 and 18.77.070), which can be done at the staff level or through the ARB process. This allows the ARB to use discretion in their interpretation of the AR findings to condition and recommend approval or denial of projects.

There is a key except ion under State Density Bonus Law , which allows concessions and waivers to modify development standards, without necessarily triggering discretionary review. A n affordable housing project proposed under State Density Bonus law could request a waiver or concession from the height transition standards, and still be subject to ministerial review. 3 As a result, staff recommend not stipulating that the discretionary process is necessarily required.

Rather, p roposed f ootnotes in the RM and CN/CS/CC development st andards tables each confirm that a reduction requires review by the ARB and approval by the Director , which are inherently discretionary actions. This would apply to most projects except for a project utilizing State Density Bonus law to exceed height standards.

C. Extend the height transition rules in Part A to RM -40 adjacent nonresidential buildings;

The revised ordinance in Attachment A removes the exception for new non -residential projects within 150 feet of a RM-40 district. This means that non-residential projects within 150 feet of a RM-40 district would now be subject to the reduced height limit. As with most of Palo Alto’s new ordinances, no caveats are identified in the ordinance for pipeline/pending projects, so any project that has not yet been a pproved (i.e. 123 Sherman Avenue, 21PLN-00172) would be subject to this standard, where applicable.

D. Investigate 18.38.150 section (b), and to incorporate RMD into the language.

This motion item relates to maximum heights stated in Chapter 18.38: Planned Community (PC) District. The revised ordinance in Attachment A adds RMD to the list of zoning districts where a reduced height limits would be required for new PC projects adjacent to an RMD site. Currently, PC sites adjacent to RM -zoned sites—i.e., a h igher density district —are subject to these lower height limits, so it is reasonable to assume that RMD should be included in the list of zones.

Environmental Review:

3 For example, under SB 35, a project that utilizes State Density Bonus law to vary from development standards is still considered “consistent with objective zoning standards.” (Government Code Section 65913.4(a)(5).) 12 Packet Pg. 253

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The ordinance revisions represent implementation of adopted plans and policy. Therefore , the revisions are exempt under CEQA and covered by the CEQA documents prepared for the Comprehensive Plan. The project aims to facilitate implementation of State law. The project does not propose to increase development beyond what was analyzed in the Co mprehensive Plan.

Attachments:

Attachment12.a: Attachment A: Ordinance Amending Title 18 to Clarify Transitional Height Standards and Update Setbacks for RM-40 (PDF)
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Ordinance No. ____

Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) to Clarify Transitional Height Standards and Update Setbacks for the RM-40 Zone District

The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and Declarations.

A. Title 18 (Zoning) of the Palo Alto Municipal Code contains development standards governing the maximum height of structures in close proximity to lower density residential zones. The purpose of these development standards is to ensure the harmonious transition between lower and higher intensity development.

B. The existing language on height transitions has created confusion among the public, project applicants, and City staff. This confusion, in turn, has resulted in differing interpretations of the law over the years.

C. The City Council now wishes to clarify the zoning code with respect to height transitions.

The clarifications to height transition standards contained in this ordinance are declarative of existing law.

SECTION 2
. Section 18.08.030 (References to Districts) of Chapter 18.08 (Designation and Establishment of Districts) of Title 18 (Zoning) is amended as follows (new text underlined):

18.08.030 References to Districts

Reference within this title to residential districts generally and as a grouping, includes all districts identified in this section. Where references are made to more restrictive or less restrictive residential districts, such references shall apply sequentially between the most restrictive and the least restrictive.

Residential District Restrictive Reference
RE Most Restrictive
R-1 (20,000)
R-1 10,000)
R-1 (8,000)
R-1 (7,000)
R-1

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R-2

Least Restrictive
RMD
RM-20
RM-30
RM-40

SECTION 3. Section 18.13.040 (Development Standards) of Chapter 18.13 (Multiple Family Residential (RM-20, RM-30 and RM-40) Districts) of Title 18 (Zoning) is amended as follows (new text underlined and deletions struck through; omissions are noted with [. . .] for large sections of unchanged text):

18.13.040 Development Standards

(a) Site Specifications, Building Size and Bulk, and Residential Density

The site development regulations in Table 2 shall apply in the multiple-family residence districts, provided that more restrictive regulations may be recommended by the Architectural Review Board and approved by the Director of Planning and Development Services, pursuant to the regulations set forth in Chapter 18.76, performance criteria set forth in Chapter 18.23, and the context-based design criteria set forth in Section 18.13.060.

Table 2
Multiple Family Residential Development Table
RM-20 RM-30 RM-40 Subject to
regulations
in:
[. . .] [. . .] [. . .] [. . .] [. . .]
Minimum Setbacks Setback lines imposed by a special
setback map pursuant to Chapter

20.08 of this code may apply

Front Yard (ft) 20 20 0 2520 (12)

18.13.040(b)
On arterial roadways, expressways, and
freeways (1)
0-20 (1,2) 0-20 (1,2) 0-25 (1,2)
Interior Side Yards (ft)
For lots with width of 70 feet or greater 10 10 10
For lots with width of less than 70 feet 6 feet
Interior Rear Yards (ft)3 10 10 10
Street Side and Street Rear Yards (ft) 16 16 0 16(2)

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Maximum Height (ft) 30 35 40
Maximum height for those p Portions of
a site within 50 feet of a more
restrictive abutting residential district
or a site containing a residential use in
a nonresidential district (9)
35 18.08.030

[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Minimum front setbacks shall be determined by the Architectural Review Board upon review pursuant to criteria set forth in Chapter 18.76 and the context-based criteria outlined in Section 18.13.060. Arterial roadways, expressways, and freeways are identified in Map T-5 of the Comprehensive Plan and do not include residential arterials. (2) Lesser setbacks may be allowed by the Planning Director, upon recommendation Minimum street side setbacks in the RM 40 zone may be from 0 to 16 feet and shall be determined by the Architectural Review Board upon review pursuant to criteria set forth in Chapter 18.76and the context-based criteria outlined in Section 18.13.060. Special setbacks may not be reduced except upon approval of a design enhancement exception or variance.

[. . .]

(8) The minimum density for a site may be reduced by the Director if, after the proposal is reviewed by the Architectural Review Board, the Director finds that existing site improvements or other parcel constraints, preclude the development from meeting the minimum density. A site with an existing single-family use or two-family use may be redeveloped at the existing density, either single-family or two-family as applicable. An existing or replaced single-family or two-family residence shall not be considered a nonconforming use, and the provisions of Chapter 18.70
shall not apply, solely based on the
minimum density requirement.
(9) Distance shall be measured from the property line of the subject site.

[. . .]

SECTION 4. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, And Service Commercial (CN, CC And CS) Districts) of Title 18 (Zoning) is amended as follows (new text underlined and deletions struck through; omissions are noted with [. . .] for large sections of unchanged text):

18.16.060 Development Standards

(a) Exclusively Non-Residential Uses
Table 3 specifies the development standards for exclusively non-residential uses and alterations to non-residential uses or structures in the CN, CC, CC(2) and CS districts. These

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developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020.

Table 3
Exclusively Non-residential Development Standards

CN

CC

CC(2)

CS
Subject to
regulations in
Section

[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Height (ft)
Standard
25' and 2
stories
50' 37' (4) 50'
Portions of a site wWithin
150 ft. of an abutting
residential district (other
than an RM 40 or PC
zone) (9) abutting or
located within 50 feet of
the site

35'

35'

35'

18.08.030
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard.

[. . .]

(9) Distance shall be measured from the property line of the subject site. 150-foot measurement may be reduced to 50 feet at minimum, subject to approval by the Planning Director, upon recommendation by the Architectural Review Board pursuant to criteria set forth in Chapter 18.76.

(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use developments and residential developments. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section

18.76.020.

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Table 4
Mixed Use and Residential Development Standards
CN CC CC(2) CS Subject to
regulations in:
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Height (ft)
Standard 35'(4) 50' 37' 50'
Portions of a site wWithin 150
ft. of an abutting residential
zone district (other than an
RM-40 or PC zone) (5) abutting
or located within 50 feet of the
side

35'

35'(5)

35'(5)

35'(5)

18.08.030

[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Twenty-five-foot driveway access permitted regardless of frontage; build-to requirement does not apply to CC district.

[. . .]

(5) For sites abutting an RM 4 0 zoned residential district or a residential Planned Community (PC) district, maximum height may be increased to 50 feet. Distance shall be measured from the property line of the subject site. 150-foot measurement may be reduced to 50 feet at minimum, subject to approval by the Planning Director, upon recommendation by the Architectural Review Board pursuant to criteria set forth in Chapter 18.76.

[. . .]

(10) In the CC(2) zone and on CN and CS zoned sites on El Camino Real, there shall be no minimum mixed use ground floor commercial FAR for a residential project, except to the extent that the retail preservation requirements of Section 18.40.180 or the retail shopping (R) combining district (Chapter 18.30(A)) applies.

(1) Nonresidential uses that involve the use or storage of hazardous materials in excess of the exempt quantities prescribed in Title 15 of the Municipal Code, including but not limited to dry cleaning plants and auto repair, are prohibited in a mixed use development with residential uses.
(2) Residential mixed use development is prohibited on any site designated with an Automobile Dealership (AD) Combining District overlay.

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(c) Exclusively Residential Uses

[. . .]

SECTION 5. Section 18.18.060 (Development Standards) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) is amended as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.18.060 Development Standards

(a) Exclusively Non-Residential Use
Table 2 specifies the development standards for new exclusively non-residential uses and alterations to non-residential uses or structures in the CD district, including the CD-C, CD-S, and CD-N subdistricts. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.18.110, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section

18.76.020:

Table 2
Exclusively Non-Residential Development Standards

CD-C

CD-S

CD-N
Subject to regulations
in Section:
[. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Height (ft)
Standard 50 50 25
Portions of a site wWithin
150 ft. of an abutting
residential zone district
– (3) – (3) – (3) 18.08.030

[. . .] [. . .] [. . .] [. . .] [. . .]

(b) Mixed Use and Residential
Table 3 specifies the development standards for new residential mixed use developments and residential developments. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlines in Section 18.18.110, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020:

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TABLE 3

MIXED USE AND RESIDENTIAL DEVELOPMENT STANDARDS
CD-C CD-S CD-N Subject to regulations in
Section:
[. . .] [. . .] [. . .] [. . .] [. . .]
Maximum Height (ft)
Standard 50' 50' 35' 18.08.030
Portions of a site
wWithin 150 ft. of an
abutting residential zone
district (other than an
RM-40 or PC zone)(4)
40'(4) 40'(4) 35'(4) 18.08.030

[. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Required usable open space: (1) may be any combination of private and common open spaces; (2) does not need to be located on the ground (but rooftop gardens are not included as open space except as provided below); (3) minimum private open space dimension 6; and (4) minimum common open space dimension 12.

For CN and CS sites on El Camino Real, CS sites on San Antonio Road between Middlefield Road and East Charleston Road and CC(2) sites that do not abut a single- or two-family residential use or zoning district, rooftop gardens may qualify as usable open space and may count as up to 60% of the required usable open space for the residential component of a project. In order to qualify as usable open space, the rooftop garden shall meet the requirements set forth in Section 18.40.230.

[. . .]

(4) Distance shall be measured from the property line of the subject site. For sites abutting an RM-40 zoned residential district or a residential Planned Community (PC) district, maximum height may be increased to 50 feet.
(5) The weighted average residential unit size shall be calculated by dividing the sum of the square footage of all units by the number of units. For example, a project with ten 800- square foot 1-bedroom units, eight 1,200-square foot 2-bedroom units, and two 1,800- square foot 3-bedroom units would have a weighted average residential unit size of ((10x800)+(8x1,200)+(2x1,800)) ÷ (10+8+2) = 1,060 square feet.

[. . .]

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SECTION 6. Section 18.20.040 (Site Development Standards) of Chapter 18.20 (Office, Research, And Manufacturing (MOR, ROLM, RP And GM) Districts) of Title 18 (Zoning) is amended as follows (new text underlined and deletions struck through; omissions are noted with [. . .] for large sections of unchanged text):

18.20.040 Site Development Standards

Development in the office research, industrial, and manufacturing districts is subject to the following development standards, provided that more restrictive regulations may be required as part of design review under Chapter 18.76
of the Palo Alto Municipal Code.

(a) Development Standards for Non-Residential Uses
Table 2 shows the site development standards for exclusively non-residential uses in the industrial and manufacturing districts.

TABLE 2

INDUSTRIAL/MANUFACTURING NON- RESIDENTIAL SITE DEVELOPMENT STANDARDS

MOR

ROLM

ROLM(E)

RP

RP(5)

GM
Subject to
Regulations in
Chapter:
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .] [. . .] [. . .] Maximum Height (ft)
Standard 50 35(4) 35(4) 50
Portions of a site wWithin
150 ft. of an abutting
residential zone district (5)
35 35 35 35 18.08.030
Portions of a site wWithin
40 ft. of an abutting
residential zone district(5)
35 25 25 35 18.08.030
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
(5) Distance shall be measured from the property line of the subject site. Residential zones include R-1, R-2, RE, RMD, RM-20, RM-30, RM-40 and residential Planned Community (PC) zones.

[. . .]

SECTION 7. Section 18.30(J).090 (Development Standards) of Subchapter 18.30(J) (Affordable Housing (AH) Combining District Regulations) of Chapter 18.30 (Combining Districts) of Title 18 (Zoning) is amended to read as follows (new text underlined and deletions struck through; omissions are noted with [. . .] for large sections of unchanged text):

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18.30(J).090 Development Standards

The following development standards shall apply to projects subject to the AH affordable housing combining district in lieu of the development standards for the underlying zoning district, except where noted below:

Table 1
Development Standards
AH Combining District (1)
Minimum Site Specifications Subject to regulations in:
[. . .] [. . .] [. . .]
Maximum Height (ft) 50'
Portions of a site wWithin 50 ft of
an abutting residential district
(other than an RM-40 or PC zone)
R1, R 2, RMD, RM 20, or RM 30
zoned property
35'(3) 18.08.030
[. . .] [. . .] [. . .]
(3) Distance shall be measured from the property line of the subject site. The Planning Director may recommend a waiver from the transitional height standard.

[. . .]

SECTION 8. Section 18.30(K).070 (Development standards) of Subchapter 18.30(K) (Workforce Housing (WH) Combining District Regulations) of Chapter 18.30 (Combining Districts) of Title 18 (Zoning) is amended to read as follows (new text underlined and deletions struck-through; omissions are noted with [. . .] for large sections of unchanged text):

18.30(K).070 Development Standards

(a) Where the WH combining district is combined with the public facilities district, the following development standards shall apply for workforce housing projects, including permitted incidental uses, in lieu of the development standards for the underlying PF zoning district:

Table 1
Development Standards
WH Combining District
Minimum Site
Specifications
Subject to regulations in:
[. . .] [. . .] [. . .]

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Maximum Height (ft)
Standard 50'
Portions of a site wWithin 150
ft. of an abutting residential
district (other than an RM-40 or
PC zone)(5) abutting or
located within 50 feet of the
site
35', except as limited by
applicable daylight plane
requirements

18.08.030
[. . .] [. . .] [. . .]
Footnotes:
[. . .]
(5) Distance shall be measured from the property line of the subject site. [. . .]
SECTION 9. Section 18.38.150 (Special requirements) of Chapter 18.38 (PC Planned Community District Regulations) of Title 18 (Zoning) is amended to read as follows (new text underlined and deletions struck through; omissions are noted with [. . .] for large sections of unchanged text):

18.38.15 0 Special requirements.

Sites abutting or and having any portion located with one hundred fifty 150 feet of any RE, R-1, R-2, RMD, RM, or any PC district permitting single-family development or multiple-family development shall be subject to the following additional height and yard requirements:
(a) P
arking Facilities. The maximum height shall be equal to the height established in the most restrictive adjacent zone district.
(b) All
Other Uses. The maximum height within one hundred fifty 150 feet of any abutting RE, R-1, R-2, RMD, RM-20, or applicable PC district shall be thirty-five 35 feet; provided, however, that for a use where the gross floor area excluding any area used exclusively for parking purposes, is at least sixty 60 percent residential, the maximum height within one hundred fifty 150 feet of an abutting RM-4 30 or RM-5 40 district shall be fifty 50 feet. [. . .]
SECTION 10. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.

SECTION 11. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent

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*NOT YET ADOPTED*
11 0160063_20220329_ay16
jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 12. The Council finds that the Ordinance is within the scope of and in furtherance of the Comprehensive Plan 2030 which was evaluated in that certain Final Environmental Impact Report certified and for which findings were adopted by Council Resolution Nos. 9720 and 9721 on November 13, 2017, all in accordance with the California Environmental Quality Act. The Ordinance does not propose to increase development beyond what was analyzed in the Comprehensive Plan. Pursuant to Section 15168 of the State CEQA Guidelines, the City has determined that no new effects would occur from and no new mitigation measures would be required for the adoption of this Ordinance.

SECTION 13. This ordinance shall be effective on the thirty-first date after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning & Development
Services

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City of Palo Alto (ID # 14237)
City Council Staff Report

Meeting Date: 4/11/2022

City of Palo Alto Page 1

Title: Review and Approval of Workplans for City Council Committees in 2022 From: City Manager
Lead Department: City Manager

Recommendation
Staff recommends that the City Council review and approve the list of tentative topics and regularly scheduled work that the City Council Standing Committees of Policy and Services and Finance expect for 2022.

