1 City Council
Special Meeting
Monday, April 18, 2022
5:00 PM
Council Chambers & Virtual
Supplemental Information Added
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 person 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 i n advance to [email protected] and will be provided to the Council and available for ins pection on the City’s website. Please clearly indicate which agenda item you are referencing in you r email subject line.
CALL TO ORDER
STUDY SESSION (5:00 - 6:00 PM)
1. Joint Study Session with Palo Alto Youth Council
Presentation
2 Special Meeting April 18, 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.
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:00 - 6:20 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 (6:20 - 6:25 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.
2. Approve Minutes from the April 04, 2022 City Council Meeting
3. Adoption of an Ordinance Amending Existing Palo Alto Municipal Code Chapter 5.30, Disposable Foodwa re Items and Other Dispo sable Products, to Comply with California Assembly Bill 1276 (Single -Use Foodware Accessories and Standard Condiments) Requiring Additional Restrictions on the Use of Disposable Foodware and Condiments.
4. Approval of Amendment Numb er 1 to Contract Number C18169357 With Van Scoyoc Associates, Inc. for Federal Legislative Advocacy to Extend the Term for one Additional Year and add $82,800 for a Total Not-to-Exceed Amount of $414,000
5. Approval of the Appointment of Sandra Blanch as H uman Resources Director
CITY MANAGER COMMENTS (6:25 - 6:45 PM)
BREAK (6:45 - 7:00 PM)
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.
6. Policy and Services Commit tee, City Auditor and Staff Recommend Approval of the Power Purchase Agreement Audit Report
(7:00 – 7:30 PM)
7. Approval of Supplement Agreement No. 1 to the Master Funding Agreement Between the City of Palo Alto and the Metropolit an Transportation Commission for $800,000 in Priority Development Area Planning Grant Funds to Prepare a Downtown Housing Plan; Approve Budget Amendments in the General Fund; and to Initiate the Plan Process for a Sub -Area of the Downtown Priority Developm ent Area.
Environmental Assessment: Exempt Under CEQA Guidelines Sections 15061(b)(3) and 15262. (7:30 – 8:30 PM)
Public Letters
Presentation
Presentation
Presentation
3 Special Meeting April 18, 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.
8. Revenue-Generating Ballot Measures for Fall 2022: Discuss 2nd -Round Polling Results and Feedback from Community and Stakeholder Engagement Activities; Review and P rovide Staff Direction on Finance Committee Recommended Refined Parameters for a Business License Tax and an Affirmation of the Gas General Fund Transfer; and Provide Direction to Staff on Next Steps Including Launch of Third Poll, and Council's Non -Binding Intentions for Allocation of Potential Proceeds (8:30 to 10:30 PM) Supplemental Information Added
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)
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.
OTHER INFORMATION
Standing Committee Meetings
Finance Committee Meeting April 19, 2022
Rail Committee April 20, 2022
Public Letters to Council
Schedule of Meetings
AMENDED AGEND 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 item s have been added to the Agenda, they will be denoted with a number staring with AA, meaning Amended Agenda item.
8. Revenue-Generating Ballot Measures for Fall 2022: Discus s 2nd-Round Polling Results and Feedback from Community and Stakeholder Engagement Activities; Review and Provide Staff Direction on Finance Committee Recommended Refined Parameters for a Business License Tax and an Affirmation of the Gas General Fund Tran sfer; and Provide Direction to Staff on Next Steps Including Launch of Third Poll, and Council's Non -Binding Intentions for Allocation of Potential Proceeds (8:30 to 10:30 PM) Supplemental Information Added
Presentation
4 Special Meeting April 18, 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 a ddress the Council, click on the link below to access a Zoom -based meeting. Please read the following instructions 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 disabled in older br owsers 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 and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833
City of Palo Alto (ID # 14135)
City Council Staff Report
Meeting Date: 4/18/2022
City of Palo Alto Page 1
Title: Joint Study Session with Palo Alto Youth Council From: City Manager
Lead Department: Community Services
Topics for Discussion
• Introduction to the Palo Alto Youth Council (PAYC)
• Accomplishments from 2021/2022 school year
• Looking forward to the 2022/2023 school year
• Council Comments and Questions
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City of Palo Alto (ID # 14264)
Office of the City Clerk
City Council CAO Report
Meeting Date: 4/18/2022
Title: Approve Minutes from the April 04, 2022 City Council Meeting From: Lesley Milton, City Clerk
Staff recommends Council to review and approve the minutes as presented.
ATTACHMENTS:
• Attachment2.a: Attachment A: 20220404amCCs (PDF)
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CITY COUNCIL
DRAFT ACTION MINUTES
Special Meeting
April 4, 2022
The City Council of the City of Palo Alto met on this date in v irtual teleconference at 5:00 P.M.
Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka
Absent: None
Closed Session
1. CONFERENCE WITH LABOR NEGOTIATORS City Designated
Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Rumi Portillo, Sandra Blanch, Nicholas Raisch, Molly Stump, and Terence Howzel l) Employee Organization: Employee Organization: Service Employees International Union, (SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA)Palo Alto Peace Officers’ Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs Association (FCA), Management and Professional Employees (MGMT) ; Authority: Government Code Section 54957.6 (a); Authority: Government Code Section 54957.6 (a).
MOTION: Council Member Filseth moved, seconded by Council Member Cormack to go into Closed Session. Kou Arrived 6-0
MOTION PASSED/FAILED: 6-0, Tanaka Absent
Council went into Closed Session at 5:03 P.M.
Council returned from Closed Session at 6:15 P.M.
Mayor Burt made no announcements for the public.
Special Orders of the Day
2. Adoption of Resolution for Gabriel Mora Upon His Retirement.
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 4/4/2022
MOTION: Vice Mayor Kou moved, seconded by Council Member Cormack to adopt the Resolution.
MOTION PASSED: 7-0
3. Proclamation Honoring National Public Safety Telecommunicator's Week - April 10-16, 2022.
NO ACTION TAKEN
Agenda Changes, Additions and Deletions
None.
Public Comment
Consent Calendar
Council Member DuBois registered a no vote on Agenda Item Number 8.
Council Member Kou registered a no vote on Agenda Item Number 5.
Council Member Tanaka registered a no vote on Agenda Items 5, 6, 10
MOTION: Council Member Cormack moved, seconded by Council Member Filseth to approve Agenda Item Numbers 4-14.
MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION TO APPROVE ITEM 7, 9, 11-14: PASSED 7-0
MOTION TO APPROVE ITEM 5 PASSED: 5-2, Kou, Tanaka No
MOTION TO APPROVE ITEM 6, 10 PASSED: 6-1, Tanaka No
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 4/4/2022
4. Approve Minutes from the March 11, 2022 City Council Meeting, March 14, 2022 City Council Meeting, and the March 21, 2022 City Council Meeting.
5. Utilities Advisory Commission and Staff Recommend the City Council Approve Two Resolutions: 1) Resolution 10024 Approving an Amendment to the Amended and Restated Wa ter Supply Agreement Between the City and County of San Francisco and Wholesale Customers in Alameda County, San Mateo County, and Santa Clara County and Authorizing the City Manager to Execute the Amended Agreement; and 2) Resolution 10025 Approving a Minimum Purchase Transfer from the City of Mountain View to the City of East Palo Alto.
6. Approve Finance Committee Recommendation for FY 2023 to (a) Return to the Customary Pre -Pandemic Business Registry Certificate Requirement and Fee, and (b) Pause for One Y ear the Downtown Business Improvement District Assessment Program.
7. Approve, as Recommended by Policy and Services Committee, the FY2022/2023 Risk Assessment & Audit Plan Reports.
8. Adoption of Resolution 10026 Authorizing Use of Teleconferencing for Council Meetings During Covid-19 State of Emergency.
9. Approval of Amendment Number 2 to the Power Purchase Agreement for Landfill Gas -Generated Electricity With Ameresco Keller Canyon LLC., Reducing the Facility's Output in Exchange for an Annual $250,000 Administrative Payment to the City.
10. Approval of Contract Amendment Number 1 to Contract Number S22183587 with Fairbanks, Maslin, Maullin, Metz, and Associates (FM3) in the Amount of $28,500 for One Additional Poll (Three Polls, Total) for the Potential November 2022 Ballot Measure(s) for a Total Not to Exceed Amount of $113,500 and Approve a Budget Amendment in the General Fund.
11. Adoption of Resolution 10027 Authorizing the Submittal of a Financial Assistance Application to the United Sta tes Bureau of Reclamation for the WaterSMART: Title XVI Water Reclamation and Reuse Project.
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 4/4/2022
12. Approval of Pets in Need's Amended Termination Notice to Extend Termination Date Six Months for Continued Animal Shelter Operations.
13. Adoption of Resolution 1002 0 Amending Public Hearing: Objections to Weed Abatement and Adoption of Resolution Ordering Weed Nuisance Abated to Correct an Administrative Error.
14. Approval of Construction Contract Number C22181213 with Stronger Building Services in the Amount of $179,500 for the Mitchell Park Library Roof and Gutter Repair Project; Authorize the City Manager or their Designee to Negotiate and Execute one or more Change Orders for Related Additional but Unforeseen Work Not to Exceed $17,950; and Approval of a Budget Amendment for the Roofing Replacement Capital Project (PF-00006) in the Capital Improvement Fund.
City Manager Comments
Ed Shikada, City Manager
Action Items
15. Review and Approval of Workplans Implementing 2022 City Council Priorities.
MOTION: Council member DuBois moved, seconded by Mayor Burt to accept the list of major projects associated with the 2022 City Council Priorities and have the Mayor and Vice Mayor to work with staff to refine the town hall meeting program details and enable all Council to attend as optional attendance.
MOTION PASSED: 7-0
16. Receive the Police Department’s Annual Report and Discuss and Accept the Staff Update on Radio Encryption as a Follow -up from the Policy and Services Committee Recommendation on February 8, 2022.
ORIGINAL MOTION: Council Member Stone moved, seconded by Vice Mayor Kou to direct staff and PAPD to:
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 4/4/2022
A. Contact State Department of Justice regarding CLETS and inform them of:
i. Operational deficiencies in our current digital system; and ii. Inquire into whether PAPD can revert back to encryption only after policies are implemented that will fully protect personal identifying information (PII)
B. Direct staff and PAPD to develop policies in order to protect PII on unencrypted radio transmission;
C.
Support Senator Becker’s proposed SB-1000;
D. Increase communications between PAPD senior staff and the media, as staffing permits; and
E. Refer to Policy and Services Committee review and discussion of Use of Force (UOF) reports to evaluate current policies and effectiveness of the UOF reports and recommend modifications if necessary.
PROPOSED AMENDMENT: On motion by Mayor Burt seconded by Council Member Cormack to delete A and replace as B: Develop programs to pursue near real time streaming of Calls for Servic es and to narrow location of the calls. Registration will be required to access the platform. Staff shall confer with labor on implementation of this direction.
MOTION TO APPROVE AMENDMENT PASSED: 6-1, Stone No
REVISED MOTION: Council Member Stone move d, seconded by Vice Mayor Kou to direct staff and PAPD to:
A. Contact State Department of Justice regarding CLETS and inform them of:
i. Operational deficiencies in our current digital system; and ii. Inquire into whether PAPD can revert back to encryption only after policies are implemented that will fully protect personal identifying information (PII)
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 4/4/2022
B. Develop programs to pursue near real time streaming of Calls for Services and to narrow location of the calls. Registration will be required to ac cess the platform. Staff shall confer with labor on implementation of this direction;
C. Support Senator Becker’s proposed SB-1000;
D. Increase communications between PAPD senior staff and the media, as staffing permits; and
E. Refer to Policy and Services Committe e review and discussion of Use of Force (UOF) reports to evaluate current policies and effectiveness of the UOF reports and recommend modifications if necessary.
MOTION PASSED: 7-0
17. Clarification of In-Person Attendance Protocols for Council Committees and Boards and Commissions.
NO ACTION TAKEN - This Item was continued to a future meeting.
Council Member Questions, Comments and Announcements
Adjournment: The meeting was adjourned at 12:40 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes ( sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 4/4/2022
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DRAFT ACTION MINUTES
Sp. City Council Meeting
Draft Action Minutes: 4/4/2022
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City of Palo Alto (ID # 14050)
City Council Staff Report
Meeting Date: 4/18/2022
City of Palo Alto Page 1
Title: Adoption of an Ordinance Amending Existing Palo Alto Municipal Code Chapter 5.30, Disposable Foodware Items and Other Disposable Products, to Comply with California Assembly Bill 1276 (Single -Use Foodware Accessories and Standard Condiments) Requiri ng Additional Restrictions on the Use of Disposable Foodware and Condiments.
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1. Adopt an ordinance amending existing Palo Alto Municipal Code Chapter 5.30, Disposable Foodware Items and Other Disposable Products, to include additional restrictions on dispensing of disposable foodware and condiments required by Assembly Bill 1276 (Attachment A); and
2. Adopt a resolution amending the Administrative Penalty Schedule (Attachment B).
Background
On June 24, 2019, City Council adopted Ordinance No. 5473, which amended Palo Alto Municipal Code (PAMC) Chapter 5.30 and retitled it the “Disposable Foodware Items and Other Disposable Products”(Staff Report #10148). The ordinance banned the use of plastic straws and utensils in restaurants, with the objective of reducing the use of single-use disposable plastics , which often end up littering roads and waterways or being landfilled.
On October 5, 2021 , the California Governor signed into law Assembly Bill 1276, Single -use Foodware Accessories and Standard Condiment s, (AB 1276), which is related to PAMC Chapter
5.30, Single-Use Foodware Accessories and Condiments. This bill further prohibits food facilities (food service establishments) from providing single-use and disposable foodware accessories or standard condiments to a consumer unless requested by the consumer. Single -use is defined in PAMC Chapter 5.30 as “disposable”, meaning items designed to be used once or a limited number of times and then discarded, whether the item is non -recyclable, recyclable, or compostable. The State requires jurisdictions to implement and enforce the new requirements or authorize an enforcement agency by June 1, 2022. The proposed amendments to PAMC 3 Packet Pg. 15
City of Palo Alto Page 2
Chapter 5.30 reflect requirements in AB 1276 and provide the ability for the City’s Z ero Waste staff to enforce its requirements.
The COVID-19 pandemic has increased takeout and food delivery, which has led to an increased use of disposable foodware. Currently, many food facilities and food delivery services provide single-use disposable foodware and beverage accessories regardless of whether they are needed or requested by the consumer. Amending PAMC Chapter 5.30 to conform with AB 1276 will build on existing efforts to combat waste from single -use disposable foodware items.
Providing fo od and beverage accessories only upon request by consumers will significantly reduce unnecessary plastic waste and also help the City advance its 2018 Zero Waste Plan initiatives.
Discussion
PAMC Chapter 5.30 already includes some of the AB 1276 requirements , but a few minor edits are required to fully comply with the State’s new requirements. The most important changes are that AB 1276 prohibits disposable foodware accessories or standard condiments from being bundled or packaged in a way that prohibits the consumer from taking only the single item desired (e.g., a single fork) rather than a bundle that includes multiple foodware or other items that will be unused by the consumer. The bill also requires a food facility using a third -party food delivery platform (e.g., Grubhub, DoorDash, Uber Eats, etc.) to list on its online or app menu the availability of disposable foodware acce ssories and standard condiments and only provide those items when requested by the consumer. Table 1 below identifies and summarizes the requirements in AB 1276 and those that need to be added to PAMC Chapter 5.30 (Attachment A).
Table 1: Summary of AB 1276 Requirements and Proposed Amendments to PAMC 5.30
AB 1276 Requirements Changes to PAMC 5.30
Definitions Add the following definitions to 5.30.010:
(d) Condiments
(n) Third-Party Food Delivery Platforms
Provides food facilities the flexibility to
offer single-use foodware accessories to
drive-through consumers only.
None needed. Keep existing more
restrictive requirements in 5.30.25 (c) that
foodware must be requested by the
consumer.
Prohibits food facilities from bundling
single-use foodware accessories.
Add as new provision 5.30.025 (d)(1)(2)
requiring single items to be provided
through self-service dispensers.
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City of Palo Alto Page 3
Prohibits a food facility or third-party
delivery platform from providing single-use
foodware accessories unless requested by
a consumer.
Update 5.30.025 (e) to include restrictions
applicable to third party deliveries.
Allows exceptions to the following
facilities:
• Correctional Institutions
• Health Care Facilities
• Residential Care Facilities
• Public and Private School Cafeterias
Add 5.30.030 (vi) listing the following
facilities as not being required to comply
with the Chapter:
(1) Health Care Facilities (patient rooms
only)
(2) Residential Care Facilities
Allows food facilities located within public
airports to offer single-use foodware
accessories to consumers.
None needed. Not applicable.
AB 1276 requires violations of its requirements to result in a notice of violation and any subsequent violation to be cited . PAMC Chapter 1.12, Administrative Penalties – Citations, and specifically PAMC 1.12.010, Applicability, provide the City with the sole discretion on the remedies and procedures that may be pursued. Therefore, since PAMC Chapter 5.30 already has specific administrative penalties in the City’s Administrative Penalty Schedu le, staff recommends consistency for the new requirements. Table 2 summarizes the new penalties to be added to the Administrative Penalty Schedule (Attachment B).
Table 2: Summary of Updates to Administrative Penalty Schedule
Section Title Proposed New
Penalty
5.30.025 (a) to
(d)
Limitation on the use of Disposable
Foodware Items and other Disposable
products.
$100
5.30.025 (e) Limitation to third party platforms on
providing disposable foodware such
utensils or condiments unless requested by
consumer.
$350
Prior to issuing a citation for violation s, appropriate outreach and education would be conducted and warning notifications would be issued . Future enforcement of these additional requirements in PAMC Chapter 5.30 will be led by Zero Waste s taff under its current Zero Waste enforcement program.
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City of Palo Alto Page 4
Timeline
The following is a summary of the timeline for implementing the updates to the Disposable Foodware Ordinance:
• Conduct outreach and education to stakeholders including food service providers and third party food delivery vendors – beginning March 2022 • First Reading/public hearing – April 2022
• Second Reading – May 2022
• New foodware requirements are in effect – June 1, 2022
Resource Impact
Palo Alto already meets many of the AB 1276 requirement s through its existing PAMC Chapter
5.30, therefore the amended ordinance will only require minor updates to existing outreach and education resources and to the current Zero Waste enforcement program. These activities will be incorporated into the existin g and planned Zero Waste staffing and outreach expenditures provided through the Fiscal Year 2022 Refuse Fund operating budget.
Policy Implications
The recommended changes to PAMC Chapter 5.30 adhere to the State of California’s new single-use foodware and condiment requirements under AB 1276. These new requirements will also help the City advance the following 2018 Zero Waste Plan initiatives:
• Initiative #13 - Foodware Packaging Reduction Plan;
• Initiative #26 - Foodware Packaging; and
• Initiative #38 - Reusable Filling Station at Stores and Zero Waste Supermarkets.
Stakeholder Engagement
Staff is conducting outreach and education to inform the community and food service providers, including restaurants and third-party food delivery vendors, about the new State and City requirements. The outreach includes direct mail to affected stakeholders, social media posts to the community, ne wsletter articles, and updating the existing webpage on the Zero Waste ordinances and requirements.
Environmental Review
This Ordinance is exempt from the requirements of CEQA under Section 15378(b)(1) of the CEQA Guidelines because it is a general polic y making activity and therefore not a “project” within the meaning of CEQA.
Attachments:
• Attachment3.a: Attachment A - Updates to PAMC 5.30 Redline • Attachment3.b: RESO - PAMC Penalty Schedule 5.30
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ATTACHMENT A
*Yet to be passed*
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 5.30 (Disposable Foodware Items and Other Disposable Products) Title 5 (Health and Sanitation) of the Palo Alto Municipal Code to Conform with Changes in State Law Related to Single-Use Foodware accessories and Standard Condiments
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. Disposable foodware items are intended to be used once then discarded. These items pose waste management challenges and can persist in the environment for many years, causing harm to wildlife and blight to waterways. The production, use and disposal of these items have significant environmental impacts, including environmental contamination; consumption of energy, water, and non-renewable polluting fossil fuels; emissions of greenhouse gases; release of air and water pollutants; depletion of natural resources; litter on streets and in waterways; plastic pollution; and increased litter clean-up and waste management costs.
B. Plastics in waterways and oceans break down into smaller pieces that are not biodegradable. Among other hazards, plastic debris attracts and concentrates ambient pollutants in seawater and freshwater, which can transfer to fish, other seafood and salt that is eventually sold for human consumption.
C. The practice of freely giving consumers disposable foodware encourages consumers, retailers, and food vendors to pay little attention to the quantity of disposable packaging products they consume and the associated environmental impact.
D. The City of Palo Alto updated its Zero Waste Plan in 2018, with new provisions designed to help the City reach its goal of 95% diversion of materials from landfills by 2030, and 80% reduction of greenhouse gases by the same year. Disposable foodware poses difficulties for composting or recycling, and therefore hampers Palo Alto’s goal of zero waste.
E. Policies that restrict the use of disposable foodware encourage reduction of pollutants and are crucial for conserving resources and protecting the environment, and integral to Palo Alto’s goal of zero waste.
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ATTACHMENT A
SECTION 2. Section 5.30.010 (Definitions) of Chapter 5.30 (Disposable Foodware Items and Other Disposable Products of Title 5 (Health and Sanitation) of the Palo Alto Municipal Code is amended as follows (new text underlined and deleted text struck through):
5.30.010 Definitions.
(a) "City Facilities" refers to any real property, building, structure or vehicle owned or operated by the City of Palo Alto, its agents, departments and franchises. (b) "Compostable" means items deemed acceptable within the city's compost collection program as determined by the Director of Public Works and identified on the city's website. (c ) “Condiment” means relishes, spices, sauces, confections, or seasonings that require no additional preparation and that are usually used on a food item after preparation, including ketchup, mustard, mayonnaise, soy sauce, hot sauce, salsa, salt, pepper, sugar, and sugar substitutes.
(dc) "Disposable" means items designed to be used once or a limited number of times and then discarded, whether the item is non-recyclable, Recyclable or Compostable. (ed) "Food Service Container" means a product used by Food Service Establishments for serving or transporting prepared and ready-to-consume food or beverages. This includes but is not limited to plates, cups, bowls, lids, trays and hinged or lidded containers. (fe) "Food Service Establishment" means any establishment, located or providing food within the City of Palo Alto, which provides prepared and ready to consume food or beverages, for public consumption including but not limited to any Retail Service Establishment, eating and drinking service (as defined in Title 18), takeout service (as defined in Title 18), supermarket, delicatessen, restaurant, food vendor, sales outlet, shop, cafeteria, catering truck or vehicle, cart or other sidewalk or outdoor vendor or caterer which provides prepared and ready-to- consume food or beverages, for public consumption, whether open to the general public or limited to certain members of the public (i.e., company cafeteria for employees). For the purpose of this ordinance “Food Service Establishment” shall include all entities found in “Food Facility” as listed in CA HSC Ch.2 Section 113789(a).
(gf) "Foodware Item" means any item used or provided by Food Service Establishments to serve or consume food or beverages. Foodware Items include Food Service Containers, condiment cups and packets, straws, utensils (forks, spoons, sporks, knives, chopsticks), drink stirrers, beverage spill plugs, napkins, and other drink or food accoutrements. (hg) "Plastic Foam" means blown expanded and extruded plastic foams made from polystyrene or other resins which are processed by any number of techniques including, but not limited to, fusion of monomer spheres (expanded bead plastic), injection molding, foam molding and extrusion-blown molding (extruded foam plastic). Expanded polystyrene and other plastic foam resins are generally used to make disposable cups, bowls, plates, trays, egg cartons, clamshell containers, ice chests, shipping boxes and packing materials. (ih) "Plastic Foam Products" means Disposable Plastic Foam ice chests, cups, bowls, plates, clamshells, shipping boxes containers, egg cartons, packaging peanuts, packing blocks or other packaging materials that are not wholly encapsulated or encased by a more durable material.
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ATTACHMENT A
Additional Plastic Foam Products may be added by administrative regulation promulgated by the Director of Public Works.
(ji) "Prepared Food" means any food or beverage prepared for consumption using any cooking, packaging, or food preparation technique, including but not limited to cooking, chopping, slicing, mixing, freezing, squeezing, or brewing, and which requires no further preparation to be consumed. Prepared food includes uncooked fruits or vegetables, "take-out" food, or food prepared to be consumed off the Food Service Establishment premises. Prepared Food does not include any uncooked meat, fish or poultry. (kj) "Recyclable" means items deemed acceptable within the city’s recycling collection program as determined by the Director of Public Works and identified on the city’s website. (lk) "Retail Service Establishment" shall have the same meaning as Retail Service as defined in Title 18 of this Code.
(ml) "Reusable Foodware" means a Foodware Item made of durable materials and designed to be used repeatedly with a useful life greater than one year. (n) “Third-party food delivery platform” means a business engaged in the service of online food ordering and delivery from a food service establishment to a consumer.
Section 3. Section 5.30.025 (Limitation on the use of Disposable Foodware Items and other Disposable products) of Chapter 5.30 (Disposable Foodware Items and Other Disposable Products of Title 5 (Health and Sanitation) of the Palo Alto Municipal Code is amended as follows (new text underlined and deleted text struck through):
5.30.025 Limitation on the use of Disposable Foodware Items and other Disposable products.
Effective January 1, 2020:
(a) Food Service Establishments are prohibited from providing the following Disposable Foodware Items:
1. Plastic straws
2. Plastic utensils (e.g., forks, knives, spoons, sporks, chopsticks)
3. Plastic drink stirrers, drink plugs, and other drink accoutrements such as novelty cocktail accessories
4. Plastic food picks and toothpicks
(b) Food Service Establishments, City Facilities, and vendors at City-sponsored events shall provide the following Foodware Items only if they are Reusable or Compostable:
1. Straws
2. Utensils (e.g., forks, knives, spoons, sporks, chopsticks)
3. Drink stirrers, drink plugs, and other drink accoutrements such as novelty cocktail accessories
4. Food picks and toothpicks
(c) Food Service Establishments shall provide permitted Disposable Foodware Items, other than Food Service Containers, only upon customerconsumer request or at a self-serve station.
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(d) Food Service Establishments are prohibited from providing consumers with wrapped bundled foodware and condiments.
1. Food Service Establishments may provide unwrapped disposable foodware accessories by a single serve dispenser to a consumer using refillable self-service dispensers that dispense one item at a time to allow for disposable foodware accessories to be obtained.
2. Food Service Establishments may provide condiments to a consumer using refillable self- service dispensers to allow for condiments to be obtained. (e) Third-party food delivery platforms are prohibited from providing foodware and condiments unless the consumer selects or requests the items.
1. Consumers must have the option to opt-in to request disposable foodware and condiments including the number of each unit identified on the third-party food delivery platform application, food service establishment web site, or any vendor website or app when picking-up food from a food service establishment and delivering food to a consumer.
2. If a consumer does not select any disposable foodware accessories or condiments, no disposable foodware accessory or condiment shall be provided by the food service establishment or third-party vendor for delivery with ready-to-eat food.
Section 4. Section 5.30.030 (Exemptions) of Chapter 5.30 (Disposable Foodware Items and Other Disposable Products of Title 5 (Health and Sanitation) of the Palo Alto Municipal Code is amended as follows (new text underlined and deleted text struck through):
5.30.030 Exemptions.
(a) The following exemptions shall apply:
(i) Foods prepared or packaged outside the City of Palo Alto are exempt from the provisions of this Chapter. Purveyors of food prepared or packaged outside the City of Palo Alto are encouraged to follow the provisions of this Chapter.
(ii) The Director of Public Works may exempt a Food Service Establishment, Retail Service Establishment or City Facility/vendor from the requirements of this Chapter for a period of up to one year, if the applicant for such exemption can demonstrate that the conditions of this Chapter would cause an undue hardship. An "undue hardship" includes, but is not limited to situations unique to the applicant where there are no reasonable alternatives to Plastic Foam Products or non-recyclable plastic Disposable Food Service Containers and compliance with this Chapter would cause significant economic hardship to that applicant, or cause them to be deprived of a legally protected right.
(iii) A Food Service Establishment, Retail Service Establishment or City facility/vendor seeking an exemption application shall include all information necessary for the City to make its decision, including but not limited to documentation showing the factual support for the claimed exemption. The Director may require the applicant to provide additional information to permit the Director to determine facts regarding the exemption application. This exemption does not apply to the requirements found in California Public Resource Code Chapter 5.2 Single-Use Foodware Accessories and Condiments.
(iv) Emergency Supplies and Service Procurement. City facilities, Food Service Establishments, Retail Service Establishments, City contractors and vendors doing business with
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the City shall be exempt from the provisions of this chapter, in a situation deemed by the City Manager to be an emergency for the immediate preservation of the public peace, health or safety.
(v) Nothing in this Chapter shall restrict, or be construed to restrict, the availability of single- use plastic straws to individuals who may require and request the use of single-use plastic straws due to disability or other medical or physical conditions or circumstances.
It shall not be a violation of this Chapter for any Food Service Establishment, City Facility or City- sponsored event vendor to provide single-use plastic straws to such individuals who request plastic straws.
(vi) The following facilities are not required to comply with the provisions in this chapter. (1) Health Care Facilities (patient rooms only)
(2) Residential Care Facilities
Section 5. 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 irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
Section 6. This ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) because under Section 15378(b)(1) of CEQA Guidelines, it is a general policy making activity and therefore not a “Project” within the meaning of CEQA.
