1 City Council
Special Meeting
Monday, June 13, 2022
5:00 PM
Council Chamber & Virtual
Late Packet Report 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.
REVISED PUBLIC COMMENTS
Public Comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] rg and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your email subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.cl [email protected] at least 24 hours prior to the meeting. Once received, the City Clerk will have them shared at public comment for the specified item. To uphol d strong cybersecurity management practices, USB’s or other physical electronic storage dev ices are not accepted. 2 Special Meeting June 13, 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.
CALL TO ORDER
SPECIAL ORDER OF THE DAY (5:00 - 5:10 PM)
1. Proclamation Recognizing Juneteenth Holiday
CLOSED SESSION (5:10 - 6:20 PM)
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
2. CONFERENCE WITH CITY ATTORNEY - EXISTING LITIGATION Subject:
Miriam Green v. City of Palo Alto Santa Clara County Superior Court Case No. 16CV30 0760 ( One Case, as Defendant) Authority:
Government Code Section 54956.9(d)(1)
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:20 - 6:35 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 (6:35 - 6:40 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.
3. Approve Minutes from the June 1, 2022 City Council Meeting
4. Approval of C ontract No. C22182951 with Innovative Interfaces Incorporated for use of its Online -Hosted Integrated Library System (ILS) Software, Innovative Mobile App, and Implementation Services, for a Five-Year Term and a Total Contract Not -To-Exceed Amount of $983,388 including a Ten -Percent Contingency/Additional Services Amount
5. Finance Committee Recommends the City Council Direct Staff to Update the Park, Library, and Community Center Developmen t Impact Fee Nexus Study to Create New Fee Categories, Update the P ark Land Valuation to $17.6m, Move to a Square-foot basis for Fees Imposed on Housing, and Conduct an Economic Feasibility Study (Including on the Parkland Dedication Fee)
6. Utilities Advisory Commission Recommend the City Council Adopt the 2022 Annual Water Shortage Assessment Report
7. Approval of Amendment No. 2 to Contract S20176879 with Johnson Controls Fire Protection LP, to Add to the Scope of Services and Increase the Contract Amoun t by $113,466 for a New Three -year At-Places Memo
3 Special Meeting June 13, 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.
Contract Total Amount Not -to-Exceed of $379,050 for the Provision of Fire Sprinkler System Inspections and Repair Services
8. Approval of Contract Amendments to Extend Three Public -Private Partnership Agreements Between t he City of Palo Alto and TheatreWorks, Palo Alto Players, and West Bay Opera for the use of the Lucie Stern Community Theatre for an Additional Year CITY MANAGER COMMENTS (6:40 - 7:00 PM)
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.
9. Finance Committee Recommends Adoption of six Resolutions: 1) Approving the Fiscal Year 2023 Wastewater Collection Utility Financial Plan, Including Propose d Transfer, and Adopting a Wastewater Collection Utility Rate Incre ase by Amending Wastewater Collection Rate Schedules S -1, S -2, S -6 and S -7; 2) Approving the FY 2023 Water Utility Financial Plan, Including Proposed Transfer, and Adopting a Water Utility Rate Increase by Amending Water Rate Schedules W -1, W-2, W-3, W-4, and W-7; 3) Approving FY 2023 Gas Utility Financial Plan, Including Proposed Transfers, and Adopting a Gas Utility Rate Increase by Amending Gas Rate Schedules G -1, G-2, G-3 and G -10; 4) Approving the FY 2023 Electric Utility Financial Plan, Including Proposed Transfers and Amendments to the Electric Utility Reserve Management Practices, Amending Utility Rate Schedules E -EEC-1, E - NSE-1, E-2-G, E-4-G and E -7-G, and Adopting an Electric Util ity Rate Increase by Amending Utility Rate Schedules E -1, E-2, E-4, E-4 TOU, E-7, E -7 TOU and E -14; 5) Amending Utility Rate Schedules EDF -1 and EDF -2 to Increase Dark Fiber Rates 4.2 Percent; and 6) Amending Utility Rate Schedule D -1 Increasing the Stor m Water Management Fee by 4.20 Percent per Month per Equivalent Res idential Unit for FY 2023 (7:00 – 8:00 PM)
10. Policy and Services Committee Recommendations on Pending State Assembly Bills 2181 (VTA) and 1944, 2449, and 2647 (Local Meeting Procedures) (8:00 – 9:00 PM)
11. Revenue-Generating Ballot Measures (Affirmatio n of the Natural Gas Utility Transfer and New Business Tax): Direction to Staff on Key Policy Questions and Measure Characteristics, and Direction to Return with Final Documents for Placeme nt of Ballot Measure(s) on the November 2022 Election and a Non -Binding Resolution for Intended Use of Business Tax Proceeds (9:00 -10:30 PM) Late Packet Report Added Presentation
Public Letters
Public Letters
Presentation
Presentation
4 Special Meeting June 13, 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.
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.
12. Informational Report on the City of Palo Alto 2022 Water Gas and Wastewater Utility Standards
13. Airplane Noise from the Public Works
OTHER INFORMATION
Standing Committee Meetings
Policy & Services Committee Meeting June 14, 2022
Public Comment Letters
Schedule of Meetings
AMENDED AGENDA ITEMS
Items that have been added/modified from the original publication of t he agenda are listed below. Any corresponding materials are appended to the end of the initial packet. If full items have been added to the Agenda, they will be denoted with a number staring with AA, meaning Amended Agenda item.