Background
The Municipal Code provides that the City Council should adopt “a handbook of procedural rules governing any aspect of the conduct of meetings and he arings for the Council and its standing committees, including but not limited to agenda requirements, the order of business, rules of order, rules of evidence, closed session procedures and rules for public participation in meetings” (PAMC section 2.04.100 ). The City Council adopted the first version of the City Council Procedures and Protocols Handbook in the early 2000s.

Discussion
As part of the routine processes for consideration of items, standing Committees are one of many forums through which items are reviewed and represent a small subset of the Regulatory and Advisory Boards, Commissions and Committees ( full list here ). Routinely items are considered not only by these two standing committees but by the full City Council (including both daily business and actions related to the nearly 70 major projects outlined in the 2022 City Council Priorities workplan); through the wor kplans and routine meetings of the various Boards, Committees, and Commissions such as Architectural Review Board (ARB) and Human Relations Commission (HRC); City Council Adhoc Committees; as well as other meeting groups such as the Housing Element Working Group and Expended Community Advisory Panel (XCAP).

Work Plan Calendars for Finance Committee and Policy and Services Committee Standing Committees Per the CPP, Section 2 – Council Meeting & Agenda Guidelines, Subsection 2.4, Letter Y (page 23):

The purpose and intent of committee meetings is to provide for more thorough and detailed discussion and study of prospective or current Council agenda items with a full and complete airing of all sentiments and expressions of opinion on city problems by 13 Packet Pg. 266

City of Palo Alto Page 2

both the Council and the public, to the end that Council action will be expedited. Actions of the committee shall be advisory recommendations only.

Referrals for discussion and action at the committee level are referred to Standing Committees by Council acti on or City Manager (staff) and are made to only one committee (CPP, page 24).

The tentative schedules include regularly scheduled work, such as audit updates and reports, budget-related reports, as well as any items that have already been previously referr ed, with the date of the referral. These schedules were shared with the new Chairs, as appointed by the Mayor for 2022. The tentative workplans or calendars were created knowing that there will be additional referrals and other topics that arise during the year.

This report and these tentative workplans, originally calendared to be reviewed as a component of the City Council Retreat on February 5, 2022, (page 71 of the agenda packet here), have been deferred to this item. These tentative workplans reflect a third step and review of the continuation of the additional items placed for Council review and approval:
1) Study Session regarding community engagement (March 14, 2022), and 2) City Council 2022 Priorities workplans (April 4, 2022).

These prior reports transmitted workplans for the four priorities identified by the Council during the February 2022 retreat for the 2022 calendar year (CY). The workplans are designed to both identify the work ahead while also serving as a tool to track progress on those tasks. As noted on March 14, 2022, details provided at the study session on community engagement relate to and connect with the City Council priorities workplan. As priorities evolve and workplans develop, engagement and other activities to implement these workplans will also evolve.

To support the tentative workplans for the st anding Council committees, major projects discussed in the City Council 2022 Priorities, other high -priority initiatives as outlined previously, and core city services, administrative resources are also required. In this time of constrained resources, the City will continue to focus on services with the greatest community impact, maintaining core city services and managing the vulnerabilities and risks associated with constraints while pursuing the workplans.

Timeline, Resource Impact, Policy Implications
The current workplans as drafted are within current available resources. Depending on the nature and extent of revisions sought, or adding standing committee topics could involve substantial staff resources.

Stakeholder Engagement
Stakeholder engageme nt is planned across workplan elements both internally and externally.

Major community engagement plans were outlined in a Study Session with the City Council on March 14, 2022 at which time staff received Council input. The staff report outlining engagement can be found here on page 181:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- 13 Packet Pg. 267

City of Palo Alto Page 3

minutes/city-council-agendas-minutes/2022/20220314/20220314pccsm-amended-final- revised-ppt.pdf

Environmental Review
This is not considered a project and no environmental review is required.

Attachments:
• Attachment13.a: Attachment A: Policy & Services Tentative Topics Calendar 2022 (Updated)
• Attachment13.b: Attachment B: Finance Committee Annual Calendar 2022 (Updated)
13 Packet Pg. 268
City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA. I www.cityofpaloalto.org – March 2022 Update Attachment A

POLICY & SERVICES TENTATIVE TOPICS
CALENDAR 2022

Updated on March 30, 2022

January
• Mayor appoints Committee and designates Chair; usually no P&S meeting

February
• Update: Summary of Recent Race and Equity Work since September 2021 including update on RMS Contract for Police Data Collection

March
• Legislative Update
• Auditor: Risk Assessment and Audit Plan
• Auditor: Quarterly Report – December 31, 2021
• Auditor: Economic Recovery Advisory

April
• Update on the National Community Survey Plans
• Council Referral from Feb. 5, 2022: Discussion of Council Values, Strategic Priorities, etc.

May
• Referral from 2021: Council Referral – Affordable Housing Funding (from August 16, 2021 Council Meeting)
• Update: Summary of Recent Race and Equity Work since February including update on RMS Police Data Collection (short update or informational)
• Quarterly Audit Status Report (Jan-March)
• Auditor: Non-profit Agreement Management
• Auditor: SAP Report
• Informational Report: Legislative Update

June
• Council Referral from Nov. 29, 2021: Renter Protections: Staff to go to P&S with updated language in ordinance for a renter survey and estimates on effort to enforce it for P&S discussion • Audit Report – TBD
• Continued Item from November 2021: City Council Referral: Policy and Services Committee to

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City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA. I www.cityofpaloalto.org – March 2022 Update Recommend Strategies to Support and Strengthen Neighborhood Programs, Identify Gaps in Existing Neighborhood-based Services, and Evaluate new Strategies as Proposed in the Colleagues' Memo Regarding a Proposed Program for Neighbor Connection • Procedures & Protocols Handbook Discussion

July
No meeting; Council break

August
• Quarterly Audit Status Report (April-June)
• Quarterly Race and Equity Update: Summary of Recent Race and Equity Work including update on RMS Police Data Collection

September
• Legislative Recap (what passed/didn’t pass)

October
• Quarterly Audit Status Report (July-Sept)
• Audit Report – TBD
• Council Referral from Nov. 29, 2021: Renter Protections: Bring back to P&S [a] proposal and discussion on expanding anti-gouging measure to address loopholes • Council Referral from Nov. 29, 2021: Renter Protections: Fair chance ordinance to be reviewed by P&S for analysis on consequences/unintended consequences

November
• Legislative Agenda and Guidelines (can also go in December) • Informational: Report out on Status of Committee Referrals

December
• Quarterly Race and Equity Update: Summary of Recent Race and Equity Work including update on RMS Police Data Collection
• 2023 City Council Priorities Discussion

Completed Referrals (status and date of referral):

1. COMPLETED: Review sworn versus non-sworn staffing for cost savings/enhanced services/increased revenues. Finance Committee reviewed Fire services on November 2, 2021.

Policy & Services have reviewed and continue to implement new alternative service delivery models, including creation of the PERT Program, grant to the Federal Government (earmark process) for a CAHOOTS-type program, and staff working with Santa Clara County to implement the new TRUST community mobile response program.

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City of Palo Alto I 250 Hamilton Avenue, Palo Alto, CA. I www.cityofpaloalto.org – March 2022 Update

2. COMPLETED: Police reform legislative priority thoughts and input to the Policy and Services Committee who will be discussing the City’s legislative priorities in December 2020 (Nov. 16, 2020):

3. COMPLETED: Refer all race and equity work to the Policy and Services Committee for citywide diversity and inclusion practice areas and policing practice areas (Nov. 16, 2020)

4. COMPLETED: Policy and Services CEDAW recommendation: Direct Staff to proceed with a community summit on gender equity issues and next steps in Palo Alto (Nov. 16, 2020)

5. COMPLETED: If the County does not assign a resource to Palo Alto in the next six months, refer to Policy and Services Committee the exploration of the feasibility of a CAHOOTS-type program (Nov. 16, 2020; no action needed unless County does not assign a resource by May 16, 2021)

6. COMPLETED: Refer to the Policy and Services Committee consideration of the Independent Police Auditor (IPA) oversight of internal complaints regarding misconduct related to harassment, discrimination, or retaliation resulting in city investigation of uniformed officers (Nov. 16, 2020)

7. COMPLETED: City Council Referral Re Mid-Year Budget: Direct the Policy and Services Committee to review a rent forgiveness program for qualified City tenants with program costs not-to-exceed the $744,000 COVID-19 Council reserve (March 1, 2021 referral)

8. All referrals from the January 2021 retreat have been fulfilled as well.

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ATTACHMENT B

FINANCE COMMITTEE TENTATIVE TOPICS
CALENDAR 2022
Updated on March 30, 2022

January
• Mayor appoints Committee and designates Chair; usually no FC meeting • Review Potential Local Ballot Measures (special meeting, 1/18)

February
• Preliminary Utility Rate Forecasts (2/1)

March
• Downtown Business Improvement District & Business Registry Certificate Review (3/1) • Committee Report and Feedback on Potential Local Ballot Measures (stakeholder engagement, analysis, and polling) (3/28)

April
• Utilities Advisory Commission Rate Forecasts and Financial Plan:
o Gas (4/19)
o Electric (4/19)
o Water (4/19)
o Wastewater (4/19)
• Rate Schedule Storm Water Management Fee (4/19)

May
• Impact Fee Updated calculations: Parks and Libraries [tentative,5/3] • Planning & Development Services Fee Study [tentative,5/3] • Annual Budget Review: Operating + Capital Five Year Plan (5/10, 5/11, 5/24; daytime meetings)
• Fiscal Year XXXX Municipal Fee Schedule (5/11)
• Retiree Healthcare Plan and Annual Actuarially Determined Contributions (ADC)- Biannual report, last done May 2020 (FY2021 and 2022 contributions), next scheduled May 2022 [tentative, 5/17]

June
• Third Quarter Fiscal Year XXXX Financial Report (6/7) • Adoption of Fiscal Year XXXX Investment Policy (to be done by June 30 per code) (6/7)

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ATTACHMENT B

• Report or item on the JMZ six months after it opens and what it would look like to eliminate the General Fund Subsidy through a fully cost recoverable program. Referred June 2020. [tentative, 6/7]

July
No meeting; Council Break

August

September/October
• Accept California Public Employees’ Retirement System (CalPERS) Pension Annual Valuation Reports as of June 30, 20XX
• Every 3-year review/decision on pension funding policy assumptions next review scheduled for FY 2024.

November
• Discussion and Recommendation to the City Council to Accept the Macias Gini & O'Connell's Audit of the City of Palo Alto's Financial Statements as of June 30, XXXX and Management Letter
• Discussion and Recommendation to Approve the Fiscal Year (FY) XXXX Comprehensive Annual Comprehensive Financial Report (ACFR) and Approve Budget Amendments in Various Funds
• Evaluation of Printing & Mailing Services levels and service delivery. Referred May 2019.

December
• Review and Forward the FY 20XX - FY 20XX Long Range Financial Forecast • First Quarter Fiscal Year XXXX Financial Report
• Informational: Report out on Status of Committee Referrals

Completed Referred Topics:

A full report on the status of Finance Committee referrals and the status can be found here, Item 3 on the November 30, 2021 agenda.

1) COMPLETED: FY 2021 Budget: Direct Staff to return by the end of October with preliminary Q1 financial results so that the Council can consider budget amendments. Referred in June 2021, Reviewed October 25, 2021.

2) COMPLETED: FY2021 Direct the Finance Committee to have an additional review of Public Safety long-term financial trends, beginning with the Fire Department, and concurrent with the September review of pensions. Referred on February 2, 2021, Reviewed on November 2, 2021.

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ATTACHMENT B

3) COMPLETED: CY2019 Fiscal Sustainability Workplan: Improvement of code enforcement, 311 system, and customer relationship management activities. Referred April 2019, system redundancies eradicated March 2020.

4) COMPLETED: Refer to the Finance Committee, a proposal to consider affordable housing funding. Referred February 2020, revised January 2021 (Council), June 2021 (Committee), and September 2021 (Council). Referred to Policy & Services.

5) COMPLETED: Stanford University Medical Fund. Referred January 30, 2021, Reviewed May 4, 2021.

6) COMPLETED: Review sworn versus non-sworn staffing for cost savings/enhanced services/increased revenues. Referred May 2016. Referred to Policy & Services.

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City of Palo Alto (ID # 13612)
City Council Staff Report

Meeting Date: 4/11/2022

City of Palo Alto Page 1

Title: Semiannual Update on the Status of Capital Improvement Program Projects
From: City Manager
Lead Department: Public Works

Recommendation
This report is provided for information only and requires no Council action.

Executive Summary
The City Counc il and Palo Alto community can be proud of the City’s capital improvement program (CIP). The CIP represents major investments in infrastructure functionality and sustainability, funded largely through the 2014 Council Infrastructure Plan as well as utility rates and various other sources . The 2022 -2026 five-year CIP totaled $720.5 million for 170 projects as reviewed by the Council in its a doption of the FY 2022 Capital Budget . Over the past five years, the City has completed 84 individual community -serving projects totaling nearly $ 276 million in improvements.

The CIP also represents a major effort for much of the City workforce. The following table summarizes the status of all projects for the six-month period of June to December 2021.

Project Type
Active Projects Construction
Phase
(excludes
Recurring)
Completed
One-Time Recurring
Buildings & Facilities 18 9 5 2
Parks & Open Space 9 9 2 -
Streets & Sidewalks 2 8 - -
Traffic & Transportation 8 4 2 1
Airport 4 - 1 -
Electric Fund 20 9 5 2
Fiber Optics Fund 1 2 - -
Gas Fund 2 4 1 -
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Stormwater Management Fund 5 1 - -
Water Fund 4 7 1 -
Wastewater Collection Fund 1 4 1 -
Wastewater Treatment Fund 8 1 1 -
Totals 83 60 20 5

Background
This report provides Council with an update on the status of capital improvement program (CIP) projects and does not include Internal Service Funds Capital Projects (IT and Vehicle) . Prior to 2016, year -end and mid -year financial reports included very simpl e status updates on CIP projects. In contrast, this semia nnual report provides more detailed and useful information for the Council and public regarding general fund and enterprise fund projects that appear on Council agendas and will be visible throughout the community.

Discussion
Project Update Organization
The City has a robust capital improvement program, and many individual projects are in progress at any given time. The 2022-2026 five-year CIP totaled $720.5 million for 170 projects as reviewed by the Council as part of the Adoption of the FY 2022 Capit al Budget. The attached CIP project tables are intended to provide Council with a quick overview of each project, including budgetary information, the anticipated completion date, a brief descriptio n of the project scope, the status of the project, and upcoming activities including Council actions. Also included in the report is a list of all completed projects since the introduction of the Infrastructure Management System.

Major/Significant Projects Summary
The 2014 Council Infrastructure Plan is a major focus of staff’s capital improvement program efforts. The following table details the Total Project Budget and Total Actual Expenses through the first half of Fiscal Year 2022 for the Infrastructure Plan projects.

Significant milestones have been achiev ed on the Infrastructure Plan projects since June 2020, even though construction delays occurred due to the COVID -19 pandemic. The Highway 101 Pedestrian/Bicycle Bridge project was completed in November 2021 and significant progress has been made on the la st phase of the Charleston/Arastradero Corridor Project and on the Public Safety Building. Current Infrastructure Plan project schedules can be found at http://www.infrastructure.cityofpaloalto.org/

Council
Infrastructure Plan
Projects
CIP
Number Update Total Project
Budget
Total Actual
Expenses*
New Public Safety
Building PE-15001 Construction is underway with completion expected in summer 2023. $117,037,811 $14,745,147
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Bicycle and
Pedestrian
Transportation
Implementation
Plan
PL-04010
Project on hold pending recent project
evaluation and review of future project
scoping.
$15,276,377 $9,435,106
New Downtown
Parking Garage PE-15007
Council directed staff to look at the
feasibility of partnering with a private entity
to develop new parking using downtown in-
lieu parking fees in conjunction with housing
or other uses, including the use of City
surface lots or privately held parcels.
$6,991,903 $1,440,311
New California
Avenue Area
Parking Garage
PE-18000 Completed; project closeout in progress $50,149,954 $48,402,786 Charleston
Arastradero
Corridor Project
PE-13011
Phase 1 & 2 improvements are complete.