Section 7. This ordinance shall be effective on the thirty-first day after the date of its adoption.
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1 Resolution No. _____
Resolution of the Council of the City of Palo Alto Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the Palo Alto Municipal Code and the California Vehicle Code Established by Resolution No. 10000
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Administrative Penalties. The administrative penalty schedule for violations of the Palo Alto Municipal Code established by Resolution No. 10000 is hereby amended and restated to read as follows:
Standard penalty unless otherwise indicated below. $50
Second violation within 36 month period 150% of listed penalty (unless otherwise specified)
Third & subsequent violations within 36 month period. 200% of listed penalty (unless otherwise specified)
Delinquency penalty. 10% per month, simple interest, on delinquent amount
4.04.020 License or permit required. 300
4.04.100 Display of license or permit. 300
4.10.045 License fees for pushcart vendors. 300
4.10.050 Regulations for solicitors and peddlers. 350
4.10.055 Identification cards for solicitors. 250
4.10.057 Regulations for pushcart vendors. 300
4.10.070 License required - circus etc. 300
4.10.120 Arcade prohibited. 250
4.10.200 Pawn brokers prohibited. 250
4.10.230 Daily report of second hand dealers. 250
4.10.240 Maintaining reports - second hand dealers. 250
4.10.260 Failure to make report - second hand dealers. 250
4.10.270 Second hand goods held for inspection. 250
4.18.040 Unlawful dog or cat kennel. 250
4.30.010 Soliciting without a permit. 250
4.30.100 Conduct of solicitations. 250
4.32.020 Soliciting without a permit. 250
4.32.060 Investigation of records of solicitor. 250
4.32.090 Acts required during solicitation. 250
4.32.100 Restriction of solicitation. 250
4.32.110 Hours of solicitation. 250
4.34.020 Permit required - closing out sale. 250
4.39.030 Audible alarms. 250
4.39.040 Limitation on automatic dialing devices. 250
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2 4.39.060 Registration of alarm. 250
4.39.110 Alarm violations. 100
4.42.020 Certificate of public convenience. 1000
4.42.085 Controlled substance and alcohol testing. 500
4.42.090 Taxi owners permit. 5000
4.42.100 Taxi drivers permit expired. 250
4.42.130(b) Taxi drivers permit not displayed. 250
4.42.190 Taximeters. 500
4.42.200 Taxi cab operating regulations. 250
4.42.210(a) Interference with inspection. 500
4.42.210(b) Inspection of vehicles. 500
4.42.220 Operating regulations. 500
4.42.230 Maintenance of vehicles. 500
4.51.030 License required - bingo. 250
4.51.050 Minors restricted - bingo. 50
4.51.080 Staffing and operations - bingo. 250
4.51.110 Physical presence required - bingo. 250
4.52.020 License required - billiards and bowling. 1000
4.52.040 Minors restricted - billiards and bowling. 250
4.52.060 Offensive conduct - billiards and bowling. 250
4.52.070 Interference w/emerg. Access -billiards/bowling. 250
4.54.030(a) Permit required - massage establishment. 1000
4.54.060(a) Permit required - massage tech. 250
4.54.110 Massage establishment facilities. 250
4.54.130 Business name - massage. 250
4.55.030 License required - adult entertainment. 1000
4.56.030 License required - hot tub and sauna. 1000
4.56.060 Employee permit required - hot tub and sauna. 250
4.56.100 Hot tub/sauna establishment and operations. 250
4.56.120 Business name - hot tub and sauna. 250
4.56.150 Display of permit - hot tub and sauna. 250
4.56.200 Employment of persons < 18 - hot tub and sauna. 250
4.57.020 Permit required - firearms sales. 1000
4.57.095 Firearms dealers – business and security. 500
4.58.020 Minors restricted - narcotics paraphernalia shop. 750
4.58.030 Regulations - narcotics paraphernalia shop. 750
4.59.010 Pet shop requirements. 250
4.59.020 Pet shop sanitation. 250
4.59.030 Pet shop food. 250
4.59.040 Pet shop notification. 250
4.59.050 Pet shop - sale of dangerous or wild animals. 250
4.59.070 Dead animals. 250
4.59.080 Permit required - pet shop and kennel. 250
4.59.090 Permit required - grooming shop. 250
4.59.095 Sales of kittens and puppies. 250
4.59.100 Sales of raccoons. 250
4.59.105 Sales of rabbits, chicks, ducklings. 250
4.60.030 Business registration required 250
4.60.060 Business registry application required 250
4.60.120(a) Business registry fee delinquency 50% of registry fee if 1-30 days late 100% of fee or 31+ days late
5.12.010 Permit required - refreshment stand. 250
5.20.030 Discarding solid waste. 250
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3 5.20.040 Accumulation of garbage. 250
5.20.050 Unauthorized bins, boxes, containers-first violation. 500 Second and subsequent violations. 1000
5.20.080 Number of containers required. 250
5.20.090 Collection of recyclable materials. 250 for Commercial Premises 50 for Residential Premises
5.20.100 Collection of compostable materials. 250 for Commercial Premises 50 for Residential Premises
5.20.105 Contamination of containers. 250 for Commercial Premises 50 for Residential Premises
5.20.108 Multifamily properties/Commercial premises. 250
5.20.109 Requirements for special events. 100
5.20.111 Self-haul in violation of code 100
5.20.120 Improper container condition. 250
5.20.130 Maintenance of bins and boxes- first violation. 250 Second and subsequent violations. 500
5.20.160 Spillage or leakage of solid waste. 250
5.20.180 No accumulation of solid waste. 250
5.20.190 No burning, burial, or dumping of solid waste. 250
5.20.200 Hazardous waste. 500
5.20.220 Scavenging prohibited. 100
5.30.020 Polystyrene & Non-Recyclable Plastic. 500
5.30.025(a)-(d) Limitation on use of Disposable Foodware items 100 and other Disposable products.
5.30.025(e) Prohibition of third-party vendors providing utensils 350 or condiments unless requested by customer.
5.35.020 Bags at retail establishments. 500
5.35.030 Bags at supermarkets. 500
6.08.020(b) Interference with animal control officer. 250
6.16.010 No dog license. 50
6.16.080 Number of dogs allowed. 100
6.16.100 Leash Law. 100
6.20.010 Animals at large. 100
6.20.020 Animals on unenclosed premises. 100
6.20.030 Animals kept in enclosures. 100
6.20.035 Tying animals to bicycle racks or trees. 100
6.20.040 Nuisance on sidewalk. 100
6.20.045 Animal waste removal - first offense. 25
6.20.045 Animal waste removal - second offense. 50
6.20.045 Animal waste removal - third offense. 125
6.20.055 Animals in vehicles. 250
6.20.060 Bees close to property line. 100
6.20.080 Permit required - livestock. 100
6.20.090 Maintaining birds, goats, pigs and rabbits. 100
6.20.110 Number of cats kept. 100
6.20.120 Permit required - breeding animals. 100
6.20.130 Cat or dog in heat. 100
6.20.140 Barking dogs. 100
6.20.150 Vaccination required - animals. 100
6.20.160 Sanitary enclosures. 100
6.20.170 Slaughter of animals. 500
6.24.020 Permit required - construction of stable. 250
6.24.050 Maintenance of stable. 250
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4 6.28.040 Possession of dangerous or wild animals. 500
6.32.010 Keeping diseased animals. 500
6.32.020 Confining animals with rabies. 500
6.32.050 Dead animals in public. 500
6.36.010 Sales of certain animals. 250
8.04.020 Permit required - tree work. 500
8.04.080 Interference with tree enforcement. 500
8.08.010 Weeds as public nuisance. 250
8.10.050 Protected trees. 500
8.10.070 Care of protected trees. 500
8.10.080(b) Development conditions. 500
9.04.010 Open container in business district. 100
9.04.020 Open container in City parking lot. 100
9.04.030 Open container near liquor store. 100
9.04.040 Social host. First violation 250
Second violation 500
Third & subsequent violation 1000
9.07.020 Safe Storage of Firearms 1000
9.08.010 Discharge of firearms/fireworks. 1000
9.09.010(a) Urinating/defecating on street or public place. 250
9.09.010(b) Igniting or maintaining outdoor fire. 250
9.10.030 Residential property noise limits. 100
9.10.040 Commercial property noise limits. 100
9.10.050 Public property noise limits. 100
9.10.060(b) Construction noise signs. 250
9.10.060(c) Construction noise. 250
9.10.060(d) Construction equipment noise. 100
9.10.060(e) Residential power equipment noise. 100
9.10.060(f) Leaf blower noise- first violation. 100
Leaf blower noise- second violation 150
Leaf blower noise- third and subsequent violation 300
9.10.060(g) Street sweeping noise. 100
9.10.060(h) Refuse collection noise. 100
9.10.060(i) Safety device noise. 100
9.10.060(k) Public parking lot cleaning noise. 100
9.10.060(l) Business district street cleaning noise. 100
9.12.010 Loudspeakers. 150
9.14.020 Smoking prohibited - enclosed places. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)
9.14.025 Smoking prohibited – unenclosed areas. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)
9.14.030 Smoking prohibited - city cars. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)
9.14.035 Smoking prohibited – public parks and public events 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)
9.14.040 Smoking prohibited - child care facilities. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)
9.14.050 Smoking prohibited – commercial areas
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5 and public events. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)
9.14.080 Location of tobacco vending machines. 1000
9.14.090 Display of tobacco products. 500
9.14.100 Failure to post “No Smoking” signs. 50
9.22.010 Impersonating public officials. 500
9.26.020 False representation as police officer. 250
9.28.010 Hotel guest register required. 250
9.28.020 Use of false name by hotel guest. 50
9.40.020 Landing aircraft at other than airport. 1000
9.44.010 Solicitation prohibited - public parking lot. 100
9.48.010 Displaying goods on sidewalk. 50
9.48.025 Sitting or lying on University Avenue sidewalks. 100
9.48.030 Operation of sidewalk elevator. 500
9.48.040 Throwing rubbish on streets. 250
9.48.050 Obligation to clean sidewalk. 200
9.50.010 Graffiti prohibited on public property. 500
9.56.030 Abatement of public nuisance. 500 unless otherwise specified
9.56.030(a)(5) Thirty-five foot site triangle. 200
9.56.030(a)(8) Foliage/branch obstruction. 200
9.56.030(a)(10) Excessive planting strip vegetation height. 150
9.60.030 Blocking entrances to City Hall. 500
9.60.050 Placing signs or climbing on City Hall. 500
9.60.060 Bicycles and skateboards at City Hall. 50
9.60.070 Alcoholic beverages prohibited - City Hall. 100
9.64.010 Overnight use of community facilities 250
9.74.030 Discrimination in housing. 250
9.78.020 Mosquito breeding places. 500
9.79.100 News rack violations. 100
12.08.010 Permit required - public right of way. 500
12.08.100 Removal of City Engineer monuments. 500
12.12.010 Building on public easement without or in violation 1000 of encroachment permit
12.12.020 Failure to obtain or violation of commercial 500 sidewalk encroachment permit
12.16.030 Overhead wires in underground districts. 500
12.16.090 Property owner responsibility. 500
12.20.010 Utility rules and regulations 500 unless otherwise specified
12.20.010 Emergency water conservation regulations 100 (2nd violation in 1 year: $250; (Reso. Nos. 9509, 9460, 9449) 3rd and subsequent violations in 1 year: $500)
12.20.020 Providing false information to City Utilities. 500
12.32.010 Water use regulation. 100
15.04.070 Violations of Uniform Fire Code. 500 unless otherwise specified
16.04.050 Violations of California Building Code as amended. 500 unless otherwise specified
16.05.040 Violations of California Mechanical Code as amended500
16.06.050 Violations of California Residential Code as amended.500
16.08.040 Violations of California Plumbing Code as amended. 500
16.09.260 Violations of Sewer Use Ordinance 1000
16.10.020 Construction of private sewer system. 750
16.10.050 Permit required - private sewage system. 500
16.14.040 Violations of California Green Building 500
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6 Standards Code as amended
16.14.260 Failure to meet diversion requirements. $150 per ton of waste not diverted or $3000, whichever is
greater
16.14.370 Failure to meet diversion requirements. $150 per ton of waste not diverted or $3000, whichever is
greater
16.16.060 Violations of California Electrical Code as amended. 500
16.17.020 Violations of California Energy Code as amended. 500
16.18.020 Violations of International Pool and Spa Code as 500 amended
16.20.020 Design review required - signs. 500
16.20.090 Prohibited signs. 250
16.20.100 Prohibited locations - signs. 250
16.20.110 Fuel price signs required. 250
16.20.210 Non-compliance with sign ordinance. 250
16.20.230 Abandoned signs. 250
16.20.250 Parking of advertising vehicles. 250
16.24.080 Fence violation. 250
16.28.060 Permit required - excavation and grading. 500
16.28.330 Protection of adjacent property. 500
16.28.340 Deposits of earth, rock, etc. 500
16.32.010 Permit required - moving a building. 250
16.36.050 Curb painting without a permit. 100
16.36.060 House numbering required. 100
16.38.020 Certificate of occupancy – community housing. 500
16.40.040 Dangerous and substandard buildings. 500
16.40.090 Non-compliance with order of building official. 500
16.40.180 Interference with repair or demolition work. 500
16.42.090 Failure to submit seismic report. 250
16.45.070 Failure to pay fee - Stanford Research Park. 250
16.46.060 Failure to pay fee - San Antonio - West Bayshore. 250
16.47.050 Failure to pay housing impact fee. 250
16.49.050 Exterior alteration of downtown historic structures 10000 or a significant structure outside the downtown
without or in violation of permit
16.49.060 Demolition of a significant downtown building 10000 without or in violation of permit
16.49.070 Demolition of a contributing downtown structure 10000 or significant structure outside the downtown
without or in violation of permit
16.49.080 Maintenance of downtown historic structure. 10000
16.49.090 Demolition of downtown historic structure. 10000
16.52.070 Construction - flood hazards. 500
16.59.090 Failure to pay fee- Citywide Transportation Impact. 250
16.60.090 Failure to pay fee- Charleston/Arastradero. 250
16.62.020 Maintenance of expired building permit 200 for 31st through 60th day 400 for 61st through 120th day
800 for 121st day and thereafter
17.04.020 Violations of hazardous materials storage. 500, unless otherwise specified
17.04.030 Specific obligation - hazardous materials. 500
17.10.010 General obligation - underground storage tanks. 750 unless otherwise specified
17.10.040 Permit required - underground storage. 500
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7 17.10.140 Financial responsibility - underground storage. 500
17.10.150 Monitoring underground storage tanks. 1000
17.10.170 Unlawful abandonment - underground storage tanks.1000
17.12.010 Permit required - hazardous materials storage. 750
17.12.020 New hazardous materials storage facilities. 750
17.12.060 Hazardous materials storage facilities. 750
17.16.010 Hazardous materials management plan. 250
17.20.010 Hazardous materials inventory statement. 250
17.24.010 Hazardous materials discharge report. 750
17.32.010 Permit required - storage of hazardous materials. 1000
18.01.080 Violation of zoning laws. 500
18.16.060(d)Hotel stay in excess of 30 days. 200
18.38.020 Planned Community zoning (unless otherwise 500 specified in PC ordinance) 2500 beginning the 181st day following notice of violation
Violations of Ordinance 5069 shall
be subject to the penalties listed
above except that the penalty for
violations of Sections 4(b)(1), (2),
(6), and (7) of Ordinance 5069 shall
not be subject to the penalties
above or to the escalators for
second, third and subsequent
violations, but shall be $2157 per
day, for each and every day that a
grocery store is not in operation
within College Terrace Centre in
accordance with the terms of
Ordinance 5069. (The City Council
intends to adjust this penalty
amount periodically in future
updates to this administrative
penalty schedule to account for
periodic increases in the Consumer
Price Index for All Urban
Consumers.) In calculating the
penalties for such violations, the
City will allow for a grace period for
any daily violations that do not
exceed six (6) cumulative months in
any five (5) year period. However,
this grace period was previously
applied to violations from 1/10/18
through 7/10/18, so there is no
entitlement to any further grace
period prior to 1/10/23.
18.42.060(a)Incompatibility of home occupations. 200
18.42.060(b) Employees of home occupation. 200
18.42.060(c) On site advertising of home occupation. 200
18.42.060(d) Floor area of home occupation. 200
18.42.060(e) Traffic related to home occupation. 200
18.42.060(f) Home occupation as nuisance. 200
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8 18.42.060(g) Outdoor storage related to home occupation. 200
18.42.070 Servicing vehicles in residential zone. 250
18.52.050 Transportation demand management conditions 1000 4000 beginning the 181st day
following notice of violation
18.84.200 Temporary uses. 250
22.04.030 Compliance with park regulations. 46 for violation of regulation R1-6 requiring payment of Foothills Park
entry fee; 250 for violation of all
other Park & Open Space
Regulations.
22.04.040 Failure to obtain use permit. 300
22.04.150(b) Entry at unapproved location - Foothills Park 50
22.04.150(c) Person in park after hours - Foothills Park. 250
22.04.150(d) Speed limit 20MPH - Foothills Park. 250
22.04.150(e) Vehicles in Foothills Park after hours. 100
22.04.150(f) Skateboards and motorcycles - Foothills Park. 250
22.04.150(g) Smoking on trails - Foothills Park. 1000
22.04.150(h) Fires in Foothills Park. 1000
22.04.150(i) Use of trails - Foothills Park. 100
22.04.150(l) Unleashed dog - Foothills Park. 250
22.04.155 Restraint of dogs in City parks. 250
22.04.160 Permit required - sales in parks. 250
22.04.170 Violation of park use permit. 250
22.04.180 Sound in parks. 250
22.04.190 Unauthorized golf and other games in parks. 250
22.04.200 Unauthorized models and kites in parks. 100
22.04.210 Parking in parks. 100
22.04.215 Launch and takeout from ramp or dock. 250
22.04.220 Bicycle not permitted on trails. 250
22.04.230 Dumping in park. 1000
22.04.240 Interference with park use permit. 250
22.04.250 Park regulations . 250 unless otherwise specified
22.04.260 Discharge of weapons in park. 500
22.04.270 Removal of flora or fauna. 500
22.04.280 Removal of turf or soil. 500
22.04.290(a) Damaging, defacing, etc., property. 1000
22.04.290(b) Marking, writing or printing on property. 1000
22.04.290(c) Attaching sign, etc., without permit. 500
22.04.290(d) Entering, etc., structure after posted hours. 250
22.04.290(e) Bringing portable tables without a permit. 100
22.04.300 Unlawful fire in city park. 1000
22.04.310 Enid Pearson Arastradero, Esther Park closure. 250
22.04.315 Byxbee Park and Baylands closed. 250
22.04.320 Parks closed. 250
22.04.321(a)Skateboarding in park after hours. 50
22.04.322 Trespass at Rinconada Park pool. 50
22.04.330 Alcohol in Cogswell Park. 250
22.04.331 Alcohol in Lytton Plaza. 250
22.04.332 Alcohol in Johnson Park. 250
22.04.333 Alcohol in Boulware Park. 250
22.04.334 Alcohol in Scott St. Minipark. 250
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9 22.04.335 Alcohol in Greer Park. 250
22.04.336(a)Alcohol in Rinconada Park. 250
22.04.337 Alcohol in Mitchell Park. 250
22.04.338 Alcohol in Robles Park. 250
22.04.339 Alcohol in Hopkins Park. 250
22.04.340 Vehicles in park. 250
22.04.341 Alcohol in El Palo Alto Park. 250
22.04.342 Alcohol in Heritage Park. 250
22.04.343 Alcohol in Pardee Park. 250
22.04.350 Consumption of alcoholic beverage in vehicles. 250
22.04.360 Open container in park - alcoholic beverage. 250
22.04.370 Reckless driving in park. 250
22.04.380 Unlawful riding and towing in parks. 250
22.04.390 Duck pond. 100
SECTION 2. Municipal Code Civil Penalties. The civil penalty schedule for violations of the Palo Alto Municipal Code established by Resolution No. 10000 is hereby restated to read as follows*:
Standard penalty unless otherwise indicated below. $46
10.36.020 No parking in parkways. 46
10.36.030(a)Storage on the street (72 hours). 86
10.36.040(a)(1)Vehicle for sale on street. 46
10.36.040(a)(2)Repairing vehicle on street. 46
10.36.050 Not w/in 18” of left curb--One-way street. 46
10.36.090 Removal of chalk markings. 111
10.40.020(a)(1)Parking violation – red curb. 46
10.40.020(a)(4)Parking violation – green curb. 46
10.40.020(a)(5)Parking violation – blue curb. 308
10.40.020(b)Parking in violation of sign (except blue curb). 46
10.40.020(b)Unlawful disabled parking - signs (blue curb). 308
10.40.040(b)Commercial vehicle double parking. 46
10.40.050 Unlawful parking in yellow loading zone. 46
10.40.060 Unlawful parking in passenger loading zone. 46
10.40.070 Unlawful alley parking. 46
10.40.100(g)Parking in a bus zone. 46
10.44.010(b)Overtime parking (limited time zone). 41
10.44.010(c)Additional violation of time limited or no 44 parking zones.
10.44.020(a)Oversized vehicle parking in residential or 46 public facilities zones 2am-6am.
10.44.040(b)Not in space marking. 46
10.44.050(b)Parking violation--temporary sign. 46
10.44.060 Dealers--parking for sale or repair. 46
10.44.070(b)Parking in violation of posted sign. 46
10.44.080 Vehicle obstruction of roadway or lot. 46
10.44.090 Unattended vehicle, engine running. 111
10.45.110 Parking in on-street valet parking space. 46
10.46.110 Overtime residential parking permit (CT) 53
10.48.030 Truck route violation. 211
10.50.100(a)Violation of posted RPP permit sign 53
10.60.070(c)Permit not properly displayed. 41
10.60.070(d)Overtime permit parking in City lot. 41
10.60.070(e)Parking without permit in permit area. 46
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NOT YET ADOPTED
10 22.04.150(e)In Foothills Park after hours. 111
22.04.210 Parking in parks. 111
Late payment penalty. 35
Collection cost penalty. 35% of listed penalty
*All penalties include state-mandated assessments pursuant to Gov’t. Code 76000, S.B 1407(2008), and Government Code 76000.3 (S.B. 857, 2008) totaling $12.50.
SECTION 3. Vehicle Code Civil Penalties. The civil penalty schedule for violations of the California Vehicle Code established by Resolution No. 10000 is hereby restated to read as follows*:
5200 No front license plate. $78
(If corrected within 31 days) 10 (state mandated)
5204(a) No registration tabs on license plate. 78
(If corrected within 31 days) 10 (state mandated)
21113(a) Parking on public grounds. 46
22500(a) Parking in an intersection. 46
22500(b) Parking in a crosswalk. 46
22500(d) Parking w/in 15 feet--fire station driveway. 46 22500(e) Blocking driveway. 46
22500(f) Parking on sidewalk. 46
22500(g) Parking or stopping--excavation site, etc. 46 22500(h) Double parking on roadway. 46
22500(i) Parking in a bus zone. 261
22500(l) Parking in front of accessible curb. 303
22500.1 Parking in a fire lane (public or private). 46 22502 Right hand wheels not w/in 18” of rt. curb. 46
22505(b) Parking on state highway violation. 46
22507.8(a-b)Unlawful parking in handicapped space. 303 22507.8(c)(1-2)Straddling Lines/Cross hatched, disabled. 303 22511.57(a) Parking/standing of vehicle in disabled parking $753 stall or space with invalid license/placard.
22511.57(b) Unauthorized use of license/placard for vehicle $753 parking/standing in disabled parking stall or space.
22511.57(c) Parking/standing of vehicle in disabled parking $753 stall or space with counterfeit, forged, altered or
mutilated license/placard for disabled.
22514 Parking within 15 feet of fire hydrant. 46
22515 Unattended vehicle, engine running. 111
22516 Person locked in vehicle. 111
22521 Parking within 7 1/2 feet of railroad tracks. 46 22522 Parking near sidewalk access ramp. 303
22523(a) Unlawful abandonment of vehicle on highway. 131 22523(b) Abandoned vehicle--public/private property. 131 22526 Entering/blocking intersection – anti-gridlock. 131 22951 No street, alley parking--patron vehicles. 46
*All penalties include state-mandated assessments pursuant to Gov’t. Code 76000, S.B 1407(2008), and Government Code 76000.3 (S.B. 857, 2008) totaling $12.50.
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NOT YET ADOPTED
11 SECTION 4. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required.
SECTION 5. This resolution shall be effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
________________________________ ________________________________
City Clerk Mayor
________________________________ ________________________________ Assistant City Attorney City Manager
________________________________
Director of Public Works
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City of Palo Alto (ID # 14225)
City Council Staff Report
Meeting Date: 4/18/2022
City of Palo Alto Page 1
Title: Approval of Amendment Number 1 to Contract Number C18169357 With Van Scoyoc Associates, Inc. for Federal Legislative Advocacy to Extend the Term for one Additional Year and add $82,800 for a Total Not -to-Exceed Amount of $414,000
From: City Manager
Lead Department: City Manager
Recommended Motion
Staff recommends that City Council approve the first amendment (attached) to the current agreement with Van Scoyoc Associates , Inc., for federal 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 $82,800 from $331,200 to $414,000.
Background
For many years, the City has contracted for federal legislative advocacy services. This Washington, D.C.-based representation allows Palo Alto to have a presence and voice with federal representatives, regulators, and their Washington, D.C. staff. Since 201 8, the City has contracted with Van Scoyoc Associates, Inc. (Van Scoyoc), to provide this federal representation (CMR #8562; Minutes; 11/6/2017). Staff is in the process of developing a new request for proposals (RFP) for these services and this contract extension will allow the City to continue the services while the RFP is conducted in 2022.
Discussion
Federal legislative advocacy generally, and through Van Scoyoc specifically, has been instrumental to the City of Palo Alto ’s sustained presence and voice in Washington, D .C. For example, in 2021, Van Scoyoc assisted the City in preparing for the Community Project Funding application process and best situated the City for a successful application to Representative Anna Eshoo.
Staff is currently dra fting the RFP for releas e in spring 2022. This will allow for enough time to solicit and evaluate bids for a start date of January 1, 2023 of any new federal advocacy contract.
Staff recommends this contract amendment with Van Scoyoc to provide comprehensive federal 4 Packet Pg. 35
City of Palo Alto Page 2
legislative advocacy services. The relationship between the City and Van Scoyoc is effective and highly collaborative, with staff of each entity communicating frequently and working to stay ahead with information at the federal level . As Van Scoyoc has worked with th e City over the 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.
Van Scoyoc has agreed to continue their existing rates into this next extension, with no increase during this extension. Attachment A sets out Amendment number one, extending the original agreement to December 31, 2022, and noting the flat rates.
Resource Impact
Funding for extending the current contract by twelve months increases the total not-to-exceed amount by $82,800. Funding for federal 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 federal 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. 4 Packet Pg. 36
City of Palo Alto (ID # 14265)
City Council Staff Report
Meeting Date: 4/18/2022
City of Palo Alto Page 1
Title: Approval of the Appointment of Sandra Blanch as Human Resources Director
From: City Manager
Lead Department: Human Resources
RECOMMENDATION
The City Manager recommends that the City Council confirm the City Manager’s appointment of Sandra Blanch as Human Resources Director.
BACKGROUND
The Palo Alto Charter and Municipal Code establish the City Manager as the appointing authority for all officers, department directors, and employees under the City Manager’s areas of responsibility. The Charter and M unicipal Code (2.08.020) additionally specify that appointments of department heads are subject to approval of the Council.
The Municipal Code (2.08.040) establishes the general responsibilities of the City’s Department Directors, including:
• Formulating and recommending policies and procedures for the operation of their department;
• Awareness of the latest practices in their particular fields that are of benefit to the municipal service and to the public;
• Providing advice and assistance to other departm ent heads and council -appointed officers; and cooperating with each other on matters of mutual concern.
Specific to the role of Human Resources Director, the Municipal Code identifies that the Director is responsible for HR matters such as:
• Administration of the merit system;
• Recruitment, employment and promotion of City personnel; • Salary schedules and job classifications;
• Training, safety programs, and workers’ compensation; • City insurance programs, loss control and risk;
• Union meet and confer negotiations.
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City of Palo Alto Page 2
According to the fiscal year 2022 budget, the Human Resources Department consists of 16 full- time staff positions and $16.2 million in authorized annual expenditures for the performance of its responsibilities.
DISCUSSION
Palo Alto’s current Hum an Resources (HR) Director, Rumi Portillo, plans to retire at the end of May, creating a vacancy in the HR Director role . The City Manager has selected Sandra Blanch to serve as the City’s next Human Resources Director and recommends that Council approve the appointment.
Ms. Blanch currently serves as the Department’s Assistant Director, and has served the Palo Alto community for the past 28 years including service as interim HR director in 2011 -12. Ms.
Blanch is an expert in all areas of human resources , with focused expertise in workplace health and safety. In addition to experience and skills, Sandra Blanch has excellent working relationships throughout the City, support of the Human Resources staff, and has demonstrated her ability to operate with a steady and caring demeanor.
Over the past six years, HR Director Portillo and Assistant HR Director Sandra Blanch have worked in close collaboration to lead the City through many difficult personnel and policy issues. Most recently, their strong management , effective leadership and around -the-clock support helped the organization navigate the ongoing challenges of the pandemic. Palo Alto is fortunate that Ms. Blanch has the qualifications, leadership , and skills to fill the position of Director. Ms. Blanch has a Bachelor of Science in Public Relations from San Jose State University, with a minor in Business. Assistant Director Blanch also serves as the City of Palo Alto’s Board Member representative and the Secretary for the California Cities Excess Liabili ty Risk Pool.