11. Revenue-Generating Bal lot Measures (Affirmation of the Natural Gas Utility Transfer and New Business Tax): Direction to Staff on Key Policy Questions and Measure Characteristi cs, and Direction to Return with Final Documents for Placement of Ballot Measure(s) on the November 2022 Election and a Non -Binding Resolution for Intended Use of Business Tax Proceeds (9:00 -10:30 PM) Late Packet Report Added 5 Special Meeting June 13, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom -based meeting. Please read the following 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 browsers including Internet Explorer.
B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.
C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.
D. When called, please limit your remarks to the time limit allotted.
E. A timer will be shown on the computer to help keep track of your comments.
3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above.
4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first 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 # 14402)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Special Orders of the Day
City of Palo Alto Page 1
Title: Proclamation Recognizing Juneteenth Holiday
From: City Manager
Lead Department: City Manager
Recognition of the Juneteenth Holiday (June 19) per the direction from the City Council on March 7, 2022 (Minutes). This proclamation shall be brought forth annually to the City Council.
Proclamation attached.
Attachments:
• Attachment1.a: Juneteenth Proclamation 2022
1 Packet Pg. 6
__________________________
Pat Burt
Mayor
Proclamation
JUNETEENTH FREEDOM DAY
WHEREAS, June 19 th is declared as Juneteenth Freedom Day, a nationally recognized day which celebrates the rich culture, legacy and heritage of Black and African American people;
WHEREAS, 2022 marks the 157th year of Juneteenth Freedom Day with Juneteenth being the oldest known celebration commemorating the abolition of slavery in the United States, dating back to June 19, 1865 when Union soldiers led by Major General Gordon Granger arrived in Galveston, Texas with news that the war had ended, freeing the enslaved; and
WHEREAS, This was two and a half years after President Abraham Lincoln’s Emancipation Proclamation which became official on January 1, 1863; and
WHEREAS, The U.S. Congress—between 1865 and 1870—would pass key amendments to the U.S. Constitution, that upon ratification by each state, would profoundly change the legal status of those once enslaved. The thirteenth amendment abolished bonded servitude. The fourteenth amendment conferred citizenship upon on those once enslaved.
Finally, the fifteenth amendment enfranchised men once held in bondage.
WHEREAS, Kamala Harris, Vice President of the United States of America—in prefatory remarks before President Joseph Biden signed the observance of Juneteenth into Federal law in 2021— noted that “ Throughout history, Juneteenth has been known by many names: Jubilee Day, Freedom Day, Liberation Day, Emancipation Day, and today, a National Holiday;”
WHEREAS, Today, Juneteenth Freedom Day celebrates Black and African American people’s freedom and achievement, while encouraging continuous self-development and respect for all cultures, as it takes on a more national, symbolic and even global perspective, to ensure the events of 1865 are not forgotten; and
WHEREAS, Palo Alto has begun the journey of addressing racial inequities and focusing on efforts to increase diversity, equity, inclusion, and belonging as expressed in the City of Palo Alto’s Equity Mission Statement; and
NOW, THEREFORE, I, Pat Burt, Mayor of the City of Palo Alto on behalf of the entire City Council, do hereby proclaim June 19 as Juneteenth Freedom Day, and to call upon our community to all redouble our commitment to use our power to stamp out hate, racism, and inequities and continue the work of equity, justice, and hope.
PRESENTED: June 13, 2022
1.a
Packet Pg. 7
City of Palo Alto (ID # 14489)
Office of the City Attorney
City Council CAO Report
Meeting Date: 6/13/2022 Report Type: Closed Session
Title: CONFERENCE WITH CITY ATTORNEY- EXISTING LITIGATION Subject: Miriam Green v. City of Palo Alto Santa Clara County Superior Court Case No. 16CV300760 (One Case, as
Defendant) Authority: Government Code Section
54956.9(d)(1)
From: Lesley Milton, City Clerk
2 Packet Pg. 8
City of Palo Alto (ID # 14490)
Office of the City Clerk
City Council CAO Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
Title: Approve Minutes from the June 1, 2022 City Council Meeting From: Dani Kang,
Staff recommends Council to review and approve the minutes as presented.
ATTACHMENTS:
• Attachment3.a: 20220601amCCsm (PDF)
3 Packet Pg. 9
CITY COUNCIL
DRAFT ACTION MINUTES
Special Meeting
June 1, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.
Present: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka
Absent: DuBois
Public Comment
Action Items
1. Review and Approval of 2022-2023 Work Plans for the following Boards and Com missions: Parks and Recreation Commission, Planning and Transportation Commission, Historic Resources Board, Architectural Review Board and Human Relations Commission
ACTION: Approved
2. PUBLIC HEARING: Adoption of Two Ordinances Implementing the Objective Standards Project, Including: 1) New Chapter 18.24, Contextual Design Criteria and Objective Design Standards; 2) Modifications to Affordable Housing (AH) Overlay District to Eliminate the Legislative Process; 3) Changes to Remove Inconsistencies and Redundancies, and Streamline Project Review Throughout Title 18.
MOTION: Mayor Burt moved, seconded by Council Member Filseth to adopt two ordinances implementing the objective standards project, including: an ordinance creating Palo Alto Municipal Code Chapter 18.24 (Contextual Design Criteria and Objective Design Standards) (Attachment A); and an ordinance adopting related changes throughout Title 18 (Zoning) to implement the new standards (Attachment B).