Phase 3 construction is underway with
completion expected fall 2022.
$20,788,951 $13,136,360
Fire Station 3
Replacement PE-15003 Completed; project closeout in progress $10,503,209 $9,772,438 Highway 101
Pedestrian/Bicycle
Overpass Project
PE-11011 Completed; project closeout in progress $22,898,724 $18,468,438 Fire Station 4
Replacement PE-18004
A contract for design services will be
brought to Council for approval in early
2022.
$10,167,779 $293,192
Byxbee Park
Completion PE-18006 On hold pending completion of Baylands Comprehensive Conservation Plan. $3,249,335 $368,192
Downtown Parking
Guidance System PL-15002
A design/build contract was approved by
Council in August 2021 but could not be
bonded by the Contractor. A new
design/build RFP will be issued in early 2022.
$2,579,860 $198,350
Total Project Budget and Total Actual Expenses $259,643,903 $116,260,320 *Expenses as of December 31, 2021

Key considerations for the information presented in the project update tables include:
• Project status information is current as of December 2021 • The individual project tables align with the Capit al Improvement Fund categories in the FY 202 2-2026 capital budget: Buildings and Facilities, Parks and Open Space, Streets and Sidewalks, and Traffic and Transportation. Enterprise Fund projects follow the order of their respective Fund in the capital budget
• Department Technology Upgrades and Improvements projects and Cubberley Property Infrastructure Fund projects are included in the Buildings and Facilities table • Additional project information is available in the FY 2022-2026 capital budget • Each projec t table is divided into a section for one -time projects and a sect ion for recurring projects that have ongoing annual funding
• Budgetary figures include staff oversight costs for projects to which staff costs have been allocated
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• The table of completed projects, provides a summary of all CIP projects completed since the Biannual CIP updates to council began in 2016. The data is sorted from most recent to oldest

Completed Projects
Projects completed in the first half of Fiscal Year 202 2, since the last update in June 2021, from July 2021 to December 2021 include the following:

Capital Improvement Fund (general fund):
• Highway 101 Pedestrian Bicycle Overpass Project (PE-11011) • High and Bryant Street Garages Waterproofing and Repairs (PE-18002) • JMZ Renovation (AC-18001)

Electric Fund:
• Underground District 46 – Charleston, El Camino Real (EL-12001) • Reconfigure Quarry Feeders (EL-14005)

These completed projects do not include the significant amount of annual work completed under ongoing recurring projects, suc h as streets and sidewalks repairs, parking lot maintenance, roofing replacements, and regular maintenance of Utilities assets.

Below are some photos of completed projects:

Highway 101 Pedestrian/Bicycle Overpass Project (PE-11011) 14 Packet Pg. 278

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Projects Under Construction
Projects that are currently under construction include the following:

Capital Improvement Fund (general fund):
• Automated External Defibrillator Replacement (FD-21000) • Charleston-Arastradero Corridor Project (PE-13011)
• Civic Center Electrical Upgrade and EV Charger Installation (PE-17010) • Civic Center Waterproofing Study and Repairs (PE-15020) • Emergency Vehicle Traffic Signal Preemption System Pilot (PL‐19000) • Magical Bridge Playground Rubber and Synthetic Turf Resurfacing (PE-21003) • Municipal Service Center A, B and C Roof Replacement (PF-17000) • New Public Safety Building (PE-15001)
• Rinconada Park Improvements (PE-08001)

Airport Fund
• Airport Apron Reconstruction (AP-16000)

Electric Fund
• Capacitor Bank Installation (EL-06001)
• Facility Relocation for Caltrain Modernization (EL-17007) • Inter Substation Line Protection Relay (EL-17005)
• Rebuild Underground District 24 (EL-10006)
• Substation Physical Security (EL-16003)

Gas Fund
• Gas Main Replacement Project 23 (GS-13001)

Wastewater Collection Fund
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• Wastewater Collection System Rehabilitation Augmentation Project 30 (WC-17001)

Wastewater Treatment Fund
• Primary Sedimentation Tank Rehabilitation (WQ-14003)

Water Fund
• Water Tank Seismic System Upgrades (WS-09000)

As described above for completed pr ojects, the list of projects under construction does not include work currently being conducted under recurring CIP projects.

Below are some photos of projects under construction:

New Public Safety Building (PE-15001)

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Public Safety Building Update
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The Public Safety Building project made significant progress in the first half of Fiscal Year 2022.

Excavation was completed in November and the mat slab foundation was poured in December 2021. As of February 2022, construction is 34% complete and 39% of the project’s construction contingency has been used. As with other large construction projects Public Works is managing, staff has seen an increase in claims from contractors. To date, Public Works staff has coordinated with the City’s Attorney’s Offic e to resolve two claims from the construction contractor. Staff continues to coordinate with the City Auditor, Baker Tilly, on the Public Safety Building Construction Audit by providing project documents on a monthly basis. Per Council direction at constru ction contract award, staff is conducting a full review of the Furniture, Fixtures, and Equipment (FF&E) plan that will be completed this spring. Additionally, a cross - departmental staff team is meeting monthly to review and coordinate construction of the Public Safety Building and other projects in the California Avenue area, with a goal of communicating and mitigating the impacts.

Capital Improvements of Note Implemented by Other Agencies El Camino Real:

El Camino Real (State Highway 82) is maintained by Caltrans. Pavement Condition Index scores for El Camino Real are significantly lower than the average for Palo Alto streets. Staff has been communicating with Caltrans about the upcoming plans to repave El Camino Real from the Mountain View to Menlo Park borders. Currently, this work is planned for late 2022.

Caltrain Electrification:

The majority of construction for Caltrain Electrification in Palo Alto has been completed, including the installation of all of the foundations, poles and wires for the pr oject. Construction is continuing at the Paralleling Station near Page Mill Road which is scheduled to be complete in spring 2022. The Caltrain Electrification Project is scheduled to be complete in fall 2024.

Palo Alto Flood Basin Tide Gate Replacement Project:

Santa Clara Valley Water District (Valley Water) is working on a project to replace the existing tide gate structures built in 1957. City staff received and reviewed the 60% design documents and Valley Water presented to the Parks and Recreation Co mmission in August 2021. The revised 90% plans are anticipated to be resubmitted for City staff review in early 2022. Valley Water anticipates starting construction in September 2023 and completing the project in 2027.

Resource Impact
Funding for the proj ects discussed in this report is provided in the Fiscal Year 2022 Adopted Capital Budget and 2022-2026 Five-Year CIP.

Stakeholder Engagement
Stakeholder engagement is conducted separately for each project.

Attachments:
• Attachment14.a: Attachment A: Semiannual CIP Updates and List of Completed Projects
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ATTACHMENT A  DECEMBER 2021
Semiannual Update on the Status of Capital Improvement Program Projects Capital Improvement Fund CIP Projects
 Buildings and Facilities Projects
 Parks and Open Space Projects
 Streets and Sidewalks Projects
 Traffic and Transportation Projects
Enterprise Fund CIP Projects
 Airport Projects
 Electric Projects
 Fiber Optics Projects
 Gas Projects
 Stormwater Management Projects
 Wastewater Collection Projects
 Wastewater Treatment Projects
 Water Projects
List of Completed Projects

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Buildings and Facilities Projects          Status as of December 2021 Buildings and Facilities Projects – Page 1 of 8
One‐Time Projects
Animal Shelter
Renovation
(PE‐19002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $2,708,120  $3,967,759  Public Works  Design  Summer 2023 Project  Status:   This  project  installs  interim  facility  improvements  to  the  Animal  Shelter  that  accompany  the agreement for operation of the shelter by Pets in Need approved by City Council in November 2018.  The medical area upgrades and the modular office building are complete.   The new kennel addition has been submitted for building  permit.  Project  was  placed  on  hold  following  receipt  of  Pets‐In‐Need's  letter  providing  one‐year notification of termination of the agreement between Pets‐In‐Need and the City. Public Works and Community Service Department staff are reviewing the project as negotiations continue on a new agreement.

Automated External
Defibrillator
Replacement
(FD‐21000)
Prior Years Actuals   Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $237,500  Fire Department  Construction  Summer 2022 Project  Status:   This  project  replaces  the  entire  complement  of  Automated  External  Defibrillators  (AEDs) throughout City facilities and emergency response vehicles, which currently totals 93 AEDs.  The RFP process was completed in fall 2021 and the contract is currently underway.  The project will be complete by June 2022.

City Facilities
Assessment and
Record Plan
Management
System
(PE‐20002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $314,800  Public Works  Design  Winter 2023
Project Status:  The Kitchell Report in 2008 summarized the last City‐wide facility condition assessment.  A new facility condition assessment is warranted per the City’s APWA reaccreditation requirements.  All City facilities will be assessed to bring current the “catch‐up” and “keep up” costs.  In addition, an electrification assessment will be included to help the City reach its sustainability goals for 2030.  Staff is evaluating if the current asset management system  can  be  utilized  to  meet  the  needs  of  an  Electronic  Records  Management  System.   Staff  is  reviewing proposals received in June 2021 and expects to award a contract in April 2022.

Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion

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City Hall Space
Planning
(PE‐19000)
$0  $682,900  Public Works  Pre‐Design  Fall 2024
Project Status:  This project involves space planning to determine future workgroup space needs and programming for  the  City  Hall  office  building.   The  project  will  include  preliminary  design  of  the  space  following  the  initial feasibility phase.

Civic Center
Electrical Upgrade
& EV Charger
Installation
(PE‐17010)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $415,754  $1,016,519  Public Works  Construction  Spring 2023 Project Status: This project installed EV chargers in existing downtown garages and will replace the aging Civic Center electrical switchgear and motor control centers.  Five new dual head EV chargers were installed in the Civic Center garage.  Two new dual head EV chargers were installed in the Bryant Street garage.  Six new dual head EV chargers were installed at the Webster Street garage.  EV charger construction was completed in December 2021.

A contract was awarded in June 2021 for the design of the switchgear replacement and is currently underway.

Civic Center Fire
Life Safety
Upgrades
(PE‐18016)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $211,637  $642,681  Public Works  Design  Spring 2022
Project Status:  This project will assess, update, and replace the Civic Center fire alarm system.  The fire life safety system is approaching the end of its useful life.  The fire alarm panel and associated equipment need an upgrade to meet current code requirements.   The award of a design‐build contract was approved by Council in June 2021 and design is underway.  Plans are expected to be submitted for permit in early 2022.

Civic Center
Waterproofing
Study and Repairs
(PE‐15020)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $67,933  $721,546  Public Works  Construction  Winter 2022 Project Status:  This project includes a condition assessment of the Civic Center plaza deck structural system.  In late 2016, RDH Building Science, Inc. was hired to investigate the problem.  The results indicated that the expansion joint on the plaza can be repaired.  The scope expanded to include replacing the waterproof coatings on the inside

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of the plaza perimeter planter boxes.  The Contract has been approved by Council and construction will begin in early 2022.

Fire Station 4
Replacement
(PE‐18004)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $293,192  $10,167,779  Public Works  Design  Fall 2025
Project Status:  This project provides funding to replace Fire Station #4 at the corner of Middlefield Road and East Meadow Drive.   The replacement facility will be based on the prior Replacement Study and Needs Assessment prepared in 2005.  The consultant has been selected. However, the design contract was deferred due to budget and staffing constraints and is anticipated to begin in spring 2022.

Extrication Tool
Replacement
(FD‐22000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $298,200  Fire Department  Design  Summer 2025
Project Status:  This project provides funding for the replacement of all extrication tools for the Fire Department.

Extrication tools, also known as "Jaws of Life", are used to rescue victims of car accidents and other emergencies where the victims are trapped in confined spaces.

High and Bryant
Street Garages
Waterproofing and
Repairs
(PE‐18002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $264,235  $455,626  Public Works  Completed   Fall 2021 Project Status:  This  project includes a study for analysis and repairs to the water proofing system in the High Street and Bryant Street parking garages.  Water proofing repairs have been completed in the High Street parking garage.  Repairs per the original CIP were completed.  Additional funding was added for waterproofing repairs to the subterranean stairwells.  The contractor completed wa terproofing repairs in the subterranean stairwells in the Bryant Street garage in fall 2021.

JMZ Renovation
(AC‐18001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $2,927,870  $4,474,903  Community Services  Completed  Fall  2021

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Project Status:  This project provided for the relocation of the Junior Museum and Zoo to Cubberley for two years while a new JMZ was being built, tenant improvements to the Cubberley Auditorium and then removal of tenant improvements post‐construction.  Construction of the new Junior Museum and Zoo was completed in November 2021, and was opened to the public on November 12, 2021.  An additional federal grant associated with this CIP funds a portion of the California Dinosaur Garden to be completed in spring 2024.

Library Automated
Material Handling
LB‐21000
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $44,715  $1,060,300  Library  Design  Winter 2023
Project Status:  This project is to provide the design and construction of three new Automated Material Handling (AMH)  Systems  for  the  College  Terrace,  Children’s,  and  Downtown  Libraries.   AMH  systems  efficiently  sort returned library materials based on the Radio Frequency Identification Devices (RFID) on the materials.   Design work began in October 2021.

Municipal Service
Center A, B, & C
Roof Replacement
(PF‐17000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $105,457  $2,173,683  Public Works  Construction  Spring 2022 Project Status:  This project will replace the existing MSC roofs.  The existing asphalt and gravel roofs have reached the end of their useful life and need to be replaced.  The new roofs will meet current cool roofing codes to optimize energy efficiency.  Council approved a construction contract in June 2021 and construction is underway.  Cold and wet weather has hampered the work, so the work has been extended through spring 2022.

Municipal Service
Center Lighting,
Mechanical, and
Electrical
Improvements
(PF‐16006)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $970,493  $8,001,422  Public Works  Design  Summer 2023 Project Status:  This project replaces original mechanical, electrical, and lighting systems installed in 1966.  It also includes  design  and  construction  for  office  renovations  for  the  Zero  Waste  group.   Bids  for  the  site‐wide mechanical and electrical upgrades exceeded the available budget.  Additional funding was added for FY 2020.  A

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new  contract  with  the  design  consultant  is  currently  in  negotiation.   Staff  will  prepare  a  design  contract amendment for Council’s approval in spring 2022.

New Downtown
Parking Garage
(PE‐15007)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $1,440,311  $6,991,903  Public Works  Design   Spring 2024 Project Status: This project was intended to provide a new parking structure in the University Avenue commercial area at existing Parking Lot D at the corner of Hamilton Avenue and Waverley Street.  The project received ARB approval  in  July  2018.   In  February  2019,  the  City  Council  certified  the  EIR  by  adopting  the  Resolution  and Mitigation Monitoring and Reporting Program.  The Record of Land Use Action was also approved.  As part of the FY 2021 budget strategy, all Capital Improvement Fund funding has been removed and only the downtown parking in‐lieu fee funding remains for this project.  In December 2021, Council directed staff to look at the feasibility of partnering with a private entity to develop new parking using downtown in‐lieu parking fees in conjunction with housing or other uses, including the use of City surface lots or privately held parcels.

New Public Safety
Building
(PE‐15001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $14,745,147  $ 117,037,811  Public Works  Construction  Summer 2023 Project Status: This project will provide a new, modern Public Safety Building (PSB) that will meet essential services standards and the current and future needs of the public safety departments.   The PSB and new garage in the California  Avenue  business  district  are  now  an  integrated  project  and  both  are  part  of  the  2014  Council Infrastructure Plan.  Construction started in March 2021 and will continue through summer 2023.  The mat slab concrete foundation in the excavation was placed in early December 2021.

Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $43,400  $470,600   Community Services  Design  Summer 2022

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Performing Arts
Venues Seat
Replacement
(AC‐18000)
Project Status:  This project will replace all the seats in the Community and Children’s Theatres.  Staff has identified a consultant to advise on ADA upgrade requirements that need to be completed with the seat replacement, in assessing  the  costs  and  finalizing  the  scope  of  the  project.   The  contract  for  design  has  been  awarded.   Cost estimates and designs are anticipated to be complete by spring 2022.

Water, Gas,
Wastewater Office
Remodel
(PE‐19001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $157,186  $874,389  Public Works  Design  Fall 2022
Project Status:  This project incorporates renovations to the Utilities Water Gas Wastewater (WGW) office space at  the  Municipal  Service  Center  (MSC).   The  current  space  no  longer  meets  the  operational  needs  of  the department.   This project will reconfigure the work area so it is more efficient for department operations and replace aging furniture and finishes.  The new space will include a small reception area, a renovated kitchen and printer area, additional offices and cubicles, upgrades to the HVAC system, lighting improvements and fire life safety systems upgrade.  The project is currently in plan review and construction is anticipated to start in spring 2022.

Recurring Projects
Americans With
Disabilities Act
Compliance
(PF‐93009)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $124,143  $767,776  Public Works  N/A  Recurring
Project Status:  This project provides accessibility upgrades to City facilities and equipment.  It includes continued funding for improvements such as path of travel, restrooms, drinking fountains, and counters.   An updated ADA Transition  Plan  was  adopted  by  Council  in  June  2021.   Staff  set  up  Sharepoint  for  internal  access  to  the  ADA Transition Plan in order to track and document the City’s progress.  Staff will be procuring new software in spring 2022 that will allow staff to identify and log new barriers, track grievances from the public, and update the ADA Transition Plan Report.

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Building Systems
Improvements
(PF‐01003)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $40,213  $1,025,091  Public Works  N/A  Recurring
Project Status:   This project provides electrical, mechanical, plumbing, structural, and security upgrades for City facilities.  This CIP was partially defunded because of COVID budget cuts.  The new cooling tower media replacement originally scheduled for winter 2020 has been delayed until FY 2022.   A consultant has been selected to develop design drawings for the replacement of the Utility Control Center generator.   A contractor has been selected for the tennis courts lighting upgrade project.  Materials are on order and construction will start in March 2022.  New boilers were installed for the Rinconada lap pool and kiddie pool.

City Facility
Parking Lot
Maintenance
(PE‐09003)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $319,943  $235,000  Public Works  N/A  Recurring
Project Status:  This project maintains parking lots and walkways at City facilities.  No work has been performed at City facility parking lots in the first half of FY 2022.

Cubberley Repairs
(CB‐17001)
Prior Years Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $104,426  $343,347  Public Works  N/A  Recurring
Project Status:   This project is for general maintenance needs of the Cubberley campus.  Due to a staffing shortage, no further work has been done in FY 2022. Staff is currently assessing water damage to the gymnasium following crawlspace flooding in early 2022.