Sandra Blanch will be an “at -will” employee, which means she will serve at the pleasure of the City Manager and can be terminated or asked to resign at any time. Her annual salary will be $238,450, which is within the Council -approved salary range for the Human Resources Director position which has a maximum salary of $251,410 . The benefits and terms of employment for the appointment of Sandra Blanch to HR Director are those found in the City’s Management and Professional Compensation Plan as adopted by Council. There are no special or additional provisions included in this appointment.
The City Manager will coordinate the appointment of Sandra Blanch to HR Director to coincide with Director Portillo’s retirement near the end of May . This internal promotion is a continued testament to the strong culture of professional development and succession planning in the Palo Alto workforce.
RESOURCE IMPLICATIONS
The Human Resources Director position is included in the FY 2022 Adopted Budgets. Therefore, no budget modifications or additional funding are necessary. 5 Packet Pg. 38
City of Palo Alto (ID # 13889)
City Council Staff Report
Meeting Date: 4/18/2022
City of Palo Alto Page 1
Title: Policy and Services Committee, City Auditor and Staff Recommend Approval of the Power Purchase Agreement Audit Report
From: City Manager
Lead Department: City Auditor
Recommended Motion
The Policy and Services Committee, City Auditor, and City staf f recommend that City Council approve the Power Purchase Agreement Audit report.
Executive Summary
Baker Tilly, in its capacity serving as the Office of the City Auditor, performed an assessment of the City's process for evaluating, entering into, and man aging power purchase agreements (PPA) focusing on the effectiveness of internal controls and validating the accuracy and compliance of PPA billing. This assessment was conducted in accordance with the FY2021 Audit Plan approved by City Council.
Through the audit activity, the Office of the City Auditor identified three (3) recommendations. Th e City of Palo Alto Utilities (CPAU) concurred with each finding and has drafted action plans for each item.
The Policy & Services Committee approved the report on a two out of three majority vote at the November 9, 2021 meeting ( ID #13681 ; Minutes; Video). In accordan ce with the City Council Policies and Procedures, this item is scheduled as an action item, due to the lack of a unanimous vote of approval from the Committee.
The Office of City Auditor will perform periodic follow up procedures to validate that corrective actions have been implemented.
Background
The City of Palo Alto offers its residents and businesses a suite of utility services, including electricity, natural gas, water, sanitary sewer and commercial fiber optics. To continue to provide reliable and affordable services, specifically electricity, the CPAU has entered into multiple PPAs. To ensure CPAU continues to meet its mission, power needs and mitigate risks, the Office of the City Auditor conducted an assessment focused on 6 Packet Pg. 39
City of Palo Alto Page 2
current PPA management practices.
The Office of the City Auditor included an audit activity related to the adjustment in the FY2021 Audit Plan approved by City Council. The objectives of this review were to:
1) Gain an understanding of the City’s process for evaluating and entering into Power Purchase Agreements;
2) Evaluate the effectiveness of internal controls in the management of agreements and;
3) Validate the accuracy of and compliance of billing.
Discussion
The attached report summarizes the analysis, audit findings, and recommendations.
Timeline, Resource Impact, Policy Implications
The timeline as well as resource impacts on staff for implementation of corrective action plans is identified within the attached report. All corrective actions are scheduled to be implemented by FY 2023.
Stakeholder Engagement
The Office of the City Auditor worked pr imarily with CPAU and engaged with additional stakeholders, including the City Manager’s Office and City Attorney’s Office, as necessary.
Environmental Review
The Council’s approval of the Power Purchase Agreement Audit report does not meet the definition of a “project” under Public Resources Code 21065, therefore California Environmental Quality Act review is not required.
Attachments:
• Attachment6.a: OCA - PPA Assessment Report (Final Draft - City Council) 6 Packet Pg. 40
1 City of Palo Alto
Office of the City Auditor
Power Purchase Agreement
Assessment
April 4, 2022
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2 Executive Summary
Purpose of the Audit
The purpose of the audit was to gain an understanding of the City's process for evaluating and entering into power purchase agreements (PPA), evaluate the effectiveness of internal controls and the management of agreements and validate the accuracy of and compliance of billing.
Report Highlights
Finding Page # Description of Finding
There is no formal
documentation of staff
review of vendor
compliance with PPAs
15 Palo Alto’s PPA procurement process identified that while energy delivery is closely monitored, other PPA terms are informally monitored through meetings and status updates. There is no formal process that documents vendor compliance with PPAs. Vendor compliance or performance issues may not be documented appropriately, resulting in delayed or inadequate communication throughout the City about PPA non-compliance.
There is no formal review
or approvals of changes
to front office models.
16 Review of front office models identified that changes made to the front office model do not require approvals. Figures are vetted periodically by senior management as the figures are often reported to City Council and other senior stakeholders. If changes are not reviewed and approved by a second user/reviewer, there is an increased likelihood of inaccurate reporting.
CPAU staff does not
audit NCPA’s validation
of vendors’ invoices,
contract rates and
payments
17 The City of Palo Alto Utilties (CPAU) delegates its PPA settlements processes to Northern California Power Agency (NCPA), but does not have a process in place to validate NCPA settlement processes that include the verification of invoice calculations, contract rates, and matching All Resources Bill (ARB) amounts on behalf of the City.
Key Recommendations to the City Manager:
The City should work towards documenting vendor performance monitoring via a formal procedure by which vendors are periodically assessed for PPA compliance and general performance.
The front office model file should be altered to allow for a second reviewer and approver to document a second review and approval of any changes.
The City should implement a formalized process that would allow CPAU to validate vendor invoices and rate calculations completed by NCPA. This process should be incorporated before payment, allowing the CPAU to validate rates to contractual requirements and confirm accuracy before payment.
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3 Table of Contents
Executive Summary ........................................................................................................................................................... 2 Purpose of the Audit ..................................................................................................................................................... 2 Report Highlights ........................................................................................................................................................... 2 Introduction ......................................................................................................................................................................... 5 Objective ........................................................................................................................................................................... 5 Background ..................................................................................................................................................................... 5 Scope ................................................................................................................................................................................. 5 Compliance Statement .................................................................................................................................................. 5 Organizational Strengths ............................................................................................................................................. 6 Detailed Testing & Analysis ........................................................................................................................................ 7 Methodology & Approach ............................................................................................................................................ 7 Audit Testing ................................................................................................................................................................... 8 Contract Analysis & Review .......................................................................................................................................... 11 Introduction ................................................................................................................................................................... 11 PPA Overview ............................................................................................................................................................... 11 Approach & Analysis .................................................................................................................................................. 13 Audit Results ..................................................................................................................................................................... 14 Finding #1 - No formal documentation of staff review of vendor compliance with PPAs ........................ 14 Finding #2 - No formal review or approvals of changes to front office models. ......................................... 14 Finding #3 – No CPAU audit of NCPA’s validation of vendors’ invoices, contract rates and payments .......................................................................................................................................................................................... 14 Appendices ........................................................................................................................................................................ 15 Appendix A: Risk and Control Matrix ..................................................................................................................... 15 Appendix B: Contract Listing ................................................................................................................................... 19 Appendix C: Contract Analysis Graphs ................................................................................................................. 21 Appendix D: Agreement List and Samples ........................................................................................................... 23 Appendix E: Management Response ...................................................................................................................... 25
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4 Index of Tables
Table 1 – Power Purchase Agreements ..................................................................................................................... 23 Table 2 – Selected Sample ............................................................................................................................................. 24
Index of Graphs
Graph 1 – Annual kWh supplied by each contract from 2017-2020. ......................................................................... 12 Graph 2 – Annual spending associated with each contract from 2017-2020. .......................................................... 12
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5 Introduction
Objective The purpose of the audit was to gain an understanding of the City's process for evaluating and entering into power purchase agreements (PPA), evaluate the effectiveness of internal controls in the management of agreements and validate the accuracy of and compliance of billing.
Background The City of Palo Alto Utilities (CPAU) offers its residents and businesses a suite of utility services, including electricity, natural gas, water, sanitary sewer, and commercial fiber optics. The CPAU's mission statement is to "provide safe, reliable, environmentally sustainable and cost-effective services." To continue to provide reliable and affordable services, specifically power, CPAU has entered into multiple PPAs. These agreements support the City's power needs. However, disruption in power supply and unmitigated risk can result in the CPAU's inability to meet its customer's needs and impact the reliability of its services.
In 2013 the City of Palo Alto set out on a mission to cut carbon emissions 80% below their 1990 levels by 2030. In order to achieve their goal, the City shifted away from buying market energy, which contains fossil energy sources and entered into PPAs for energy produced from renewable sources like wind, solar and biogas. The City currently has fifteen (15) large scale PPAs in place where they purchase power generated from a renewable or carbon neutral source. The City also started a CLEAN Program for community members/organizations to install solar panels and sell the energy back to the City.
The fifteen (15) large scale PPA contracts are made up of five (5) biogas contracts (natural gas produced from landfills), six (6) solar contracts, two (2) wind contracts, and two (2) hydroelectric contracts. For more information on each contract such as term length, rate, generation type, annual production, annual spend, and Palo Alto's percentage share please see Appendix B.
To ensure CPAU continues to meet its mission, power needs and mitigate risks, the Office of the City Auditor (OCA) conducted an assessment that would focus on current PPA management processes. This decision was in conjunction with a broader, Citywide audit plan detailing the potential risks facing each department. 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 a risk related to the contract management of purchased power. With the CPAU entering into multiple agreements representing a significant expenditure for the City, it is important to monitor PPAs to ensure both parties comply with contractual requirements, meet state and local regulations, and are financially sound, ensuring reasonable and adequately billed costs.
In order to properly assess the CPAU's PPA management process, the OCA reviewed three (3) operational areas of PPAs that included procurement and contracting, contract management, and invoicing/payments. For additional details, please review the Detailed Testing & Analysis section.
Scope The scope of this engagement includes the City’s active PPAs and related processes.
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 one primary reason:
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6 - 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 audit activity, we observed certain strengths of the City. Key strengths include the following:
The City Attorney’s Office is thoroughly involved in the drafting and finalization of the PPA agreements, as well as with the Commercial Operation Deadline (COD) process to ensure that all legal requirements are met prior to and during project start up.
The CPAU is highly knowledgeable and experts in their field. Individuals that engaged with the OCA displayed a thorough understanding of processes and practices associated with their roles. In addition to developing and managing key processes, they exhibited expertise and knowledge of the power industry, current trends, and best practices.
The City has a energy risk management structure that includes policies, guidelines, and procedures first developed in the wake of the City’s issues with Enron. A component of the energy risk management structure is the City’s Utilities Risk Oversight and Control Committee, a cross-departmental body comprised of staff from Utilities, ASD, Public Works, the City Manager’s Office, and the City Attorney’s Office that meets regularly to oversee the City’s risk management program.
The City employs a structured Front Office / Back Office / Middle Office structure for all of its energy transactions intended to ensure that the different aspects of the transaction process are carried out by independent parts of the organization, and that there are internal controls and oversight in place.
The City has been actively procuring renewable power for roughly 20 years, and over that time City staff (Utilities, ASD, and the Attorney’s Office) has developed expertise with the PPA solicitation, negotiation, and management process.
The team at CPAU was very proactive and involved in the engagement that allowed for clear communication and support for audit team. CPAU was always available to provide additional support and hands on explanations on the billing/invoice processes.
The Office of the City Auditor greatly appreciates the support of the CPAU in conducting this audit activity.
Thank you!
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7 Detailed Testing & Analysis
Methodology &
Approach
The objective is to assess the current PPA processes, evaluate the effectiveness of current controls and validate billings.
To evaluate controls and billing accuracy, audit testing was conducted on a sample of active PPAs. Testing areas were identified based on results of the risk assessment documented within the Risk and Controls Matrix (RCM). Additional information regarding the testing approach and methodology can be found in the Audit Testing section.
In addition, a contract analysis was conducted that reviewed all the current agreements against best practices and other peer contracts. Additional information regarding the contract analysis can be found in the Contract Analysis and Review section.
In order to properly evaluate PPAs and CPAUs operational areas that covered procurement and contracting, contract management, and invoicing/billing, the specific approach included the steps noted below.
Audit Planning
Conduct research and gather information to understand the current environment Assess audit risk
Develop an audit planning memo and program
Conduct kick-off meeting with key stakeholders
Control Review and Testing
Gather information to understand the environment under review Conduct interviews with key process owners and management Assess risks and identify controls in place
Quantify and analyze PPA spend by contract
Perform testing of key controls around energy procurement/contracting, contract management, and invoice processing
Benchmark active PPA terms and conditions against other Baker Tilly client PPAs and industry best practices
Reporting
Develop findings and recommendations based on supporting evidence Validate documented findings
Develop and validate a draft audit report
Finalize report with management responses
Review and finalize report with the City Council and/or appropriate Council Committee
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8 Audit Testing
Introduction In order to achieve the objectives of the engagement, the OCA developed an audit testing approach and methodology that would test the design and operational effectiveness of controls and identify control gaps and unmitigated risks around PPA procurement and contracting, contract management, and invoicing/billing.
Approach &
Methodology
In order to evaluate CPAU's control environment, the OCA developed a Risk and Controls Matrix (RCM) based on documentation and stakeholder interviews. The RCM was developed to document known risk, and mitigation practices based on CPAU's information and identify opportunities and improvement areas. The RCM was developed with the emphasis on the three focus areas that include procurement, contract management, and billing/invoices. The matrix documents 33 risks that cover each of the focused operational areas. In addition, the RCM was used to facilitate the risk assessment and note the risks for the current PPA processes, identify control gaps, and determine key risk and control areas for audit testing.
The detailed RCM can be found in Appendix A.
The OCA evaluated the RCM and, based on an understanding of the current state, key risks were identified for testing. In addition to prioritizing high risks, gaps were identified and noted for further observation during testing. As a result of the RCM, ten (10) work papers were created to test controls in CPAU's current PPA management processes. Below is a description of each of the work papers that were developed for testing.
T1- Invoices
Work paper T1 tested various controls associated with risks related to invoicing. The work paper evaluated the potential risk of duplicate payments, overpayment, incorrect charge amounts, unapproved payments, and applications for Renewable Energy Credits (REC). In order to test the controls, the work paper verified the following items:
Generation data is tracked, and REC quantities are reconciled to generation totals from invoices.
Invoiced rates correspond to approved rates
The payment amount matches the invoice amount demonstrating payment accuracy Payments can be traced to and match entries in the GL There are no duplicate payments.
Payment amounts are traceable to approved All Resources Bills (ARB)
T2- Payment Packages
Work paper T2 tested the risk and control associated with the processing of the ARB. The ARB was identified as the detailed bill package that includes details utilized to develop the Payment Claim Voucher (PCV) which is utilized for the approval and processing of payments. In order to test the controls, each approved package was reviewed for documented approval, and amounts were reconciled to ensure they matched.
T3- PPA Contract Assurance
Work paper T3 reviewed contracts to ensure they contained contracts assurance language related to energy provisions and contract performance.
T4- Purchasing
Work paper T4 tested controls associated with the procurement of PPAs. The work papers evaluated the potential risk of outdated vendor evaluation criteria and weights, selection of vendors without proper evaluation, and unsatisfied Commercial Operations Deadline (COD).
In order to test the controls, the work paper verified the following items:
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9 A completed Commercial Operation Deadline (COD) was approved as part of the PPA procurement process by requesting a complete COD and reviewing the documents provided.
A Resource Integration Checklist was used as part of the procurement process by requesting the checklist and reviewing the provided documents. The RFP was evaluated based on assigned weights and shortlist by requesting documentary support and evaluating the documents provided in response.
T5- Annual Reporting
Work paper T5 addressed the CPAU's annual reporting requirements. The work paper examined the potential risk of non-compliance to State RPS requirements and environmental impacts/changes. In order to test the controls, the work paper verified the following items:
RPS requirements are addressed within the report.
Report review and approval is documented.
Vendor compliance is addressed within the report.
T6- Front Office Models
Work paper T6 evaluated front office models to validate if they are current, updated, and relevant. Front office models are developed for new contracts and extend out to the full length of the contract. Models include costs and are updated to track and manage budgets and needs. In order to test the controls, the work paper reviewed models to ensure they were updated and changes were approved. In addition, the model amounts were compared to the invoice amounts for reasonableness.
T7- Staff Reports
Work paper T7 evaluated staff reports to determine if the appropriate approvals were obtained for entering into a new or updated contract with a vendor. Reports were validated to ensure resolutions were included with approval from the Utility Risk Oversight and Coordinating Committee, Utilities Advisory Committee, City Council Finance Committee, and City Council.
T8- Vendor Evaluation
The purpose of work paper T8 is to determine if vendor reliability and/or viability has been evaluated. The work paper addressed the potential risk of financially unstable vendors, unreliable vendors, and maintaining high-risk vendors. In order to validate vendors, the work paper reviewed evaluation documentation.
T9- Other Reports
Work paper T9 validated the Integrated Resource Plan, annual RPS, and Carbon Neutral Plan status report. The work paper ensured that the Utilities Director approved the report and provided to the City Council.
T10- Billing and Adjustments
Work paper T10 evaluated controls related to the billing and adjustments. The risks addressed in the work paper include inaccurate adjustments, unapproved payments, inaccurate ARB amounts, and invoice amounts that do not match. In order to test the controls, the work paper verified the following items:
The ARB estimated amount and approved PCV amount match. Adjustment amounts are appropriate and accurately applied to the estimated amount.
The amount from the summary report matches the recalculated amount based on the application of adjustments.
If the payment amount matches the ARB amount demonstrating payment accuracy. If payment amounts are traceable to approved All Resources Bills.
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10 Sampling
Methodology
CPAU provided a list of all active PPAs managed by the City. Understanding the generation type, dollar amount, and perceived risk/complexity, five (5) of twenty-one (21) contracts were judgmentally selected for the assessment. The contracts selected include Shiloh, San Joaquin, Elevation Solar, Calaveras, and Western. Refer to Appendix B for a summary of the active PPAs.
Based on the contract selection, a list of the volumes and settlement months was provided to conduct transactional sample selection for invoicing and payment testing. The OCA focused testing on transactions covering the period 01/01/2020 to 12/31/2020, and selected three (3) transactions from each contract. The selected samples can be found in Appendix D.
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11 Contract Analysis & Review
Introduction As part of this audit, an overall contract analysis was performed to review the PPAs entered into by CPAU and ensure they are in alignment with industry standards. The PPAs were reviewed for standard contract language and structure compared to others in the industry.
PPA
Overview
The PPA contracts entered into by CPAU are all physical PPAs. A physical PPA is where the customer (Palo Alto) and the developer agree on a set price per kWh or MWh, and the customer purchases the energy for use in the same power grid. CPAU's physical PPAs are set up in two different ways: 1) CPAU is an off-taker 2) CPAU acts as a joint owner. Fourteen of CPAU's contracts are those in which they act as an off-taker. The developer or seller develops the facility, maintains, operates, and provides the City with an agreed-upon percentage of the energy produced. The City then pays for the energy supplied at the agreed-upon rate. This structure has several benefits, including locking in a fixed rate over the contract's life, performance guarantees, only pay for energy provided, dependable budgeting, etc.
The Calaveras PPA is set up where the City and other project participants act as owners instead of simply being off-takers. This contract dates back to 1982 and is a "Third Phase" agreement between Northern California Power Agency (NCPA) member parties for the construction operation and financing of the North Fork Stanislaus River Hydroelectric Development Project. Since some NCPA members act as owners, it was set up as a take-or-pay agreement described below.
Section 6.3.3 of the City’s Facilities Agreement with NCPA states, "Third Phase Agreements shall be written as "take-or-pay" ("hell-or-high-water") agreements to the greatest extent possible, so as to insulate NCPA and all Members who are not Project Participants from liability arising from the NCPA Project. Third Phase Agreements shall obligate Project Participants to treat all Project Costs as operation and maintenance expenses of their respective Electric Systems, and shall pledge the Project Participant's obligation to raise electric rates and/or increase Revenues upon demand of NCPA so as to pay such Project Costs."
This development provided roughly 8% of the power CPAU used in 2020 and 18% in 2019. Since the Project Participants are acting as owners, there is a different risk environment. The take or pay structure adds the risk of incurring project costs but not receiving energy, which is similar to the risk incurred by any utility that owns a generating resource. In addition, since party members are responsible for the project's operational costs, there is the risk of physical damage, maintenance costs, and unexpected issues.
Both PPA structures used by CPAU have their own risks. Each agreement needs to align with the community's overall goals, risk tolerance, and available resources. All of these contracts align with the City's goals of reducing carbon emissions and promoting clean energy. Information on the annual spend and production is shown in the graphs below. Both graphs show the historical time frame of 2017-2020 and the information was taken from files provided by CPAU. Additionally, a summarized list the PPAs and related details can be found in Appendix B.
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12 Graph 1 – Annual kWh supplied by each contract from 2017-2020.
This information was pulled from the "Supplier Invoices and REC Tracking" document provided by CPAU.
Graph 2 – Annual spending associated with each contract from 2017-2020.
This information was taken from the "Supplier Invoices and REC Tracking" document provided by CPAU. The annual cost information for Calaveras and Western (WAPA) was not included in the "Supplier Invoices and REC Tracking" document and was therefore taken from the "PPA Invoice Payments 1-19 to 4-21" file provided. This document did not include the annual spend for 2017 or 2018, so there are no values on the graph for Calaveras or Western for that time frame. 0 100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000KILOWATT HOUR
Annual Production
2017 2018 2019 2020
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Annual Spend
2017 2018 2019 2020
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13 Approach &
Analysis
Our benchmarking approach focused on the terms and conditions within each contract to ensure the City is not leaving itself open to unnecessary risks. Some of the significant risks associated with PPA contracts relate to development, price, liquidity, volume, profile, and balancing. Our research of industry standards led us to the following list of risk-reducing clauses typically included in a PPA contract to reduce the previously mentioned risks.
Development Guarantees
Performance/Production Guarantees
Force Majeure Clause
Audit Clause
Insurance Clause
Operation and Maintenance
During our analysis, it was determined that the agreements entered into by the City contain many of the risk mitigation clauses found in other contracts around the industry. The contracts lay out development guarantees and repercussions for the developer if specific project goals/deadlines are unmet.
Performance/Production Guarantees are established within each contract and are nuanced toward the specific energy or project type. The contracts contain force majeure language and lay out the events if necessary. Insurance clauses are in place to ensure the production facility contains a large policy to cover major physical damages that would affect the production. The City's contracts put the operations and maintenance responsibilities on the seller, except for Calaveras.
It is important for a community to vet the other partner on the agreement along with these standard contract clauses. Having a financially sound and experienced production partner helps ensure that the partner can remedy an issue with little risk of bankruptcy if any unforeseen problems occur. The City does this by putting restrictions on who a project can be transferred to, who can lend money for the project, and through questioning during the RFP process. Overall, the contracts appear to contain similar clauses used across the industry.
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14 Audit Results
Finding #1 - No
formal
documentation
of staff review
of vendor
compliance
with PPAs
The OCA's review of the Palo Alto PPA procurement process identified that vendors are informally monitored through meetings and status updates. For Western, the project's performance is monitored via weekly email updates from the supplier (Western Area Power Administration) and via monthly meetings with NCPA. Calaveras operations and performance are also discussed with NCPA staff and other member agencies at the monthly meeting. For the City's solar, wind, and landfill gas PPAs, the performance of these resources is monitored on a quarterly basis, when staff compare each resource's actual output to its projected level.
However, there is no formal process that documents vendor compliance with PPAs. Although documenting PPA compliance can be difficult given the nuances and complexity of PPAs, documented PPA compliance reviews should be performed periodically. Otherwise, vendor compliance or performance issues may not be documented appropriately, resulting in delayed or inadequate communication throughout the City which poses a greater risk of maintaining a relationship with the vendor for a longer than ideal period of time.
We recommend the City implement a formal vendor performance monitoring procedure by which vendors are periodically assessed for PPA compliance and general performance.
Detailed reviews of specific PPAs, vendors, or issues should be conducted on a as needed basis.
Each PPA should be reviewed in detail once every five years.
Finding #2 - No
formal review
or approvals of
changes to
front office
models.
The OCA's review of front office models identified that changes made to the front office model do not require approvals. There is version control on the document used to track front office models, and few people are allowed to change the document. Also, the figures are vetted periodically by senior management as the figures are often reported to City Council and other senior stakeholders.
However, if changes are not reviewed and approved by a second user/reviewer, there is an increased likelihood of inaccurate reporting.
Changes to front office models that significantly affect planning should be reviewed and approved, and the review and approval should be documented. We recommend the front office model file be altered to allow for a second reviewer and approver to document a second review and approval of any changes.
Finding #3 –
No CPAU audit
of NCPA’s
validation of
vendors’
invoices,
contract rates
and payments
The OCA identified during process interviews that CPAU does not have a process in place to validate NCPA settlement processes that include the verification of invoice calculations, contract rates, and matching ARB amounts on behalf of the City.
NCPA owns processes that include rate calculation and proper invoicing, but the City does not conduct a periodic check to monitor NCPA's processes for accuracy. Without proper rate review processes, payments for amounts charged at incorrect rates could be processed, and inaccurate financial reporting may occur.
We recommend a formalized process that would allow CPAU to validate vendor invoices and rate calculations completed by NCPA. This process should be incorporated before payment, allowing the CPAU to validate rates to contractual requirements and confirm accuracy before payment
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15 Appendices
Appendix A: Risk and Control Matrix
Below is the RCM that was developed and utilized to identify gaps and developing testing criteria.
Risk
Ref.
Process Sub-Process Risk Risk Description Control
#
Control Description
1 RFP Needs
Assessment
Over purchase of
renewable energy
An inaccurate needs assessment can result in the
overstatement or understatement of needs
resulting in either an over-commitment or under-
commitment outlined in contracts. This can result
in the City being placed in the position to fill gaps.
C1 Development of the Integrated
Resources Plan (every 5 years) and/or
the annual RPS and Carbon Neutral
Plan status report to the City Council
and approval from the Utilities
Director.
2 RFP Needs
Assessment
Inadequate
budget
An inaccurate needs assessment can result in the
overstatement or understatement of budget
needs.
C1 Development of the Integrated
Resources Plan (every 5 years) and/or
the annual RPS and Carbon Neutral
Plan status report to the City Council
and approval from the Utilities
Director.
3 RFP RFP
Development
Weak/Inaccurate
RFP
An RFP is issued that is not adequately vetted
and developed with the review and validation of
specifications the City needs to be achieved.
C2 Content is developed with
coordination with the City Attorney that
drafts the pro forma PPA to send with
the RFP.
4 RFP RFP
Development
Unapproved RFP An Unapproved RFP is distributed without validation of legal and performance
specifications.
C2 Content is developed with
coordination with the City Attorney that
drafts the pro forma PPA to send with
the RFP.
5 RFP Vendor
Management
Unreliable Vendor The city is partly dependent on unreliable energy providers.
Gap There is not currently a process by
which PPA vendors are periodically
vetted for reliability
6 RFP Vendor
Management
Fraudulent
vendor
High risk vendors are maintained in the RFP
distribution list and receive opportunities to bid on
City projects.
Gap There is not currently a process to
document review of PPA vendor
reliability or compliance with relevant
laws and PPA terms.
7 RFP Evaluation Improper
evaluation of
vendors
Outdated vendor evaluation criteria and weights
are used leading to the selection of an unqualified
vendor.
C3 Evaluation criteria and weights are
developed/decided based on each
RFP.
8 RFP Evaluation Unqualified
vendor selection
Vendor selected from outdated criteria or not
properly evaluated.
C4 Proposals are ranked based on
criteria by the RFP evaluation team
that results in a short list.
9 RFP Evaluation Financially
unqualified
vendor
Vendor financial and credit clearance not
completed and financially unviable vendor is
chosen to provide services.
C5 Energy Risk Manager completes
financial/credit evaluation.
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16 Risk
Ref.
Process Sub-Process Risk Risk Description Control
#
Control Description
10 RFP Selection Unapproved PPA
executed
Vendor PPA executed without proper review and
approval(s).
C6 Staff report and resolution seeking
approval of PPA(s) from the Utilities
Risk Oversight and Coordinating
Committee (UROCC), Utilities
Advisory Committee, City Council
Finance Committee, and City Council.
City Council approval is required for
PPA execution.
11 Contract
Management
Forecasting Inaccurate
forecasting
Inaccurate forecasting of generation supplies,
requirements and costs leading to inadequate
budgeting and other related planning.
C7 Front office models are developed for
new contracts that extend out to
contract length and include associated
costs. Models are updated based on
any changes.
12 Contract
Management
Forecasting Inaccurate
forecasting
Inaccurate and unapproved updates to the front
office models.
Gap Changes made to the front office
model do not require approvals.
13 Contract
Management
Consents Unapproved
consents
Unapproved vendor financing consents are
signed adding unapproved City liabilities.
C8 Standard consent form developed by
City is utilized with a legal redline
process.
14 Contract
Management
Contractual
Guarantees
Non-compliance
to contractual
development
timelines
Projects are delayed due to non-compliance with
contractual development timelines.
C9 Quarterly/monthly project
development reports are provided by
the developers/suppliers. The Senior
Resource Planner validates if they are
meeting contractual deadlines and
criteria.