MOTION PASSED/FAILED: 5-1, Cormack No, DuBois Absent
3.a
Packet Pg. 10
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 06/01/2022
Council Member Questions, Comments and Announcements
Adjournment: The meeting was adjourned at 9:46 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.
3.a
Packet Pg. 11
City of Palo Alto (ID # 13932)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Contract No. C22182951 with Innovative Interfaces Incorporated for use of its Online -Hosted Integrated Library System (ILS) Software, Innovative Mobile App, and Implementation Services, for a Five - Year Term and a Total Contract Not -To-Exceed Amount of $983,388 including a Ten-Percent Contingency/Additional Services Amount
From: City Manager
Lead Department: IT Department
Recommendation
Staff recommends that the Council approve and authorize the City Manager or their designee to execute the attached Contract No. C22182951 with Innovative Interfaces Incorporated (Attachment A) for use of its online-hosted Integrated Library System (ILS) Software, Innovative Mobile App, and Implementation Services, for a five-year term and a total not-to-exceed amount of $983,388, which includes a 10% contingency for Additional Services in the amount of $89,399, to be assigned via City-approved Task Order as detailed in the agreement.
Executive Summary
This agreement will enable the Library to continue usi ng the current software and/or software services to provide the functionality of the Library’s Integrated Library System (ILS). It will also add use of the Innovative Mobile App, a mobile checkout function, and provide implementation services for the app a nd configuration of RFID (radio frequency identification) beacons. Staff uses the ILS to perform and manage most library transactions and operations, including circulation of library materials (check-in and check-out items, holds management) , management of customer accounts, creation of public access to all types of library materials, preparation of such materials for public use and statistical reporting.
Background
The average useful life of an ILS is roughly seven years. Before migrating to the current ILS provided by Innovative Interfaces Incorporated (Innovative Interfaces), the Library installed one system in 2005. The project and associated costs were detailed in the Library’s technology plan completed in 2009 and reviewed by the Library Advisory Com mission. The plan recommend ed the replacement of the ILS software in order take advantage of new features such as federated search and to implement a discovery layer, features which will allow users to find a greater number of resources or options to answe r their searching terms. Innovative Interfaces’ ILS was 4 Packet Pg. 12
City of Palo Alto Page 2
chosen for these reasons. Additionally, the ILS replacement allow ed the Library to achieve the following goals:
• Eliminate most or all in -house ILS computer hardware and software via replacement with a cloud-based ILS service
• Address shortcomings in the existing bibliographic database system including search, record display, and interoperability requirements with other vendors and services • Improve the customer usability of the public access catalog to provide customizable web-based self-service
• Improve the functionality of the circulation system
• Improve database maintenance and cataloging
• Maintain functionality of acquisition and serials services • Provide robust reporting and integration with third-party products and services
With those goals, the current ILS system was selected in November 2014 through a public solicitation and a contract executed in March 2015.
Discussion
Procurement Process
A request for proposal s for the Library Computer System so ftware was issued in March 2014.
An evaluation team of staff from the Library Department, IT, and a library technology consultant evaluated proposals from five vendors.
The criteria used to evaluate the proposals were the following:
• Cost considerations
• Company viability and references
• Support and maintenance agreements
• Expertise in providing the required service
The evaluation team invited three of the five proposers to come to Palo Alto to do live demonstrations of their systems. Along with demonst rations and references from other libraries that currently use the respondents ’ services, staff found that when taking into consideration all criteria, Innovative Interfaces, Incorporated was found to have the best ILS services to meet the needs of the Library.
Evaluation and award of the ILS vendor was approved in January 2015, CMR 4920. The contract for the existing system expired in March 2022. Staff recommends that the Library services continue using the existing ILS platform for an additional five (5) years, for a total of 10 years of services. The primary reasons for this recommended amendment and extension include:
• Migration to a new system and subsequent staff training demands extensive resources.
The priority of Library staff is to focus on recovery from the past budget reduction s and continuing to implement services through the recov ery period. T he Library has insufficient resources to engage in changing systems while prioritizing re -opening and 4 Packet Pg. 13
City of Palo Alto Page 3
supporting daily services.
• The existing ILS has received positive feedback regarding the ease of use and ability to find materials quickly. Any system change will require new orientation on the part of customers.
• Innovative Interfaces , chosen through a public process originally, has been making efforts to keep its system updated by adapting newly developed technology. This platform introduced three new versions and migrated customer data to cloud storage since the City implemented it in 2015 . The Mobile App allows in -stack checkout, a convenience that customers have been requesting.
Staff will evaluate the marketplace and ILS options to assess available tools that may meet the needs of the library and its patrons for these transaction services prior to any additional provisions of services beyond this recommended term.
Alternatively, if the Council does not approve this amendment, or approves one under alternative terms, staff would recommend at least a one -year extension to ensure continuity of services before a market evaluation is completed and potentially a new system implemented.
This would significantly impact other projects as this sys tem is required for day -to-day operations of library services.
Resource Impact
Funds for the Fiscal Year 2022 costs have been budgeted in the Information Technology Fund.
Ongoing maintenance costs are subject to annual approriation of funds through the an nual budget process.
Breakdown of Costs: Innovative Interfaces Contract Costs
Stakeholder Engagement
The Customer Satisfaction Survey, a general assessment about library services conducted in 2018, has shown that customers were satisfied with the way they were able to find library materials through the library online catalog. No solications for ILS -specific feedback from customers has been done.