Cubberley Roof
Replacements
(CB‐16002)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $58,657  $1,123,020  Public Works  N/A  Recurring
Project Status:  This project replaces existing roofs at Cubberley Community Center.  The contract to reroof Wings F and FH has been awarded.  The Contractor is waiting for materials and good weather to start the job.  The project to reroof Wing H was put out to bid in December 2021.

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Facility Interior
Finishes
Replacement
(PF‐02022)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $51,273  $700,100  Public Works  N/A  Recurring
Project Status:  This project improves the interior finishes of City facilities, including flooring, walls, cabinets, paint, lighting,  ceiling  tiles,  soundproofing,  and  fixed  office  furniture,  doors,  windows,  and  associated  fire/life  safety, mechanical, electrical and plumbing code compliance requirements.  Remodel of the City Auditor’s Office is taking place to create more meeting spaces, transient staff desk stations, and a mother’s nursing room.

Police Video
Recording Systems
Replacement
(PD‐20000)
Prior Years Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $48,482  $193,200  Police Department  N/A  Recurring
Project Status:   This project maintains the Palo Alto Police Department video recording systems used to record events in the field with up to five in‐car cameras as well as body‐worn cameras (BWC).  In‐car units were added to new vehicles as they came into service in FY 2022.

Roofing
Replacement
(PF‐00006)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $129,604  $713,294  Public Works  N/A  Recurring
Project Status: This project replaces existing roofs at City facilities that have outlived their useful lifespans.   The roof replacement for the Ventura Community Center has been completed.  The Animal Shelter roof recoating has been delayed due to roof modifications required for the current remodel of the facility.   Staff is working on the design for the Peers Park Field House roof replacement.

University Avenue
Parking
Improvements
(PF‐14003)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $22,265  $197,600  Public Works  N/A  Recurring
Project Status: This project maintains parking lots and parking structures within the University Avenue Downtown Business Parking District.  With the completion of work on Parking Lot C in spring 2019, all University Avenue parking district lots have been resurfaced and no additional work is planned at this time.

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Project Status: This project upgrades and renovates safety and accessibility features at Cameron Park with a primary focus on the park playground.  The project is currently in the design and planning phase.  Community meetings were held in May and July 2020 in addition to the Parks and Recreation Commission discussion in September 2020.  A park improvement ordinance was approved by Council in February 2021.   The project will go out to bid in February 2022 and construction will start in summer 2022.

Cubberley Field
Restroom
(CB‐17002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $149,883  $455,367  Public Works  Design  Winter 2023
Project Status: This project will install a new restroom in the sports field area of the Cubberley Community Center.

Design for the project started in fall 2018 along with public outreach.  A community meeting was held, and the Parks and Recreation Commission reviewed the project in November 2018.  The project design needs to be completed prior to review by the Architectural Review Board.  Due to staffing constraints and other priorities, the restroom installation is anticipated in winter 2023.

Foothills Nature
Preserve
Boronda Lake
Dock
Replacement
(OS‐18000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $230,700  Public Works  Pre‐design  Fall 2022
Project Status: This project replaces an aged and deteriorating Boronda Lake Dock located in the Foothills Nature Preserve.  Due to staffing constraints, the design for this project is on hold until spring 2022.

Foothills Nature
Preserve Dam
Seepage
Investigation
and Repairs
(PE‐20000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $32,400  Public Works  Pre‐design  Spring 2023
Project Status: This project will study a location of historic seepage from the Foothills Nature Preserve Dam at the sharp bend in the road on the face of the dam.  The seepage is very minor, but it appears to be slowly worsening.  The source  of  the  seepage  is  suspected  to  be  the  trench  backfill  around  the  pipe  that  returns  shallow  groundwater  to

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Boronda Lake.  This project will locate and investigate the pipe and trench backfill material.  Due to staffing constraints and other priorities, this project has been moved to FY 2023.

Magical Bridge
Playground
Rubber and
Synthetic Turf
Resurfacing
(PE‐21003)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $2,078  $891,600  Community Services  Construction  Summer 2022 Project Status: This project will replace rubberized and synthetic turf surfacing in the playground and will repair or replace play equipment including swings, climbing net, and playhouse.  An IFB was issued  in November 2021 and staff anticipates the construction contract to be awarded by Council in early 2022.

Ramos Park
Improvements
(PG‐14000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $210,412  $227,772  Community Services  Design  Summer 2022 Project Status: This project includes safety and accessibility improvements at Ramos Park.  The work includes replacing the existing park playground, benches, drinking fountains, and resurfacing the basketball court playing surface.  A Park Improvement Ordinance (PIO) for these improvements went to the Parks and Recreation Commission in December 2020.  Council approved the PIO in spring 2021 and construction is planned for summer 2022.

Rinconada Park
Improvements
(PE‐08001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $2,517,819  $8,830,594  Public Works  Construction  Spring 2025 Project Status: This project provides upgrades to safety, site amenities, playground facilities, a new restroom, irrigation, drainage,  and  ADA  accessibility  improvements  at  Rinconada  Park.   These  improvements  were  identified  in  the Rinconada Long Range Plan (LRP).  Council awarded a contract for Phase 1 of construction in June 2021 which  started in August 2021. Phase 1 is anticipated to be complete in winter 2022.  Phase 2 of the project will include improvements to the eastern half of the park by FY 2025 including pathway improvements, new restroom, ADA upgrades, planting, irrigation, lighting, and site furnishings.  According to the LRP, future improvement phases would include renovations to the eastern side of the park, arbor and pool areas, and development around the electrical substation.

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Recurring Projects
Art in Public
Spaces
(AC‐86017)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $138,347  $1,508,784  Community Services  N/A  Recurring Project Status: This project provides the ongoing temporary and permanent artworks throughout the City.  The FY 2022 budget funded temporary public artwork at the Public Safety Building construction site, the Code: ART festival in  October,  the  completion  of  the  Highway  101  Bike  and  Pedestrian  Bridge  artwork,  the  initiation  of  the  Artist Residency, and the completion of artwork at the Junior Museum and Zoo and Art Lift microgrant projects throughout the City .  Projects in process include artworks for King Plaza via the King Artist Residency, artwork for the Charleston‐ Arastradero Corridor, and temporary/permanent artworks at the Public Safety Building.

Athletic Courts
Resurfacing
(PG‐06001)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $13,170  $138,840  Community Services  N/A  Recurring
Project Status: This project repairs and resurfaces tennis and basketball courts in various Palo Alto parks.  In spring 2021,  the  Cubberley  Community  Center  and  Peers  Park  tennis  court  project  went  out  to  bid.   Construction  is expected to start in spring 2022.

Benches, Signage,
Walkways,
Perimeter
Landscaping
(PG‐06003)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $195,411  $191,000  Community Services  N/A  Recurring
Project Status: This project restores and replaces existing benches, signage, fencing, walkways, and landscaping at various City facilities. In fall 2021, a new entry sign was built and installed for Foothills Nature Preserve, new surfacing at Peers dog park was installed with engineered wood fiber, and Lytton Plaza had site amenities replaced.

Dog Park
Installation and
Renovation
(PG‐18001)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $100  $163,400  Community Services  N/A  Recurring
Project Status: This project enables the construction of dog parks at various City parks and facilities that currently do not have dog parks, as well as renovating existing dog parks.  The next dog park installation or renovation has not

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been  determined  as  several  locations  are  under  consideration.   Staff  is  meeting  with  the  Parks  and  Recreation Commission to discuss location options and expansion of existing dog parks at Greer Park and Mitchell Park.

Off‐Road Pathway
Resurfacing and
Repair
(OS‐09001)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $55,739  $142,500  Public Works  N/A  Recurring
Project Status: This project resurfaces failing and broken pathways within the City.  Pathways are chosen based on inspections and resident requests.  The Adobe Creek Reach Trail construction was completed with the Highway 101 Pedestrian and Bicycle Overcrossing Project in November 2021.   A pedestrian pathway through Hoover Park was replaced in December 2021.

Open Space Lakes
and Pond
Maintenance
(OS‐00002)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $31,150  $62,600  Community Services  N/A  Recurring
Project Status: This project rehabilitates lakes and ponds in open space nature preserves to protect wildlife habitat and recreational safety and to meet State Division of Safety of Dams requirements.  A new three‐year maintenance contract was awarded and the first pond servicing with removal of aquatic vegetation was completed in fall 2021.

Open Space Trails
and Amenities
(OS‐00001)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $513,143  $232,000  Community Services  N/A  Recurring
Project Status: This project restores unpaved trails, fences, picnic areas, and campgrounds at Foothills, Baylands, and Pearson‐Arastradero Nature Preserves.  In fall 2021, a new three‐year trail maintenance contract was awarded and service of various open space trails throughout Foothills Nature Preserve and Pearson Arastradero Preserve was completed in November 2021.

Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $202,069  $188,500  Community Services  N/A  Recurring

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Parks and Open
Space Emergency
Repairs
(PG‐09002)
Project Status: This project replaces or repairs playgrounds, play yard surfaces, wooden structures, park amenities, and play equipment in the event of storms, fire, vandalism or structural failure.  In summer 2021, repair of fencing was completed a the Cubberley Community Center tennis courts.  Repair to damaged fencing caused by a fallen tree at the Palo Alto Bowling green was completed in October 2021.

Park Restroom
Installation
(PG‐19000)
Prior Years Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $16,962  $456,839  Community Services  N/A  Recurring
Project Status: This project installs new restrooms at City parks that currently do not have restroom facilities.  The restrooms may be prefabricated. A Park Improvement Ordinance (PIO) for adding a new restroom at Ramos Park was reviewed and recommended for Council approval by the Parks and Recreation Commission in December 2020.

Council approved the PIO in March 2021.  The restroom design needs to be completed prior to being reviewed by the  Architectural  Review  Board.   Due  to  staffing  constraints  and  other  priorities,  the  restroom  installation  is anticipated in spring 2023.

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One‐Time Projects
California Avenue
District Gateway
Signs
(PE‐17004)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $20,162  $150,488  Public Works  Design  Summer 2022
Project  Status:  This  project  includes  the  design  and  replacement  of  two  existing  gateway  signs  for  the  California Avenue business district.  Public outreach was completed in winter 2021.  The signs are expected to be replaced in summer 2022.

Newell Road
San
Francisquito
Creek Bridge
Replacement
(PE‐12011)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $1,723,995  $18,227,483  Public Works  Design  Spring 2024 Project Status: This project removes and replaces the Newell Road bridge over San Francisquito Creek with a clear span to allow the channel to convey up to the natural capacity of the San Francisquito Creek, approximately 7,500 cubic feet per second, and improved safety for vehicular, bicycle, and pedestrian traffic.  The project is being closely coordinated with the City of East Palo Alto, Santa Clara Valley Water District, and the San Francisquito Creek Joint Powers Authority (JPA).   The design consultant amendment and cooperative agreement with the City of East Palo Alto were approved by Council in June 2021. Work to advance the design and prepare regulatory permit applications began in summer 2021. The Bridge Type Selection Report was submitted to Caltrans in September 2021. The City had meetings with Caltrans to discuss and respond to their comments and to resubmit the revised report. Staff anticipates an approval memo from Caltrans in February 2022. Staff will bring forward an amendment to the funding agreement with Santa Clara Valley Water District in spring 2022.

Recurring Projects
City Bridge
Improvements
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $9,746  $149,030  Public Works  N/A  Recurring

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(PE‐20001)  Project Status: This project includes bridge inspections, maintenance, repair, and an improvement program over the next  five  years.  This  program  will  include  on‐going  inspections  to  report  physical  changes  to  the  structures, recommendations for work to be done, and additional information to meet functional and structural standards in accordance  with  industry  standards.   Staff  hired  an  on‐call  structural  engineering  firm  to  assist  with  the  bridge inspection and repair program.  Staff prioritized twenty‐five bridge and culvert structures for assessment in fall 2021, and inspections are tentatively scheduled in winter 2022.

Curb and Gutter
Repairs
(PO‐12001)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $339,713  $133,200  Public Works  N/A  Recurring
Project Status: This project repairs curbs and gutters uplifted by tree roots. The FY 2021 Street Maintenance Project completed 1,380 linear feet of three foot wide valley gutter as part of this project in summer 2021. All remaining curb and gutter work included in this project will be completed in early 2022.

San Francisquito
Creek Joint
Powers
Authority
Ongoing Creek
Projects
(PE‐22000)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $0  $61,000  Public Works  N/A  Recurring
Project Status: This project provides funding for studies and completion of the design for the San Francisquito Creek Joint Powers Authority (JPA) upstream project including channel widening and Continuing Authority Program Section 205 (CAP 205) study. Completion of the CAP 205 study will make the channel widening components eligible for federal funding and will help fund the construction of the upstream project and address elements of the JPA’s comprehensive flood management program.

Sidewalk Repairs
(PO‐89003)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $947,768  $622,599  Public Works  N/A  Recurring
Project Status: This project repairs and replaces broken and uplifted sidewalks.  The program completed all twenty‐ three sidewalk districts in 2017, a thirty‐year (1986–2017) sidewalk repair district cycle.  Council approved a sidewalk assessment contract in November 2017 to evaluate the sidewalk program and assess potential improvements to the

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current district‐based program.   Staff used this assessment to compile a list of areas that require prompt action at varying locations throughout Palo Alto.  These priority locations were repaired in FY 2020. Funding was reduced in FY 2022  as  part  of  the  FY  2022  Capital  Improvement  Program  budget  strategy.   Remaining  funding  will  be  used  to perform emergency maintenance and spot repairs.  There were no new sidewalk repairs performed FY 2022.

Sign Reflectivity
Upgrade
(PO‐11000)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $31,358  $69,800  Public Works  N/A  Recurring
Project Status: This project includes the annual inventorying, upgrading and maintaining of all traffic signs.  A list of signs not meeting the minimum requirement is derived from MUTCD approved Nighttime Visual Inspection surveys.

Due to Covid‐19 and understaffing, there were no new signs identified for reflectivity replacement in the first half of FY 2022.

Street Lights
Improvements
(PO‐05054)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $183,186  $112,400  Public Works  N/A  Recurring
Project Status: This project replaces streetlights, including poles, pole foundations, luminaires and wiring as needed to  restore  or  improve  street  lighting.   There  were  seven  knockdown  locations,  including  three  with  substructure repairs completed in the first half of FY 2022.

Street
Maintenance
(PE‐86070)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $8,556,531  $2,804,686  Public Works  N/A  Recurring
Project Status: This project includes the annual resurfacing, micro‐seal, crack seal, and reconstruction of various city streets.  This project funds the street maintenance work that supports Council’s adopted goal of achieving a citywide average pavement condition index (PCI) score of 85, representing very good or excellent conditions, by 2019.   The citywide PCI goal of 85 was met at the end of calendar year 2018, and the emphasis has been shifted to maintaining the 85 score while addressing the remaining streets with PCI scores less than 60.   The FY 2021 Streets Preventive Maintenance Project was completed in September 2021 and applied a slurry seal treatment to 14.4 lane miles of city

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roads, repaired 61,000 SF of pavement base repairs, and applied 121,100 linear feet of crack sealing. The FY 2021 Street Resurfacing Project is still in construction.  When the project is completed in early 2022, the project will have repaved 5.82 lane‐miles of arterial and residential streets with PCI’s averaging 44. This will help maintain and improve the City’s Pavement Condition Index (PCI) beyond its average of 83 and will address many streets whose PCI scores fall below the City’s minimum goal of 60. The FY 2022 Street Resurfacing Project is currently out to bid and is expected to  start  construction  in  spring  2022.  Due  to  the  FY  2021  Capital  Improvement  Program  budget  strategy,  street resurfacing projects will have reduced scope, resulting in less lane miles of roadways being resurfaced through FY 2023.

Thermoplastic
Lane Marking
and Striping
(PO‐11001)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $0  $101,800  Public Works  N/A  Recurring
Project Status: This project maintains the thermoplastic markings on roadways.   Thermoplastic lane marking and striping is incorporated into annual Pavement Preventive Maintenance Projects.   As a part of the FY 2021 Streets Preventive Maintenance Project, 45,000 linear feet of thermoplastic striping and 647 thermoplastic legends were installed between CIP PE‐86070 and PO‐11001.

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Airport Projects   Status as of December 2021

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One‐Time Projects
Airport Apron
Reconstruction
(AP‐16000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $26,992,534  $41,996,212  Public Works  Construction  Spring 2022 Project Status:   This project includes the design and reconstruction of the Palo Alto Airport apron and is being implemented  in  multiple  phases.   The  pavement  surfaces  at  the  airport  are  failing  and  uneven.   The  need  to reconstruct the aircraft parking apron is critical to airport safety.  Construction Phase I was completed in November 2017.  Construction Phase II was completed in winter 2020. Construction on Phase III began in November 2020 and the project is 80% complete.  The project is expected to be completed in spring 2022.

Airport Layout
Plan
(AP‐21000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0   $741,500  Public Works  Design  Summer 2024
Project Status:   This project provides updates to the Airport Layout Plan (ALP), including a narrative report and environmental study.    The Airport received funding for a Phase I portion of this project in fall 2020. Phase I is approximately 50% complete, and it is anticipated that funding for Phase II will be received in spring 2022.   The project is expected to be completed in summer 2024.