15 Contract
Management
Contractual
Guarantees
Unsatisfied
Commercial
Operations
Deadline (COD)
criteria
Commercial Operations Deadline criteria are not
met prior to Commercial Operations
commencement.
C10 Senior Resource Planner works with
the City Attorney’s Office to ensure
checklist is met.
16 Contract
Management
Contractual
Generation
Guarantees
Vendor non-
compliance with
generation
requirements
Vendors do not meet generation requirements. C11 The Senior Resource Planner reviews generation data to ensure contractual
requirements are met.
Performance assurances are placed in
contracts.
17 Contract
Management
REC-
Renewable
Energy
Credit
Generation totals
do not match
REC quantities
Invoice totals do not match REC quantities
transferred by suppliers.
C12 Generation data is tracked from
supplier invoices. REC quantities are
reconciled to generation totals from
invoices.
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17 Risk
Ref.
Process Sub-Process Risk Risk Description Control
#
Control Description
18 Contract
Management
RPS Non-compliance
to RPS
requirements
RPS requirements are not met annually. C13 Annual report provided to CA Energy Commission. The Resource Planner
tracks the requirements and compiles
the report. The report is reviewed by
the Senior Resource Planner and
NCPA.
19 Contract
Management
RPS
Reporting
Non-compliance
to RPS reporting
requirements
Annual reporting requirements are not met. C13 Annual report provided to CA Energy Commission. The Resource Planner
tracks the requirements and compiles
the report. The report is reviewed by
the Senior Resource Planner and
NCPA.
20 Contract
Management
General Unacceptable
environmental
impacts/changes
in law and
regulations
Suppliers are unable to meet legal and/or
environmental requirements.
C14 The City Attorney’s Office is
responsible for incorporating
environmental laws into new and
amended PPA’s. The CPAU monitors
compliance and brings compliance
issues to the City Attorney’s Office for
assistance.
21 Contract
Management
General Enforceability of
contracts
Weak legal constraints do not allow for feasible
contract enforcement.
C15 Use and application of appropriate
legal clause and constraints to support
City objectives.
22 Contract
Management
General Price volatility Adverse market price fluctuations leading to unforeseen increased energy costs.
C16 Fixed price contracts address market
fluctuation risks.
23 Contract
Management
General Production
volume
Sufficient volume is not produced and needs to
be procured at additional unforeseen costs to the
City.
C17 Forecasting and estimates for
potential needs.
24 Contract
Management
General Balancing market
changes
Market price changes from execution to
agreement close changing cost expectations from
those originally procured.
C16 Fixed price contracts address market
fluctuation risks.
25 Invoicing All
Resources
Bill (ARB)
Inaccurate ARB The All Resources Bill (ARB) is not accurate leading to inaccurate billings and payments.
C17 The Resource Planner validates the
ARB through review and development
of the Payment Claim Voucher.
26 Invoicing All
Resources
Bill (ARB)
Totals do not
match invoices
Vendor invoices do not match the relevant
ARB(s) causing an inadequate audit trail of
services provided versus related payments.
C18 The Business Analyst conducts review
to ensure totals match invoices from
the G/L entries.
27 Invoicing All
Resources
Bill (ARB)
Inaccurate rates
are charged
Rates that are not in accordance with the contract
rates are charged and paid.
Gap NCPA reviews contract rates upon
invoice payment, but CPAU staff does
not audit NCPA’s review.
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18 Risk
Ref.
Process Sub-Process Risk Risk Description Control
#
Control Description
28 Invoicing All
Resources
Bill (ARB)
Duplicate
payments
Duplicate payments are made Gap NCPA checks for duplicate payments, but CPAU staff does not audit NCPA’s
review.
29 Invoicing All
Resources
Bill (ARB)
Overpayments Vendor overpayment. Gap NCPA checks for overpayments to vendors, but CPAU staff does not
audit NCPA’s review.
30 Invoicing Verification of
Charges
Unapproved
payments
Unapproved payments are made. C19 Payment packages are sent to management for review and approval
before processing.
31 General General Severe weather
event
The potential risk of severe weather events
causing disruption in service and meeting
contractual obligations.
C20 There are related contract assurances
in place in most modern PPAs.
32 Solar General Equipment
delivery delays
Delay in completion of project. C21 There are financial penalties and assurances language in most modern
PPAs.
33 Solar General Completion delay
/ No completion
Project startup delays in development resulting in
the City not obtaining the power needed based on
projected timeline.
C21 There are financial penalties and
assurances language in most modern
PPAs.
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19 Appendix B: Contract Listing
Below is summary content of the current PPAs in place with the City.
Contract
Number Agreement Name
Execution
Date
Commercial
Operation
Date Contract Length
Generation
Type Contract Rate
Palo Alto's
Percentage
Share
Overall
Category
C04-075 Santa Cruz 11/9/2004 2/2/2006 20th Anniversary
of COD Gas
$51/MWh
1.5% annual
escalation
50% RPS
C04-076 High Winds 11/9/2004 12/1/2004
23 and a half
years (July 1,
2028)
Wind $57.60/MWh 12.35% RPS
C05-003 Ox Mountain
(Half Moon) 1/19/2005 4/1/2009 20 years after
COD Gas
$52/MWh
1.5% annual
escalation
50% RPS
C05-068 Keller Canyon 8/8/2005 8/1/2009 20 years after
COD Gas $59/MWh 50% RPS
C05-110 Shiloh 10/11/2005 6/1/2006 15 years after
initial delivery date Wind $62.95/MWh 16.66% RPS
C10-027 San Joaquin 5/3/2010 4/20/2014 20 years after
COD Gas
$91.33/MWh
1.5% annual
escalation
also contains
increases for
emission controls
100% RPS
C12A-087 EE Kettleman
Land 6/27/2014 8/11/2015
25th anniversary
of COD
option for 5 year
extension
Solar $77.00/MWh 100% RPS
C13A-061 Frontier Solar 7/10/2013 6/7/2016 30 years after COD Solar $69.00/MWh 100% RPS
C13A-062 Western
Antelope 7/10/2013 12/31/2016
25th anniversary
of COD
option for 5 year
extension
Solar $68.77/MWh 100% RPS
C13A-063 Elevation Solar 7/10/2013 12/31/2016
25th anniversary
of COD
option for 5 year
extension
Solar $68.77/MWh 100% RPS
C14A-028 Hayworth 6/14/2014 12/22/2015
27th anniversary
of the COD
extension options
Solar
$68.72/MWh yrs
1-13
$68.22/MWh yrs
14-27
100% RPS
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20 Contract
Number Agreement Name
Execution
Date
Commercial
Operation
Date Contract Length
Generation
Type Contract Rate
Palo Alto's
Percentage
Share
Overall
Category
increases for
extension terms
SF81-003 Calaveras 7/21/1982 N/A
Until Bonds
mature or are
redeemed
Hydro
Varies depending
on annual budget
put together by
NCPA
22.92% Carbon
Neutral/RPS
N/A Johnson
Canyon 10/19/2009 5/12/2013 20 years after
COD Gas
$109/MWh
1.5% annual
escalation
100% RPS
N/A Western 10/26/2000 N/A
20 years (initial
service date is
1/1/2005)
Hydro Fluctuates based
on market rate 12.31%
Carbon
Neutral
(WAPA)
N/A Rosamond Solar 5/28/2019 Not operational 25th anniversary of COD Solar $34.02/MWh 100% RPS
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21 Appendix C: Contract Analysis Graphs
Below are graphs developed from the contract analysis.
Note: The graph shown above represents the annual kWh supplied by each contract from 2017-2020. This information was pulled from the "Supplier Invoices and REC Tracking" document provided by CPAU.
0 100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000KILLAWATT HOUR
Annual Production
2017 2018 2019 2020
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22 Note: The graph above represents the annual spending associated with each contract from 2017-2020. This information was taken from the "Supplier Invoices and REC Tracking" document provided by CPAU. The annual cost information for Calaveras and Western (WAPA) was not included in the "Supplier Invoices and REC Tracking" document and was therefore taken from the "PPA Invoice Payments 1-19 to 4-21" file provided. This document did not include the annual spend for 2017 or 2018, so there are no values on the graph for Calaveras or Western for that time frame.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Annual Spend
2017 2018 2019 2020
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23 Appendix D: Agreement List and Samples
Below are tables outlining the current agreements by power source and the sample selected for testing.
Table 1 – Power Purchase Agreements
Type Name/Location Contract Date Amount
Hydroelectric Western Area Power
Administration
1/1/2004 – 12/31/2024 Take or Pay-
Hst. $10
million/year
Calaveras 7/2/1982- Bonds Mature Varies
Wind High Winds 12/1/2004 – 6/30/2028 Up to $78.4
million
Shiloh I 6/1/2006 – 12/31/2021 Up to $75
million
Landfill Gas Santa Cruz 2/2/2006 – 2/1/2026 Up to $13.9 million
Ox Mountain 4/1/2009 – 3/31/2029 Up to $61.8
million
Keller Canyon 8/1/2009 – 7/31/2029 Up to $21.7
million
Johnson Canyon 5/14/2013 – 5/13/2033 Up to $30
million
San Joaquin 4/24/2014 – 4/23/2034 Up to $122.4
million
Solar (Large Scale) EE Kettleman Land 8/17/2015 – 8/16/2040 Up to $116 million
Hayworth Solar 12/22/2015 – 12/21/2042 Up to $130
million
Frontier Solar 7/20/2016 – 7/19/2046 Up to $99
million
Elevation Solar C 12/2/2016 – 12/1/2041 Up to $226
million
Western Antelope Blue Sky
Ranch B
12/2/2016 – 12/1/2041 Up to $125
million
Rosamond Solar 1/1/2023 – 12/31/2047 Up to $101
million
Solar (CLEAN Feed-in
Tariff)
Unitarian Universalist Church of
Palo Alto (UUCPA)
7/3/2018 – 7/2/2043 Up to $20
million
275 Cambridge Parking Garage 3/19/2018 – 3/18/2043
445 Bryant Parking Garage 7/19/2017 – 7/18/2042
475 Cambridge Parking Garage 3/19/2018 – 3/18/2043
520 Webster Parking Garage 8/2/2017 – 8/1/2042
Solar Star Palo Alto I (HP
Headquarters)
8/23/2019 – 5/31/2033
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24 Table 2 – Selected Sample
Contract Number Partner Date Generation (MWh) Charges
SF81-003 Calaveras 2020-03-01 4,182.616 $965,391
SF81-003 Calaveras 2020-07-01 5,524.528 $964,159
SF81-003 Calaveras 2020-10-01 4,299.668 $924,196
C13A-063 Elevation
Solar
2020-03-01 7,578.482 $521,172
C13A-063 Elevation
Solar
2020-09-01 8,958.425 $616,071
C13A-063 Elevation
Solar
2020-12-01 5,538.420 $380,911
C10-027 San Joaquin 2020-01-01 2,558.688 $279,337
C10-027 San Joaquin 2020-04-01 2,629.826 $287,103
C10-027 San Joaquin 2020-09-01 2,314.246 $256,441
C05-110 Shiloh 2020-04-01 5,040.000 $364,147
C05-110 Shiloh 2020-08-01 10,176.000 $652,675
C05-110 Shiloh 2020-11-01 2,163.000 $158,961
NA Western 2020-04-01 42,830.887 $1,348,036
NA Western 2020-07-01 48,779.731 $999,732
NA Western 2020-10-01 14,536.857 $573,955
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25 Appendix E: Management Response
Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan
Finding 1: There is no formal documentation of staff review of vendor compliance with PPAs The OCA recommends that the City implement a formal vendor performance monitoring procedure by which vendors are periodically assessed for PPA compliance and general performance.
Detailed reviews of specific PPAs, vendors, or issues should be conducted on a as needed basis. Each PPA should be reviewed in detail once every five years.
Resource
Management Division
Concurrence: Agree
Extensive risk management practices are in place for PPA management. The Utilities Risk Oversight Coordinating
Committee. (UROCC), which includes City Manager, Utilities, Attorney’s Office, and Public Works representation,
establishes risk management practices for entering into and managing PPAs. An ASD risk manager has a role in
monitoring risk. The City’s Attorney’s Office and Utilities staff have built up extensive experience with PPA terms, which has been recognized by vendors and other agencies. CPAU along with experienced NCPA partner staff monitor its
vendors’ compliance with PPA energy delivery terms daily (the most important item to monitor). Other periodic reviews include: CPAU Front Office staff also review monthly
performance reports from the vendor of its landfill gas projects. CPAU Back Office staff also produce monthly
reports tracking the output of renewables projects relative to staff’s expectations. And CPAU Front Office staff actively participate in quarterly stakeholder meetings held by WAPA for Western customers. CPAU staff agrees that it would be worthwhile to more formally document these ongoing reviews of vendor compliance with PPA terms periodically.
Target Date: December 31, 2021
Action Plan: CPAU staff intends to develop a checklist all vendor PPA obligations. The renewable energy contract
managers will use this checklist to document compliance reviews. The contract managers will also review this list and discuss any non-compliance issues with the Electric Front Office team (which includes utility management) on at least a quarterly basis and share reports with the UROCC.
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26 Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan
Finding 2: There is no formal review or approvals of changes to front office models Changes to front office models that significantly affect planning should be reviewed and approved, and the review and approval should be documented. We recommend the front office model file be altered to allow for a second reviewer and approver to document a second review and approval of any changes.
Resource
Management Division
Concurrence: Agree
CPAU staff agree that, while the likelihood is very low, there is a slight possibility that errors made in updating the Front Office models could lead to planning/budgeting errors that could impact electric rates. Although CPAU staff would note that such errors would most likely be caught long before they have an impact on the budget or rates. The Electric Front Office team currently sends out a “Monthly Electric Front Office Report” to over a dozen individuals across multiple City departments that details the supply cost impacts of any significant changes to the Front Office models. And the annual electric supply budget, after being developed by the Electric Front Office team, is reviewed by Back Office staff, ASD staff, and management before being considered for
adoption by the City Council.
Target Date: August 31, 2021
Action Plan: In the future, whenever a Resource Planner makes a change to any of the supply contracts in the electric Front Office models that has a materially significant impact (at least $1M over the prompt 36-month period,
approximately 0.2% to 0.3% of total utility costs), a Senior Resource Planner must review and complete a documented
approval of the change before it is accepted.
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27 Recommendation Responsible
Department(s)
Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan
Finding 3: CPAU staff does not audit NCPA’s validation of vendors’ invoices, contract rates and payments The OCA recommends a formalized process that would allow CPAU to validate vendor invoices and rate calculations completed by NCPA. This process should be incorporated before payment, allowing the CPAU to validate rates to contractual requirements and confirm accuracy before payment.
Resource
Management Division
Concurrence: Agree
Target Date: Completed*
Action Plan: Invoice/contract rates are now being checked internally prior to monthly payment approval and these
checks are being documented. Staff will also perform a
documented annual audit on a sample of PPA invoices
received during the year to verify the accuracy of NCPA’s billing.
*The OCA will perform procedures to verify that this is complete.
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City of Palo Alto (ID # 14119)
City Council Staff Report
Report Type: Action Items Meeting Date: 4/18/2022
City of Palo Alto Page 1
Summary Title: Downtown Housing Plan: Initiation and MTC Supplement Agreement & Budget Amendment
Title: Approval of Supplement Agreement No. 1 to the Master Funding Agreement Between the City of Palo Alto and the Metropolitan Transportation Commission for $800,000 in Priority Development Area Planning Grant Funds to Prepare a Downtown Housing Plan; Approve Budget Amendments in the General Fund; and to Initiate the Plan Process for a Sub - Area of the Downtown Priority Development Area. Environmental Assessmen t: Exempt Under CEQA Guidelines Sections 15061(b)(3) and 15262.
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
Staff recommends that the City Council either:
A. Proceed with acceptance of the grant with the following actions:
1. Approve and authorize the City Manager to execute Supplement Agreement No. 1 to the Master Funding Agreement between the City of Palo Alto and the Metropolitan Transportation Commission (Attachment A) for $800,000 in Priority Development Area Planning Grant funds to prepare a Downtown Housing Plan;
2. Amend the Fiscal Year 2022 Budget Appropriation for the General Fund budget by:
(approval by a two-thirds vote required)
a. Increasing the Planning and Development Services grants revenues by $800,000; b. Increasing the Planning and Development Services appropriation for contract services by $800,000 to recognize the Priority Development Area Planning Grant Funds;
c. Increasing the Planning and Development Services appropriation for contract services in the amount of $150,000; and
d. Decreasing the General Fund Budget Stabilization Reserve in the amount of $150,000;
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3. Initiate the local planning process for a Downtown Housing Plan; and
4. Direct staff to return to Council for identification of goals for preparation of th e Downtown Housing Plan; or,
B. Decline to accept the grant.
Executive Summary:
The University Avenue/downtown area is a local activity center, regional job center, and an international destination due to its proximity to Stanford University and global compa nies. In January 2020, the City Council designated the University Avenue/downtown area as a Priority Development Area (PDA) to seek grant funding for planning or implementation activities. The Metropolitan Transportation Commission (MTC) has since authorized the award of an $800,000 grant to the City to prepare a Downtown Housing Plan.
The Housing Plan will focus on housing production in the Downtown , including affordable housing, and will implement policies from the City’s Comprehensive Plan . Community engagement will be key to the success of the planning effort, as will technical , design, and planning work by qualified consultants funded by the grant.
The grant does not have a matching fund requirement. The City would pay upfront costs for the work and submit reimbursement requests to the grant funding agency upon the completion of certain tasks. The work must be completed within three (3) years from April 30, 2022; though there is the opportunity for a one-year extension. The grant funding agency will no t reimburse City expenses for incomplete milestones after the three (or four) year project timeline.
While no matching funds are required, from staff’s recent experience with the North Ventura Coordinated Area Plan ( NVCAP) and housing element , it is antic ipated the $800,000 grant will not cover all project-related costs. Specifically, the level of community engagement and data analysis in Palo Alto typically requires more consultant funding than may be initially anticipated.
Moreover, due to staff resource s already committed to other Council -directed policy efforts, including the NVCAP, Housing Element, renter protection and other work, staff requests $150,000 annually to provide consultant project management support for this project.
Staff recommends the Council consider the additional resources that would be necessary to support this effort. The decision to provide additional consultant resources could be deferred to the Council’s deliberation on the annual budget if Council is not prepared to allocate funds from the budget stabilization reserve. Staff expects it would also have a clearer indication during the budget process as to the overall cost to prepare the Downtown Housing Plan from consultants responding to the City’s request for proposals.
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To pr eserve the City’s interest in preparing the Downtown Housing Plan using the available grant funds, however, the City must execute Supplement Agreement No. 1 to the Master Funding Agreement before April 30, 2022. Should the additional resources necessary to support acceptance of this grant and project not be prioritized and approved through the budget process, staff would release the grant funds back to MTC.
Background:
PDA Designation
On January 13, 2020 , t he City Council adopted by resolution 1 the PDA d esignation for the Downtown/University Avenue area .2 The Downtown/University Avenue PDA was subsequently approved by the Association of Bay Area Governments (ABAG). The Downtown/University Avenue PDA includes approximately 206 acres and all within a half -mile of the University Avenue Caltrain Station. See Attachment B for a map of the entire Downtown/University Avenue PDA. The purpose of the PDA is to help guide growth that aligns with transportation and housing policies. In particular, the PDA strives to s upport growth around transit facilities and provide opportunities to connect housing and jobs. Funding to support these objectives is available through competitive grants to conduct planning or implementation activities within the boundaries of the PDA.
PDA Planning Grant
In December 2020, the MTC issued a call for letters of interest for PDA Planning Grants for projects implementing the PDA—linking regional and local planning and for integrating land use and transportation planning. This PDA Planning Gr ant program provides funding for specific plans3 that result in intensified land uses around public transit hubs and bus and rail corridors in the Bay Area. The City submitted a letter of interest requesting the maximum fund limit of $800,0000 on February 12, 2021 in response to the MTC call. The City applied with the intent to use grant money to fund the preparation of a Housing Plan for Downtown (University Avenue).
On May 14, 2021, the MTC adopted a resolution awarding $800,000 to the City for the preparation of a Housing Plan for the downtown. In awarding this funding to the City, the MTC noted that preference was given to proposals that would implement Plan Bay Area 2050 and support housing production at all income levels. There is no matching funding requirement for
1 PDA Resolution #9876: https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso- 9876.pdf?t=43662.63
2 January 13, 2020 City Council Staff Report for designating the Downtown PDA:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=74728 3 Specific Plans are policy planning documents defined and regulated by the State of California:
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=1.&title=7.&part=&chap ter=3.&article=8.
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the grant. Since the award, City staff has been communicating with MTC to refine the scope of work for the Housing Plan, which is contained within Attachment A as part of the Supplement Agreement No. 1 to the Master Funding Agreement. MTC has informed staff that this agreement must be signed and executed by all parties before the April 30, 2022 deadline to preserve this allocation for Palo Alto.
Master Funding Agreement and Supplement Agreements
One of the technical steps in formally accepting any grant award from MTC is the execution of a Master Funding Agreement between the MTC and the City ; this was accomplished administratively on March 2, 2022 (Attachment C). The Master Funding Agreement enables the City to accept grant funding from th e MTC for a period of 10 -years. This Master Funding Agreement shall have no force and effect with respect to a project (such as the Downtown Housing Plan) until a Supplement Agreement has been fully executed by both MTC and the City. This Master Funding agreement does not obligate the City to any action. The City can voluntarily apply for competitive grants that the MTC issues or decline to apply.
Each subsequent grant award from the MTC is known as a Supplement Agreement to the Master Funding Agreement. The first Supplement Agreement is known as Supplement Agreement No. 1 and is for the Housing Plan project. The Supplement Agreement No. 1 includes the scope of work and budget for the Housing Plan that would necessitate procuring a consultant to assist the City to prepare it.
Discussion:
The City of Palo Alto will prepare a Downtown Housing Plan ( Housing Plan) to realize opportunities to add housing units to downtown Palo Alto. Downtown is a local activity center, a regional job center, and, due to proxim ity to Stanford University and global companies, an international destination.
The Housing Plan covers approximately 76 acres and is a sub -area of the University Avenue/ Downtown PDA. The Housing Plan area will include the following as its geographic focus:
• From east of the Caltrain tracks and Alma Street east to Cowper Street, • From Hamilton Avenue north to Lytton Avenue, and
• City parking lots, Peninsula Corridor Joint Powers Board (Caltrain) parking lots, and public rights of way.
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Downtown faces several
challenges that limit
housing production.
Challenges include high
land costs ; office
development being more
profitable than housing;
appropriate bicycle and
pedestrian infrastructure
can decrease car use and
reduce greenhouse gas
emissions; public parking is
a high value and uses
significant amounts of
public land; and reliance on
external consumer base.
Through a focused and
thoughtful Housing Plan,
the City can identify ways
to help overcome these
challenges and find
opportunities to promote
greater h ousing
production.
Downtown Housing Plan Goals and Objectives
Consistent with the requirements of the PDA Planning Grant, the Housing Plan will need to evaluate key elements. In concert with the City’s Housing Element update process, the Housing Plan will identify the development standards, design standards, and public infrastructure necessary to produce significant housing downtown. The Housing Plan will also help realize racial and economic equity by affirmatively furthering fair housing, which is a requirement of the grant.
Housing Plan preparation requires extensive community and business outreach and participation, including facilitation of a Community Working Group. Housing Plan preparation also involves coordination with regional and local stakeholders, such as housing advocates, business leaders, the County, Stanford University, Caltrans, Santa Clara Valley Transportation Authority (VTA), Palo Alto Unified School District, and the Santa Clara Valley Water District.
Downtown Housing Plan Elements
Figure 1: Downtown Housing Plan Boundary
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The MTC grant requires the Housing Plan to include the following sections, a t a minimum:
Project Management and Coordination. This element outlines the primary project management and coordination tasks necessary for the Downtown Housing Plan.
Community Outreach and Engagement. This element outlines the primary community outreach and engagement for the Housing Plan.
Community Assessment and Policy Development. This element focuses on identifying and analyzing challenges and opportunities to increase housing development downtown.
Downtown Housing Plan Preparation. This element outlines the steps necessary to prepare the Downtown Housing Plan. Activities and deliverables for the Housing Plan include:
• Community outreach and participation
• Basic economic and real estate modeling to understand development feasibility, opportunities, and constraints
• Fiscal impact analysis of development on City infrastructure and services • Incorporation of state and local VMT and mobility requirements • Incorporation of the Sustainability and Climate Action Plan goals and policies • Inclusion of equity assessment results and affordable housing protection, preservation, and production assessment results from the Housing Element update process
• Draft and Final Housing Plan with land use designations and proposed Capital Improvement Projects
• Proposed Comprehensive Plan amendments and zoning updates • A California Environmental Quality Act (CEQA) environmental document
Throughout the process there will be check ins with the Architectural Rev iew Board (ARB), the Planning & Transportation Commission (PTC) , and City Council to ensure that the Housing Plan is on track and consistent with expectations and goals. Finally, with a recommendation from the PTC, the City Council will consider adoption o f the Housing Plan. For more information and detail regarding the proposed scope of work for the Housing Plan, see Attachment A.
Consultant Selection
The City will retain a consultant to assist with the completion of the necessary elements of the Housing Plan. On March 29, 2022, the City released Request for Proposals (RFP) 184761 seeking proposals from qualified vendors that were pre -screened by MTC with demonstrated experience in municipal planning services to assist the City with the preparation of the Housing Plan. The RFP was conducted pursuant to the City’s requirements. The responses for the RFP 7 Packet Pg. 73
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are due by April 12, 2022 (after the publication of this staff report). Consultant proposals will need to be vetted prior to any recommendations to the City Council. The selection of the consultant will require approval by the City Council, which staff anticipates will occur before the Council’s summer break.
In addition to engaging a consultant to conduct the outreach and prepare the plan, staff will need t o contract with an individual or firm for project management and oversight. More information is provided in the Resource Impact section below.
Supplement Agreement Revision
Supplement Agreement No. 1 attached to this staff report represents the agreement between the City and MTC for reimbursement of funding consistent with the completion of the tasks described in the scope of work detailed in the agreement. As milestones and deliverables are completed, the City will pay the consultant for their work. In t urn, the City will submit invoices to MTC for reimbursement.
Once the City selects the preferred consultant to complete the Housing Plan, a revised scope of work and budget will be presented to the City Council for consideration. This will result in a revision to the Supplement Agreement No. 1 with MTC. MTC will need to agree to the revisions.
MTC’s expectation is that the deliverables will remain in line with the original funding agreement. Changes to details such as sequencing of tasks (or the potential bundling of multiple deliverables into a single deliverable) are generally permitted without triggering a need to formally amend the agreement. The completion of the planning elements, as described above, are non -negotiable. These elements are requirements of accepting the PDA Planning Grant.
The grant does not have any matching fund requirement though from p rior experience and as referenced above, staff anticipates general fund dollars will be needed to supplement the project and for project management consultant services.
The grant has a three-year timeline for completion that begins on April 30, 2022. The grant allows for the possibility of a one-year extension. If the City fails to complete the project within the authorized timeline it will not be r eimbursed for incomplete tasks or tasks completed that have not been submitted for reimbursement. MTC staff have confirmed there is no ‘clawback’ provision in the grant, meaning the City does not need to reimburse the grant funding agency for reimbursements received, even if the project is incomplete by the deadline. However, the City would need to use its own funds to complete the project if that is the desired outcome at that time.
Other Ongoing Initiatives
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Concurrently, during the development of the Housing Plan, the following other initiatives will unfold, and may interact with and require coordination with the Housing Plan:
• Housing Element Update
• University Avenue corridor streetscape design
• Palo Alto Avenue grade separation planning
• Downtown surface parking lot ( housing/parking) partnership including parking in-lieu fees
• Parklets & potential street closures
• Retail and retail-like & other land use policy direction • Sustainability and Climate Action Plan
• Sea level rise vulnerability assessment
• Downtown parking management strategies
• Citywide Bicycle and Pedestrian Plan update
• Objective housing standards development
• Green infrastructure policy initiatives
• Consistency with city plans and policy documents
In addition, it should be noted that the proposed study area does not include the Transit Center and therefore would not address the potential for residential development at that site. Should Council proceed with the housing plan, a corollary decision is whether to engage Stanford University in determining whether to modify the study area to include the Transit Center.
Project Initiation
As part of the recommendation, staff requests the City Council consider and initiate the Housing Plan. As mentioned previously, the Housing Plan implements Comprehensive Pl an policy for the Downtown area. Early in the process, staff would identify goals and objectives for the Housing Plan. Staff will return to the Council with more focused discussion on goals and objectives prior to the kick-off of the process.
Comprehensive Plan Policy Implications:
The Comprehensive Plan includes policies that are specific to the downtown area. The following Land Use and Community Design Element policies and programs help guide the development of the Housing Plan and its goals.
• Policy L-2.4: Use a variety of strategies to stimulate housing, near retail, employment, and transit, in a way that connects to and enhances existing neighborhoods.
• Policy L -4.7: Maintain and enhance the University Avenue/Downtown area as a major commercial center of the City, with a mix of commercial, civic, cultural, recreational and 7 Packet Pg. 75
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residential uses. Promote quality design that recognizes the regional and historical importance of the area and reinforces its pedestrian character.
• Policy L -4.8: Ensure that Univers ity Avenue/Downtown is pedestrian -friendly and supports bicycle use. Use public art, trees, bicycle racks and other amenities to create an environment that is inviting to pedestrians and bicyclists.
o Program L4.8.1: Prepare a Coordinated Area Plan for Downtown. o Program L4.8.2: Study the feasibility of converting parts of University Avenue to a pedestrian zone.