FY = March 1 - Feb. 28
Year 1,
FY2022
Year 2,
FY2023
Year 3,
FY2024
Year 4,
FY2025
Year 5,
FY2026
Total all
5 Years
Sierra Subscription/Decision
Center/Resource Sharing $155,060 $160,487 $166,104 $171,917 $177,934 $831,502 Mobile App - License $11,000 $11,385 $11,783 $12,196 $12,623 $58,987 Mobile App - Professional
Services (One-time) $3,500 $0 $0 $0 $0 $3,500
Total: $165,933 $168,118 $174,002 $180,092 $186,396 $893,989 Contingency for Additional Services $89,399
Grand Total w/Contingency $983,388
4 Packet Pg. 14
City of Palo Alto Page 4
Policy Implications
This recommendation does not present any changes to existing City policies.
Environmental Review
Approval of this agreement does not constitute a project under the California Environmental Quality Act (CEQA); therefore, an environmental assessment is not required.
Attachments:
• Attachment4.a: Attachment A:
C22182951_Innovative_Interfaces_Incorporated_final_060222 4 Packet Pg. 15
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
CITY OF PALO ALTO CONTRACT NO. C22182951
AGREEMENT FOR PROFESSIONAL SERVICES and SOFTWARE LICENSE (“License”)
BETWEEN THE CITY OF PALO ALTO AND
INNOVATIVE INTERFACES INCORPORATED
This Agreement for Professional Services and Software License (“License”) (this “Agreement”) is entered into as of the 13th day of June, 2022 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California charter ed municipal corporation (“CITY”), and INNOVATIVE INTERFACES INCORPORATED, a California corporation, located at 1900 Powell Street, Suite 400, Emeryville, CA 94608 (“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:
RECITALS
A. CITY intends to engage the CONSULTANT to provide continued access to and use of the CONSULTANT’s the online-hosted Sierra Integrated Library System (ILS) Software (defined in Section 14) and its Innovative Mobile application (“app”), as well as implementation services for the Innovative Mobile app and RFID (collectively, the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through February 28, 2027 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 16
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of actual damages for delay if the extension is required due to the fault of CONSULTANT.
SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Eight Hundred Ninety Three Thousand Nine Hundred Eighty Eight Dollars and Ninety Four Cents ($893,988.94 ).
The hourly schedule of rates, if applicable, is set out in Exhibit C -1, entitled “ SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Eighty Nine Thousand Three Hundred Ninety Eight Dollars and Eighty Nine Cents ($89,398.89) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C , shall not exceed Nine Hundred Eighty Three Thousand Three Hundred Eighty Seven Dollars and Eighty Three Cents ($983,387.83), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A . CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services , if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4 .
CONSULTANT shall only be compensated for Additional Services performed under an DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 17
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4 . Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect CONSULTANT’s obligations in any manner regarding the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any c hange order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated con struction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 18
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. Notwithstanding the foregoing, a party may assign this Agreement without the other party’s consent (i) as part of a corporate reorganization, consolidation, merger, or sale of substantially all of its assets or capital stock; or (ii) to an Affiliate of such party provided that any such assignment will not release the assigning party from its obligations under this Agreement.
CONSULTANT shall provide CITY with prompt notice of such co rporate reorganization, consolidation, merger, or sale of substantially all of its assets or capital stock to which this Agreement relates, or assignment to an Affiliate, once CONSULTANT is permitted to publicly disclose the same. CONSULTANT shall demonstrate to CITY’s reasonable satisfaction that the assignee has the ability, capacity, experience and skill and is otherwise qualified to perform the Agreement and the parties, and the assignee shall enter into a written assignment agreement in a form acceptable to the CITY, pursuant to Palo Alto Municipal Code section 2.30.290(c). CITY may terminate this Agreement if it is not reasonably satisfied with any such a ssignment. Any purported assignment made without CITY’s written approval, as required under this provision, shall be null and void.
SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractor authorized by CITY to perform work on this Project are:
SOLUS
Any third-party Hosting Provider (as defined in Exhibit A) that CONSULTANT utilizes in performing this Agreement.
CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 19
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Tom McNamara as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day- to-day performance of the Services. CONSULTANT may designate an alternate P roject Manager from time to time by written notice to the CITY . CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.
CITY’s Project Manager is Sarah Wilson, Library Department, 1213 Newell Road, Palo Alto, CA, 94303, Telephone: 650-329-2516. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time by written notice to the CONSULTANT.
SECTION 14. INTELLECTUAL PROPERTY; DATA. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, calculations, documents, and other materials and copyright interests developed under this Agreement , in any form at or media, as unique to this engagement with CITY, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT makes no representation of the suitabi lity of the work product for use in or application to circumstances not contemplated by the Scope of Services.
14.1 Intellectual Property Rights in the Software. CONSULTANT and/or its licensor(s), as applicable, retain all right, title, and interest in and to the Software , further defined as the online-hosted Software to be provided by CONSULTANT to CITY , its Authorized Users (defined below), and public users (if applicable, as addressed in Section 14.2 below), pursuant to this Agreement, as detailed in Exhibit A (“ Scope of Services”), including without limitation all Software (defined below) used to provide the Software and all graphics, user interfaces, logos, and trademarks reproduced through the Software. This Agreement does not grant CITY any intellectual property license or rights in or to the Software or any of its components or any Documentation (defined below) except those expressly granted herein. CITY recognizes that the Software and its components and the Documentation are protected by copyright and other laws. “Software” means the online -hosted computer software application(s) residing on CONSULTANT-provided servers that CONSULTANT uses to provide to CITY the S ervices detailed in this Agreement, and t hat CONSULTANT makes digitally accessible to the CITY , its Authorized Users, and public users (if applicable, as addressed in Section 14.2 below), via the internet. “Documentation” means the technical publications relating to the use of the Software , such as reference, installation, administrative and programmer or user manuals, made available by CONSULTANT to CITY.