Airport
Temporary
Office
Buildings
AP‐22001
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0   $181,000  Public Works  Design  Winter 2022
Project Status:   This project provides funding for the installation and Furniture, Fixtures, & Equipment (FF&E) of existing temporary modular buildings at the airport to provide adequate office space for airport staff as well as terminal space for the public.  This project is in the permitting phase, with construction planned to be completed in winter 2022.

Automated
Weather
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0   $607,700  Public Works  Design  Summer 2024

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Observation
System
(AWOS)
AP‐19000
Project Status:  This  project provides a new weather information system to be installed at the Palo Alto Airport.

The Airport has applied for FAA funding, and is waiting for the grant agreement to start design.

Recurring Projects
2022‐2026 – Airport Capital Improvements Program Projects: Ther e are no recurring projects scheduled at this time.

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Electric Fund Projects  Status as of December 2021

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One‐Time Projects
115 kV Electric
Intertie
(EL‐06001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $578,055  $6,990,040  Utilities  Pre‐Design  Summer 2027 Project Status: This project will perform a technical feasibility study to determine the general project requirements to establish a 115 kV electric intertie line and construct a 115/60 kV substation to connect the City's electric system directly to the 15kV transmission line at an additional location.

Capacitor Bank
Installation
(EL‐16002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $482,872  $1,050,443  Utilities  Construction  Fall 2022 Project  Status:  This  project  installs  capacitor  banks  at  electric  substations  and  on  distribution  lines  to  ensure Northern California Power Association Power Factor requirements are met.   Staff has performed an analysis of where capacitors are needed to provide VAR support to enhance the voltage regulation and stability of the system.

Capacitor  banks  will  be  installed  at  Hanover  Avenue,  Hansen  Way,  Maybell  Avenue,  and  Park  Boulevard Substations.  Engineering has completed the design and procurement of materials for the project and is currently 75% complete with the construction and installation phase.   The Hansen Way and Park Boulevard projects are complete. Hanover Avenue is waiting on the arrival of two new switches and will be energized by summer 2022.

The Maybell Avenue project will begin in early spring 2022. The project is expected to be completed by fall 2022.

Coleridge
Cowper
Tennyson
4/12kV
Conversion
(EL‐14000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $180,813  $2,661,878  Utilities  Design  Summer 2022
Project  Status:  This  project  converts  the  primary  electric  distribution  system  in  the  Coleridge  Avenue,  Cowper Street,  Tennyson  Avenue  area  from  4  kV  to  12  kV.   This  project  is  a  precursor  to  work  being  planned  for  the Colorado Street and Hopkins Avenue Substations.   Design is at 90% completion and is delayed due to COVID‐19 restrictions.  Construction of this project was deferred to maintain zero rate increases to ease economic recovery because of COVID‐19.

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Colorado
Distribution
Feeder Outlet
Replacement
(EL‐22002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $400,000  Utilities  Design  Summer 2022
Project Status: This project is for the installation of a new underground duct bank and cable at Colorado Substation.

The installation will improve reliability for all Colorado circuits. The design is in progress and the construction will begin only after a new substructure contract has been approved by Council.

Colorado Power
Station
Equipment
Upgrades
(EL‐19001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $4,282,025  $10,865,445  Utilities  Pre‐Design  Fall 2025 Project  Status:  Staff  is  evaluating  the  need  to  replace  the  COP‐3  115  kV/60  kV  transformer  bank  at  Colorado Substation.  Future project completion dates will be based on the outcome of this evaluation.

Colorado
Substation Site
Improvements
(EL‐19002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $183,204  $1,306,071  Utilities  Design  Fall 2023
Project Status: This project will make modifications to the substation driveways and fence to provide adequate ingress and egress for utility vehicles used for maintenance and repair.    Staff is preparing an overall master plan for Colorado Substation to include all proposed improvements.  Preliminary designs for lighting, driveway, fences, and an oil c ontainment  improvement have been prepared.   All the proposed improvements are coordinated, to ensure a cohesive design and plan for construction.

East Meadow
Circles 4/12kV
Conversion
(EL‐17001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $53,072  $1,838,701  Utilities  Design  Spring 2024
Project  Status:  This  project  converts  the  primary  electric  distribution  system  in  the  East  Charleston/Alma Street/East  Meadow  Drive/Middlefield  Road  area  from  4  kV  to  12  kV  and  is  challenging  because  of  the configuration of the streets and rear easement facilities. This project has been split into six design and construction phases. Engineering has completed the substructure design for Phase 1 and will proceed with the substructure design for Phase 2. Construction for Phases 1 and 2 will be complet ed by spring 2022.  All six phases are targeted

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to be completed by spring 2024. Construction for this project was deferred to maintain zero rate increases to ease economic recovery because of COVID‐19. Phase 1 substructure construction is completed. Phase 1 and 2 electrical design is in progress.

Facility
Relocation for
Caltrain
Modernization
Project
(EL‐17007)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $2,399,789  $3,055,472  Utilities  Construction  Spring 2022 Project Status: The Utilities Department received approval from Caltrain to continue removal of the overhead lines in October 2018.  The installation of the Overhead Catenary System above the rails to power the trains will cause conflicts with the City's overhead electric and communication lines, as well as those owned by others, inclu ding AT&T and Comcast, which cross the railroad tracks.  This project is in its last phase and expected to be completed in 2022.

Foothills Rebuild
(Fire Mitigation)
(EL‐21001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $185,384  $4,000,000  Utilities  Design  Fall 2025
Project Status: This project will rebuild the approximately 11 miles of overhead line in Foothills Park, as necessary to mitigate the possibility of wildfire due to overhead electric lines. This could include the utilization of more robust equipment  or  construction  practices,  rerouting  to  avoid  vegetation  and  improve  access  for  inspection  and maintenance, or converting the overhead lines to underground where feasible.  Two proposals we re received for
this project and both proposals were rejected because they did not provide an option to underground existing overhead electric lines.  Staff is currently looking at different options to complete this work. Staff completed 7,000 feet of substructure wo rk which will eliminate 26 poles as a pilot project in 2021.

Hopkins
Substation 4/12
kV Conversion
(EL‐20000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $2,010,000  Utilities  Design  Fall 2025
Project Status: This project will convert the distribution system connected to the Hopkins Substation from 4 kV to 12 kV.  The  future conversion of the Hopkins Substation from 4 kV to 12 kV requires that all the areas currently

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served at 4 kV from the Hopkins Substation be converted to 12 kV. This project will improve operating flexibility of the system, service reliability, and back‐up to customers in downtown and other adjacent areas.

Inter‐Substation
Line Protection
Relay
(EL‐17005)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $366,351  $821,030  Utilities  Construction  Summer 2022 Project Status: This project replaces the existing HCB pilot wire relays with a new microprocessor line differential protective relay to protect the city’s 60 kV sub‐transmission line sections and equipment from damage due to faults  (i.e.  short  circuits)  on  the  60  kV  line  sections.   This  project  is  being  done  in  phases,  with  design  and construction happening concurrently on the different phases.  Construction of these improvements relies on work completed by other projects to install fiber optic connections.  Staff is working on the design for the replacement of relays at Park Substation and Switching Station and between line sections COP‐PB, COP‐AC and COP‐HO.

Rebuild
Underground
District 15
(EL‐11003)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $43,348  $1,293,337  Utilities  Design  Fall 2022
Project Status: This project rebuilds and replaces the underground electric system in Underground District 15, the area bounded by Los Palos Avenue, Glenbrook Drive, Pomona Avenue, and Arastradero Road. This project is in the preliminary stages of engineering design and work will be coordinated with EL‐16000 which is currently rebuilding the electric system along Arastradero Road.  Work on this project was delayed due to public input regarding the design of the project.  Changes to the Rules and Regulations will require property owners to pay for the differential cost should they want submersible equipment instead of pad mount.   Design of the project is delayed as staff prepares cost information to present to affected property owners showing how much they will have to pay.

Rebuild
Underground
District 16
(EL‐13003)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $27,456  $735,335  Utilities  Design  Spring 2022
Project Status: This project rebuilds and replaces the underground electric system in Underground District 16, the area along Louis Road between Greer Street and Loma Verde Avenue.  The project design and cost estimate are

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nearly complete, and this project will be bundled with other similar type jobs for bidding to obtain more favorable pricing.  Construction of this project is deferred to maintain zero rate increases to ease economic recovery because of COVID‐19.

Rebuild
Underground
District 24
(EL‐10006)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $1,945,085  $2,525,338  Utilities  Construction  Spring 2022 Project Status: This project rebuilds and replaces the underground electric system in Underground District 24, the area bounded by Lytton Avenue; Bryant Street; Forest Avenue; and Alma Street.    This project is projected to be completed in 2022.

Rebuild
Underground
District 26
(EL‐16000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $30,810  $312,447  Utilities  Design   Spring 2025
Project Status: This project rebuilds and replaces the underground electric system in Underground District 26, the area along Arastradero Road between El Camino Real and Hillview Avenue.   This is a four‐phase project.  The first phase design is complete, and construction will begin in 2022.

Reconfigure
Quarry Feeders
(EL‐14005)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $519,836  $792,034  Utilities  Completed  Fall 2021
Project Status: This project reconfigures how distribution circuits are connected to each substation transformer at Quarry Substation.  While phases of this project have been completed in construction, other phases still need to be designed and constructed. Design of QR 27 feeder replacement was completed in spring 2021.

Construction was completed in December 2021.

Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $970,478  $17,674,003  Utilities  Design  Fall 2024

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Smart Grid
Technology
Installation
(EL‐11014)
Project Status: Council approved the Advanced Metering Infrastructure (AMI) with Sensus on October 18, 2021.

The project includes replacement of 30,000 electric meters and retrofit of 20,800 water and 24,200 gas meters with  radio  endpoints  to  transmit  meter  data  to  the  AMI  network.   The  proof  of  concept  phase  including  AMI network installation, meter testing, and system integration will occur between January 2022 and June 2023. Full deployment is anticipated to run from July 2023 through December 2024.

Substation 60kV
Breaker
Replacement
(EL‐17002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $1,355,718  $6,062,637  Utilities  Design  Summer 2027
Project Status: This project replaces high voltage circuit breakers that interconnect the nine electric substations and two power switching stations that are reaching the end of their useful life and are now underrated for their use.  This project is being done in phases, with design and construction happening concurrently on the different phases.   Four breakers were replaced recently while anticipating the multi‐year contract procurement method.

Staff  completed  the  construction  on  the  first  phase  and  is  working  to  procure  a  multi‐year  contract  with  a contractor to complete the design and replacement of the remaining breakers.

Substation
Physical Security
(EL‐16003)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $974,914  $3,200,190  Utilities  Construction  Winter 2025 Project Status: This project installs facilities providing physical protection of electric substations from vandalism and intrusion.  A professional services contract was awarded to Burns & McDonnell and the study was completed.

Staff continues to implement recommendations from the study each fiscal year.  Procurement for improvements at Hanover Avenue were completed in 2021.   Hansen Way improvements are in process.  CPAU intends to go out to  bid  for  a  wide‐scale  9  electric  substation  security  camera  and  lighting  upgrade  in  2022,  with  construction occurring in 2023.

Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $2,568,077  $3,904,425  Utilities  Completed  Fall 2021

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Underground
District 46
Charleston
El Camino Real
(EL‐12001)
Project Status: This project undergrounds the existing overhead utility systems in the area along the 400 block of West Charleston and El Camino Real.  Underground substructures have been installed.    Staff has completed 100% of  cable  and  equipment  installation  and  100%  of  customer  service  conversions.  A  construction  contract  was awarded for the final phase of the project to install two 60 foot tall steel poles and to reconductor the 60 kV sub‐ transmission lines and the project was completed in the fall 2021.

Recurring Projects
Communications
System
Improvements
(EL‐89031)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $14  $170,000  Utilities  N/A  Recurring
Project  Status:  This  project  installs  high  frequency  coaxial  cable,  fiber  optic  cable,  and  related  equipment  to provide communications services for traffic signal coordination, telephone links, computer data transmission, and the Electric Supervisory Control and Data Acquisition (SCADA) system.   This project is funding a portion of the design phase of an expanded Utilities fiber optic network.  The contract for design of this network was approved by Council in June 2020.  Staff is in the planning stages for design implementation.

Electric Customer
Connections
(EL‐89028)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $1,255,231  $2,700,000  Utilities  N/A  Recurring
Project Status: This project installs services, transformers, and meters for new customers; upgrading of existing services;  temporary  service  connections;  and  overhead  and  underground  extensions  for  new  or  existing customers.  Projects are in many stages of design and construction to provide temporary and permanent power to residential and commercial customers in Palo Alto.  There are ongoing electric customer connections each year.

Electric System
Improvements
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $909,344  $2,597,000  Utilities  N/A  Recurring

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(EL‐98003)  Project Status: This project consists of various projects that replace deteriorated facilities or install protective devices  that  improve  the  Electric  Distribution  System.  Projects  are  in  many  stages  of  development  to  replace transformers, replace poles, replace overhead wires, and install protective devices to improve service reliability.

There are ongoing electric systems i mprovements  each year.

Electric Utility
Geographic
Information
System
(EL‐02011)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $172,408  $492,100  Utilities  N/A  Recurring
Project Status: This project enhances the citywide Geographical Information System (GIS).  The primary emphasis will be to provide a compatible user interface and estimating software, to edit and update data which will reside in the citywide GIS.  This  funding is also being used to pay for Utilities Electric Division’s share of cost for the implem
entation of new city‐wide GIS system (ESRI) led by IT.  Staff  is also working directly with IT to assess GIS needs and the transition of the mapping information to ESRI.  The ESRI GIS web portal is completed and has been rolled out to Engineering and Operations staff. Th e  data migration to ESRI’s Utility Network Model is in progress.

SCADA System
Upgrades
(EL‐02010)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $283,489  $405,674  Utilities  N/A  Recurring
Project Status: This project upgrades the Supervisory Control and Data Acquisition (SCADA) system hardware.

Staff completed upgrade of the servers used for monitoring the utility substations and equipment in 2014.  The next hardware and software upgrade will occur in spring 2022.

Substation
Facility
Improvements
(EL‐89044)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $264,757  $450,000  Utilities  N/A  Recurring
Project  Status:  This  project  makes  improvements  to  facilities  at  the  electric  substations  in  Palo  Alto.  Staff  is working  on  the  replacement  of  Remote  Terminal  Units  (RTU)  at  various  substations,  upgrading  gravel  and grounding, 60 kV air switches, and reconfiguring steel trusses and associated devices.

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Substation
Protection
Improvements
(EL‐89038)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $183,000  $480,000  Utilities  N/A  Recurring
Project  Status:  This  project  makes  improvements  to  equipment  used  at  electric  substations  to  protect  the substation equipment and circuits emanating from the substation from damage due to faults (i.e. short circuits) on the electric system.

Underground
System Rebuild
(EL‐16001)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $36,944  $349,999  Utilities  N/A  Recurring
Project  Status:  This  project  replaces  underground  electric  equipment  in  areas  that  were  originally  installed underground, that are not part of an Underground District.  Staff is working to identify areas where the age of the existing cables are a high priority for cable replacement.  To  date, this includes areas in the Stanford Re search Park, Arastradero Road, and along East Bayshore Road.  New areas have been identified and progress has been made on development of the project.  Construction of this project was deferred to maintain zero rate increases to ease economic recovery because of COVID‐19.

Wood Pole
Replacement
(EL‐19004)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $1,297,848  $1,739,927  Utilities  N/A  Recurring
Project Status: This project will fund the annual replacement of deteriorated wood power poles.   The project is in the design phase with expected completion in September 2022 and construction starting 2023.  The project is delayed this year because of staffing shortages. CPAU is working to bring on a consultant to work on the design phase of this project.

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One‐Time Projects
Fiber Optic
Network
System Rebuild
(FO‐16000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $351,887  $1,242,156  Utilities  Design  Spring 2024
Project Status:  This project is for the System Capacity Improvement that rebuilds portions of the "dark" fiber optic network around Palo Alto.  The first phase of this project has been constructed.  Additional work is being assessed and will be coordinated with the project to expand the Utilities Fiber Optic Network (EL‐89031).  This project is postponed due to the Fiber Expansion Project.  Fiber contractor is expected to finish design in April 2022.

Recurring Projects
Fiber Optics
Customer
Connections
(FO‐10000)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $48,111  $250,000  Utilities   N/A  Recurring
Project Status:   This project enables the installation of fiber optic infrastructure for new service connections.

Projects are developed as needed to meet customer requests for leasing of fibers on the Dark Fiber system.  Staff have processed and completed fifteen customer connection projects in FY 2021, in addition to several smaller projects  involving  existing  fiber  optic  cable  connections  that  were  handled  directly  by  Operations  staff.   The reduced number of projects was impacted by COVID‐19 work restrictions.

Fiber Optics
Network
System
Improvements
(FO‐10001)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $221,227  $200,000  Utilities  N/A  Recurring
Project Status: This project improves the reliability within the fiber optic network system.  A project to install a new fiber optic cable from Park Substation to the Stanford Research Park to enhance capabilities and reliability is identified and waiting for availability of staff to design This project is postponed due to the Fiber Expansion Project. The fiber contractor is expected to finish design in April 2022.