At the end of the process, the adopted Housing Plan would be a focused policy document with sections including introduction, vision, development sta ndards, open space, mobility, community assets and infrastructure, and implementation and financing. The adopted Housing Plan would be substantially consistent with the Comprehensive Plan policies and is sufficient to guide future development in the downtown.
Resource Impact:
MTC awarded Palo Alto the maximum grant amount of $800 ,000. Staff recommends Council amend the Fiscal Year 2022 Budget Appropriation for the General Fund budget by incre asing the Planning & Development Services Department (PDS) revenue by $800,000 for the project, as well as equivalent expe nditures for consultant services and increasing the PDS appropriation by $800,000. This portion of the recommended action is a net zero impact to the general fund.
Supplement Agreement No. 1 attach ed to this staff report represents the agreement between the City and MTC for reimbursement of funding consistent with the completion of the tasks described in the scope of work detailed in the agreement. As milestones and deliverables are completed, the City will pay the consultant for their work. In turn, the City will submit invoices to MTC for reimbursement. According to MTC, there is no “clawback” or repayment of the funds if the Housing Plan is not completed within the three -year period. If the projec t is not completed on time, the City may lose the opportunity to receive reimbursement for incomplete work.
In addition, to advance this project now, staff requires a consultant to project manage this work effort. Existing staff resources are currently d edicated toward the Housing Element, NVCAP, renter protection policies and other Council -initiated assignments. Staff anticipates it would need $150,000 annually for the duration of the project at an estimated cost of $450,000 - $600,000 over a three to fo ur year period. This figure may be lower if upon completion of existing assignments staff takes over the project management role. However, this would delay implementation on other currently un-resourced assignments. 7 Packet Pg. 76
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The budget adjustment for the $800,000 grant has no material effect on the budget and can take place now; though, this action requires two-thirds support because it represents an additional appropriation more than the total appropriation provided for in the adopted budget.
The request for co nsultant project management staff support could be allocated now and requires two-thirds majority support and would allocate funds from the City’s budget stabilization reserve (BSR). The BSR is projected to remain at or above the City Council target of
18.5% of General Fund expenses by the close of FY 2022. Alternatively, the City Council could defer this allocation of $150,000 for fiscal year 2022 to the broader City budget process for FY 2023 to understand what tradeoffs may be required to support this e ffort relative to other City Council interests. This deferral would not significantly impact the timeline as it is unlikely staff would be prepared to initiate the project before the Council’s summer break.
However, if the City Council defers allocation of the $150,000 and ultimately declines to support this effort during the budget process, the City would likely need to forfeit the $800,000 grant and suspend the Housing Plan project.
General Impacts to Planning & Development Services Workplan The Long-Range Planning team of PDS continues to address the priorities of the City Council.
Current major workplan projects include the Housing Element Update, North Ventura Coordinated Area Plan (NVCAP), and implementation of Renter Protection objectives by the City Council. In addition, the team is responsible for many ongoing activities such as ordinance updates and annual reporting associated with implementation of the City’s Comprehensive Plan and housing programs. The facilitation and coordination of efforts for the Housing Plan will be especially challenging during the first year when efforts are expected to overlap with the other priority PDS workplan efforts. The City Council recently reviewed and endorsed a workplan that aligns staff work efforts to Counci l-approved priorities; a summary of the workplan is available online: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/city-council-agendas-
minutes/2022/20220404/20220404pccsmamendedlinked1.pdf#page=195. The Long -Range Planning program has responsibility for tasks listed in eac h priority and especially the Council’s Housing for Social and Economic Balance priority.
Summary of Key Issues:
The Council is being asked to contemplate the grant with the following possible considerations:
1. The $800,000 grant is available to the City due to its designation of the University Avenue Downtown area as a Priority Development Area.
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2. The grant provides substantial funding with limited constraints to explore opportunities to advance the City’s housing priorities.
3. Grant funding is likely insuff icient to complete the project, which is expected to require additional funding to support a more robust public engagement strategy, provide a greater depth of data analysis, economic feasability and pro-forma analyzes.
4. There is insufficient staff resources to project manage this planning effort given the high volume of work currently being absorbed by the City’s Long Range Planning Program.
5. An estimated ongoing allocation of $150,000 for three or four years is needed to supplement project management suppo rt (approximately $450,000 - $600,000 over the duration of the project).
6. If the project is not completed within the all ocated timeframe, the City will not be able to claim reimbursment for incomplete tasks and may forfeit unclaimed grant money potentially burdening the general fund to complete the project.
Timeline:
Following the Council’s initiation of the Housing Plan, staff will work towards retaining a consultant and coordinating with MTC on a revised scope of work. The project would have a three-year timeline that coincides with the PDA Planning Grant. The timeline included in Attachment A would be revised to reflect the input from the selected consultant in the future.
Some of the key initial project milestones are summarized below:
• Plan initiation (April 18, 2022)
o Action by the Council to initiate the Downtown Housing Plan project. • Consultant award (June 2022)
o After completing the RFP process, staff will seek approval of the contract and the revision to the Supplement Agreement No. 1 from the Council. • Solicit applications for the working group (Summer 2022) o Staff will seek applications from stakeholders and propose working group to the Council for approval.
• Project kickoff (Fall 2022)
o The Housing Plan project will formally kick off with outreach, mee tings, and other supporting activities.
• Downtown Housing Plan adoption (By April 2025)
If for some reason, the Housing Plan cannot be completed within the three -year period, the MTC may grant a one -year extension. However, any extension beyond that is unlikely because of approvals necessary from State and Federal agencies that allocated the funds.
Environmental Review
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The actions recommended in this report are exempt from review under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Sections 15061(b)(3) and Section 15262 (Feasibility and Planning Studies). The actions would initiate a planning process and are not determinative of any specific outcome. The Housing Plan that will result from this effort will be a project subject to CEQA review prior to adoption . The review may be able to “tier ” or rely upon analysis contained in the certified Comprehensive Plan Environmental Impact Report (EIR).
Attachments:
Attachment7.a: Attachment A - Supplement No. 1 Agreement_April22 (PDF) Attachment7.b: Attachment B - Downtown PDA Map (PDF)
Attachment7.c: Attachment C - Executed Master Funding Agreement (PDF) 7 Packet Pg. 79
SUPPLEMENT NO. 1 TO MASTER FUNDING AGREEMENT
Between the METROPOLITAN TRANSPORTATION COMMISSION
And CITY OF PALO ALTO
For UNIVERSITY AVE/DOWNTOWN PDA PLAN
This Supplement No. 1 to the Master Funding Agreement (“Supplement” or “Agreement”) is entered into this April 30, 2022, by and between the Metropolitan Transportation Commission (“MTC”) and CITY OF PALO ALTO (“AGENCY”) and supplements the Master Funding Agreement, dated February 17, 2022, by and between MTC and AGENCY.
Pursuant to this Supplement, MTC agrees to reimburse an amount not to exceed eight hundred thousand dollars ($800,000) in federal Federal Highway Administration (FHWA) funds to AGENCY to fund the University Ave/Downtown PDA Plan (as more fully described in Annex I hereto, the “Supplement Project”). The estimated budget and payment milestones for the Supplement Project scope of work is attached as Annex II hereto.
The Supplement Project work will commence on April 30, 2022 and be completed no later than April 30, 2025.
The clauses selected below and attached as exhibits to the Master Funding Agreement shall apply to AGENCY’s performance of the applicable Supplement Project scope of work hereunder:
☒ Exhibit B-1, Additional Terms and Conditions (General), Paragraph A ☒ Exhibit B-1, Additional Terms and Conditions (General), Paragraph B ☒ Exhibit B-2, Additional Terms and Conditions (Federally Required Clauses) ☐ Exhibit B-3, Additional Terms and Conditions (State Required Clauses) ☐ Exhibit B-4, Additional Terms and Conditions (Prevailing Wage Rates, Apprenticeships, and Payroll Records, Non-Federally-Funded Agreements)
☐ Exhibit B-5, Additional Terms and Conditions (Prevailing Wage Rates, Apprenticeships, and Payroll Records, Federally-Funded Agreements)
☐ Exhibit B-6, Additional Terms and Conditions (Regional Toll Funds including RM1, RM2, and AB1171)
☒ Exhibit B-7, Additional Terms and Conditions (Regional Discretionary Federal Funds including STP and CMAQ)
Funding for this project was authorized by the Metropolitan Transportation Commission at its May 26, 2021 through Resolution 4202, Revised (see p. 1 of Attachment B-1), attached to this document as Attachment A.
The MTC Project Manager for the Supplement Project is Somaya Abdelgany, (415) 778-5217, [email protected]
. The AGENCY Project Manager for the Supplement Project is Sheldon Ah Sing, (650) 838-2821, [email protected].
This Supplement is supplemental to the Master Funding Agreement; all terms and conditions of the Master Funding Agreement, as may be amended, remain unchanged hereby.
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC/ City of Palo Alto
Master Funding Agreement
Supplement No. 1 – University Ave/Downtown PDA Plan
Capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Master Funding Agreement.
METROPOLITAN TRANSPORTATION
COMMISSION
CITY OF PALO ALTO
Therese W. McMillan, Executive Director Ed Shikada, City Manager
Approved as to form:
Albert S. Yang, Assistant City Attorney
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC/ City of Palo Alto
Master Funding Agreement
Supplement No. 1 – University Ave/Downtown PDA Plan
Annex I
Project Description and Scope of Work
City of Palo Alto University Ave/Downtown PDA Plan
Project Description:
In May 2021, MTC awarded the City of Palo Alto (“City”) with a Priority Development Area (PDA) Planning Grant to complete their proposed University Ave/Downtown PDA Plan. Renamed to the Downtown Housing Master Plan (Master Plan), the plan will realize opportunities to add housing units to downtown Palo Alto. The area is a local activity center, a regional job center, and, due to proximity to Stanford University and global companies, an international destination.
Despite these strengths, Palo Alto faces challenges to realizing housing in the downtown. • Land costs are high and office is more profitable than housing. Creating housing near transportation hubs that is affordable in one of our highest land value areas in the city—and highest value in the nation—is an incredible challenge. The area is attractive as an employment center due to proximity to Stanford, Caltrain, and the clout companies seek by having a Palo Alto address.
These factors drive up land values in this m ixed-use area and offices provide a greater return on investment than housing, leading to more office development than housing. • Insufficient bike and pedestrian infrastructure can lead to greater car use. Improving bike and pedestrian mobility to and through downtown can decrease car use. Though located near the busiest Caltrain station, it can be challenging for visitors to find their way on foot to key destinations in the downtown. Likewise, the bike infrastructure does not maximize safety and comfort of cyclists. These connections are critical to building new homes without creating the need for more individual car ownership.
• Public parking is a high value and uses significant amounts of public land. Significant public land holdings in downtown include a series of surface parking lots and parking garages. The parking spaces support local retailers, employers, and others who park in the facilities to enjoy downtown. Figuring out how to ensure the public land provides co- benefits such as p arking and housing is critical to ensuring housing does not come at the expense of economic vitality. • Reliance on external consumer base. The pandemic illustrated the challenges of relying on an external work force and student population to support downtown retailers. Through increasing the downtown population, Palo Alto can build greater resiliency by decreasing reliance on out-of- towners to support local retailers.
Through a focused and thoughtful Downtown Housing Master Plan, the City can overcome these challenges, accentuate its strengths, and meet the changing needs of downtown stakeholders.
I
n concert with and building upon the City’s Housing Element update process, the Downtown Housing Master Plan will identify the development standards, design standards, and public infrastructure necessary to produce significant housing downtown. The Master Plan will also help realize racial and economic equity by affirmatively furthering fair housing.
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MTC/ City of Palo Alto
Master Funding Agreement
Supplement No. 1 – University Ave/Downtown PDA Plan
The Downtown Housing Master Plan will build on City initiatives underway, including:
A. Housing Element Update, led by Planning and Development Services B. University Avenue Corridor Streetscape Design initiative led by the Public Works Department C. Sustainability and Climate Action Plan update process led by the Office of Sustainability D. Sea Level Rise Vulnerability Assessment process led by the Public Works Department E. Parking management and Vehicle Miles Traveled (VMT) studies led by the Office of Transportation
F. Citywide Bicycle + Pedestrian Plan update process led by the Office of Transportation G. Housing Objective Development Standards initiative led by the Planning and Development Services Department
H. Green Infrastructure policy initiative led by the Public Works Watershed Protection group
Master Plan preparation requires extensive community and business outreach and participation, including facilitation of a Community Working Group. Master Plan preparation also involves coordination with regional and local stakeholders, such as housing advocates, business leaders, the County, Stanford University, Caltrans, Santa Clara Valley Transportation Authority (VTA), Palo Alto Unified School District, and the Santa Clara Valley Water District.
Activities and deliverables for the Master Plan include:
• Community outreach and participation
• Basic economic and real estate modeling to understand development feasibility, opportunities, and constraints
• Fiscal impact analysis of development on City infrastructure and services • I
ncorporation of state and local VMT and mobility requirements • Incorporation of the Sustainability and Climate Action Plan goals and policies • Inclusion of equity assessment results and affordable housing protection, preservation, and production assessment results from the Housing Element update process • Draft and Final Master Plan with land use designations and proposed Capital Improvement Projects
• Proposed Comprehensive Plan (General Plan) amendments and zoning updates • A California Environmental Quality Act (CEQA) environmental document
Downtown Housing Master Plan Geographic Area:
A sub-area of the University Avenue/Downtown Priority Development Area (PDA), the Downtown Housing Master Plan area will include the following as its geographic focus:
• From east of the Caltrain tracks and Alma Street east to Cowper Street, • From Hamilton Avenue north to Lytton Avenue, and
• City parking lots, Peninsula Corridor Joint Powers Board (Caltrain) parking lots, and public rights of way.
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC/ City of Palo Alto
Master Funding Agreement
Supplement No. 1 – University Ave/Downtown PDA Plan
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC/ City of Palo Alto
Master Funding Agreement
Supplement No. 1 – University Ave/Downtown PDA Plan
Downtown Housing Master Plan Scope of Work:
Task 1 – Project Management and Coordination
This task outlines the primary project management and coordination tasks necessary for the Downtown Housing Master Plan. These tasks will be conducted throughout the Master Plan preparation process.
Task 1.1 – City Inter-Departmental Coordination
Task 1.2 – Grant Management
Task 1.3 – Consultant Management
Task 1.4 – Community Meeting and Public Hearing Preparation Task 1.5 – Communications, Website, and Media Coordination
Task 1.1 Deliverable: Memos for City Inter-Departmental Coordination Task 1.2 Deliverable: Memos for Grant Management
Task 1.3 Deliverable: Memos for Consultant Management
Task 1.4 Deliverable: Memos for Community Meeting and Public Hearing Preparation Task 1.5 Deliverable: Memos for Communications, Website, and Media Coordination
Task 2 – Community Outreach and Engagement
This task outlines the primary community outreach and engagement for the Downtown Housing Master Plan. These activities will be active throughout the Master Plan preparation process.
Task 2.1 - Community Outreach and Engagement Strategy Development This task encompasses staff/consultant preparation of the Downtown Housing Master Plan community outreach and engagement strategy. Throughout the Master Plan process, it is central to gather meaningful input from a full range of stakeholders within and nearby to the planning area, including residents of all incomes, races and ethnic backgrounds, employees of local businesses, community- and faith-based organizations, and public agencies providing services in the area. This task will include laying out the specific engagement meetings, outreach channels, and methods listed in tasks 2.2 through 2.5. Equity assessment information from the Housing Element process will inform the Community Outreach and Engagement Strategy.
Task 2.1 Deliverable: Staff Report and Final Consultant Contract
Task 2.2 - Community Working Group Meetings (up to 18 meetings) This task encompasses convening of a Community Working Group that will shape the Downtown H
ousing Master Plan and review draft plan materials. Staff plan to hold 12 – 18 Working Group meetings during the planning process. Staff anticipate the City will solicit applications and the Council will select a group that is representative of residents, housing developers, local businesses, community-based organizations, service providers, and other stakeholders.
Task 2.2 Deliverables: Staff Reports or Memos for Community Working Group Meetings
Task 2.3 - Technical Advisory Group Meetings (6 – 10 meetings) DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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This task encompasses convening of a technical advisory group that will shape the Downtown Housing Master Plan. The Technical Advisory Group will provide detailed technical input throughout the Master Plan process and help ensure alignment between this plan and other local and regional planning efforts. The composition would include staff from key City departments, the ABAG/MTC grant manager, as well as representatives of local, county, and regional agencies, and service providers.
Task 2.3 Deliverables: Staff Reports or Memos for Technical Advisory Group Meetings
Task 2.4 – Stakeholder Interviews and Stakeholder Surveys Direct outreach through stakeholder interviews and stakeholder surveys to receive information for and feedback on the deliverables from Task 3.2 Key Community Assessment and Policy Development Focus Areas.
Task 2.4 Deliverable: Interviews
Task 2.4 Deliverable: Surveys
Task 2.4 Deliverable: Analysis and Synthesis of Interview and Survey Data
Task 2.5 - Community Workshops, Design Charettes, and Digital Engagement (at least 3 meetings) This task includes direct outreach through both in-person (pandemic restrictions permitting) and virtual workshops, charettes, and other meetings to receive information for and feedback on the deliverables from Task 3.2 Key Community Assessment and Policy Development Focus Areas.
Key topics will include housing, mobility, advancing racial and economic equity, design preferences, and other topics. Translation services would be provided, as well as childcare if the meetings are in person.
Task 2.5 Deliverables: Staff Reports, Memos and/or Presentation Materials for Community Visioning Workshops, and Design Charettes,
Task 2.6 – Downtown Housing Master Plan Website or Webpage The team will maintain a webpage or a website for the Master Plan process to inform the public and stakeholders on progress, centralize project records, upcoming activities, and to host online engagement activities. The website or webpage will support Task 2, Task 3, and Task 4.
Task 2.6 Deliverables: Create and Maintain Website or Webpage with Ongoing Updates
Task 3 – Community Assessment and Policy Development
This task focuses on identifying and analyzing challenges and opportunities to increase housing development downtown. As discussed in the project description, the central challenges include:
• Land costs are high and office is more profitable than housing. • Insufficient bike and pedestrian infrastructure can promote car use. • Public parking is a high value and uses significant amounts of public land. • Reliance on external consumer base.
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Task 3.1 – Community Assessment and Policy Development Strategy This task encompasses staff release of a request for proposals for Master Plan preparation, review of proposals, and consultant selection. We would seek proposals from consultants with expertise in community engagement, housing/comprehensive planning, urban design and economic/real estate analysis. This task results in the inclusion of a refined selected consultant scope of work to complete the project and a report to inform the community of a policy development strategy to achieve the Master Plan goals.
Task 3.1 Deliverable: Staff Report and Final Consultant Contract
Task 3.2 – Key Community Assessment and Policy Development Focus Areas This task outlines the primary analysis and reports necessary for identifying and analyzing the Master Plan area central opportunities and challenges, as well as for meeting the PDA Planning
Grant analysis requirements. These analyses will inform and become part of the chapters contained within the Master Plan.
Task 3.2.1 – Equity Analysis, Assessment, and Policy Recommendations This task will identify any existing inequities between people of different racial or ethnic backgrounds, genders, age groups, abilities, or sexual orientation, as well as the historic and recent factors and policies that contribute to these inequities. This task will utilize this information to develop policies to address existing inequities, as well as to inform the meetings and outreach efforts discussed in Task 2 and inform the deliverable for Task
3.2.2. This task integrates and builds upon the findings from the Housing Element update process and informs understanding of community needs around equity in the Master Plan area. That information will include area specific information on demographics, economic opportunity and stability, housing stability, health and risk factors of residents and employees of businesses in the plan area and surrounding community.
Task 3.2.1 Deliverable: (1) Equity Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.2 – Responsiveness to State, Regional, and Local Legal and Regulatory Landscape for Housing Production, Preservation, and Protection Policy Recommendations This task involves investigating and summarizing state, regional, and the local policies used by other jurisdictions that influence the regulatory landscape for housing production, preservation, and protection.
Task 3.2.2 Deliverable: (1) State, Regional, and Local Legal and Regulatory Landscape Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Task 3.2.3 – Affordable Housing and Jobs Analysis, Assessment and Policy Recommendations This task identifies the composition of jobs in the Master Plan area and evaluates the affordability of housing compared to the wages of employees in these jobs. This task quantifies housing need, establishes the housing profile for the area, (deed-restricted affordable housing, unsubsidized affordable housing, market-rate housing, informal housing and accessibility, etc.), establishes the employment/industry profile for the area, identifies the development pipeline, assesses real estate conditions and constraints, and assesses local policy conditions and constraints. This task will discuss obstacles to delivery of housing for all income levels and responsive policies.
This task will be closely coordinated with the Housing Element update process that is already underway.
This task integrates and builds upon the findings from Task 3.2.2, as well as the Housing Element update process. This task informs understanding of community needs regarding housing and employment, including how to affirmatively further fair housing in the plan area. This task draws upon the information from Task 3.2.1 and identifies in greater detail the characteristics of the existing and planned housing stock in the plan area and surrounding area, as well as projected short- and long-term need.
Task 3.2.3 Deliverable : (1) Affordable Housing and Jobs Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.4 – Housing Development Implementation, Economic Feasibility, and Financing Analysis and Policy Recommendations
While housing in the Downtown area is attractive, high land costs, constrained parcel sizes, competition with other land uses, and other constraints significantly influence housing yield. This task focuses on a housing development feasibility analysis to identify the development standards, incentives, and the associated remaining amount of subsidy necessary to yield more residential and mixed-use developments specifically in the Master Plan area. This task integrates and builds upon the findings from Task 3.2.2, Task 3.2.3 and the Housing Element update process. This task will analyze the housing opportunity sites identified in the Housing Element Update to understand what is required for housing to be realized on these sites.
The analysis will investigate publicly owned and privately owned parcels at various levels of housing affordability. The analysis will identify funding necessary to rehabilitate existing affordable units in the area, thereby preserving and protecting them. Like efforts undertaken by MTC and ABAG, the analysis will identify the funding shortfall that limits the level of affordable housing production and rehabilitation in the Master Plan area.
This task will include recommendations for City actions to help finance affordable housing, such as consideration of publicly owned parking lots or other publicly owned parcels for housing and mixed-use projects, consideration of different types of partnerships with developers, facilitation of land assembly policies, consideration of DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Supplement No. 1 – University Ave/Downtown PDA Plan
establishing a business tax to support the Housing Trust Fund, and consideration of a bond measure.
Task 3.2.4 Deliverable: (1) Housing Development I mplementation, Economic Feasibility, Financing Analysis, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.5 – Resilience and Climate Adaptation Analysis, Assessment and Policy Recommendations
This task assesses the relative vulnerability of the plan area and surrounding communities to natural hazards (examples: sea level rise and flooding, seismic factors) and to environmental quality (examples: air quality, tree canopy/green space, water quality, environmental contamination). This task identifies potential investments, policies or programs to better adapt the community to these vulnerabilities and poise the community to respond to future conditions and events. This task integrates and builds upon the Sustainability and Climate Action Plan led by the Office of Sustainability and the Sea Level Rise Vulnerability Assessment led by the Public Works Department.
Task 3.2.5 Deliverable : (1) Resilience and Climate Adaptation Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.6 – Community Assets, Services, and Infrastructure Analysis, Assessment, and Policy Recommendations
This task identifies the existing availability of essential services and social infrastructure (examples: health care, food and sundries, childcare and education, open space and recreation, community facilities, etc.), existing physical infrastructure (examples: energy, waste, water, electric vehicle charging, broadband, etc.), and existing community assets (examples: formal and informal gathering spaces, cultural institutions, etc.) in the plan area. This task will assess the stability of existing and identify currently missing community assets, services, and infrastructure, as well as identify potential investments, policies or programs to policies to support them in the Master Plan area. This analysis will focus on the needed assets to support an increased downtown population.
Task 3.2.6 Deliverable: (1) Community Assets, Services, and Infrastructure Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.7 – Mobility and Interconnectivity Analysis, Assessment, and Policy Recommendations This task will assess trip patterns, the quality and relative safety of travel by active modes and for persons with disabilities, access to transit and essential services, and vehicle miles traveled for residents and employees of local businesses within and adjacent to the Master Plan area. This task will identify potential investments, policies or programs to improve mobility and interconnectivity, as well as reduce Vehicle Miles Travelled (VMT).
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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This task integrates and builds upon Public Works Department and Office of Transportation efforts, including the University Avenue Corridor Street Design, Citywide Bicycle + Pedestrian Plan update, parking management, and VMT policy making.
Task 3.2.7 Deliverable : (1) Mobility and Interconnectivity Analysis, Assessment, and Policy Recommendation Report or Memo (2) City Council Study Session
Task 3.2.8 – Downtown Private Realm and Public Realm Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development Policy Recommendations
This task evaluates the City’s current Downtown Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development to assess which aspects could be updated to facilitate housing deve lopment in the Downtown Housing Master Plan area. Private realm considerations include design gestures that contribute to a strong sense of place, such as building massing, lighting, landscaping, and building interfaces with public realm such as streets, alleys, and open space. Considerations include building on previous efforts that maintained view corridors, activity focal points, and a human scale orientation throughout downtown. Considerations also include urban design that addresses the anticipated greater diversity of building forms, densities, height, and mixed-use development for the Master Plan area. This effort will draw on city- wide Objective Design Standards as well as Housing Element discussions regarding form.
Led by the Office of Tr ansportation and the Public Works Watershed Protection group, public realm considerations include a Sustainable Streets focus that identifies the key remaining steps necessary to implement vision zero policies, complete street designs, versatile use of the public right of way, and green streets infrastructure designs within the Master Plan area. Public realm considerations also reference innovations in parking management and curb management.
Task 3.2.8 Deliverable: (1) Downtown Private Realm and Public Realm Design Guidelines, Architectural Review Findings, and Objective Standards for Housing Development Policy Recommendations Report or Memo (2) City Council Study Session
Task 3.2.9 – Downtown Visioning, Opportunities/Constraints, Identification of Community Best Practices and Master Plan Approach Recommendations This task integrates all other subtasks and discusses the options for meeting the Master Plan area central challenges based upon the information surfaced during this Community Assessment and Policy Development effort.
Task 3.2.9 Deliverable: (1) Downtown Visioning, Opportunities/Constraints, Identification of Community Best Practices and Master Plan Approach Recommendations Report or Memo (2) City Council Study Session
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Master Funding Agreement
Supplement No. 1 – University Ave/Downtown PDA Plan
Task 4 –Downtown Housing Master Plan Documents
This overall task outlines the primary documents necessary for adoption of the Downtown Housing Master Plan, as well as the documents necessary to meet the PDA Planning Grant requirements.
Task 4.1 – Downtown Housing Master Plan Preparation
This task outlines the steps necessary to prepare the Downtown Housing Master Plan.
Task 4.1.1 – Master Plan Sections and Topic Outline
This task results in the outline of the Master Plan sections and topics. As required by the PDA Planning Grant, the outline can be organized differently, but will include at least the following topics: introduction, vision, development standards, open space, mobility, community assets and infrastructure, and implementation and financing. This report will integrate the content and deliverables from the prior tasks.
Task 4.1.1 Deliverable: Master Plan Sections and Topic Outline
Task 4.1.2 - Master Plan Administrative Draft 1
Task 4.1.2 Deliverable: Master Plan Administrative Draft 1
Task 4.1.3 - Master Plan Community Working Group and Technical Advisory Group Draft 1 Task 4.1.3 Deliverable: Master Plan Community Working Group and Technical Advisory Group Draft 1
Task 4.1.4 - Master Plan Administrative Draft 2
Task 4.1.4 Deliverable: Master Plan Administrative Draft 2
Task 4.1.5 - Master Plan Public Hearing Draft 1
Task 4.1.5 Deliverable: Master Plan Public Hearing Draft 1
Task 4.1.6 – Master Plan Final
Task 4.1.6 Deliverable: Master Plan Public Final
Task 4.2 – Downtown Housing Master Plan California Environmental Quality Act (CEQA) Environmental Document
This task outlines the steps necessary to prepare the CEQA Environmental Document necessary for the Downtown Housing Master Plan. The goal of this task is to prepare the correct CEQA document that will clear projects that are consistent with the Master Plan, avoiding the need for project-level analyses.
Task 4.2.1 – Notice of Preparation (NOP)/Initial Study
Task 4.2.1 Deliverable: Notice of Preparation (NOP)/Initial Study
Task 4.2.2 - Identification of Appropriate CEQA Environmental Document This task identifies the appropriate CEQA Environmental Document, likely an Initial DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Study/Negative Declaration, Initial Study/Mitigated Negative Declaration, Supplemental Environmental Impact Report, or a Programmatic Environmental Impact Report.
Task 4.2.1 Deliverable: City Internal Memo
Task 4.2.3 – Environmental Document Notices and Preparation This task outlines the steps for completing CEQA documentation for the Downtown Housing Master Plan.