14.2 Grant of Right to Use the Software. Subject to the terms of this Agreement, CONSULTANT hereby grants to CITY a non -exclusive, non-assignable license to access and use the Software, components of its software applications, modules, and other products for the term of this Agreement as contemplated herein . The license granted to CITY hereunder DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 20
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
includes the right to provide to the CITY’s Authorized Users access to the Software in accordance with this Agreement. “Authorized User” means the base number of persons listed in the Pricing Exhibit holding a valid ID and password issued by the CITY pursuant to this Agreement. If the Software provided pursuant to this Agreement consists of, or includes, public -facing functionalities, the license granted hereunder also extends to public users to access and use the public-facing functionalities of the Software . CONSULTANT warrants that it has the right to provide the foregoing license to access and use the Software pursuant to this Agreement, that CONSULTANT has obtained any and all necessary permissions from third parties to provide the Software.
14.3 Ownership of Data; Grant o f License to City Data . The parties acknowledge and agree that CITY owns the City data, content, documents, materials and other information, in any form at or media, inputted by City, its Authorized Users or its public users, into the Software (“City Data”); that the CITY has a right to control, access and retrieve City Data at any time during the term of the Agreement, in computer -readable format. The CITY hereby grants to CONSULTANT and its subcontractors, if any, the limited, non- exclusive, non- transferable, revocable rights to access and use City Data during the term of this Agreement solely for the purposes of performing CONSULTANT’s obligations to CITY hereunder and supporting CITY’s use of the Software hereunder, as well as to generate aggregated, system -wide collations of industry and business data in a non-attributed, non-identifiable manner for product improvement and product creation that does not identify CITY or detail of its particular data, and as is otherwise expressly permitted under this Agreement. This Agreement does not grant CONSULTANT or its subcontractors, if any, any intellectual property license or rights in or to the City Data except those expressly granted herein. Upon termination or expiration, if CITY will leave the Software , CONSULTANT and CITY shall work together to provide CITY with a copy of City Data in mutually-agreed computer-readable format(s), such service will be performed pursuant to a written statement of work and paid for by CITY, applying CONSULTANT’ s then -current rates for daily/hourly work, as the case may be. CITY shall have the option to choose from one of several methods to obtain a copy of City Data. Once such data has been provided to CITY, CONSULTANT shall use, or cause to be used, industry-standard secure means of destruction or erasure of any City Data remaining in its possession and, at the CITY’s request, certify the same.
14.4. Data Security. CONSULTANT will maintain, or cause to be maintained, a data security program for the Software that will include reasonable administrative, physical, technical, organizational and other security measures to protect against unauthorized access to, or destruction, loss, unavailability or alteration of, any City Data accessed by CONSULTANT and its sub contractors, if any, in the performance of this Agreement including without limitation City Data processed or stored by the Software. Contractor will provide security for its networks and all internet connections consistent with industry best practices, and will promptly install all patches, fixes, upgrades, updates and new versions of any security software it employs. City Data will be encrypted at rest and in transit with controlled access.
14.5. Notification of Legal Requests. CONSULTANT will immediately notify City upon receipt of any subpoenas, service of process, litigation holds, discovery requests and other legal requests (“Legal Requests”) related to City’s Data under this Agreement, or which in any way might reasonably require access to City’s Data, and in no event later than 2 business days after it receives the request. C ONSULTANT will not respond to Legal Requests relate d to City without first notifying City other than to notify the requestor that the information sought is DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 21
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
potentially covered under a non- disclosure agreement. CONSULTANT will retain and preserve City Data in accordance with the City’s instruction and requests, including, without limitation, any retention schedules and/or litigation hold orders provided by the City to C ONSULTANT, independent of where the City Data is stored.
SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) ye ars after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’ s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of the negligence, recklessness or willful misconduct by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. For avoidance of doubt, CONSULTANT’s indemnificat ion obligations under this Section 16 include the infringement indemnification provided under Section 7 (Indemnification) of Appendix 1 (Innovative Interfaces Incorporated Master Professional Services Agreement ) and Section 7 (Indemnification) and Section 7 (Indemnification) of Appendix 2 ( Innovative Interfaces Incorporated Subscription License Agreement) of this Agreement.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.
SECTION 16.A. LIMITATION OF LIABILITY.