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One‐Time Projects
Gas Main
Replacement
Project 23
(GS‐13001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $984,811  $7,951,869  Utilities  Construction  Spring 2022 Project  Status:   This  project  enables  the  design  and  construction  to  replace  approximately  21,700  linear  feet  (which represents 1.9% of the City's Gas distribution main system) of distribution main and 320 gas services constructed mainly of PVC material on various streets within the Midtown, Evergreen Park, Ventura, College Terrace, Charleston Terrace, and Research Park neighborhoods. Construction began in winter 2021 with construction scheduled to be completed in spring 2022.   Gas pipeline replacement at the Town & Country Village property is on hold, while the pipeline replacement on Embarcadero Road and El Camino Real will continue.

Gas Main
Replacement
Project 24
(GS‐14003)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $9,000,000  Utilities  Design  Fall 2023
Project Status:  This project enables the design and construction to replace approximately 20,100 linear feet (which represents 1.9% of the City's Gas distribution main system) of distribution main and 260 gas services constructed mainly of PVC on various streets within the University Park, Stanford, and Green Gables neighborhoods.  Construction is anticipated to begin summer 2022.  Currently the project is on schedule to meet these dates.

Recurring Projects
Gas
Distribution
System
Improvements
(GS‐11002)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $323,979  $500,000  Utilities  N/A  Recurring
Project  Status:  This  project  enables  Gas  Distribution  System  improvements.   Typical  activities  include  increasing distribution system capacity for load growth, replacing deteriorated capital facilities, reconfiguring/adding to the system to  improve  service  reliability,  and  conducting  research  related  to  performance  of  the  gas  distribution  system  or  its various components making general improvements to the system.  The City must continuously evaluate service reliability

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needs and make improvements to the system to maintain top level service to City customers and to minimize potential economic losses due to service interruptions.  In the first half of FY 2022, replacement of various gas services throughout the system was completed.

Gas
Equipment
and Tools
(GS‐13002)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $8,922  $50,000  Utilities  N/A  Recurring
Project  Status:   This  project  purchases  polyethylene  (PE)  fusion  equipment  and  tools,  directional  boring/locating equipment and tools, and general shop equipment and tools.  The equipment needs to be upgraded on an annual basis to safely operate and maintain a natural gas distribution system and to ensure operators’ safety and productivity.  The purchase of new polyethylene peelers for all six utility crew trucks was completed in the first half of FY 2022.

Gas Meters
and
Regulators
(GS‐80019)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $140,566  $500,000  Utilities  N/A  Recurring
Project Status: This project provides replacement of the existing gas meters and regulators annually. The coordination of gas meter and regulator replacements with gas meters identified to be replaced under the AMI contract, which is generally  gas  meters  that  are  25  years  or  older.   The  gas  meter  replacement  program  ensures  the  accuracy  of  gas consumption measurement, reduces possible revenue loss due to under‐registered gas, and provides customers with accurate monthly bills.   Replacement of aged gas meters and regulators is on‐going.   The next major replacement of meters and regulators will be coordinated with Gas Main Replacement Project 23 (GS‐13001) and the Advanced Metering Infrastructure project.

Gas System,
Customer
Connections
(GS‐80017)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $1,207,298  $1,124,169  Utilities   N/A  Recurring
Project Status:  This project enables the Gas Distribution System to be extended in order to provide gas service to new customers and augment service to customers with increased natural gas demands. Improvements include new mains, services,  valves,  regulators,  meters,  and  accessories.   This  project  upgrades  infrastructure  to  provide  gas  service

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connections  to  new  customers,  meet  changes  in  existing  customer  service  demands,  and  respond  to  changes  in  gas service requirements due to new development or redevelopment.  This project is funded partially from reimbursements by customers.  City crews completed 45 new gas services installations and 49 gas service demolitions in the first half of FY 2022.

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One‐Time Projects
Corporation
Way System
Upgrades and
Pump Station
(SD‐21000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $144,863  $3,949,241  Public Works  Design  Fall 2022
Project  Status:   This  project  incorporates  a  design  of  a  new  small  pump  station  with  25  cubic  feet  per  second capacity and upgrades 700 linear feet of pipe to 30‐inch diameter High Density Polyethylene pipe.   The existing system does not have the force needed to discharge storm flows into the Adobe Creek.  Adding a pump station in advance of the outfall and upsizing the storm pipe will eliminate the routine flooding along East Bayshore Road and convey  runoff  from  a  10‐year  storm  event.   The  design  consultant  contract  was  awarded  in  June  2020.  The consultant has reached 90% completion of the design plans. Staff is also in the process to secure an easement for the  pump  station  from  adjacent  property  owners.   The  final  design  will  be  completed  in  spring  2022  and construction is anticipated to start in summer 2022.

Green
Stormwater
Infrastructure
(SD‐22001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $500,800  Public Works  Design  Summer 2023
Project Status:  This project provides funding for Green Stormwater Infrastructure (GSI) projects and the integration of GSI features to be included in the design and implementation of planned CIP projects supported by other funds and in the future maintenance of the City’s GSI assets. GSI mimics the natural environment to slow, spread, sink, and  filter  storm  runoff through  native  or  engineered  soils  or  other  pervious  material  rather  than  discharging  it directly  into  storm  drain  inlets.  Elements  include  bioretention  planters,  tree  wells,  pervious  pavement,  and rainwater harvesting (rain barrels and cisterns) to manage stormwater runoff.  The GSI project for parking Lot A at Lytton Avenue and Emerson Street is still in design.

Trash Capture
Device
Installation
(SD‐22002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $613,000  Public Works  Design  Fall 2022
Project Status:  This project provides funding for the design and construction of a large trash capture device (TCD) to be installed in the planting strip along Embarcadero Road located in front of the Palo Alto Baylands Golf Links

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parking lot. The TCD will be integrated into a 36‐inch storm pipe to capture trash as small as five millimeters from a section of the storm drain system prior to discharging to the San Francisco Bay. The 189‐acre drainage area treated by the TCD consists of 169 acres of commercial and office land use in the City’s jurisdiction and 20 acres in the California Department of Transportation (Caltrans) right‐of‐way. A Request for Proposals will be released in spring 2022 for design and construction support.

West Bayshore
Road Pump
Station
(SD‐20000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $215,393  $1,795,272  Public Works  Design   Spring 2024 Project Status:  This project incorporates design and construction of a new small pump station with 15 cubic feet per second capacity.   Installing a new pump station will allow storm flows to be pumped into the Adobe Barron Creek confluence while adding a pump station in advance of the outfall would eliminate the routine flooding along West Bayshore Road and allow the system to convey runoff from a 10‐year storm event.   The design consultant contract was awarded in June 2020.  The consultant has reached 90% completion of the design plans. Staff is also in  the  process  to  secure  an  easement  for  the  pump  station  from  adjacent  property.   The  final  design  will  be completed in spring 2022.  Construction will start in fall 2023 with project completion expected in spring 2024.

West Bayshore
Road Trunk Line
Improvements
(SD‐23000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $5,271  $2,410,175  Public Works  Design  Spring 2024
Project Status:  This project replaces approximately 1,400 linear feet of existing 15‐inch diameter pipe with 36‐inch High Density Polyethylene pipe.  These improvements along with the new West Bayshore Road Pump Station (SD‐ 20000) will eliminate the routine flooding along West Bayshore Road and allow the system to convey runoff from a 10‐year storm event.  Once the design for the pump station is finalized the consultant will advance the design for the capacity upgrades.  The final design will be completed in spring 2022.  Construction will start in fall 2023 with project completion expected in spring 2024.

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Recurring Projects
Storm Drainage
System
Replacement and
Rehabilitation
(SD‐06101)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $374,725  $1,013,063  Public Works  N/A  Recurring
Project Status: This project provides for annual replacement and rehabilitation to maintain the integrity of the storm  drain  system,  including  deteriorated  storm  drain  piping,  manholes,  and  storm  drain  inlets.   The rehabilitation  includes  cured‐in‐place  pipe  (CIPP)  lining,  and  replacement  of  broken  pipe  with  HDPE.   The rehabilitation project went to bid in summer 2021 with construction expected to start in early 2022.

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One‐Time Projects
Wastewater
Collection
System
Rehabilitation
Augmentation
Project 30
(WC‐17001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $233,372  $4,436,778  Utilities  Construction  Fall 2022 Project Status:  This  project includes the design and construction of high priority mains with structural defects that cannot be addressed with routine maintenance.  The wastewater mains on various streets in the City, will be replaced with  approximately  10,000  linear  feet  of  sanitary  sewer  mains  and  associated  laterals  in  the  Ventura,  Charleston Meadows, Fa
ir Meadow, and Palo Verde neighborhoods.  The anticipated start date for construction is March 2022.

Recurring Projects
Sewer
Lateral/Manhole
Rehabilitation
and
Replacement
(WC‐99013)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $0  $800,000  Utilities  N/A  Recurring
Project Status: This project replaces defective sewer laterals, cleanouts, manholes, backwater devices, and equipment to support these activities to maintain the Wastewater Collection System, as well as to comply with the Sanitary Sewer Master Plan (SSMP).  Information  collected during routine annual maintenance activities is used to prioritize work.

The continued work performed will also help reducing both sewage blockage and the City's treatment exp enses to treat rainwater or groundwater infiltration.

Sewer System,
Customer
Connections
(WC‐80020)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $436,902  $450,000  Utilities  N/A  Recurring
Project Status: This project installs sewer lateral connections and additions or extensions of existing mains to serve new customers and to respond to changes in sewer requirements due to redevelopment.  Old  existing non‐plastic sewer laterals with condition deficiencies per Utilities Operations’ criteria are required to be replaced in accordance

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with  the  latest  2021  WGW  Standards.   This  project  recovers  the  cost  for  installation  and  maintenance  through customer connection fees and capacity increase fees for connecting to the wastewater collection system.

Wastewater
General
Equipment and
Tools
(WC‐13002)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $53,446  $120,000  Utilities  N/A  Recurring
Project Status:  This project includes the acquisition of new fusion equipment to fuse pipe joints together and other tools needed to clean and inspect the collection system.  As the equipment ages, the quality of the fusion joints begins to decline, and the operators must spend more time scraping, aligning, and fusing construction joints to maintain high standards for the installation of sewer pipes.  Recent examples of equipment replacement are the new jetter to flush the pipes and CCTV camera to inspect the condition of the pipes.

Wastewater
System
Improvements
(WC‐15002)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $201,040  $200,000  Utilities  N/A  Recurring
Project Status: This project implements improvements to the Wastewater Collection System by increasing system capacity for growth, flow monitoring, hydraulic modeling and system analysis, load simulations, asset management analysis and assessment, system inflow/infiltration analysis, and sanitary sewer overflow monitoring and reduction.

Replacement of the City’s legacy wastewater maintenance and asset management software (from ICOM to Sedaru) was completed in May 2021.

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One‐Time Projects
Advanced
Water
Purification
Facility
(WQ‐19003)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $223,692  $20,216,590  Public Works  Design  Fall 2024
Project Status: This project enables the design and construction of an Advanced Water Purification Facility to further improve the quality of the tertiary‐treated recycled water by ultrafiltration  followed by reverse osmosis to reduce the level of total dissolved solids.  The water reuse partnership agreement with Valley Water and Mountain View pr ovides $16 million in funding from Valley Water for this project.  The City has received a State low‐interest loan for the design and construction phases.  The design is currently at 60% completion and is expected to be completed in fall 2022, with project construction completion in fall 2024.

Headworks
Facility
Replacement
(WQ‐16002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $49,120,400  Public Works  Design  Fall 2027
Project Status: This project replaces influent pumping, including the suction and discharge piping, pipe manifolds, valves,  the  electrical  and  controls  system,  screening  equipment,  grit  handling  equipment,  the  force  main  to  the primaries  and  modifying  headworks  building,  and  yard  piping.  Solicitation  for  a  consultant  to  perform  Advance Planning is expected in summer 2022.

Horizontal
Levee Pilot
(WQ‐22001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $832,100  Public Works  Design  Summer 2027
Project Status:  This project consists of the design, permitting, and construction of a horizontal levee pilot system.

The system will utilize treated wastewater to create a transitional brackish habitat on the Bayside of a future flood control levee located in the Palo Alto Baylands, adjacent to the City of Palo Alto’s Regional Water Quality Contro l Plant (RWQCP). Information and data collected by this pilot system could support broader implementation of horizontal levees as green infrastructure components in larger flood control levee improvement projects within Palo Alto and beyond. The project is currently at 60% design and working towards completing CEQA review by th e  end of 2022.

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New
Laboratory and
Environmental
Services
Building
(WQ‐14002)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $363,705  $24,149,059  Public Works  Design  Fall 2027
Project  Status:   This  project  was  originally  envisioned  to  replace  the  existing  plant  laboratory  and  environmental services offices.   A design consultant completed preliminary design in early 2020.   Staff are currently revising space planning assumptions and have put further design efforts on hold until more advanced planning can be completed.

Outfall Line
Construction
(WQ‐19000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $0  $10,668,115  Public Works  Design  Summer 2026
Project Status:  This project consists of the construction of a new parallel outfall pipe to convey final plant effluent to San Francisco Bay.  Design was completed in fall 2020. The PWE / USACOE Levee Project requires a re‐design of the pipeline to accommodate a potential failure runway shift at PAO Airport.  Staff is currently working with PAO / FAA staff towards gaining FAA concurrence for the project re‐design.   The re‐design and re‐permitting could delay the project by several years.  The City has received a State low‐interest loan for the design and construction phase, and the State is working with the City to retain the loan through the re‐design process.

Plant Master
Plan
(WQ‐10001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $4,509,091  $5,513,891  Public Works  Construction  Fall 2022 Project Status:  This project enables the ongoing program management support for major capital projects.  Current tasks include developing scopes of work, evaluating consultant proposals, coordinating project management activities, pursuing State low‐interest loans for multiple projects, and updating partner agreements.  The consultant continues to provide support for the projects associated with the Long‐Range Facilities Plan (LRFP).

Primary
Sedimentation
Tank
Rehabilitation
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $770,112  $20,616,546  Public Works  Construction  Winter 2023 Project  Status:  This  project  enables  the  design  and  construction  for  new  protective  coatings  on  each  of  the  four concrete  primary  sedimentation  tanks,  with  replacement  of  worn  rotating  parts  and  mechanical  and  electrical

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(WQ‐14003)  equipment.  These tanks were installed in 1972 and the recoating project will extend the concrete life for another 30 years.   Construction began in June 2021.   The design and construction cost of the project is funded by a state low‐ interest loan via Clean Water State Revolving Fund with the Installment Sale Agreement executed on 7/12/2021.

Secondary
Treatment
Upgrades
(WQ‐19001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $2,432,159  $128,952,177  Public Works  Design  Winter 2026 Project Status: This project upgrades the Secondary Treatment process at the Regional Water Quality Control Plant.

The existing Secondary Treatment process has two main components; the Fixed Film Reactors (FFR) and the Activated Sludge  (AS)  Process.   This  project  includes  the  reconstruction  of  the  AS  process,  rehabilitation  of  the  AS  Aeration Basins, and the elimination of the FFRs.  The 90% design milestone is complete, with a completion of design expected in spring 2022.  Construction is expected to start in spring 2023.  The City has received a State low‐interest loan for the design and construction phases.

Recurring Projects
Plant Repair,
Retrofit and
Equipment
Replacement
(WQ‐19002)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $2,269,938  $8,791,959  Public Works  N/A  Recurring
Project  Status:   This  project  enables  the  assessment,  repair,  and  retrofit  of  the  Plant's  concrete  and  metal structures;  the  replacement  of  necessary  Plant  equipment  and  ancillary  facilities,  including  electrical equipment/systems,  to  maintain  treatment  reliability  and  existing  infrastructure;  and  the  replacement  of  large diameter  flow  meters  built  into  the  wastewater  treatment  system  on  sewers,  pipes,  and  water  lines.   Current projects include the design of the 12kV Electrical Loop Upgrade Project, which is 90% complete and the construction of the Secondary Clarifier Nos. 4 and 6 Mechanism Replacement project, which was completed in October 2021.

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One‐Time Projects
Water Main
Replacement
Project 28
(WS‐14001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $267,126  $11,106,620  Utilities  Design  Fall 2023
Project Status: This project will replace approximately 18,600 linear feet (which represents 1.6% of the City's water distribution system) of mains and 265 services on various streets in the City, including areas in the Duveneck, St.

Francis,  Barron  Park  and  Charleston  Meadows  neighborhoods.   Construction  is  anticipated  to begin  in  summer 2022.

Water Recycling
Facilities
(WS‐07001)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $710,106  $1,243,714  Utilities  Pre‐Design   Fall 2023 Project Status: This project allows the City to hire a consultant to prepare a business plan, prepare preliminary design, and secure funding options for an expansion of the existing recycled water delivery system in the City.  The pipeline will primarily serve the Stanford Research Park and provide an alternative supply source of 435,600 cubic feet per year, roughly 10% of Palo Alto’s total water consumption in 2015.  The environmental impact report was completed in September 2015.  The expansion pipeline is one of several water reuse projects being considered in the Northwest County Recycled Water Strategic Plan.  This, or one of the other projects, may be recommended to Council for design and construction.  Staff is considering expanding the recycled water distribution system as one project to be evaluated against other alternatives in the One Water Plan tentatively scheduled for council approval in spring 2023. The earliest such a project could begin is fall 2023.