Task 4.2.3A – Scoping Meeting (If Applicable)
Task 4.2.3A Deliverable: Staff Report, Noticing, and Scoping Meeting
Task 4.2.3B – Administrative Draft CEQA Environmental Document Task 4.2.3B Deliverable: Administrative Draft CEQA Environmental Document
Task 4.2.3C –Draft CEQA Environmental Document
Task 4.2.3C Deliverable: Draft CEQA Environmental Document
Task 4.2.3D – Notice of Completion (NOC)
Task 4.2.3D Deliverable: Notice of Completion (NOC)
Task 4.2.3E – Final Environmental Impact Report (FEIR) (If Applicable) Task
4.2.3E Deliverable: Final Environmental Impact Report (FEIR)
Task 4.2.3F – Notice of Determination (NOD)
Task 4.2.3F Deliverable: Notice of Determination (NOD)
Task 4.3 – Downtown Housing Master Plan Adoption, CEQA Environmental Document Certification, Comprehensive Plan Amendment, and Municipal Code Update This task outlines the steps necessary to adopt the Downtown Master Plan.
Task 4.3.1 – Public Hearings (Updates and Coordination) This task pertains to public hearings with City Council and other boards and commissions to provide updates and coordination on the Master Plan process. Three to five public hearings are anticipated with each body (i.e. City Council, Planning and Transportation Commission, Architectural Review Board).
Task 4.3.1 Deliverables: Staff Reports and associated presentations
Task 4.3.2 – Public Hearings (Adoption)
This task pertains to public hearings with City Council and other boards and commissions necessary to certify the CEQA Environmental Document and adopt the Master Plan. At least four public hearings are anticipated.
Task 4.3.2 Deliverables: Staff Reports and associated presentations DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Task 4.3.3 – CEQA Environmental Document Certification or Adoption Task 4.3. 3 Deliverable: Document Certification/Adoption Resolution
Task 4.3.4 - Master Plan Adoption
Task 4.3.4 Deliverable: Master Plan Adoption Resolution
Task 4.3.5 – Land Use Map Update and Comprehensive Plan Amendment Task 4.3.5 Deliverable: Map Update and Amendment Resolution
Task 4.3.6 – Zoning Map Update and Municipal Code Update Task 4.3.6 Deliverable: Map and Code Update Ordinance
OPTIONAL TASKS:
To be Determined after receipt of feedback
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC/ City of Palo Alto
Master Funding Agreement
Supplement No. 1 – University Ave/Downtown PDA Plan
Annex II
Project Schedule, Budget and Payment
FIRM-FIXED PAYMENT
MTC shall reimburse AGENCY in estimated amounts by task indicated below. Budget may be reallocated between tasks in the MTC Project Manager’s discretion. Payment shall be due upon acceptance by the MTC Project Manager. RECIPIENT shall submit an invoice identifying the project deliverable or milestone for which payment is sought no later than thirty (30) days after MTC's acceptance of such deliverable/milestone.
# Deliverable Due Date: Amount
Due
Task 1 – Project Management and Coordination
1.1 City Inter-Departmental Coordination
• Memos
12/31/2024 $50,000
1.2 Grant Management
• Memos
12/31/2024
1.3 Consultant Management
• Memos
12/31/2024
1.4 Community Meeting and Public Hearing Preparation
• Memos
12/31/2024
1.5 Communications, Website, and Media Coordination
• Memos
12/31/2024
Task 2 – Community Outreach and Engagement
2.1 Community Outreach and Engagement Strategy Preparation • Staff Report and Final Consultant Contract
09/30/2022 $200,000
2.2 Community Working Group Meetings
• Staff Reports or Memos for Community Working Group
Meetings
12/31/2024
2.3 Technical Advisory Group Meetings
• Staff Reports or Memos for Technical Advisory Group
Meetings
12/31/2024
2.4 Stakeholder Interviews and Community Surveys
• Interviews
• Surveys
• Analysis and Synthesis of Interview and Survey Data
12/31/2024
2.5 Community Visioning Workshops, Design Charettes, and Feedback
Meetings
• Staff Reports, Memos and/or Presentation Materials for Community Visioning Workshops, and Design Charettes
12/31/2024
2.6 Downtown Housing Master Plan Website
• Create and Maintain Website or Webpage with Ongoing
Updates
12/31/2024
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Task 3 – Community Assessment and Policy Development
3.1 Community Assessment and Policy Development Strategy Preparation
• Staff Report and Final Consultant Contract
9/30/2022 $400,000
3.2 Key Community Assessment and Policy Development Focus Areas
• Equity Analysis, Assessment, and Policy Recommendation Report or Memo
• State, Regional, and Local Legal and Regulatory Landscape Analysis, Assessment, and Policy Recommendation Report or Memo
• Affordable Housing and Jobs Analysis, Assessment, and Policy Recommendation Report or Memo
• Housing Development Implementation, Economic Feasibility, Financing Analysis, and Policy Recommendation Report or Memo
• Resilience and Climate Adaptation Analysis, Assessment, and Policy Recommendation Report or Memo
• Community Assets, Services, and Infrastructure Analysis, Assessment, and Policy Recommendation Report or Memo
• Mobility and Interconnectivity Analysis, Assessment, and Policy Recommendation Report or Memo
• Downtown Visioning, Opportunities/Constraints,
Identification of Community Best Practices and Master Plan Approach Recommendations Report or Memo
• City Council Study Session(s)
12/31/2023
Task 4 – Downtown Housing Master Plan Documents
4.1 Downtown Housing Master Plan Preparation
• Master Plan Sections and Topic Outline
• Master Plan Administrative Draft 1
• Master Plan Community Working Group and Technical
Advisory Group Draft 1
• Master Plan Administrative Draft 2
• Master Plan Public Hearing Draft 1
• Master Plan Public Final
12/31/2023 $150,000
4.2 California Environmental Quality Act (CEQA) Environmental Document
• Notice of Preparation (NOP)/Initial Study
• City Internal Memo
• Staff Report, Noticing, and Scoping Meeting
• Administrative Draft CEQA Environmental Document
• Draft CEQA Environmental Document
• Notice of Completion (NOC)
• Final Environmental Impact Report (FEIR)
• Notice of Determination (NOD)
9/30/2024
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Supplement No. 1 – University Ave/Downtown PDA Plan
4.3 Master Plan Adoption, CEQA Environmental Document
Certification, Comprehensive Plan Amendment, and Municipal Code Update
• Public Hearing Staff Reports and associated presentations • Document Certification/Adoption Resolution
• Master Plan Adoption Resolution
• Map Update and Amendment Resolution
• Map and Code Update Ordinance
12/31/2024
TOTAL $800,000
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Master Funding Agreement
Supplement No. 1 – University Ave/Downtown PDA Plan
ATTACHMENT 1
MTC Resolution 4202
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Date: November 18, 2015
W.I.: 1512
Referred by: PAC
Revised: 07/27/16-C 10/26/16-C 12/21/16-C
03/22/17-C 04/26/17-C 05/24/17-C
06/28/17-C 07/26/17-C 09/27/17-C
10/25/17-C 11/15/17-C 12/20-17-C
01/24/18-C 02/28/18-C 03/28/18-C
04/25/18-C 05/23/18-C 06/27/18-C
07/25/18-C 09/26/18-C 11/28/18-C
12/19/18-C 01/23/19-C 02/27/19-C
03/27/19-C 06/26/19-C 07/24/19-C
09/25/19-C 10/23/19-C 11/20/19-C
02/26/20-C 05/27/20-C 07/22/20-C
09/23/20-C 11/20/20-C 01/27/21-C
02/24/21-C 04/28/21-C 05/26/21-C
ABSTRACT
Resolution No. 4202, Revised
Adoption of the project selection policies and project programming for the second round of the One Bay Area Grant program (OBAG 2). The project selection criteria and programming policy contain the project categories that are to be funded with various fund sources including federal surface transportation act funding available to MTC for its programming discretion to be included in the federal Transportation Improvement Program (TIP) for the OBAG 2 funding period.
The resolution includes the following attachments:
Attachment A – OBAG 2 Project Selection Criteria and Programming Policy Attachment B-1 – OBAG 2 Regional Program Project List
Attachment B-2 – OBAG 2 County Program Project List
On July 27, 2016, Attachment A, and Attachments B-1 and B-2 were revised to add additional funding and projects to the OBAG 2 framework, including $72 million in additional Fixing America’s Surface Transportation Act (FAST) funding, and to incorporate housing-related policies.
On October 26, 2016, Attachment A, and Attachment B-1 were revised to clarify language related to the North Bay Priority Conservation Area (PCA) Program in Attachment A and to deprogram $2,500,000 from the Water Emergency Transportation Authority (WETA) Ferry Service Enhancement Pilot within the Regional Active Operational Management Program.
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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ABSTRACT
MTC Resolution No. 4202, Revised
On December 21, 2016, Attachments B-1 and B-2 were revised to redirect $417,000 in un- programmed balances from the Regional Active Operational Management program to MTC’s Spare the Air Youth within the Climate Initiatives Program; divide MTC’s Rideshare Program into three subcomponents totaling $10,000,000: $720,000 for Rideshare Implementation, $7,280,000 for the Carpool Program, and $2,000,000 for the Vanpool Program; direct $1,785,000 from 511 Next Gen to the Commuter Benefits program; direct $1,000,000 in un-programmed balances to SMART’s Multi-Use Pathway; transfer $1,000,000 from MTC’s Casual Carpool project to MTC’s Eastbay Commuter Parking project within the Bay Bridge Forward program, as the former will be funded with non-federal funds; transfer $500,000 from the Freeway Performance Initiative program and $500,000 in un-programmed balances to US 101/Marin Sonoma Narrow’s B2 Phase 2 project in the Regional Active Operational Management Program; shift $40,000,000 from the BART Car Replacement/Expansion project to the Golden Gate Bridge Suicide Deterrent project and $13 million from MTC’s Clipper project to un-programmed balances within the Transit Priorities program as part of a RM2 funding action to address a cost increase on the Golden Gate Bridge Suicide Deterrent project; and program $5,990,000 to Alameda County’s Safe Routes to School Program in the County Program.
On March 22, 2017, Attachment B-1 was revised to program $17,000,000 in un-programmed balances within the Regional Transit Priorities Program to MTC’s Clipper Program, as part of the FY17 Transit Capital Priorities program.
On April 26, 2017, Attachment B-2 was revised to program $1,655,000 to the Sonoma Safe Routes to School program; and redirect $1,000 from Contra Costa Transportation Authority’s Planning Activities Base to its discretionary balance and $1,000 from San Francisco County Transportation Authority’s Planning Activities Base to its discretionary balance to address an inconsistency between amounts programmed to planning activities in Appendix A-3 and reflect actual amounts obligated for planning.
On May 24, 2017, Attachment B-1 was revised to redirect $1,237,000 from 511 Next Gen to AOM Implementation within the Regional Active Operational Management program to reflect re- organization of staff between program elements; direct $18,000,000 in Arterial/Transit Performance to the Program for Arterial System Synchronization ($5,000,000) and the Next Gen Arterial Operations Program ($13,000,000) within the Regional Active Operational Management program; direct $19,000,000 from the Transportation Management System (TMS) Field Equipment Devices Operations and Maintenance to TMS Implementation ($2,910,000), Performance-Based Intelligent DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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ABSTRACT
MTC Resolution No. 4202, Revised
Transportation Systems Device Maintenance and Rehabilitation ($5,940,000), Transportation Management Center Asset Upgrade and Replacement ($4,000,000), I-880 Communication Upgrade and Infrastructure Gap Closures ($4,000,000) and a Detection Technology Pilot ($5,000,000) within the Regional Active Operational Management program; and remove $290,556 in un-programmed balances from the Regional Active Operational Management program to address over-programming in a previous cycles of the STP/CMAQ regional programs.
On June 28, 2017, Attachments B-1 and B-2 were revised to reprogram $1,000,000 from the SMART Pathway – 2
nd to Andersen to San Rafael’s Grand Ave Bike/Pedestrian Improvements within the Regional Climate Initiatives program as part of a funding exchange within the City of San Rafael, conditioned on San Rafael committing $1 million in non-federal funds to the construction of the pathway, and a resolution of local support for the use of federal funds on the Grand Ave project, and TAM approval of the redirection of local measure funds between the projects; split out $8,729,000 from the 511 Next Gen program to 511 Implementation within the Regional Active Operational Management program; program $1,250,000 to Golden Gate Bridge Highway and Transportation District for the Bettini Transit Center as part of the Marin County Program; and program $2,617,000 within the San Mateo County Program to the San Mateo County Office of Education for the SRTS program, including $223,000 in supplemental funds from San Mateo’s discretionary balance.
On July 26, 2017, Attachment B-1 was revised to program $12,000,000 to the US 101 Marin Sonoma Narrows project as part of a fund exchange agreement with Sonoma County Transportation Authority; $11,000,000 in exchange funds are added to the program for tracking purposes, with the final $1 million in exchange funds to be identified through a future Commission action.
On September 27, 2017, Attachment B-1 was revised to change the name of the Next Gen Arterial Operations Program (NGAOP) to Innovative Deployment for Enhanced Arterials (IDEA) to reflect program rebranding and additional focus on advanced technologies; program $4,160,000 to Incident Management Implementation and $8,840,000 to I-880 Integrated Corridor Mobility project within the Regional Active Operational Management program; split out the Connected Vehicles/Shared Mobility program into the Connected Vehicles/Automated Vehicles program for $2,500,000 and the Shared Use Mobility program for $2,500,000; and program $16,000,000 for three corridors within the Freeway Performance Program, with $8,000,000 for I- 680, $3,000,000 for I-880, and $5,000,000 for SR-84.
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC Resolution No. 4202, Revised
On October 25, 2017, Attachment B-1 was revised to program $10,000,000 to the Bay Area Air Quality Management District for the Spare the Air program, in lieu of the Electric Vehicle Programs within the Regional Climate Initiatives Program, conditioned on the Air District contribution of an additional $10 million to advance implementation of electric vehicles within the region.
On November 15, 2017, Attachment B-2 was revised to program $200,000 in the Alameda County Program to the I-580 Corridor Study, to support a joint corridor study between Alameda County Transportation Commission (ACTC) and MTC; $122,000 within the Napa County Program to Napa Valley Transportation Authority (NVTA) for the Napa County Safe Routes to School (SRTS) Program; and $300,000 within the Contra Costa County Program to San Ramon for the San Ramon Valley Street Smarts Program.
On December 20, 2017, Attachments A, Appendix A-3, B-1, and B-2 were revised to program $334 million in the County Program to local and county projects recommended by the nine Congestion Management Agencies (CMAs); redirect $10,248,000 from BART Car Replacement/Expansion to Clipper within the Regional Transit Priorities Program; revise the CMA Planning Activities funding amounts to reflect the supplementary funds requested by several CMAs through their County Programs; and clarify the program details for the Local Housing Production Incentive program (also known as the 80K by 2020 Challenge Grant).
On January 24, 2018, Attachment B-1 was revised to redirect $4,100,000 from Performance- Based ITS Device Maintenance and Rehabilitation to I-880 Communication Upgrade and Infrastructure Gap Closures, within the Transportation Management System program.
On February 28, 2018, Attachments B-1 and B-2 were revised to program $13 million in Innovative Deployments to Enhance Arterials (IDEA) program grants within the Regional Active Operational Management Program; redirect $822,000 within Contra Costa County’s Safe Routes to School Program (SRTS) for future SRTS projects; program $2,813,000 to San Francisco SRTS Non-Infrastructure Program within the San Francisco County Program; and clarify MTC exchange fund projects.
On March 28, 2018, Attachment B-1 was revised to distribute the $1.5 million Community- Based Transportation Planning Program among the nine county Congestion Management Areas DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC Resolution No. 4202, Revised
(CMAs); clarify the limits of three Freeway Performance Program projects within the Regional Active Operational Management Program; and reflect the programming of $30,000 in MTC exchange funds for Bay Area Greenprint Functionality Improvements, as part of the PCA program.
On April 25, 2018, Attachment B-1 was revised to program $8,200,000 in Priority Conservation Area (PCA) grants within the North Bay PCA Program; $3,400,000 to Sonoma County Transportation Authority (SCTA) for the Marin Sonoma Narrows B2 Phase 2 project, as part of an exchange agreement in which an equal amount of SCTA’s future Regional Transportation Improvement Program (RTIP) funds will be programmed at MTC’s discretion; $7,288,000 in PDA Planning and Implementation grants; and $500,000 to MTC for PDA Implementation.
On May 23, 2018, Attachments B-1 and B-2 were revised to change the project sponsor from MTC to VTA for the IDEA Program project at the Veteran’s Administration Palo Alto Medical Center; redirect funds within the Santa Clara County OBAG 2 County Program to reduce San Jose’s West San Carlos Urban Village Streetscape Improvements by $2,050,000, redirecting $1,000,000 from the project to Santa Clara’s Saratoga Creek Trail Phase 1 and $1,050,000 to Saratoga’s Prospect Rd Complete Streets project; and direct an additional an additional $25,000 in unprogrammed balances within Santa Clara County OBAG 2 County Program to Saratoga’s Prospect Rd Complete Streets project.
On June 27, 2018, Attachments B-1 and B-2 were revised to program $800,000 to MTC’s Carsharing Implementation and $325,000 to Targeted Transportation Alternatives within the Climate Initiatives Program; redirect from MTC’s 511 NextGen program $8,271,000 to 511 Implementation, $2,000,000 to Contra Costa Transportation Authority’s (CCTA’s) I-80 Central Ave Interchange Improvements project, and $380,000 to an unprogrammed balance within the Regional Active Operational Management program; clarify the scope of MTC’s Freeway Performance Program I-880 to reflect the project limits of I-80 to I-280; and redirect $1,394,000 from Vallejo’s Local Streets Rehabilitation project to Fairfield’s Heart of Fairfield project within the Solano County Program.
On July 25, 2018, Attachment B-1 was revised to program $1,600,000 to Santa Clara Valley Transportation Authority (VTA) for the SR 85 Transit Guideway Study as part of a fund exchange agreement; remove Rohnert Park’s $65,000 Central Rohnert Park PDA/Creekside Neighborhood Subarea Connector Path Technical Assistance grant from the Regional PDA DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC Resolution No. 4202, Revised
Planning Grant program as it will be funded through a prior cycle; reduce the funding for Windsor’s PDA Planning and Implementation Staffing Assistance grant by $85,000 as this project will receive an equivalent amount of funds through a prior cycle; a total of $150,000 balance created by these two revisions was returned to the Regional PDA Planning Grant Program un-programmed balance.
On September 12, 2018, Attachments B-1 and B-2 were revised to program $3,000,000 within the Freeway Performance Program to the US 101 corridor in San Mateo and Santa Clara counties; direct an additional $6,000,000 within the Freeway Performance Program to the I-680 corridor within Contra Costa County, $4,000,000 of which is part of an exchange agreement with Contra Costa Transportation Authority (CCTA); redirect $15,000 within the Innovative Deployment for Enhanced Arterials (IDEA) program from IDEA Technical Assistance to VTA’s IDEA grant at the Veterans Affairs Palo Alto Medical Center; redirect $48,000 from MTC’s Clipper to the BART Car Replacement/Expansion project within the Transit Priorities program to reflect program amounts previously adopted through the Transit Capital Priorities (TCP) program; revise the amount programmed to VTA’s SR 85 Transit Guideway Study within Regional Strategic Initiatives to $1,200,000 to reflect amount previously approved; redirect $1,214,000 from Berkeley’s North Shattuck Avenue Rehabilitation project to its Southside Complete Streets and Transit Improvements project within the Alameda County Program; from Sunnyvale’s East Sunnyvale Area Sense of Place Improvements, redirect $1,000,000 to Los Altos’ Miramonte Ave Bicycle and Pedestrian Access Improvements and $1,140,000 to the Safe Routes to School program balance within the Santa Clara County Program; and program $4,500,000 available from a previous funding cycle to the following projects within Regional Strategic Initiatives: $617,000 to Novato’s Pavement Rehabilitation (for Downtown Novato SMART Station) as part of a local funding exchange, $1,120,000 to the Transportation Authority of Marin (TAM) for the Old Redwood Highway Multi-Use Pathway project, $763,000 for San Rafael’s Grand Ave Bridge project, and $2,000,000 to TAM for the US 101 Marin Sonoma Narrows project.
On November 28, 2018, Attachment B-1 was revised to make adjustments related to the MTC/SCVTA Funding Exchange Agreement MTC Resolution No. 4356 and to the MTC/CCTA Funding Exchange Agreement MTC Resolution No. 4357, and to program $4,000,000 in MTC exchange funds in accordance with MTC Resolution 3989, to the following projects: $619,000 to CCTA for Innovative Deployment for Enhanced Arterials; $621,000 to the city of Walnut Creek for innovative Deployment for Enhanced Arterials; $500,000 to the city of Richmond for the DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC Resolution No. 4202, Revised
Richmond-San Rafael Bridge Bikeway Access; $1,160,000 to MTC for Richmond-San Rafael Bridge Forward; and $1,100,000 to MTC for Napa Valley Transportation Demand.
On December 19, 2018, Attachments B-1 and B-2 were revised to redirect $5,200,000 from MTC’s I-880 Integrated Corridor Management (ICM) Central Segment to the I-880 ICM Northern Segment project within the Regional Active Operational Management Program; clarify the Diridon Integrated Station Area Concept Plan project within the Regional Priority Development Planning and Implementation Program to reference Santa Clara Valley Transportation Authority (VTA) as a project partner; within the Santa Clara County Program, redirect $794,000 in unprogrammed balances to Sunnyvale’s East Sunnyvale Sense of Place Improvements, clarify the remaining unprogrammed balance is discretionary, and clarify the division of funding for Santa Clara’s Saratoga Creek Trail Phase 1 project between the county’s Safe Routes to School program and its discretionary program.
On January 23, 2019, Attachment B-2 was revised to redirect $15,980,000 within the San Francisco County Program from the Better Market Street project to the Central Subway project.
On February 27, 2019, Attachment B-1 was revised to change the fund source of $3,779,849 programmed to the Golden Gate Bridge Suicide Deterrent in Surface Transportation Block Grant Program (STP) funds to federal Highway Infrastructure Program (STP Bump) funds provided in the Consolidated Appropriations Act, 2018. Of the $3,779,849 freed up by this swap, $1,000,000 is returned to the region’s STP/CMAQ balance to help address the CMAQ shortfall as a result of the region becoming attainment for carbon monoxide (CO) and therefore receiving less CMAQ funds which are distributed based on air quality status. The remaining $2,779,849 is held for future Commission action.
On March 27, 2019, Attachment A, Appendix A-8, Appendix A-10, and Attachment B-1 were revised to clarify provisions pertaining to the interim status report requirements for Priority Development Area (PDA) Investment & Growth Strategies; change the recipient of the Concord IDEA project from CCTA to the City of Concord and reduce the MTC Exchange funding from $619,000 to $589,000; and redirect the $30,000 in MTC Exchange funds to a new MTC-led Concord IDEA project.
On June 26, 2019, Attachment B-2 was revised to program $822,000 in unprogrammed Safe Routes to School Program (SRTS) balances within the Contra Costa County Program to six DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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ABSTRACT
MTC Resolution No. 4202, Revised
existing projects; and to redirect $251,000 within the San Mateo County Program from Atherton’s Middlefield Road Class II Bike Lanes to its James Avenue Rehabilitation.
On July 24, 2019, Attachment A was revised to delegate authority to the Executive Director or designee to sign Letters of Understanding for the exchange of STP/CMAQ funds with other regions, within certain conditions and limitations, and to delegate to a Committee of the Commission the authority to approve exchanges beyond these conditions and limitations.
On September 25, 2019, Attachments B-1 and B-2 were revised to clarify that the $300,000 programmed to Alameda County Transportation Commission (ACTC) within the Community Based Transportation Plan (CBTP) Updates program will be directed to its Congestion Management Agency (CMA) Planning program as part of an internal fund exchange within ACTC; redirect $9.6 million from 511 Implementation to 511 Next Gen within the Bay Area 511 Traveler Information Program; within the Freeway Performance Program redirect $625,000 in from MTC’s SR 84 (US 101 to I-880) to the environmental phase of MTC’s I-580 WB HOV Lane Extension project and change the project sponsor of the I-80/Central Ave. Interchange Improvements project from the Contra Costa Transportation Authority (CCTA) to City of Richmond; within the Innovative Deployment to Enhance Arterials (IDEA) program, clarify that LAVTA is a partner agency for the Dublin Category 2 IDEA project; within the Transportation Management Systems (TMS) program, change the name of the overall program to Connected Bay Area, redirect $2 million from the Detection Technology Pilot project and $1.8 million from the Performance-Based ITS Device Maintenance and Rehabilitation project to provide an additional $3.8 million to the I-880 Communications Upgrade and Infrastructure Gap Closures project; within the Incident Management program, redirect $1 million from MTC’s I-880 Integrated Corridor Management (ICM) Central Segment to the Northern Segment; within the San Francisco County program, redirect $3,366,000 from John Yehall Chin Elementary Safe Routes to School (SRTS) Improvement; and within the Santa Clara County program, redirect $1 million from Los Altos’ Miramonte Ave Bicycle and Pedestrian Access Improvements project to Cupertino’s McClellan Rd Separated Bike Lane project, and program $1,346,000 in unprogrammed discretionary balances to Campbell’s Harriet Ave Sidewalk project and Los Gatos Shannon Rd Complete Streets project.
On October 23, 2019, Attachment B-1 was revised to redirect $3 million from MTC’s Detection Technology Pilot project to establish the InterConnect Bay Area grant program within the Connected Bay Area program; direct $5 million ($4 million Solano County and $1 million other DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC Resolution No. 4202, Revised
North Bay counties) within the Housing Incentive Pool program to establish the Sub-HIP program, with specific projects to be recommended through future programming actions; and program $1 million to BART for AB2923 Implementation from unprogrammed balances within the PDA Planning & Implementation program.
On November 20, 2019, Attachments B-1 and B-2 were revised to program $6,023,000 in MTC exchange funds in accordance with MTC Resolution No. 3989 to 13 projects within the Priority Conservation Area (PCA) Grants program; and within the Contra Costa County program, redirect $1,025,000 from Brentwood’s Various Streets and Roads Preservation project to Pittsburg’s Pavement Improvements project, redirect $618,000 from San Pablo’s Market Street Pavement Rehabilitation project to Giant Road Pavement Rehabilitation project; and revise the name of Walnut Creek’s Ygnacio Valley Road Rehabilitation project to reflect the latest proposed scope of work.
On February 26, 2020, Attachments A, B-1, and B-2 were revised to program $1 million to MTC for SR 37 corridor planning in Marin, Napa, Solano, and Sonoma Counties and $3 million to MTC for I-80 corridor planning from the Carquinez Bridge to the San Francisco-Oakland Bay Bridge (SFOBB) Toll Plaza within the Freeway Performance Program; revise the name of the Concord Willow Pass Road Rehabilitation and Safe Routes to School project within the Contra Costa County Program to reflect the project’s current scope; and clarify language within the OBAG 2 Project Selection Criteria and Programming Policy to reflect the Commission adoption of Housing Incentive Pool (HIP) program guidelines, MTC Resolution No. 4348.
On May 27, 2020, Attachment B-1 was revised to clarify the scope of MTC’s Freeway Performance Program planning-only project on I-80 extends from Carquinez Bridge in Contra Costa to Fremont Street in San Francisco; change the sponsor for three projects within the Regional Priority Conservation Area (PCA) Grant program; and to redirect $104,000 in the North Bay Priority PCA Grant program from Novato’s Carmel Open Space Acquisition project to Novato’s Hill Area National Recreation Area, as the former project has been cancelled.
On July 22, 2020, Attachment B-1 was revised to program $5 million to five projects in Solano, Marin, Napa, and Sonoma Counties within the Housing Incentive Pool Pilot Program (Sub-HIP) and program $1 million to the Napa Valley Forward Traffic Calming and Multimodal Improvements project within the Freeway Performance Program (FPP); and incorporate $7,681,887 in federal Highway Infrastructure Program apportionment provided through the DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC Resolution No. 4202, Revised
Department of Transportation Appropriations Act, 2020 to the Golden Gate Bridge Suicide Deterrent.
On September 23, 2020, Attachment B-2 was revised to redirect $2,000,000 from Napa’s Silverado Trail Five-way Intersection Improvement project to Napa Valley Transportation Authority’s Vine Transit Bus Maintenance Facility within the Napa County Program, and $1,394,000 from Fairfield’s Heart of Fairfield Improvements to its Cadenasso Dr. repaving project within the Solano County Program.
On November 20, 2020, Attachment B-1 was revised to program $1,000,000 to SFCTA for the environmental phase of the Yerba Buena Island/Treasure Island Multi-Use Pathway project within the Priority Conservation Area (PCA) Grants program, with payback from BATA at a future date; $647,000 in MTC exchange funds in accordance with MTC Resolution No. 3989 to four projects within the Priority Conservation Area (PCA) Grants program; and to clarify the project sponsor of the Old Redwood Highway Multi-Use Pathway project as Larkspur, rather than the Transportation Authority of Marin (TAM).
On January 27, 2021, Attachments A and Attachment B-1 were revised, and Appendix A-11 was added, to incorporate additional funding into the OBAG 2 framework, including $52.9 million in STP/CMAQ program balances made available through FY2018-FY2020 appropriations of Federal Highway Infrastructure Program (FHIP) funds, and a $1.5 million balance redirected from the Cycle 1 STP/CMAQ Climate Initiatives program, as part of the Safe & Seamless Mobility Quick-Strike program.
On February 24, 2021, Attachment B-1 was revised to program a total of $7.91 million in Federal Highway Infrastructure Program (FHIP) funds provided in the Consolidated Appropriations Act, 2021, and project savings from previous STP/CMAQ cycles to the Golden Gate Bridge Highway and Transportation District (GGBHTD) for shareable costs of an increase to the Golden Gate Bridge Suicide Deterrent System. Because the final FFY 2021 FHIP amount is not yet available at the time of the Commission meeting, the final split between the two fund sources will be adjusted by staff as a technical change, with the total amount not to exceed $7.91 million.