16.A.1. LIMITATION OF LIABILITY OF CONSULTANT.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, IN NO EVENT
SHALL CONSULTANT BE LIABLE TO CITY, REGARDLESS OF WHETHER ANY CLAIM
IS BASED ON CONTRACT OR TORT, FOR SPECIAL, CONSEQUENTIAL, INDIRECT OR
INCIDENTAL DAMAGES OR FOR ANY LOSS OF PROFIT OR L OSS OF BUSINESS BY
CITY, EVEN IF CONSULTANT HAS BEEN ADVISED OF THE POSSIBILITY OF ANY DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 22
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
SUCH POTENTIAL CLAIM, LOSS OR DAMAGE. EXCEPT AS PROVIDED IN THE
IMMEDIATELY FOLLOWING SENTENCE, IN NO EVENT SHALL THE TOTAL
AGGREGATE LIABILITY UNDER THIS AGREEMENT OF CONSULTANT TO CITY
EXCEED THE FEES PAID TO CONSULTANT UNDER THIS AGREEMENT IN THE
TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE DATE UPON WHICH A CLAIM IS FIRST ASSERTED . CONSULTANT'S LIABILITY LIMIT SET FORTH HEREIN SHALL NOT APPLY TO (1) DAMAGES CAUSED BY CONSULTANT'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, (2) CONSULTANT’S OBLIGATIONS TO INDEMNIFY CITY PURSUANT TO SECTION 16 (“INDEMNITY”) OF THIS AGREEMENT, (3) STATUTORY DAMAGES, AND (4) WRONGFUL DEATH CAUSED BY CONSULTANT.
16.A.2. LIMITATION OF LIABILITY OF CITY. CITY’S PAYMENT
OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE PAYMENT OF THE COMPENSATION PROVIDED FOR IN SECTION 4 (“NOT TO EXCEED COMPENSATION”) OF THIS AGREEMENT. NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, IN NO EVENT SHALL CITY BE LIABLE,
REGARDLESS OF WHETHER ANY CLAIM IS BASED ON CONTRACT OR TORT, FOR
ANY SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES,
INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR THE SERVICES PERFORMED IN CONNECTION WITH THIS AGREEMENT.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or parti al exercise of any right or remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within ten (10) business days of the CONSULTANT’s receipt of such notice. Upon request by CITY Project Manager or designee, CONSULTANT will provide DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 23
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
the then-current certificate(s) evidencing the insurance during the term of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired , subject to the limitations of liability in Section 16.A.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon recei pt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Intellectual Property; Data), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Intellectual Property; Data).
19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s S ervices provided in material conform ity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 24
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have an y financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financia l disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code S ection 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT represents that it is committed to promoting and improving accessibility to enable CITY to comply with the W3C Web Content Accessibility Guidelines Version 2.0 Level AA (WCAG 2.0 standard) and Americans with Disabilities Act ("ADA"), 42 U.S.C. 12101 et seq. and Sections 504 and 508 of the Rehabilitation Act 29 U.S.C. 701 et seq. as those laws apply to the CITY. CONSULTANT agrees to address within a commercially reasonable time, any complaint related to compliance accessibility of its software that has been identified and brought to the attention of CONSULTANT.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 25
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
SECTION 23. ENVIRONMENTALLY P REFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be accepted by electronic means by the CITY. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT , at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) h ours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code , as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This S ection shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract:
(a) is not a public works contract;
(b) is for a public works construction project of $25,000 or less , per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (c) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 26
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. ( Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, the parties may have access to Confidential Information (defined below). The parties will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only in the performance of this Agreement and for no other purpose. The parties will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, the parties may disclose Confidential Information to its employees, agents and subcontractors, if any, to the exte nt they have a need to know in order to perform obligations under this Agreement and for no other purpose, provided that the parties informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible o r intangible, provided or otherwise made available to a disclosing party to a receiving party, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in recipients possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by recipient from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of recipient without any use of or access to the Confidential Information; or (v) recipient has written consent to disclose signed by an authorized re presentative of the disclosing party.
28.3. Notwithstanding the foregoing, a party may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that such party will notify the other party in writing of such order immediately upon receipt and prior to any such disclosure (unless the party is prohibited by law from doing so), to give the other party an opportunity to oppose or otherwise respond to such order.
28.4. A party will notify the other party promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, the party will provide information to other party sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 27
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
28.5. Prior to or upon termination or expiration of this Agreement, the parties will honor any request from the other party to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the disclosing party and nothing contained in this Agreement grants or confers any rights to such Confidential Information on the receiving party.
28.6 Compliance with Subpoena or Court Order. Notwithstanding anything to the contrary in this Section, if any Confidential Information is subject to disclosure pursuant to a lawful subpoena or court order, a party may disclose such Confidential Information to the extent required thereby, and such disclosure shall not be deemed a violation of this Agreement. In the event a receiving party receives a subpoena or court order covering the disclosing party’s Confidential Information, then prior to disclosing such information, the receiving party shall provide written notice to the disclosing party of such subpoena or court order, if legally permissible, as soon as possible and in no event more than seventy -two (72) hours after the receiving party has received such subpoena or court order, in order to allow time for the disclosing party to take legal action to prevent disclosure if the disclosing party so chooses. Nothing herein shall require receiving party to take any action, or to refuse to disclose information, where to do so would violate applicable law or court order.
28.7 Compliance with Public Disclosure Laws. Notwithstanding anything to the contrary in this Section, the parties understand and agree that City is a public entity, and if any Confidential Information or information about this Agreem ent or its performance is subject to disclosure by the City pursuant to applicable open government and public records laws, including without limitation California’s Brown Act, the California Public Records Act and Palo Alto Municipal Code section 2.30.610, the City may disclose such information to the extent required thereby. In the event the City receives a public records request covering the CONSULTANT’s Confidential Information, the City shall, promptly following receipt, give notice to CONSULTANT of s uch request in case CONSULTANT wishes to take legal action to prevent disclosure if CONSULTANT so chooses. Nothing herein shall require the City to take any action, or to refuse to release information, where doing so would violate applicable law or court order.