Water
Regulation
Station
Improvements
(WS‐07000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $1,632,938  $2,099,995  Utilities  Design  Summer 2023
Project  Status:  This  project  for  Water  Regulation  Station  Improvements  includes  seismic  upgrades,  piping improvements and other various upgrades to increase the structural reliability of three of the City’s turnouts with SFPUC.   Work  under  this  project  includes  Seismic  Upgrade  of  California  and  Page  Mill  Turnouts.   Structural

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evaluation  for  restraining  the  Page  Mill  turnout  and  piping  will  be  included  in  the design.   The  design  for both turnouts will be posted for bid in winter 2022, with construction anticipated to begin in fall 2022.

Water Tank
Seismic Water
System
Upgrades
(WS‐09000)
Prior Years Actuals  Total Project Budget  Implementing Department  Project Phase  Project Completion $4,809,313  $26,311,365  Utilities  Construction  Spring 2022 Project  Status:  This  project  for  Seismic  Water  System  Upgrades  includes  seismic  upgrades  at  the  Montebello, Mayfield,  Corte  Madera,  Park,  Boronda,  and  Dahl  Reservoirs  in  compliance  with  the  American  Society  of  Civil Engineers (ASCE 7) seismic codes.  Seismic upgrade of Boronda and Montebello Reservoirs was completed in 2016 and  2018.   The  Mayfield  Reservoir was  rehabilitated  in  September  2020.   The  tank  replacement  work  at  Corte Madera Reservoir is currently under construction.  The new steel tank is expected to be completed in spring 2022.

The  financial  study  (rehabilitation  vs.  replacement)  of  the  Park  and  Dahl  Reservoir  was  completed.   Further investigation of the existing tank‐roof condition is needed before a final recommendation can be made.  The design for the Park and Dahl Reservoirs is anticipated to begin in spring 2022.

Recurring Projects
Water
Distribution
System
Improvements
(WS‐11003)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $351,430  $277,553  Utilities  N/A  Recurring
Project  Status:  This  project  enables  improvements  to  water  distribution  system  deliverability  and  reliability.

Typical activities include installing restraining joints at critical pipelines and bridge crossings, increasing the size of inadequate  facilities,  system  leakage  surveys,  network  modeling,  and  fire  flow  studies  or  other  system improvements  as  required.   Continuous  evaluation  of  system  needs  and  making  required  improvements  is necessary to maintain adequate quantities of quality water, meeting local, state, and federal safe drinking water standards.  During the last six months the Mayfield Reservoir variable frequency drive (VFD) replacement and back‐ up controls were completed.  El Camino Pump Station pump programming was completed and tested to add the capability for the El Camino Reservoir to pump into zone 1 in addition to zone 2.     Staff continues the asbestos

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cement pipe (ACP) study and is in the process of collecting pipe samples whenever we encounter an ACP to be replaced.

Water, Gas,
Wastewater
Utility GIS Data
(WS‐02014)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $174,173  $483,958  Utilities  N/A  Recurring
Project Status: This project enables contracts related to Utilities GIS (Geographic Information System) needs.  AME database  is  heavily  utilized  by  Utilities  Engineering  staff  to  update  the  utility  information  in  GIS.   The  updated information  is  used  by  various  City  staff,  such  as  marking/locating  underground  utilities  to  comply  with  USA (Underground Service Alert) requirements; developing design drawings for pipeline replacement projects; verifying existing underground utilities during construction activities; creating customized utility map books for field crews and on‐call personnel to meet their specific needs.  Annual surveying contracts collect GPS points of existing above‐ ground utility features within the CIP project areas.  The data being collected continues to be used to correct the GIS  database.   Accurate  utility  data  helps  the  design  to  select  new  pipe  alignment  to  minimize  construction conflicts.

Water General
Equipment/Tools
(WS‐13002)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $38,271  $100,000   Utilities  N/A  Recurring
Project Status: This project acquires new equipment and tools, the replacement of existing fusion equipment, and other associated tools.  The fusion equipment is used to fuse together pipe joints in the City's water distribution system.  Equipment and tools are required to be upgraded on an annual basis to maintain high quality standards for the installation of the City's water distribution mains, along with the associated service standards and worker safety and productivity measures.  Staff purchased new Polyethylene peelers for pipe fusions in the first half of FY 2022.

Water Meters
(WS‐80015)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $92,385  $546,364  Utilities  N/A  Recurring

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Project Status: This project enables the purchasing of meters for new customers, upgrading meters for current customers, installing meter bypasses, and replacing obsolete meters that are no longer repairable.   This funding also allows for annual testing and calibration of selected meters to maintain meter accuracy and reliability.  During the AMI implementation process approximately 50% of the meters will be replaced. Staff is currently targeting large diameter meter sets to be replaced first in preparation for the upcoming AMI project.

Water Service
Hydrant
Replacement
(WS‐80014)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $84,364  $400,000  Utilities  N/A  Recurring
Project Status: This project replaces system control valves, deteriorated galvanized service lines, lead goosenecks, and fire hydrant valves and assemblies per the Fire Department’s flow testing, upgrades fire hydrants in main line replacement project areas, and replaces existing undersized or deteriorated copper water services.

Water System
Customer
Connections
(WS‐80013)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $1,000,327  $877,250  Utilities  N/A  Recurring
Project Status: This project allows for improvements that include new main extensions, valves, domestic services, meters on upgraded services, backflow devices, fire services, and fire hydrants.  System extensions are required to provide service to new large developments and to serve existing customers requesting expanded service.

Water System
Supply
Improvements
(WS‐11004)
Prior Year Actuals  Current Year Budget  Implementing Department  Project Phase  Project Completion $277,553  $197,013  Utilities  N/A  Recurring
Project Status: This project evaluates and improves the City’s water distribution system on an as‐needed basis. This project includes piping modifications, equipment replacements associated with water delivery, supervisory control software  upgrades,  system  modifications  for  water  system  quality  compliance,  conditional  assessment  of  the reliability  of  transmission  mains,  and  security  system  installations.   The  water  system  includes  the  connection facilities between the City’s and the San Francisco Public Utility Commission’s pipelines, emergency water wells within the City, pumping stations, water reservoirs, and pipelines.

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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
EL‐14005 Reconfigure Quarry
Feeders
This project reconfigured the distribution circuits to the substation transformer at Quarry Substation.  Design of QR 27 feeder replacement was completed in spring 2021. Construction was completed in December 2021 .

Construction Electric Utilities Fall 2021 792,034 $
AC‐18001 JMZ  Renovation
This project provided for the relocation of the Junior Museum and Zoo to Cubberley for two years while a new JMZ was being built, tenant improvements to the Cubberley Auditorium and then removal of tenant improvements post‐ construction.  Construction of the new Junior Museum and Zoo started in June 2018 and was completed in late 2021. The new Junior Museum and Zoo was opened to the public on November 12, 2021.

Construction Buildings and
Facilities
Community
Services Fall 2021 2,927,870.00 $
PE‐18002
High and Bryant Street
Garages Waterproofing
and Repairs
This project included a systems analysis and repaired the water proofing system in the High Street and Bryant Street parking garages.  Water proofing repairs were completed in the High Street parking garage.   Additional funding was added and the contractor completed waterproofing repairs in the subterranean stairwells in the Bryant Street garage in fall 2021.

Construction Buildings and
Facilities Public Works Fall 2021 264,235.00 $
PE‐11011 Highway 101 Pedestrian
Bicycle Overpass Project
As part of the 2014 Council Infrastructure Plan, this project designed and constructed a new pedestrian bridge across Highway 101 at Adobe Creek.

Council approved a contract with Granite Construction in November 2019.

Construction began in January 2020.  The project construction completed on November 20, 2021,  with a ribbon‐cutting ceremony and a community celebration.

Construction Traffic and
Transportation Public Works Fall 2021 22,889,453 $
EL‐12001 Underground District 46
Charleston
This project undergrounded the existing overhead utility systems in the area along the 400 block of West Charleston and El Camino Real.   Staff  completed cable, equipment installation and 100% of customer service conversions. The construction for the final phase of the project to install two 60 foot tall steel poles and to reconductor the 60 kV sub‐transmission lines was completed in the fall 2021.

Construction Electric Utilities Fall 2021  $            3,904,425 OS‐18001
Pearson Arastradero
Preserve Parking lot
Improvement
This project improved the Pearson Arastradero Preserve parking lot by improving the base rock surfacing, adding drainage, widening the entrance for safety, and new fencing.  This new improvement will allow the overflow parking area to be open year round.  The work was completed in May 2021.

Construction Parks and Open
Space
Community
Services Spring 2021  $               170,300
CB‐16001 Cubberley Community
Center Master Plan
This project developed the master plan  for future use of the Cubberley Community Center site by the City and Palo Alto Unified School District. Study Buildings and Facilities
Community
Services Spring 2021  $               926,792
December 2021
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
CB‐19001 Cubberley Building
Management Systems
This project replaced the Building management System(BMS) controls for the pavilion, Theater, Wing I, and Gyms A and B boiler rooms at the Cubberley Community Center.  The project included the installation of control points for each building along with controllers, valve and damper actuators.

Construction Buildings and
Facilities Public Works Spring 2021  $               350,000 FD‐14002 Fire Ringdown System
Replacement
This project replaced the current ring down system that provides an audible alert of calls in the fire stations.  Ongoing installations started in 2018 and were completed with Fire Station #3.

Construction Buildings and
Facilities Fire Departent Spring 2021  $               400,144 PD‐14000 Internal Alarm System
Replacement
The project replaced the citywide internal alarm system.  The alarms at City Hall migrated to this new system in FY 2019, but was completed in early 2021. Construction Buildings and Facilities
Police
Department Winter 2021  $                 77,569
FD‐20001
Self Contained Breathing
Apparatus (SCBA) Air
Compressor Replacement
This project replaced the central air compressor that provides air for the self‐ contained breathing apparatus (SCBA) tanks to ensure firefighter safety when entering environments with hazardous air quality.

Construction Buildings and
Facilities Fire Department Spring 2021  $                 94,500 AP‐20000 Airport Electrical
Improvements
This project replaced the outdated electrical panels for the Palo Alto Airport office rental spaces.  Construction was completed in January 2021. Construction Airport Public  Works Winter 2021  $               146,466 PE‐18000 New California Avenue
Area Parking Garage
This project built the California Avenue Area Parking Garage, as part of the 2014 Council Infrastructure Plan.   The parking garage has 627 parking spaces with 2 basement levels and 4 above grade floors.  The garage features an automated parking space guidance system, EV charging stations, bicycle parking, and motorcycle parking. The garage was opened to the public on December 8, 2020.

Construction Buildings and
Facilities Public Works Fall 2020  $         50,119,976 PF‐14002 Fire Station 1
Improvements
This project updated the individual sleeping quarters in the firehouse to address gender issues and privacy concerns.  Fire Station #1 was the only fire station in the City that did not have separate bedrooms to accommodate male and female firefighters.   This project was completed in fall 2020.

Construction Buildings and
Facilities Public Works Fall 2020  $               187,064 GS‐18000 Gas ABS/Tenite
Replacement Project
This project replaced gas services laterals constructed of Acrylonitrile‐butadiene‐ styrene (ABS) or Tenite material on various streets.  Council approved funding in June 2019.  The project replaced 104 ABS and Tenite gas services.  The WQCP ABS gas service is assigned to Utility Operations for replacement and the remaining five ABS gas services will be scheduled for replacement once the five‐ year moratorium ends on those streets.  As of November 2020, this project is complete.

Construction Gas Utilities Fall 2020  $            2,615,100 June 2021
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
SD‐19000 Loma Verde Avenue Trunk
Line Improvements
This project replaced 1,750 linear feet of storm drain with 48‐inch diameter High Density Polyethylene (HDPE) pipe and associated catch basins, laterals and manholes.  In addition to underground work, additional street restoration and concrete work was completed. Work includes resurfacing one full lane on Loma Verde from the beginning to the end of the project limits, replacement of driveways, sidewalk, and 718 linear feet of curb and gutter.   The contract was awarded in June 2020, construction work began in August 2020,  and was completed in December 2020.

Construction Storm  Drain Utilities Fall 2020  $            2,976,813 WS‐19000
Mayfield Reservoir
Subgrade and Venting
Repair
This project is part of the City s recent Seismic Upgrade and Emergency Water Supply and Storage Projects.  The reservoir was drained in 2012 for approximately two years to allow extensive seismic rehabilitation work to be performed and construction of a new pump station.  Subsequently hairline cracks were sealed in the reservoir.  A geotechnical consultant was hired to evaluate the tank foundation.  This study was completed and there were several options identified.  Staff has completed the design and construction of the vent screen replacement and crack sealing
Construction Water Utilities Fall 2020  $               600,000 EL‐11010
Underground District 47
Middlefield, Homer,
Webster, Addison
This project undergrounded the existing overhead distribution system in the area bounded by Middlefield Road, Homer Avenue, Webster Street, and Addison Avenue. Installation of substructures and utility electric system is completed.  Where possible, the overhead electric lines were removed and poles cut down to the level of the communication lines.

Construction Electric Utilities Fall 2020  $            3,649,356 WC‐16001
Wastewater Collection
System Rehabilitation
Augmentation Project 29
This project replaced of 8,972 linear feet of wastewater mains.  The sanitary sewer mains, laterals, and manholes to be rehabilitated or replaced in this project are located in the Charleston Meadows neighborhood.  Construction started in February 2020 and was suspended for almost 3 months due to COVID‐ 19 County’s Shelter‐in‐Place Order.  The project is complete as of December 2020.

Construction Wastewater
Collection Utilities Fall 2020  $            4,434,839
PF‐18000 Parking Lot J Elevator
Modernization
This project modernized the existing elevators at parking Lot J.  The project involves upgrading the interior of the elevators, elevator control interface, call buttons, and meeting current ADA standards.  Construction started in April 2019.  Project is complete except for the State final inspection on the second car.  State is behind because of COVID, but the inspection should be done by the end of July 2020.

Construction Buildings and
Facilities Public Works Spring 2020  $               781,324 PE‐15003 Fire  Station 3 Replacement
This project replaced the existing Fire Station at Embarcadero Road and Newell Road with a new structure that meets essential services standards and current program needs.   Construction completed in March 2020.

Construction Buildings and
Facilities Public Works Winter 2020  $         10,080,258 December 2020
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
WS‐08001 Water Reservoir Coating
Improvements
This project included the recoating of four steel tanks. Work under this project was included in the Seismic Upgrade of four Steel Tanks and the three Turnout Projects. Once construction started, it was found that the Montebello Reservoir was in very poor condition. Due to escalating costs associated with roof replacement, staff deci
ded to complete construction of the Montebello
Reservoir and re‐evaluate the remaining three tanks for replacement.

Construction Water Utilities Spring 2020  $            2,141,172 WS‐13001 Water Main Replacement ‐
Project 27
This project replaced approximately 9,600 linear feet of structurally deficient, aging, or corroded water mains and services along the mai ns  on Sand Hill Road, Oak Creek Drive (5%) and Fulton Avenue.

Construction Water Utilities Spring 2020  $            7,786,998 WC‐15001
Wastewater Collection
System Rehabilitation
Augmentation Project 28
This project enabled the design and construction of a high priority wastewater main and lateral replacement work to reduce inflow of rainfall and ground water into the collection system. Th e project replaced or rehabbed  a total of 7,655 linear feet of wastewater mains  located in the Leland Manor/Garland, Midtown West, and Lower Page Mill/Los Altos Hills areas of the City.

Construction Wastewater
Collection Utilities Spring 2020  $            5,665,897 EL‐17003 VA Hospital ‐ Customer
Load Requirements
This project met the growing electric needs of th e VA Hospital. Staff has had numerous discussions with VA Hospital on electric load growth at the hospital and anticipated needs from the utility. Much of the cost is reimbursed to the City by the VA Hospital. Staff has prepared preliminary designs for interim solutions and is awaiting addi tional  information from VA to develop long range plans to meet their future needs.

Design Electric Utilities Spring 2020  $ 84,984
EL‐04012 Utility Site Security
Improvements
This project added electronic security systems at utility sites to protect equipment at electric substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism.  Cameras and detection systems have been in
stalled at nine electric substations, three water stations, and one natural gas station to monitor facilities.

Construction Electric Utilities Spring 2020  $            1,644,681 EL‐11008 Rebuild Underground
District 19
This project rebuilt and replaced the underground electric system in Underground District 19, the area bounded by Forest Avenue, Waverley Street, Addison Avenue, and Alm a Street.

Construction Electric Utilities Spring 2020  $               149,023 June 2020
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
FD‐18000 Self Contained Breathing
Apparatus Replacement
This project replaced Self Contained Breathing Apparatus equipment (SCBA) used by firefighters when entering hazardous conditions when responding to fire and hazardous materials incidents. The SCBA provides breathable air for firefighters when entering environments where the atmosphere is immediately dangerous to life or health.  The expected service life for SCBAs is 15 years.

Purchase Buildings and
Facilities Fire Department Spring 2020  $               799,999 FD‐20000 Cardiac Monitor
Replacement
This project replaced the entire complement of twenty cardiac monitors in the Department. Along with other tools needed for patient assessment and airway verification, cardiac monitors assess cardiac activity in patients and provide defibrillation and pacing.

Purchase Buildings and
Facilities Fire Department Spring 2020  $               850,000 PL‐16001 Downtown Mobility and
Safety Improvements
This project included the construction of curb extensions and the installation of new pedestrian signal heads and traffic signal modifications in 2019 as part of the Upgrade Downtown project.