On April 28, 2021, Attachment B-1 was revised to change the fund source of $13,942,852 from Federal Highway Infrastructure Program (FHIP) funds to Surface Transportation Block Grant DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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ABSTRACT
MTC Resolution No. 4202, Revised
(STP) funds for the Gate Bridge Highway and Transportation District (GGBHTD) for the Golden Gate Bridge Suicide Deterrent System project; program $61,708,245 in STP/CMAQ funds, and $13,942,852 in FHIP funds redirected from the GGB suicide deterrent system, to the Transportation Authority of Marin (TAM) for the US-101 Marin-Sonoma Narrows Segment B7 project as part of the SB1/RMS alternative funding plan; and program $99,840,510 in STP/CMAQ funds to the Solano Transportation Authority (STA) for the Solano I-80 Express Lanes project as part of the SB1/RMS alternative funding plan. The programmed funding to TAM and STA serves as a loan to the project sponsors to permit the projects to move to construction while Regional Measure 3 funds are unavailable. The loaned funds shall be repaid to MTC as non-federal funds and will be subject to future OBAG programming.
On May 26, 2021, Attachment B-1 and Appendix A-11 were revised to program $34,593,076 in Federal Highway Infrastructure Program funds made available through federal Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) to augment the Regional Safe and Seamless Mobility Quick-Strike program framework; and to program $7,775,000 in Priority Development Area (PDA) Planning and Implementation grants and $87,000 in Regional PDA Supportive Studies within the Regional PDA Planning and Implementation program.
Further discussion of the project selection criteria and programming policy is contained in the memorandum to the Programming and Allocations Committee dated November 4, 2015, July 13, 2016, October 12, 2016, December 14, 2016, February 8, 2017 (action deferred to March 2017), March 8, 2017, April 12, 2017, May 10, 2017, June 14, 2017, July 12, 2017, September 13, 2017, October 11, 2017, November 8, 2017, December 13, 2017, January 10, 2018, February 14, 2018, March 7, 2018, and April 11, 2018; the Planning Committee dated April 6, 2018; and the Programming and Allocations Committee dated May 9, 2018, June 13, 2018, July 11, 2018, September 12, 2018, November 14, 2018, December 12, 2018, January 9, 2019, February 13, 2019, March 6, 2019, June 12, 2019, July 10, 2019, September 4, 2019, October 9, 2019, November 13, 2019, February 12, 2020, May 13, 2020, July 8, 2020, September 9 2020, November 4, 2020, January 13, 2021, February 10, 2021, April 14, 2021, and May 12, 2021; and the Planning Committee dated May 14, 2021.
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Date: November 18, 2015
W.I.: 1512
Referred By: Programming & Allocations
RE: One Bay Area Grant Program Second Round (OBAG 2) Project Selection Criteria and Programming Policy
METROPOLITAN TRANSPORTATION COMMISSION
RESOLUTION NO. 4202
WHEREAS, the Metropolitan Transportation Commission (MTC) is the Regional Transportation Planning Agency (RTPA) for the San Francisco Bay Area pursuant to Government Code Section 66500 et seq.; and
WHEREAS, MTC is the designated Metropolitan Planning Organization (MPO) for the nine- county San Francisco Bay Area region and is required to prepare and endorse a Transportation Improvement Program (TIP) which includes federal funds; and
WHEREAS, MTC is the designated recipient for state and federal funding assigned to the RTPA/MPO of the San Francisco Bay Area for the programming of projects; and
WHEREAS, state and federal funds assigned for RTPA/MPO programming discretion are subject to availability and must be used within prescribed funding deadlines regardless of project readiness; and
WHEREAS, MTC, in cooperation with the Association of Bay Area Governments (ABAG), the Bay Area Air Quality Management District (BAAQMD), the Bay Conservation and Development Commission (BCDC), California Department of Transportation (Caltrans), Congestion Management Agencies (CMAs), county Transportation Authorities (TAs), transit operators, counties, cities, and interested stakeholders, has developed criteria, policies and procedures to be used in the selection of projects to be funded with various funding including regional federal funds as set forth in Attachments A, B-1 and B-2 of this Resolution, incorporated herein as though set forth at length; and
WHEREAS, using the policies set forth in Attachment A of this Resolution, MTC, in cooperation with the Bay Area Partnership and interested stakeholders, will develop a program of projects to be funded with these funds for inclusion in the federal TIP, as set forth in Attachments B-1 and B-2 of this Resolution, incorporated herein as though set forth at length; and
WHEREAS the federal TIP and subsequent TIP amendments and updates are subject to public review and comment; now therefore be it
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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MTC Resolution 4202
RESOLVED that MTC approves the “Project Selection Criteria and Programming Policy” for projects to be funded in the OBAG 2 Program as set forth in Attachments A, B-i and B-2 of this Resolution; and be it further
RESOLVED that the regional discretionary funding shall be pooled and distributed on a regional basis for implementation of project selection criteria, policies, procedures and programming, consistent with the Regional Transportation Plan (RTP); and be it further RESOLVED that the projects will be included in the federal TIP subject to final federal approval and requirements; and be it further
RESOLVED that the Executive Director or designee may make technical adjustments and other non-substantial revisions, including updates to fund sources and distributions to reflect final funding criteria and availability; and be it further
RESOLVED that the Executive Director or designee is authorized to revise Attachments B-i and B-2 as necessary to reflect the programming of projects as the projects are selected, revised and included in the federal TIP; and be it further
RESOLVED that the Executive Director or designee shall make available a copy of this resolution, and attachements as may be required and appropriate.
The above resolution was entered into
by the Metropolitan Transportation
Commission at the regular meeting
of the Commission held in Oakland,
California, on November 18, 2015
METROPOLITAN TRANSPORTATION COMMISSION
Dave Cortese, Chair
DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Attachment B-1
MTC Resolution No. 4202
OBAG 2 Regional Programs
FY 2017-18 through FY 2021-22
April 2021
OBAG 2 Regional Programs Project List
PROJECT CATEGORY AND TITLE SPONSOR STP CMAQ Total STP/CMAQ Other OBAG 2 REGIONAL PROGRAMS $484,059,423 $196,665,000 $680,724,423 $99,975,260
1. REGIONAL PLANNING ACTIVITIES STP CMAQ
Regional Planning MTC $9,555,000 $9,555,000
1. REGIONAL PLANNING ACTIVITIES TOTAL: $9,555,000 $9,555,000
2. PAVEMENT MANAGEMENT PROGRAM STP CMAQ
Pavement Management Program MTC $1,500,000 $1,500,000
Pavement Technical Advisory Program (PTAP) MTC $7,500,000 $7,500,000 Statewide Local Streets and Roads (LSR) Needs Assessment MTC/Caltrans $250,000 $250,000
2. PAVEMENT MANAGEMENT PROGRAM TOTAL: $9,250,000 $9,250,000
3. PDA PLANNING & IMPLEMENTATION STP CMAQ
PDA Planning and Implementation
PDA Implementation MTC $2,000,000 $2,000,000
PDA Supportive Studies MTC $587,000 $587,000
PDA Planning
Berkeley: San Pablo Avenue PDA Plan MTC $750,000 $750,000 Oakland: MacArthur Transit Village PDA; North Oakland/Golden Gate PDA Plan MTC $800,000 $800,000 Oakland: Eastmont Town Center/International Blvd; Fruitvale and Dimond; MacArthur Blvd Corridor; San A MTC $800,000 $800,000 Union City: Decoto Industrial Parkway Study Area Specific Plan 2.0 MTC $800,000 $800,000 El Cerrito: San Pablo Avenue Specific Plan and EIR Update/Amendments MTC $308,000 $308,000 Moraga: Moraga Center Specific Plan Implementation Project MTC $140,000 $140,000 Richmond: Hilltop PDA Plan MTC $750,000 $750,000
San Pablo: Rumrill Blvd PDA Plan MTC $250,000 $250,000
Marin County: Urbanized Corridor/Marin City PDA Plan MTC $300,000 $300,000 San Rafael: Downtown Precise Plan MTC $500,000 $500,000 San Francisco: HUB Area EIR MTC $500,000 $500,000
San Francisco: Transit Corridors Study MTC $500,000 $500,000 Burlingame: Broadway Planning Area PDA Plan MTC $400,000 $400,000 South San Francisco: Downtown Station Area PDA Plan MTC $500,000 $500,000 Cupertino: VTA Cores and Corridors PDA Plan MTC $400,000 $400,000 Milpitas: Midtown PDA Plan MTC $500,000 $500,000
Palo Alto: University Ave/Downtown PDA Plan MTC $800,000 $800,000 San Jose/VTA: Diridon Integrated Station Area Concept Plan MTC $800,000 $800,000 San Jose: SW Expressway/Race Street Light Rail Urban Village Plans MTC $500,000 $500,000 Santa Clara: Downtown PDA Plan MTC $400,000 $400,000
Vacaville: Downtown Specific Plan MTC $350,000 $350,000 Santa Rosa: Downtown Station Area Specific Plan Update/Amendment MTC $800,000 $800,000 Staffing Assistance
Emeryville: Mitigate Regulation-Induced Displacement, Streamlined Asset Mngmt MTC $180,000 $180,000 Fremont: SB743 Implementation MTC $150,000 $150,000
Hayward: SB743 Implementation MTC $150,000 $150,000
Oakland: ADU Initiative MTC $200,000 $200,000
Oakland: Innovative Construction Initiative MTC $200,000 $200,000 Concord: VMT-based Transportation Impact Standards MTC $150,000 $150,000 Concord: Galindo Street Corridor Plan MTC $200,000 $200,000 Lafayette: Updated Parking Ordinance and Strategies MTC $150,000 $150,000 San Jose: PDA/Citywide Design Guidelines MTC $200,000 $200,000 Windsor: Parking Management and Pricing MTC $35,000 $35,000 Technical Assistance
Marin/Sonoma VMT Implementation Group MTC $170,000 $170,000 Napa/Solano VMT Implementation Group MTC $170,000 $170,000 Various Jurisdictions: VMT Implementation Group MTC $140,000 $140,000 Emeryville: Developing the Highest and Best Use of the Public Curb MTC $65,000 $65,000 Hayward: Micro Mobility/Safety Program MTC $75,000 $75,000 Oakland: General Plan Framework - PDA Community Engagement Program MTC $65,000 $65,000 San Leandro: BayFair TOD Infrastructure Design/Finance MTC $150,000 $150,000 San Francisco: Mission-San Jose PDA Housing Feasibility Analysis MTC $65,000 $65,000 San Francisco: PDA Density Bonus Program MTC $65,000 $65,000 Belmont: Transportation Demand Management Program MTC $65,000 $65,000 San Mateo: TDM Ordinance MTC $150,000 $150,000
Santa Rosa/Sonoma County: Renewal Enterprise District MTC $150,000 $150,000 San Jose: Urban Villages District Parking & Rezoning MTC $120,000 $120,000 BART AB2923 Implementation BART $1,000,000 $1,000,000
Unprogrammed balance MTC $7,862,000 $7,862,000
Community-Based Transportation Plan (CBTP) Updates MTC
MTC $300,000 $300,000
CCTA: Community-Based Transportation Plans MTC $215,000 $215,000 TAM: Community-Based Transportation Plans MTC $75,000 $75,000 NVTA: Community-Based Transportation Plans MTC $75,000 $75,000 SFCTA: Community-Based Transportation Plans MTC $175,000 $175,000 C/CAG: Community-Based Transportation Plans MTC $120,000 $120,000 VTA: Community-Based Transportation Plans MTC $300,000 $300,000 STA: Community-Based Transportation Plans MTC $95,000 $95,000 SCTA: Community-Based Transportation Plans MTC $110,000 $110,000 CBTP Program Evaluation MTC $35,000 $35,000
3. PDA PLANNING & IMPLEMENTATION TOTAL: $20,000,000 $20,000,000
4. CLIMATE INITIATIVES STP CMAQ
Climate Initiatives $10,875,000 $10,875,000
Spare the Air & EV Program Outreach (for Electric Vehicle Programs) BAAQMD $10,000,000 $10,000,000 Carsharing Implementation MTC $800,000 $800,000
Targeted Transportation Alternatives MTC $325,000 $325,000 Spare the Air Youth Program - 2 MTC $1,417,000 $1,417,000
4. CLIMATE INITIATIVES TOTAL: $23,417,000 $23,417,000
MTC Res. No. 4202 Attachment B-1
Adopted: 11/18/15-C
Revised: 07/27/16-C 10/26/16-C 12/21/16-C 03/22/17-C 05/24/17-C 06/28/17-C 07/26/17-C 09/ 27/17-C 10/25/17-C 12/20/17-C 01/24/18-C 02/28/18-C 03/28/18-C 04/25/18-C 05/23/18-C 06/27/18-C 07/25/18-C 09/26/18-C 11/28/18-C 12/19/18-C 02/27/19-C 03/27/19-C 06/26/19-C 09/25/19-C 10/23/19-C 11/20/19-C 02/26/20-C 05/27/20-C 07/22/20-C 11/20/20-C 01/27/21-C
02/24/21-C 04/28/21-C 05/26/21-C
Close Grouping Before Printing
Not for Commission Action
ACTC: CMA Planning (for Community-Based Transportation Plans) Metropolitan Transportation Commission (MTC) 1 MTC Resolution No. 4202 Attachment B-1 DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Attachment B-1
MTC Resolution No. 4202
OBAG 2 Regional Programs
FY 2017-18 through FY 2021-22
April 2021
OBAG 2 Regional Programs Project List
PROJECT CATEGORY AND TITLE SPONSOR STP CMAQ Total STP/CMAQ Other OBAG 2 REGIONAL PROGRAMS $484,059,423 $196,665,000 $680,724,423 $99,975,260 MTC Res. No. 4202 Attachment B-1
Adopted: 11/18/15-C
Revised: 07/27/16-C 10/26/16-C 12/21/16-C 03/22/17-C 05/24/17-C 06/28/17-C 07/26/17-C 09/ 27/17-C 10/25/17-C 12/20/17-C 01/24/18-C 02/28/18-C 03/28/18-C 04/25/18-C 05/23/18-C 06/27/18-C 07/25/18-C 09/26/18-C 11/28/18-C 12/19/18-C 02/27/19-C 03/27/19-C 06/26/19-C 09/25/19-C 10/23/19-C 11/20/19-C 02/26/20-C 05/27/20-C 07/22/20-C 11/20/20-C 01/27/21-C
02/24/21-C 04/28/21-C 05/26/21-C
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Not for Commission Action
5. REGIONAL ACTIVE OPERATIONAL MANAGEMENT STP CMAQ
Active Operational Management
AOM Implementation MTC $23,737,000 $23,737,000
Bay Area 511 Traveler Information
511 Next Gen MTC $26,148,000 $26,148,000
511 Implementation MTC $7,450,000 $7,450,000
Rideshare
Rideshare Implementation MTC $720,000 $720,000
Carpool Program MTC $7,280,000 $7,280,000
Vanpool Program MTC $2,000,000 $2,000,000
Commuter Benefits Implementation MTC $674,000 $674,000
Commuter Benefits Program MTC $1,111,000 $1,111,000
Napa Valley Transportation Demand Strategies (Fund Exchange) MTC/NVTA $1,100,000 Bay Bridge Forward
Transbay Higher Capacity Bus Fleet/Increased Service Frequencies AC Transit $1,200,000 $1,200,000 Pilot Transbay Express Bus Routes AC Transit $800,000 $800,000 Eastbay Commuter Parking MTC $2,500,000 $2,500,000
Transbay Higher Capacity Bus Fleet/Increased Service Frequencies WestCat $2,000,000 $2,000,000 Dumbarton Forward
MTC $4,375,000 $4,375,000
Richmond-San Rafael Bridge Forward
Richmond-San Rafael Bridge Bikeway Access (Fund Exchange) Richmond $500,000 Richmond-San Rafael Bridge Forward (Fund Exchange) MTC $1,160,000 Freeway Performance Program
Freeway Performance Program MTC $14,240,000 $14,240,000 FPP: I-880 (I-80 to I-280) MTC $3,000,000 $3,000,000
MTC $625,000 $625,000
FPP: I-80 (Carquinez Bridge to Fremont St., SF) PL only MTC $3,000,000 $3,000,000 FPP: CC I-680 NB HOV/Express Lanes (Ala Co. to Sol Co.) MTC $10,000,000 $10,000,000 FPP: I-80 Central Ave Interchange Improvements Richmond $2,000,000 $2,000,000 FPP: SR 37 (US 101 to I-80) PL only MTC $1,000,000 $1,000,000 FPP: Napa Valley Forward Traffic Calming & Multimodal Imps. MTC $1,000,000 $1,000,000 FPP: US 101 (SR 85 to San Francisco Co. Line) MTC $3,000,000 $3,000,000 SCTA $1,000,000 $1,000,000
Program for Arterial System Synchronization (PASS) MTC $5,000,000 $5,000,000 Innovative Deployments for Enhanced Arterials (IDEA)
IDEA Technical Assistance MTC $1,532,000 $1,532,000
IDEA Category 1
AC Transit: Dumbarton Express Route (SR84) MTC $2,300,000 $2,300,000 Alameda: Webster & Posey Tubes (SR 260), Park St MTC $276,000 $276,000 Hayward: Various Locations MTC $302,000 $302,000
Oakland: Bancroft Ave MTC $310,000 $310,000
Pleasanton: Various Locations MTC $290,000 $290,000
Union City: Union City Blvd & Decoto Rd MTC $710,000 $710,000 San Ramon: Bollinger Canyon Rd & Crow Canyon Rd MTC $563,000 $563,000 San Rafael: Downtown San Rafael MTC $830,000 $830,000
South San Francisco: Various Locations MTC $532,000 $532,000 San Jose: Citywide MTC $1,400,000 $1,400,000
IDEA Category 2
LAVTA/Dublin: Citywide MTC $385,000 $385,000
Emeryville: Powell, Shellmound, Christie & 40th St MTC $785,000 $785,000 Concord: Concord Blvd, Clayton Rd & Willow Pass Rd (Fund Exchange) MTC $589,000 MTC Concord Blvd, Clayton Rd & Willow Pass Rd (Fund Exchange) MTC $30,000 Walnut Creek: Various locations (Fund Exchange) MTC $621,000 Los Gatos: Los Gatos Blvd MTC $700,000 $700,000
VTA: Veterans Admin. Palo Alto Medical Center VTA $845,000 $845,000 Connected Vehicles/Automated Vehicles (CV/AV) MTC $2,500,000 $2,500,000 Shared Use Mobility MTC $2,500,000 $2,500,000
Connected Bay Area
TMS Implementation MTC $2,910,000 $2,910,000
TMC Asset Upgrade and Replacement MTC $1,150,000 $1,150,000 I-880 Communication Upgrade and Infrastructure Gap Closures MTC $11,940,000 $11,940,000 InterConnect Bay Area Program MTC $3,000,000 $3,000,000 Incident Management
Incident Management Implementation MTC $4,160,000 $4,160,000 I-880 ICM Northern MTC $6,200,000 $6,200,000
I-880 ICM Central MTC $2,640,000 $2,640,000
Unprogrammed Balance TBD $380,000 $380,000
5. REGIONAL ACTIVE OPERATIONAL MANAGEMENT TOTAL: $128,135,000 $44,865,000 $173,000,000 $4,000,000
6. TRANSIT PRIORITIES STP CMAQ
BART Car Replacement/Expansion BART $99,800,000 $99,800,000 GGB Suicide Deterrent (for BART Car Replacement/Expansion) GGBH&TD $9,760,668 $9,760,668 $30,239,332 Clipper MTC $34,200,000 $34,200,000
Unprogrammed Balance $15,283,000 $15,283,000
6. TRANSIT PRIORITIES TOTAL: $59,243,668 $99,800,000 $159,043,668 $30,239,332
7. PRIORITY CONSERVATION AREA (PCA) STP CMAQ
Regional Peninsula, Southern and Eastern Counties PCA Grant Program Bay Area GreenPrint: PCA Functionality Imps (Fund Exchange) MTC/GreenInfo Network $30,000 PCA Grant Implementation MTC/Coastal Conservancy $500,000 Alameda County: Niles Canyon Trail, Phase 1 Alameda County $321,000 Albany: Albany Hill Access Improvements Albany $251,000 SR 84 (US 101 to I-880) Dumbarton Forward
FPP: I-580 WB HOV Lane Extension (SR 24 to I-80/SFOBB approach) PL & ENV Only FPP: SCTA US 101/Marin Sonoma Narrows (MSN) B2 Phase 2
Metropolitan Transportation Commission (MTC) 2 MTC Resolution No. 4202 Attachment B-1 DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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Attachment B-1
MTC Resolution No. 4202
OBAG 2 Regional Programs
FY 2017-18 through FY 2021-22
April 2021
OBAG 2 Regional Programs Project List
PROJECT CATEGORY AND TITLE SPONSOR STP CMAQ Total STP/CMAQ Other OBAG 2 REGIONAL PROGRAMS $484,059,423 $196,665,000 $680,724,423 $99,975,260 MTC Res. No. 4202 Attachment B-1
Adopted: 11/18/15-C
Revised: 07/27/16-C 10/26/16-C 12/21/16-C 03/22/17-C 05/24/17-C 06/28/17-C 07/26/17-C 09/ 27/17-C 10/25/17-C 12/20/17-C 01/24/18-C 02/28/18-C 03/28/18-C 04/25/18-C 05/23/18-C 06/27/18-C 07/25/18-C 09/26/18-C 11/28/18-C 12/19/18-C 02/27/19-C 03/27/19-C 06/26/19-C 09/25/19-C 10/23/19-C 11/20/19-C 02/26/20-C 05/27/20-C 07/22/20-C 11/20/20-C 01/27/21-C
02/24/21-C 04/28/21-C 05/26/21-C
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Livermore: Arroyo Road Trail Livermore $400,000
WOEIP/Urban Biofilter: Adapt Oakland Urban Greening in West Oakland WOEIP/Urban Biofilter $300,000 EBRPD: Bay Trail at Point Molate (RSR Bridge to Point Molate Beach Park) EBRPD $1,000,000 JMLT: Pacheco Marsh/Lower Walnut Creek Restoration and Public Access John Muir Land Trust $950,000 SFCTA: Yerba Buena Island Multi-Use Pathway (PE/ENV) SFCTA $1,000,000 $1,000,000 San Francisco: McLaren Park and Neighborhood Connections Plan SF Recreation and Parks $194,000 San Francisco/Coastal Conservancy: Twin Peaks Trail Improvement SF Rec and Park/Conservancy $74,000 GGNPC/NPS: Rancho Corral de Tierra Unit Management Plan Engagement National Parks Service $200,000 SMCHD: Pillar Point Public Access Improvements San Mateo Co. Harbor District $298,000 Menlo Park: Bedwell Bayfront Park Entrance Improvements Menlo Park $520,000 San Mateo Co.: Colma Creek Adaptation Study (Colma Creek Connector) San Mateo Co. $110,000 San Mateo Co.: San Bruno Mtn. Habitat Conservation Plan Grazing Pilot San Mateo Co. $137,900 South San Francisco: Sign Hill Conservation and Trail Master Plan South San Francisco $135,100 Point Blue: Pajaro River Watershed: Habitat Restoration and Climate Resilient Imps. Point Blue Conservation Science $379,000 SCVOSA: Coyote Ridge Open Space Preserve Public Access, Phase 1 Point Blue Conservation Science $400,000 SCVOSA: Tilton Ranch Acquisition Santa Clara Valley Open Space Auth. $1,000,000 North Bay PCA Grant Program
Marin County: Hicks Valley/Wilson Hill/Marshall-Petaluma Rehab. (for Corte Madera: Par Marin County $312,000 $312,000 Marin County: Hicks Valley/Wilson Hill/Marshall-Petaluma Rd Rehab Marin County $869,000 $869,000 Novato $104,000 $104,000
Novato: Vineyard Rd Improvements (for Hill Recreation Area Imps.) Novato $265,000 $265,000 National Parks Service: Fort Baker's Vista Point Trail NPS $500,000 $500,000 NVTA: Vine Trail - St. Helena to Calistoga NVTA $711,000 $711,000 Napa: Vine Trail - Soscol Ave Corridor Napa $650,000 $650,000 Napa County: Silverado Trail Rehabilitation - Phase L Napa County $689,000 $689,000 Solano County: Suisun Valley Farm-to-Market - Phase 3 Bike Imps Solano County $2,050,000 $2,050,000 Sonoma County: Crocker Bridge Bike/Pedestrian Bridge Sonoma County $1,280,000 $1,280,000 Sonoma County: Joe Rodota Trail Bridge Replacement Sonoma County $770,000 $770,000
7. PRIORITY CONSERVATION AREA (PCA) TOTAL: $9,200,000 $9,200,000 $7,200,000
8. BAY AREA HOUSING INITIATIVES STP CMAQ
Bay Area Preservation Pilot (BAPP) (Funding Exchange) MTC $10,000,000 Housing Incentive Pool TBD $25,000,000 $25,000,000
Sub-HIP Pilot Program
Fairfield: Pavement Preservation/Rehabilitation (for One Lake Apts. Linear Park Trail) Fairfield $2,100,000 $2,100,000 Vacaville: Pavement Preservation/Rehabilitation (for Allison PDA Affordable Housing) Vacaville $1,900,000 $1,900,000 Marin County: Marin City Pedestrian Crossing Imps. Marin County $300,000 $300,000 NVTA: Imola Park and Ride NVTA $300,000 $300,000
Santa Rosa: Downtown Multi-modal and Fiber Improvements Santa Rosa $400,000 $400,000
8. BAY AREA HOUSING INITIATIVES TOTAL: $4,300,000 $25,700,000 $30,000,000 $10,000,000
9. SAFE & SEAMLESS MOBILITY QUICK-STRIKE STP CMAQ
TBD TBD $52,900,000 $52,900,000 $34,593,076
9. SAFE & SEAMLESS MOBILITY QUICK-STRIKE TOTAL: $52,900,000 $52,900,000 $34,593,076
10. REGIONAL STRATEGIC INVESTMENTS (RSI) STP CMAQ
CC I-680 NB HOV/Express Lanes Ala Co to Sol Co (Fund Exchange) CCTA/MTC $4,000,000 $4,000,000 GGBHTD $7,910,000 $7,910,000
Pavement Rehab (for Downtown Novato SMART Station) Novato $617,000 $617,000 Old Redwood Highway Multi-Use Pathway Larkspur $1,120,000 $1,120,000 Grand Ave Bridge San Rafael $763,000 $763,000
Grand Ave Bike/Ped Imps (for SMART 2nd to Andersen Pathway) San Rafael $1,000,000 $1,000,000 US 101 Marin-Sonoma Narrows TAM $2,000,000 $2,000,000
US 101/Marin Sonoma Narrows (MSN) B2 Phase 2 (Fund Exchange) SCTA $15,400,000 $15,400,000 US 101 Marin-Sonoma Narrows (MSN) B7 (Loan for RM3) TAM $61,708,245 $61,708,245 $13,942,852 I-80 Express Lanes in Solano County (Loan for RM3) STA $99,840,510 $99,840,510
10. REGIONAL STRATEGIC INVESTMENTS (RSI) TOTAL: $191,475,755 $2,883,000 $194,358,755 $13,942,852 OBAG 2 REGIONAL PROGRAMS TOTAL: $484,059,423 $196,665,000 $680,724,423 $99,975,260 J:\SECTION\ALLSTAFF\Resolution\TEMP-RES\MTC\RES-4202_ongoing_OBAG2\[tmp-4202_Attachment-B-1_May-June.xlsx]May 2021 GGB Suicide Deterrent System
Novato: Nave Dr/Bell Marin Keys Rehabilitation (for Hill Recreation Area Imps.) Metropolitan Transportation Commission (MTC) 3 MTC Resolution No. 4202 Attachment B-1 DocuSign Envelope ID: 6325E50A-75A3-48AB-BAC0-F6FBD5549D3B
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D o w n t o w n
P a r k i n g
A s s e s s m e n t
D i s t r i c t
Downtown/University Ave
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This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.