28.8. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. The CITY does not waive its right to a jury trial.
29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 28
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
parties.
29.4. This Agreement, including all exhibits and appendices , constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement supersedes any click -through, click -on, “screen wrap” or other user agreement that may appear on any CONSULTANT Software, application or website. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30 ) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.
29.10 The parties understand and agree that City is a California public entity subject to applicable open government and public records laws, including without limitation California’s Brown Act, the California Public Records Act, and Palo Alto Municipal Code section
2.30.610; that the City operates in an open and public manner in accordance with applicable open government laws ; and that the City may disclose this Agreement and information about this Agreement (except Confidential Information of Consultant, which shall be handled pursuant to Section 28 of this Agreement regarding Confidential Information ) in accordance with applicable open government and public records laws.
29.11 All fees under this Agreement are exclusive of any applicable sales, value- added, use or other taxes (“Sales Taxes”). It is the understanding of the parties that online-hosted software, such as the S oftware provided hereunder, is not “tangible personal propert y” and is therefore not taxable under Title 18 of the California Code of Regulations, Section 1502(f)(1)(C)- (D). If this understanding should prove incorrect, CITY will be responsible for any and all applicable Sales Taxes, not including taxes based solely on CONSULTANT’s net income. If any applicable Sales Taxes related to the fees under this Agreement are found at any time to be payable, and the Sales Taxes applicable to the S oftware provided to CITY under this Agreement are assessed by the taxing autho rity against CONSULTANT, the amount may be billed by DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 29
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
CONSULTANT to CITY, with supporting documentation, and shall be paid by CITY pursuant to an amendment to this Agreement as provided for in Section 29.4 of this Agreement.
SECTION 30. EXHIBITS AND APPENDICES; ORDER OF PRECEDENCE. Each of t he following exhibits and appendices, if the check box for such exhibit or appendix is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein. I n the event of any conflict between the provisions of this Agreement for Professional Services Software License document including Exhibits A through E as compared to the provisions of Appendices 1 through 3, the provisions of this Agreement for Professional Services and Software License document including Exhibits A through E shall take precedence, followed by the provisions of Appendices 1 through 3. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: CYBERSECURITY TERMS AND CONDITIONS
APPENDIX 1: INNOVATIVE INTERFACES INCORPORATED MASTER
PROFESSIONAL SERVICES AGREEMENT
APPENDIX 2: INNOVATIVE INTERFACES INCORPORATED
SUBSCRIPTION LICENSE AGREEMENT
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 30
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
CONTRACT No. C22182951 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
INNOVATIVE INTERFACES
INCORPORATED
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A Tom Jacobson
VP, Exec Library Advocate & Strategist
SVP Library Services
Hilary Newman
4.a
Packet Pg. 31
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
EXHIBIT A
SCOPE OF SERVICES
CONSULTANT (also referred to herein as “Innovative”) shall provide the Software and Services (collectively, the “Services”) detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.
Task 1: Sierra Integrated Library System (ILS) Software
CONSULTANT will provide access to and use of its Sierra Integrated Library System (ILS), a Software offering. CITY’s access to and use of the Sierra ILS Software licensed under this Agreement includes hosting, support and maintenance.
Sierra integrates multiple workflows — eResource Management, Circulation, Cataloging, Acquisitions, and more — into one easy to use interface to allow uninterrupted progress on day to day initiatives or special projects, saving the customer valuable time.
Sierra gives the customer the ability to customize its workflow based on role. For example, library staff involved in circulation as well as acquisitions can employ a persona-based experience by creating a customized module that allows the customer to work seamlessly within one space for efficiency. Sierra ILS includes without limitation the following features:
RESTful APIs
Sierra facilitates the connections libraries have with the communities they serve. Whether it be finance applications, learning management systems, or any community the library exists within, Sierra is open and can connect.
Workflow on the Go
Working seamlessly with Mobile Worklists, Sierra liberates library staff with a mobile experience that moves library operations into the stacks and away from repetitive material handling.
With MyLibrary! for Sierra, library patrons can access library resources, place holds, check out digital items, and visit the customer’s library on social media all in one place on their mobile device.
Sierra ILS includes the following functionalities:
• Cataloging – Manage bibliographic records, check statistics, load metadata • Acquisitions – Manage orders, vouchers and create lists • Circulation – View check-in/out and hold requests
• eResource Management – View and manage electronic journals and databases including Open Access content
• Serials – Serials and bindery management
• Administration – Perform back office tasks, rapid update, global update, delete records
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 32
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Task 2: Innovative Mobile App
In addition, Innovative will provide CITY and its users with access to and use of its Innovative Mobile app, a mobile software application that provides on-the-go access to collections and services direct from iOS or Android mobile devices. The Innovative Mobile app offers patrons convenience, with a modern interface that’s customized for the customer’s library and, if needed, for the customer’s entire network. CITY’s access to and use of the Innovative Mobile app licensed under this Agreement includes hosting, support and maintenance.
Innovative Mobile is a mobile library application designed to extend the walls of the customer’s library through advanced capabilities such as discovery, patron account access, and “Click and Collect” which allows patrons to reserve items and then be notified when it’s time to pick up.