Construction Traffic and
Transportation
Office of
Transportation Fall 2019  $            1,819,847
FD‐20002 Thermal Imaging Cameras
Replacement
This project replaced the Thermal Imaging Cameras (TICs) on all fire and response vehicles used to help identify the location of victims; assess the source of fires, smoke, and heat; to assist in creating a plan of action.

Purchase Buildings and
Facilities Fire Department Fall 2019  $                 99,000 WC‐11000
Wastewater Collection
System Rehabilitation
Augmentation Project 24
This project  addressed areas that were identified in Wastewater Capital Improvement Project 17 (Cleaning and Video Inspection of the Collection System) as needing rehabilitation. This project was combined with Project 25 and 26(WC‐12001; WC‐13001).

Construction Wastewater
Collection Utilities Fall 2019  $            3,131,595
WC‐13001
Wastewater Collection
System Rehabilitation
Augmentation Project 26
This project was combined with Project 24 and 25(WC‐11001; WC‐12001). All new service laterals were installed from the new sewer main to the new sewer cleanouts located in the City’s right‐of‐way.

Construction Wastewater
Collection Utilities Fall 2019  $            3,309,998
CB‐19000 Cubberley Track and Field
Replacement
This project replaced the synthetic turf field, installed an all‐weather track and a fitness area. Construction Parks and Open
Space Public Works Fall 2019  $            1,851,708
PE‐14018 Baylands Boardwalk
Improvements
This project replaced the existing boardwalk with similar alignment and configuration.  Construction Buildings and
Facilities Public Works Winter 2019 2,123,681 $
PE‐17009 City  Hall Floor 4 Remodel This project improved the Administrative Services Department offices on the fourth floor of City Hall. Construction Buildings and
Facilities Public Works Winter 2019 494,818 $
PE‐14015
Lucie Stern Buildings
Mechanical and Electrical
Upgrades
This project replaced and upgraded the mechanical, electrical, and fire/life safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Theater, and Lucie Stern Community Center.

Construction Buildings and
Facilities Public Works Spring 2019 6,142,607 $
December 2019
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
PL‐16000
Quarry Road
Improvements and Transit
Center Access
This project included planning, design and construction of bicycle and pedestrian improvements along Quarry Road. Construction Traffic and Transportation
Planning and
Community
Environment
Spring 2019 5,148,378$
EL‐17008 Utility Control Center
Upgrades This project upgraded the Utility Control Center working environment.  Construction Electric Utilities Winter 2019 499,997$ GS‐12001 Gas Main Replacement
Project 22
Th
is project replaced approximately 23,700 linear feet of gas mains and services along University Avenue and other streets in the Downtown North nieghborhood.

Construction Gas Utilities Spring 2019 11,658,997 $
WC‐12001
Wastewater Collection
System Rehabilitation /
Augmentation Project 25
This project was combined with Project 24 and 26 (WC‐11001; WC‐13001) replacing 45,294 linear feet of sanitary sew er mains in university South, Professorville and Old palo Alto neigborhoods.

Construction Wastewater
Collection Utilities Spring 2019 3,211,998$
WQ‐14001 Dewatering and Loadout
Facility
This project provides funding for the design and construction of the sludge dewatering facility and truck loadout to retire existing dewatering and sewage sludge incinerators.

Construction Wastewater
Treatment Public Works Spring 2019 27,497,551 $
WS‐12001 Wat
er Main Replacement
– Project 26
This project replaced approximately 11,000 linear feet of aging water mains and services which included water main replacement as part of the Upgrade Downtown Project.

Construction Water Utilities Spring 2019 7,506,161$
PE‐17009 City  Hall Floor 5 Remodel This project improved the Planning and Community Environment (PCE) Department offices on th e fifth floor of City Hall.  Construction Buildings and Facilities Public Works Summer 2018 525,000$
AC‐14001
Baylands Nature
Interpretive Center Exhibit
Improvements
This project replaced worn out or non‐functioning exhibits at the Baylands Nature Interpretive Center. Construction Buildings and
Facilities
Community
Services Summer 2018 56,000$
PE‐17000 Mitchell Park Adobe Creek
Bridge Replacement  This project repla ced  the existing bridge over Adobe Creek in Mitchell Park. Construction Parks and Open Space Public Works Summer 2018 250,000$
PD‐14000 Internal Alarm System
Replacement
This project replaced the citywide system of panic alarms from various departments and the Council chambers. Construction Buildings and Facilities Police Summer 2018 78,000$
EL‐14004 Maybell 1&2 4/12kV
Conversion  This project converted circuits 1 & 2 at Ma ybell  substation from 4kV to 12kV. Construction Electr ic Utilities Fall 2018 364,796 $ GS‐15001 Security at City Gas
Receiving Stations
This project equiped the City’s four Gas Receiving Stations with video surveillance systems.  Construction Gas Utilities Summer 2018 150,000$ June 2019 December 2018
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
SD‐13003
Matadero Creek Storm
Water Pump Station and
Trunk Line Improvements
This project upgraded the capacity to the Matadero Creek Storm Water Pump Station, which serves a low‐lying 1200‐acre area of southeastern Palo Alto.  Construction Storm  Drain Public  Works Summer 2018 6,685,317 $ AP‐16002 Wildlife Hazard
Management Plan
The Wildlife hazard Management Plan identified the specific actions the airport will take to mitigate the risk of wildlife strikes on or near the airport. Study Airport Public  Works Summer 2018 63,415 $ WC‐14001
Wastewater Collection
System Rehabilitation
Augmentation Project 27
This project replaced 16,859 linear feet of sanitary sewer mains of various sizes on various streets. Construction Wastewater
Collection Utilities Winter 2018 4,022,455 $
PG‐15000 Buckeye Creek Hydrology
Study
This project analyzed flooding conditions and recommended flood control structures and drainage and erosion control solutions for the creek located within Foothills Park.

Study Parks and Open
Space Public Works Spring 2018 167,741 $
PE‐17004
CalTrain Corridor Video
Management System
Installation
This project replaced two existing gateway signs in the right‐of‐way for the California Avenue business district.  Construction Streets and Sidewalks Public Works Spring   2018 1,550,000$
PF‐16003 Parking Lot Q Elevator
Modernization  This project modernized the existing elevator at Parking Lot Q. Construction Buildings and Facilities Public Works Fall 2017 170,608 $
PE‐13003
Parks, Trails, Open Space,
and Recreation Master
Plan
This master plan provided guidance on the recreation and improvement needs for Palo Alto’s parks, trails, open space and recreational programs.   Study Parks and Open Space
Community
Services Fall  2017 627,057$
PE‐12003 Rinconada Park Master
Plan
This project developed a plan for short, medium and long range improvements to the regional park including the consideration of pathways, new restrooms and playgrounds, new landscaping, and revitalization of underutilized areas within the park.

Study Parks and Open
Space
Community
Services Fall 2017 541,355 $
PE‐13012 Structural Assessment of
City Bridges
The project developed an inventory of all City‐owned bridges and culvert structures, condition assessment, cost estimate for rehabilitation, and recommendation for future inspection frequencies, assessment and improvements.

Study Buildings and
Facilities Public Works Fall 2017 198,529 $
WC‐11000
Wastewater Collection
System Rehabilitation /
Augmentation Project 24
Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced and/or rehabilitated approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes.

Construction Wastewater
Collection Utilities Fall 2017 3,119,806 $
June 2018 December 2017
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
WC‐13001
Wastewater Collection
System Rehabilitation /
Augmentation Project 26
Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced and/or rehabilitated approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes.

Construction Wastewater
Collection Utilities Fall 2017 3,361,118 $
PG‐13003
Golf Reconfiguration and
Baylands Athletic Center
Improvements
This project completed the rehabilitation of the Palo Alto Municipal Golf Course, including  a new layout for the course, new prefabricated restroom, new water‐ saving turf and irrigation system, and rebranded the course as the Baylands Golf Links.

Construction Parks and Open
Space Public Works Fall 2017 13,675,177 $
GS‐11000 Gas Main Replacement –
Project 21
This project combined with GWR 19B & GMR 20 and replaced ABS gas mains and services.   Construction Gas Utilities Winter 2017 2,364,937 $ WS‐11000 Water Main Replacement
– Project 25
This project provided installation of approximately 11,869 linear feet of new High Density Polyethylene (HDPE) water mains, 232 new HDPE water services, and 15 new fire hydrants within the City limits.

Construction Water Utilities Winter 2017 5,445,069 $
WS‐15004 Water  System Master Plan
The 2015 Water System Master Plan identified present capital improvements and replacement rates required to ensure optimal reliability levels of service to the existing distribution and transmission systems.

Study Water Utilities Spring 2017 500,000 $
WC‐10002
Wastewater Collection
System Rehabilitation /
Augmentation Project 23
Combined with Project 22 (WC‐09001).  This project replaced and/or rehabilitated approximately 33,497 linear feet of sanitary sewer mains of various sizes, 554 sewer laterals, and 102 sewer manholes.

Construction Wastewater
Collection Utilities Winter 2017 1,272,289 $
EL‐10009
Street Light System  Street
Light System Conversion
Project
This project converted HPS streetlights to LED and the conversion of approximately 4500 cobrahead streetlight fixtures.   Construction Electric Utilities Spring 2017 696,918 $ EL‐13006 Sand Hill / Quarry 12kV
InterTie
This project installed new wire to connect circuits QR‐24 and QR‐27 in the Sand Hill/Quarry area.  Construction Electric Utilities Winter 2017 208,648 $ EL‐15001 Electric Substation Battery
Replacement  This project replaced the batteries in all nine of the City's electric substations.  Construction Electric Utilities Winter 2017 400,000 $ PG‐13001
Stanford/Palo Alto Playing
Fields Soccer Turf
Replacement
This project replaced the synthetic turf at the Stanford/Palo Alto Playing Fields.  Construction Parks and Open Space
Community
Services Fall 2016 1,499,979 $
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
PG‐09003 Park Maintenance Shop
Remodel
This project renovated and remodeled the Parks maintenance shop for safety and efficienciency upgrades. Construction Parks and Open Space
Community
Services Summer 2016 94,419 $
PE‐12017 City Hall First Floor
Renovations
This project installed new elevator control panels and replaced the gray‐painted panels inside the elevators. Construction Buildings and Facilities Public Works Summer 2016 3,974,963 $
PE‐11012 Temporary  Main Library This project created a temporary main Library to be used while the new one was being constructed. Construction Buildings and
Facilities Public Works 156,254 $
PE‐15029
Baylands Nature
Interpretive Center Facility
Improvement
The project replaced decking, railings, structural framing members, exterior wood flooring, and cabinetry, restroom reconfiguration, and provided Americans with Disabilities Act (ADA) improvements.

Construction Buildings and
Facilities Public Works Spring 2017 889,452 $
PE‐13008 Bowden Park
Improvements
This project improved the children’s playground and included park amenity upgrades such as new playground equipment, a new retaining wall, surfacing and pathway upgrades, planting restoration and irrigation renovations, and replaced of damaged wood benches and the playground perimeter fence.

Construction Parks and Open
Space
Community
Services Summer 2016 421,126 $
PE‐13020 Byxbee  Park Trails  This project provided trail and site amenities over the remaining area of the landfill cap.   Construction Parks and Open
Space Public Works Fall 2016 334,607 $
PE‐17002 City  Hall Floor 3 Remodel
This project improved the Utilities Department administrative offices on the third floor of City Hall. It included new carpet, wall reconfiguration, a kitchenette, cabinets, paint, soundproofing, office furniture, doors, and associated building systems.

Construction Buildings and
Facilities Public Works Spring 2017 440,000 $
PE‐14015
Lucie Stern Buildings
Mechanical and Electrical
Upgrades – Phase 1
This project replaced and upgraded the mechanical, electrical, and fire/life safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Theater, and Lucie Stern Community Center.

Construction Buildings and
Facilities Public Works Summer 2016 3,247,248 $
PG‐12004 Sarah Wallis Park
Improvements
This project improved site amenities with new concrete pathways, replaced old furnishings, and upgraded landscape with drought tolerant species.  Construction Parks and Open Space
Community
Services Winter 2017 65,000 $
AP‐16003 Airport  Perimeter Fence
This project replaced the 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.

Construction Airport Public  Works Spring 2017 2,003,540 $ June 2017
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List of Completed Projects
CIP # Project Name Project Description Project Type Fund Source Department Season Completed
Year
Completed
Total Project
Budget ** CMR Date
SD‐11101
Channing Avenue/Lincoln
Avenue Storm Drain
Improvements
This project installed of 5,800 linear feet of 36‐inch to 60‐inch diameter storm drain along Channing and Lincoln Avenues over three project phases to increase drainage system capacity.

Construction Storm  Drain Public  Works Winter 2016 7,676,275 $ GS‐14004 Gas Distribution System
Model
This project included the development, model installation, testing, documentation, and staff training of a natural gas distribution system model.   Study Gas Utilities Summer 2016 149,500 $ AC‐14000
Art Center Auditorium
Audio, Visual and
Furnishings
This project replaced outdated audio visual equipment and furnishings following the auditorium’s use as a temporary library.   Construction Buildings and Facilities
Community
Services Winter 2016 150,000 $
PF‐15000 Rinconada Pool Locker
Room
This project renovated the Rinconada Pool locker room including the changing area, restrooms, and showers in the women's and men's locker rooms.   Construction Buildings and Facilities Public Works Winter 2016 464,433 $
PE‐13016 El  Camino Park Restoration
This project installed new athletic fields, synthetic turf, field lighting, fencing, a new restroom, scorekeeper booth and storage buildings, an expanded parking lot, new bike and pedestrian pathways, landscaping, benches, and other amenities.

Construction Parks and Open
Space
Community
Services Fall 2015 5,611,122 $
275,679,761$       Notes: ** Final Project Actuals may be different from Total Project Budget amounts Grand Total December 2016
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Schedule of Meetings
Published March 30, 2022
This is a courtesy notice only. Meeting dates, times, and locations are subject to change. Almost all Palo Alto Council and some Standing Committee meetings are cablecast live on Channel 26. If there happe ns to be concurrent meetings, one meeting will be broadcast on Channel 29.

Persons with d isabilities who require auxiliary aids or services in using City facilities or programs, or who wo uld like in formation on the City’ s compliance with the America ns with Disabilities Act (ADA) of 1990, may contact: ADA Coo rdinator, City of Palo Alt o, 650-329- 2550 (voice) or 329- 1199 (TDD), [email protected]. Listening assistive device s are available in the Counci l Chambe rs. S ign language int erpreters will be provided upon request with 72 hours advance notice. Please advise the City Clerk's Office (650-329-2571) of meetings or changes by 3:00 p.m. on Wednesdays for inclusion in the following week’s schedule

Meetings are held in-person and by virtual teleconference.

MONDAY, AP RIL 4
Sp. City Council Meeting, 5:00 p.m.

WED
NESDAY, APRIL 6
Sp. Utilities Advisory Commission, 6:00 p.m.

TH
URSDAY, April 7
Architectural Review Board Meeting, 8:30 a.m.

SA
TURDAY, April 9
Sp. State of the City, 11:00 a.m. (Mitchell Park Community Center) MO
NDAY, April 11
Sp. City Council Meeting, 5:00 p.m.

TUE
SDAY, April 12
Policy & Services Committee Meeting, 7:00 p.m.

WEDN
ESDAY, April 13
Planning & Transportation Commission Meeting, 6:00 p.m.

THU
RSDAY, April 14
Historic Resources Board Meeting, 8:30 a.m.

THU
RSDAY, April 14
Human Relations Commission Meeting, 6:00 p.m.

MO
NDAY, April 18
Sp. City Council Meeting, 5:00 p.m.

TUESDAY,
April 19
Sp. Finance Committee Meeting, 5:30 p.m.

WEDN
ESDAY, April 20
Rail Committee Meeting, 1:00 p.m.

Th
ursday, April 21
Architectural Review Board Meeting, 8:30 a.m.

Mon
day, April 25
Sp. City Council Meeting, 5:00 p.m.
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City of Palo Alto (ID # 14252)
Office of the City Clerk
City Council CAO Report
Meeting Date: 4/11/2022
Title: Select Applicants to Interview for the Parks and Recreation Commission
From: Lesley Milton, City Clerk
Recommendation
Direct Staff to schedule interviews with selected applicants for one vacancy on the Parks and Recreation Commission.

Discussion
Boards and Commissions are established as advisory bodies to the City Council, made up of community volunteers that provide essential feedback on matters of importance to the community. The City Clerk’s office advertises and recruits for vacancies, the Council considers the applications, interviews desired candidates, and makes recommendations for appointment for the open positions.

On December 13, 2021, City Council appointed Parks and Recreation Commissioner Keith Reckdahl to the Planning and Transp ortation Commission. As such, the current vacancy staff is requesting to be filled is:
• One (1) position on the Parks and Recreation Commission, with term expiring March 31, 2023
For the Parks and Recreation Commission special r ecruitment effort, a total of 5 qualified applications have been submitted during th e recruitment period.

Scheduling Interviews
During the last several recruitments, the City Council has elected to interview all qualified applicants for respective Boards and Commissions. It is at the discretion of the Council to determine if they wish to continue the past practice, interview all candidates, or identify and provide direction on a select cohort of applicants to continue to the interview processes.

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