Legend
Half Mile Radius f rom Caltrain Stations
Proposed Downtown/Univ Av e Priority Dev Area (PDA)
Marguerite Stops
22/522 VTA Stops
Caltrain Stations
City Jurisdictional Limits
0' 1335'
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The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto RRivera, 2019-11-12 12:09:30
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MASTER FUNDING AGREEMENT
BETWEEN THE METROPOLITAN TRANSPORTATION COMMISSION
AND
CITY OF PALO ALTO
PLANNING, PROGRAMMING,
TRANSPORTATION, TRANSIT, LAND USE OR OTHER PROJECTS
FOR
FISCAL YEAR 2021-22 through FISCAL YEAR 2031-32
DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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Page ii
TABLE OF CONTENTS
ARTICLE PAGE
1.0 GENERAL ..................................................................................................................................... 1
2.0 INTERAGENCY AGREEMENT ADMINISTRATION .......................................................... 2
3.0 FUNDING ...................................................................................................................................... 2
4.0 TERM............................................................................................................................................. 2
5.0 PAYMENT .................................................................................................................................... 3
6.0 DELAYS AND FAILURE TO PERFORM ................................................................................ 3
7.0 AMENDMENTS ........................................................................................................................... 3
8.0 TERMINATION ........................................................................................................................... 4
9.0 USE OF THIRD PARTY CONTRACTS ................................................................................... 4
10.0 INDEMNIFICATION .................................................................................................................. 4
11.0 LAWS AND REGULATIONS..................................................................................................... 4
12.0 RECORDS ..................................................................................................................................... 4
13.0 AUDITS ......................................................................................................................................... 5
14.0 SUBCONTRACTS ........................................................................................................................ 5
15.0 PROHIBITED INTERESTS ....................................................................................................... 6
16.0 ORGANIZATIONAL CONFLICTS OF INTEREST ............................................................... 6
17.0 CHOICE OF LAW ....................................................................................................................... 7
18.0 PARTIAL INVALIDITY ............................................................................................................. 7
19.0 NO THIRD PARTY BENEFICIARIES ..................................................................................... 7
20.0 ORDER OF PRECEDENCE ....................................................................................................... 7 EXHIBIT A FORM OF SUPPLEMENT ............................................................................................... 8 EXHIBIT B-1 ADDITIONAL TERMS AND CONDITIONS (GENERAL) .................................... 10 EXHIBIT B-2 ADDITIONAL TERMS AND CONDITIONS (FEDERALLY REQUIRED CLAUSES) ............................................................................................................................................... 11 EXHIBIT B-3 ADDITIONAL TERMS AND CONDITIONS (STATE-REQUIRED CLAUSES) 19 EXHIBIT B-4 ADDITIONAL TERMS AND CONDITIONS (PREVAILING WAGE RATES,
APPRENTICESHIPS, AND PAYROLL RECORDS NON FEDERALLY FUNDED AGREEMENTS) ..................................................................................................................................... 32 EXHIBIT B-5 ADDITIONAL TERMS AND CONDITIONS (PREVAILING WAGE RATES, APPRENTICESHIPS, AND PAYROLL RECORDS FEDERALLY FUNDED AGREEMENTS) 33 EXHIBIT B-6 ADDITIONAL TERMS AND CONDITIONS (REGIONAL TOLL FUNDS INCLUDING RM1, RM2, AND AB 1171) ........................................................................................... 38 EXHIBIT B-7 ADDITIONAL TERMS AND CONDITIONS (REGIONAL DISCRETIONARY FEDERAL FUNDS INCLUDING STP AND CMAQ) ........................................................................ 43 DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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MASTER FUNDING AGREEMENT
Between METROPOLITAN TRANSPORTATION COMMISSION
And CITY OF PALO ALTO
For PLANNING, PROGRAMMING,
TRANSPORTATION, TRANSIT, LAND USE OR OTHER PROJECTS
This Master Funding Agreement, effective as of February 17, 2022 (this “Master Funding Agreement” or “Agreement”), is entered into by and between the Metropolitan Transportation Commission (hereafter “MTC”), a regional transportation planning agency established pursuant to California Government Code § 66500 et seq., and CITY OF PALO ALTO (hereafter "AGENCY").
MTC and AGENCY are collectively referred to herein as “the Parties.”
WITNESSETH
WHEREAS, MTC has been designated as the Metropolitan Planning Organization (MPO - federal) and the Regional Transportation Planning Agency (“RTPA” - state) for the San Francisco Bay Region; and
WHEREAS, MTC from time to time expects to provide funds available to it as MPO, RTPA or otherwise to AGENCY; and
WHEREAS, it is expected that these funds will be used for planning, programming, transportation, transit, land use or other projects relevant to MTC or its statutory purposes (the “Project” or “Projects”); and
WHEREAS, the Parties wish to set forth the terms and conditions under which MTC may from time to time provide funding to AGENCY; and
WHEREAS, before MTC will make funds available hereunder, MTC and AGENCY will enter into at least one Supplement to this Master Funding Agreement, which must be in substantially the form attached hereto as Exhibit A (each, a “Supplement”) to establish the terms and conditions applicable to AGENCY when receiving funds for the Project;
NOW, THEREFORE, the Parties hereto agree as follows:
1.0 GENERAL
This Master Funding Agreement shall have no force and effect with respect to a Project or any portion thereof unless and until a Supplement has been fully executed by both MTC and AGENCY governing the relevant Project. Exhibit A, Form of Supplement, is attached hereto and incorporated herein. Each Supplement shall include the following information:
a. A description of the applicable Project scope of work; b. A maximum payment amount for the applicable Project scope of work; DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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MTC/CITY OF PALO ALTO
Master Funding Agreement
c. An indication of whether the various clauses attached hereto as Exhibits B-1 through B-7 shall apply to AGENCY’s implementation of the applicable Project scope of work; d. Any additional covenants, conditions, restrictions or reporting requirements that apply to the applicable Project scope of work or funding source MTC is providing to AGENCY; e. Identification of the MTC and AGENCY project managers for the applicable Project scope of work;
f. The estimated budget and payment milestones for the applicable Project scope of work; and
g. Any MTC or AGENCY resolutions, authorizations or approvals, or any other key documents, relevant to the applicable Project scope of work or funding source MTC is providing to AGENCY.
Upon execution by MTC and AGENCY of such a Supplement, AGENCY shall assume the responsibility for implementing the applicable Project scope of work, and MTC will administer funding to AGENCY in accordance with this Agreement, the applicable Supplement, and any other documents incorporated by reference into such Supplement.
2.0 INTERAGENCY AGREEMENT ADMINISTRATION
The administration of this Agreement will be conducted by MTC staff. Day-to-day management of individual projects required under this Agreement is assigned to the appropriate Project Manager at AGENCY and Project Manager at MTC, as set forth in the applicable Supplement.
3.0 FUNDING
A. The total compensation to be paid to AGENCY under this Agreement shall be the sum of the amounts of compensation payable to AGENCY as set forth in each Supplement.
B. AGENCY and MTC jointly agree to exert their best efforts to manage each component of the Project in such a way that prevents costs from exceeding the estimated budget set forth in the applicable Supplement.
C. Reimbursement of AGENCY travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Personnel Administration for similar employees (i.e. non-representative employees)
4.0 TERM
This Agreement is in effect for the ten years following the Effective Date. This Agreement term may be extended by mutual written agreement.
DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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5.0 PAYMENT
Contingent upon AGENCY’s satisfactory completion of work products or milestones, as applicable, required under the applicable Supplement, AGENCY shall submit invoices to MTC for that portion of the funds available to AGENCY that have been expended. This invoice will be in the format and provided no more frequently than prescribed by MTC in the applicable Supplement. In addition, all supporting documentation must accompany expenditures included on AGENCY invoices. Payment shall be made by MTC within thirty (30) days of receipt of an acceptable invoice, which shall be subject to the review and approval of MTC’s Project Manager or a designated representative. Approval of an invoice shall not be unreasonably withheld. AGENCY should submit invoices electronically via email to MTC at [email protected] or deliver or mail invoices to MTC, as follows:
Attention: Accounting Section
Metropolitan Transportation Commission
Bay Area Metro Center
375 Beale Street, Suite 800
San Francisco, CA, 94105
6.0 DELAYS AND FAILURE TO PERFORM
Whenever AGENCY encounters any difficulty that will delay timely performance of work, AGENCY shall notify MTC in writing. The parties agree to cooperate to work out a mutually satisfactory course of action.
If MTC determines that (a) AGENCY’s failure to complete a product on a timely basis is due to causes solely within AGENCY’s control; and/or (b) AGENCY has failed to consider MTC recommendations aimed at facilitating progress toward that product, MTC may impose such sanctions as it may determine appropriate. Sanctions may include withholding of commensurate payment due under this Agreement until compliance is achieved.
7.0 AMENDMENTS
This Agreement or any Supplement hereto may be amended by mutual agreement of MTC and AGENCY at any time during the term of the Agreement. All such changes shall be incorporated in written amendments, which shall specify the changes in work performed and any adjustments in compensation and schedule. All amendments shall be executed by the authorized Executive or a designated representative of MTC and AGENCY and specifically identified as amendments to the Agreement. The MTC Project Manager is not a designated representative, for purposes of executing an amendment.
DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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8.0 TERMINATION
Either party may terminate this Agreement, in whole or in part, at any time upon ninety (90) days’ written notice. In this event, AGENCY shall submit a requisition to MTC for an amount representing the actual cost of services performed up to the effective date of termination for which AGENCY has not been previously reimbursed. In no event shall the maximum expenditure allowed under this Agreement, as it may be adjusted by a written amendment signed by both parties, be exceeded. Upon payment of the amount found due, MTC shall be under no further obligation to AGENCY, monetarily or otherwise.
9.0 USE OF THIRD-PARTY CONTRACTS
AGENCY may subcontract or subvene funds to local agencies, consultants or contractors for performance of portions of the work required under this Agreement, without the prior written consent of MTC, provided AGENCY complies with any other applicable requirements of this Agreement and the applicable Supplement hereto, and applicable federal and state requirements.
10.0 INDEMNIFICATION
AGENCY shall indemnify, defend, and hold harmless MTC, its Commissioners, representatives, agents and employees from and against all claims, injury, suits, demands, liability, losses, damages and expenses, whether direct or indirect (including any and all costs and expenses in connection therewith), incurred by reason of any act or failure to act of AGENCY, its officers, employees or agents, or subconsultants or any of them in connection with this Agreement.
11.0 LAWS AND REGULATIONS
AGENCY shall comply with any and all laws, statutes, ordinances, rules, regulations or requirements of the federal, state and/or a local government, and of any agency thereof, including but not limited to the California Department of Transportation (Caltrans) Local Assistance Procedures Manual, as they exist at the time of execution of the Agreement and as they may be amended in the future, which relate to or in any manner affect the performance of this Agreement and any Supplements.
12.0 RECORDS
AGENCY agrees to establish and maintain an accounting system conforming to generally accepted accounting principles (GAAP) that is adequate to accumulate and segregate reasonable, allowable, and allocable project costs. AGENCY further agrees to keep all records pertaining to the Project(s) being funded for audit purposes for a minimum of: (a) three (3) years following final payment to AGENCY, (b) four (4) years following the fiscal year of last expenditure under the Agreement; or (c) until completion of any litigation, claim or audit, whichever is longest.
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13.0 AUDITS
AGENCY shall permit MTC and MTC’s authorized representatives to have access to AGENCY’s books, records, accounts, and any and all work products, materials, and other data relevant to this Agreement, for the purpose of making an audit, examination, excerpt and transcription during the term of this Agreement and for the period specified in Article 12. AGENCY shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, work products, materials and data for that period of time. Such permission shall extend to books, records, accounts, and any and all work products, materials, and other data relevant to this Agreement of the AGENCY’s contractors and subcontractors, if any. If applicable, should MTC request access to the construction site and related field operations, MTC shall provide reasonable notice to AGENCY, and AGENCY shall provide access as it deems reasonable and safe, subject to the rights of the property owner if such owner is not AGENCY.
AGENCY further agrees to include in all its subcontracts hereunder exceeding $25,000 a provision to the effect that the subconsultant agrees that MTC or any of MTC’s duly authorized representatives shall have access to and the right to examine any directly pertinent books, documents, papers, and records of such subconsultant for the term specified above. “Subconsultant” is defined in Article 14.0 Subcontracts, below.
14.0 SUBCONTRACTS
A. For purposes of this Agreement, “subconsultant” shall mean any consultant or contractor under contract with the AGENCY to perform Project work. Any subconsultants must be engaged under written contract with AGENCY with provisions allowing AGENCY to comply with all requirements of this Agreement. Failure of a subconsultant to provide any insurance required under this Agreement shall be at the risk of AGENCY. MTC’s Project Manager shall be notified in writing of any substitution or addition of subconsultants.
For any Project funded by the Federal Transit Authority (FTA), Federal Highway Administration (FHWA) or Caltrans, AGENCY shall complete Form 10-C, as may be revised by Caltrans from time to time, within thirty (30) days of executing an agreement with a subconsultant and submit it to MTC’s Project Manager. MTC shall not process payment of any invoice under the applicable Supplement relating to work by a subconsultant unless AGENCY shall have submitted to MTC a Form 10-C with respect to its contract with such subconsultant.
B. Nothing contained in this Agreement or otherwise, shall create any contractual relation between MTC and any subconsultants, and no subcontract shall relieve AGENCY of his/her responsibilities and obligations hereunder. AGENCY agrees to be as fully responsible to MTC for the acts and omissions of its subconsultants and of persons either directly or indirectly employed by any of DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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them as it is for the acts and omissions of persons directly employed by AGENCY. AGENCY's obligation to pay its subconsultants is an independent obligation from MTC's obligation to make payments to AGENCY.
C. Applicable provisions of this Agreement shall be included in any subcontract or subconsultant agreement in excess of $25,000 entered into under of this Agreement.
15.0 PROHIBITED INTERESTS
No member, officer, employee or agent of MTC, during his/her tenure shall have any prohibited interest as defined by California Government Code Sections 1090, et seq., direct or indirect, in the Agreement or the proceeds thereof. Prohibited interests include interests of immediate family members, domestic partners, and their employers or prospective employers. Accordingly, AGENCY further covenants that it has made a complete disclosure to MTC of all facts of which AGENCY is aware upon due inquiry bearing upon any possible interest, direct or indirect, that it believes any member, officer, agent or employee of MTC (or an immediate family member, domestic partner or employer or prospective employer of such member, officer, agent or employee) presently has, or will have in the Agreement, or in the performance thereof, or in any portion of the profits thereunder. Willful failure to make such disclosure, if any, shall constitute grounds for cancellation and termination hereof by MTC.
16.0 ORGANIZATIONAL CONFLICTS OF INTEREST
AGENCY shall take all reasonable measures to preclude the existence or development of an organizational conflict of interest in connection with work performed by subconsultants or subcontractors under this Agreement. An organizational conflict of interest occurs when, due to other activities, relationships, or contracts, a firm or person is unable, or potentially unable, to render impartial assistance or advice to MTC or AGENCY; a firm or person’s objectivity in performing the contract work is or might be impaired; or a firm or person has an unfair competitive advantage in proposing for award of a contract as a result of information gained in performance of this or some other Agreement.
AGENCY shall not engage the services of any subconsultant or subcontractor on any work related to this Agreement if the subconsultant or subcontractor, or any employee of the subconsultant or subcontractor, has an actual or apparent organizational conflict of interest related to work or services contemplated under this Agreement.
If at any time during the term of this Agreement AGENCY becomes aware of an organizational conflict of interest in connection with the work performed by a subconsultant or subcontractor hereunder, AGENCY shall immediately provide MTC with written notice of the facts and circumstances giving rise to this organizational conflict of interest. AGENCY’s written notice will also describe alternatives for addressing or eliminating the organizational conflict of interest. If at any time during the period of performance of this Agreement, MTC becomes aware of an organizational conflict of interest DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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in connection with performance of any work hereunder by a subconsultant or subcontractor, MTC shall similarly notify AGENCY. In the event a conflict is presented, whether disclosed by AGENCY or its subconsultant or subcontractor, or discovered by MTC, MTC will consider the conflict presented and any alternatives proposed and meet with AGENCY to determine an appropriate course of action.
MTC’s determination as to the manner in which to address the conflict shall be final.
Failure to comply with this section may subject AGENCY or its subconsultant or subcontractor to damages incurred by MTC in addressing organizational conflicts that arise out of work performed by such subconsultant or subcontractor, or to termination of this Agreement for breach.
17.0 CHOICE OF LAW
All questions pertaining to the validity and interpretation of the Agreement shall be determined in accordance with the laws of the State of California applicable to agreements made and to be performed within the State.
18.0 PARTIAL INVALIDITY
If any term or condition of this Agreement is found to be illegal or unenforceable, such term or condition shall be deemed stricken and the remaining terms and conditions shall remain valid and in full force and effect.
19.0 NO THIRD-PARTY BENEFICIARIES
This Agreement is not for the benefit of any person or entity other than the parties.
20.0 ORDER OF PRECEDENCE
In the event of a conflict in the provisions of this Agreement, any Supplement hereto, or the Exhibits hereto incorporated by reference into such Supplement, the following order of priority shall be used in resolving such conflict: the applicable Supplement shall have first priority, then the Exhibits incorporated into such Supplement, then this Agreement.
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the day and year first written above.
METROPOLITAN TRANSPORTATION
COMMISSION
CITY OF PALO ALTO
Therese W. McMillan, Executive Director Ed Shikida, City Manager
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EXHIBIT A
FORM OF SUPPLEMENT
SUPPLEMENT [insert number] TO MASTER FUNDING AGREEMENT
This Supplement No. ___ to Master Funding Agreement (“Supplement or “Agreement”) is entered into this ______day of _______, 2017, by and between the Metropolitan Transportation Commission (hereafter “MTC”) and [AGENCY] (hereafter “AGENCY”) and supplements the Master Funding Agreement, dated _______, 2017, by and between MTC and AGENCY.
Pursuant to this Supplement, MTC agrees to provide an amount not to exceed _________ dollars ($_______) in [describe funding source] to AGENCY to fund the [brief description of Project] (as more fully described in Annex I hereto, the “Supplement Project”). The estimated budget and payment milestones for the Supplement Project scope of work is attached as Annex II hereto.
MTC will reimburse AGENCY for its actual eligible costs incurred for completed Supplement Project milestones or deliverables described in Annex II hereto.
The Supplement Project work will commence [date], and be completed no later than ________, 20__.
The clauses selected below and attached as exhibits to the Master Funding Agreement shall apply to AGENCY’s performance of the applicable Supplement Project scope of work hereunder:
Exhibit B-1, Additional Terms and Conditions (General), Paragraph A Exhibit B-1, Additional Terms and Conditions (General), Paragraph B Exhibit B-2, Additional Terms and Conditions (Federally Required Clauses) Exhibit B-3, Additional Terms and Conditions (State Required Clauses) Exhibit B-4, Additional Terms and Conditions (Prevailing Wage Rates, Apprenticeships, and Payroll Records, Non-Federally-Funded Agreements)
Exhibit B-5, Additional Terms and Conditions (Prevailing Wage Rates, Apprenticeships, and Payroll Records, Federally-Funded Agreements)
Exhibit B-6, Additional Terms and Conditions (Regional Toll Funds including RM1, RM2, and AB1171)
Exhibit B-7, Additional Terms and Conditions (Regional Discretionary Federal Funds including STP and CMAQ)
[Insert any additional covenants, conditions, restrictions or reporting requirements that apply to the Supplement Project scope of work or funding source MTC is providing to AGENCY.]
[Describe/attach any MTC or AGENCY resolutions, authorizations or approvals, or any other key documents, relevant to the applicable Project scope of work or funding source MTC is providing to AGENCY.]
The MTC Project Manager for the Supplement Project is [name, telephone, email]. The AGENCY Project Manager for the Supplement Project is [name, telephone, email].
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This Supplement is supplemental to the Master Funding Agreement; all terms and conditions of the Master Funding Agreement, as may be amended, remain unchanged hereby.
Capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Master Funding Agreement.
METROPOLITAN TRANSPORTATION
COMMISSION
CITY OF PALO ALTO
Therese W. McMillan, Executive Director Ed Shikada, City Manager
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EXHIBIT B-1
ADDITIONAL TERMS AND CONDITIONS (GENERAL)
A. INSURANCE REQUIREMENTS
AGENCY shall, at its own expense, obtain and maintain (and/or cause its subconsultant(s) to obtain and maintain, as applicable) the types of insurance and financial security listed (if any) in the applicable attachment or exhibit to the relevant Supplement against claims, damages and losses due to injuries to persons or damage to property or other losses that may arise in connection with the performance of work under such Supplement, and in effect at all times for the duration of such Supplement. All policies will be issued by insurers acceptable to MTC, generally with a Best’s Rating of A- or better with a Financial Size Category of VIII or better, or as otherwise specified in the applicable Supplement. Notwithstanding anything to the contrary, AGENCY may satisfy the insurance requirements herein utilizing self-insurance providing equivalent coverage.
B. CLAIMS OR DISPUTES
Unless otherwise directed in writing by MTC, AGENCY shall continue performance under this Agreement while any matters in dispute are being resolved. Further, MTC shall pay AGENCY for any undisputed work performed by AGENCY prior to or during the resolution of the matters in dispute. In the event there is a dispute concerning the interpretation of this Agreement or any aspect of the Project that the project managers identified by MTC and AGENCY are unable to resolve, the project manager for either MTC or AGENCY may request that an ad hoc Dispute Resolution Committee (“DRC”) be convened to resolve the dispute. The DRC shall consist of two members, one appointed by the MTC Executive Director and the other appointed by the Chief Executive Officer of AGENCY. The responsibility of chairing each ad hoc DRC shall alternate between the agencies, beginning with MTC.
Further, disputes between MTC and AGENCY that cannot be resolved by the DRC may be submitted to alternative dispute resolution, as agreed to by the parties. Fees and expenses of the mediator will be borne equally.
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EXHIBIT B-2
ADDITIONAL TERMS AND CONDITIONS
(FEDERALLY REQUIRED CLAUSES)
1. EQUAL EMPLOYMENT OPPORTUNITY
In accordance with Title VI of the Civil Rights Act, as amended (42 U.S.C. § 2000d); Section VII of the Civil Rights Act of 1964, as amended (42 U.S.C. § 2000e); Section 303 of the Age Discrimination Act of 1975, as amended (42 U.S.C. § 6102); Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. § 12132); and, for FTA-funded projects, 49 U.S.C. § 5332 and any implementing requirements that FTA may issue. AGENCY agrees that it will not, on the grounds of race, religious creed, color, national origin, age, physical disability or sex, discriminate or permit discrimination against any employee or applicant for employment.
2. DISADVANTAGED BUSINESS ENTERPRISE (DBE) POLICY
It is the policy of MTC and the U.S. Department of Transportation to ensure nondiscrimination in the award and administration of DOT-assisted contracts and to create a level playing field on which disadvantaged business enterprises, as defined in 49 Code of Federal Regulations Part 26, can compete fairly for contracts and subcontracts relating to MTC’s procurement and professional services activities.
AGENCY shall not discriminate on the basis of race, color, national origin or sex in the performance of the applicable Supplement. AGENCY shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts. Failure by AGENCY to carry out these requirements is a material breach of contract, which may result in the termination of the applicable Supplement or this Agreement, or such other remedy as MTC deems appropriate.
3. TITLE VI OF THE CIVIL RIGHTS ACT OF 1964
AGENCY agrees to comply with all the requirements imposed by Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000(d)) and the regulations of the Department of Transportation issued thereunder (49 CFR Part 21). For FTA-funded projects, AGENCY further agrees to comply with the current FTA Circular 4702.1A, “Nondiscrimination Guidelines for FTA Recipients,” the U.S. DOT Order to Address Environmental Justice in Minority Populations and Low-Income Populations, and the U.S. DOT Policy Guidance Concerning Recipients’ Responsibilities to Limited English Proficient (LEP) Persons.
4. ACCESS REQUIREMENTS FOR INDIVIDUALS WITH DISABILITIES AGENCY agrees to comply with all applicable requirements of the Americans with Disabilities Act of 1990 (ADA), as amended, 42 U.S.C. § 12101 et seq.; Section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 794; Section 16 of the Federal Transit Act, as amended, 49 U.S.C. § 5310(f); and their implementing regulations.
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5. STATE ENERGY CONSERVATION PLAN
AGENCY shall comply with all mandatory standards and policies relating to energy efficiency that are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. § 6321).
6. ALLOWABILITY OF COSTS
AGENCY shall comply with the cost principles (as applicable) in Office of Management and Budget (OMB) Circulars A-87, or A-122, or 48 Code of Federal Regulations Chapter 1 Part 31, or 49 Code of Federal Regulations Part 18, or in 2 Code of Federal Regulations Parts 200 and 1201, as applicable. In addition, all subcontracts must be in accordance with 2 Code of Federal Regulations Part 200, as applicable, MTC's funding agreement with DOT and any regulations, guidelines and circulars of DOT, applicable as a result of such funding agreement. Further, all subconsultants shall agree to comply with 48 Code of Federal Regulations, Chapter 1, Part 31.
7. LICENSE FOR FEDERAL GOVERNMENT PURPOSES
FTA/FHWA reserves a royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for federal government purposes: (a) the copyright in any work developed under the applicable Supplement; and (b) any rights of copyright to which MTC or AGENCY purchases ownership under the applicable Supplement.
8. IDENTIFICATION OF DOCUMENTS
All reports and other documents completed as part of the applicable Supplement shall carry the following notation on the front cover or title page:
"The preparation of this report has been financed in part by grants from the: [select appropriate agency] Federal Transit Administration/Federal Highway Administration, U.S. Department of Transportation. The contents of this report do not necessarily reflect the official views or policy of the U.S. Department of Transportation."
9. AUDITS
AGENCY agrees to grant MTC, the U.S. DOT, FTA or FHWA, as applicable, the Comptroller General of the United States, the State of California, and their authorized representatives access to AGENCY’s books, records, accounts, and any and all work products, materials, and other data relevant to the applicable Supplement, for the purpose of making an audit, examination, excerpt and transcription during the term of the applicable Supplement and for the period specified in Article 14. AGENCY shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, work products, materials and data for that period of time. If, as a result of any audit, it is determined by the auditor that reimbursement of any costs including profit or fee under the applicable Supplement was in excess of that DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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represented and relied upon during price negotiations or represented as a basis for payment, AGENCY agrees to reimburse MTC for those costs within sixty (60) days of written notification by MTC.
AGENCY further agrees to include in all its subcontracts hereunder exceeding $25,000 a provision to the effect that the subrecipient agrees that MTC the U.S. DOT, FTA or FHWA, as applicable, the Comptroller General of the United States, the State of California, and their authorized representatives shall have access to and the right to examine any directly pertinent books, documents, papers, and records of such subrecipient for the term specified above.
10. FLY AMERICA REQUIREMENTS.
AGENCY agrees to comply with 49 U.S.C. 40118 (the “Fly America Act”) in accordance with the General Services Administration's regulations at 41 CFR Part 301 - 10, which provide that recipients and subrecipients of Federal funds and their consultants are required to use U.S. flag air carriers for U.S.
Government-financed international air travel and transportation of their personal effects or property to the extent such service is available, unless travel by foreign air carrier is a matter of necessity as defined by the Fly America Act. AGENCY shall submit, if a foreign air carrier was used, an appropriate certification or memorandum adequately explaining why service by a U.S. flag air carrier was not available or why it was necessary to use a foreign air carrier and shall, in any event, provide a certificate of compliance with the Fly America requirements, if used. AGENCY agrees to include the requirements of this Section in all subcontracts that may involve international air transportation.
11. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS AND RELATED ACTS.
A. AGENCY acknowledges that the provisions of the Program Fraud Civil Remedies Act of 1986, as amended, 31 U.S.C. § 3801 et seq. and U.S. DOT regulations, “Program Fraud Civil Remedies,” 49 CFR Part 31, apply to its actions pertaining to this Project. Upon execution of the underlying contract, AGENCY certifies or affirms the truthfulness and accuracy of any statement it has made, it makes, it may make, or causes to be made, pertaining to the underlying Supplement or the FTA assisted project for which work is being performed under the applicable Supplement. In addition to other penalties that may be applicable, AGENCY further acknowledges that if it makes, or causes to be made, a false, fictitious, or fraudulent claim, statement, submission, or certification, the Federal Government reserves the right to impose the penalties of the Program Fraud Civil Remedies Act of 1986 on AGENCY to the extent the Federal Government deems appropriate.
B. AGENCY also acknowledges that if it makes, or causes to be made, a false, fictitious, or fraudulent claim, statement, submission, or certification to the Federal Government under a contract connected with a project that is financed in whole or in part with Federal assistance originally awarded by FTA under the authority of 49 U.S.C. § 5307, the Government reserves the right to impose the DocuSign Envelope ID: A8AFC163-0DDC-45F8-95F4-D06FB5358831
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penalties of 18 U.S.C. § 1001 and 49 U.S.C. § 5307(n)(1) on AGENCY, to the extent the Federal Government deems appropriate.
C. AGENCY agrees to include the above two clauses in each subcontract financed in whole or in part with Federal assistance provided by FTA. It is further agreed that the clauses shall not be modified, except to identify the subconsultant who will be subject to the provisions.
12. NO FEDERAL GOVERNMENT OBLIGATION TO THIRD PARTIES
MTC and AGENCY acknowledge and agree that, notwithstanding any concurrence by the Federal Government in or approval of the applicable Supplement or this Agreement, absent the express written consent by the Federal Government, the Federal Government is not a party to this Agreement and shall not be subject to any obligations or liabilities to MTC, AGENCY or any other party (whether or not a party to this Agreement) pertaining to any matter resulting from this Agreement.
13. DEBARMENT
This Article is only applicable if the applicable Supplement exceeds $25,000. AGENCY certifies that neither it, nor any of its participants, principals or subrecipients is or has been debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions, as they are defined in 2 CFR Parts 180 and 1200, by any Federal agency or department.
14. CLEAN AIR AND WATER POLLUTION ACTS
This Article is only applicable if the applicable Supplement exceeds $100,000. AGENCY agrees to comply with the applicable requirements of all standards, orders, or requirements issued under the Clean Air Act (42 U.S.C. § 7501 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15).
15. LOBBYING
This Article is only applicable if the applicable Supplement exceeds $100,000. AGENCY agrees to comply with the restrictions on the use of federal funds for lobbying activities set forth in 31 United States Code §1352 and 49 C.F.R. Part 20.
Attachments:
Attachment A – Federally Required Certifications (AGENCY shall either provide these certifications to MTC or shall provide copies of such certifications AGENCY has independently made to the Federal Government.)
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