Sierra ILS includes without limitation the following features:
Self-Check and Contactless Pick Up
With a focus on safety and contactless service, Innovative Mobile simplifies receiving online payments and provides low-cost patron self-service options, including a digital library card and a self-check via barcode or RFID. In addition, a “Curbside Pickup” option is available for patrons to reserve items in the app and be notified when it’s time to pick up, and an “I’m Here” option to alert the library the patron is ready for pickup curbside.
Quick and easy set up, configure in a matter of weeks
Innovative Mobile works with Sierra and Polaris public libraries and consortia today (iOS and Android), and includes search integration with Vega Discover. In addition to an implementation process that can be completed in weeks, the built-in features mean a better experience once it’s live. Patrons can use linked accounts to manage accounts for their whole family, and patrons can pay their fines through the app using the customer library’s current fine payment service.
Customized to look like the customer’s library, and built for the customer’s patrons
Innovative Mobile is customized with each customer library’s logo, colors, even layout.
The exciting part is that patrons can customize their experience as well, deciding if they want left to right or up and down scrolling, and 20 languages for the best possible experience.
Innovative Mobile includes the following functionalities:
• Modern Patron Experience – Searches the full catalog, with intuitive options to navigate available library resources and services. Compatible with iOS and Android.
• Consortia-Friendly by Design – Templates allow individual libraries to quickly and affordably launch a custom app connected to the larger network and with DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 33
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
their local branding.
• Supplement Self-Check Hardware – Stay safe and offer options with check out and check in via barcode and RFID in the app, plus fine pay and renewals.
Implementation services to be provided for the Innovative Mobile app are detailed below.
Tasks 3 &4: Innovative Mobile App Implementation Services Scope of Work (“SOW”) (Task 3) including Configuration of RFID Beacons (Task 4)
CONSULTANT will provide implementation services, as detailed below, to enable the CITY and its users to access and use CONSULTANT’s Innovative Mobile app and utilize RFID.
A. [RESERVED]
B. Implementation Services SOW
The SOW for the implementation services includes the following set of professional services:
1. Innovative Mobile App Implementation (Task 3). Innovative Services Team (“Services Team”) will work with the CITY to configure, install, and test a customized Innovative Mobile application (“App”) for the CITY. NOTE: Some services specified in this Statement of Work will be performed by subcontractor/subconsultant Solus (“Solus”), including creation of customized App for CITY, and publishing of App to specified online app stores.
Specified work includes:
a. Project management
b. Project kickoff between Services Team and CITY
c. Creation and configuration of CITY instance on Innovative Mobile Content Management System (“CMS”) for a single production environment d. Custom App development
e. Publishing of App to Apple and Google app stores
f. Liaison with Solus
g. Post-implementation testing
h. Remediation of post-implementation issues found during testing
2. Configure RFID Beacons (Task 4). Services Team will work with the CITY to deliver and configure RFID Beacons (“Beacons”) for self-check as specified in the Contract.
Specified work includes:
a. Delivery of Beacons to CITY
b. Provisioning and configuration of Beacons
c. Assisting CITY with testing and troubleshooting of Beacons
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 34
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
C. CONSULTANT Services Team
The CONSULTANT’s Services Team will provide the following available for this SOW:
1. Project Manager: Responsible for coordination of schedule and App delivery with the CITY, consultation on App configuration requirements, and consultation on available App customization, and liaison with third party vendor Solus as necessary.
2. System Engineer: Responsible for creation of CITY configuration in the Innovative Mobile Content Management System (CMS), and configuration of the ILS as required.
D. CITY Implementation Team
1. Technical Lead: Will be responsible for assisting with CITY responsibilities related to the installation and any other system level duties required by CITY, and coordinating/ providing all CITY responsibilities identified in Implementation Assumptions.
E. Implementation Assumptions
1. CITY will have adequate resources available to ensure timely completion of any library tasks outlined in the project schedule.
2. Timeline for the completion of this project will be established, through joint planning conversations between the CITY and Innovative during the initial stage of the project.
3. CITY shall be responsible for:
a. Participating in project kickoff, and assisting in establishing project schedule b. Providing images for App customization
c. Applying for Apple Developer account, and providing app publishing credentials to Innovative Services team
d. Providing Services Team with required profile and configuration information, in an App configuration questionnaire and App configuration spreadsheet to be provided by Services Team.
e. Testing App download from Apple and Google app stores, and testing App for proper appearance, functionality, and configuration
f. Physical installation of Beacons at CITY facilities
F. Fees and Payment Terms
Fees and payment are provided for elsewhere in this Agreement, for example and without limitation, in Section 4 (Not to Exceed Compensation), Section 5 (Invoices), and Exhibit C (Compensation) of this Agreement.
Included under Tasks 1 & 2: Software Maintenance and Support
1. Maintenance and Support. Innovative will offer maintenance and support on the terms set forth herein (“Maintenance and Support”) for the latest generally available version of the software (also referred to herein as “Software”) and for certain earlier versions in accordance with Innovative’s support policy. Standard Maintenance and Support is included with the price DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 35
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
for the annual license set forth in Exhibit C (Compensation) of this Agreement.
2. Error Response. Error descriptions (each an “Error”), the Error severity levels and corresponding targeted response time per level are each described in the table below. The Targeted Response Times in the table below identify the response times that Innovative will target for the corresponding Error, however, such Targeted Response Times are not guaranteed.
Severity Description Target
Response Time
One - Site Down A major component of the software is in a non-responsive state and severely affects library productivity or operations. A high impact problem that affects the entire library system.
Widespread system availability, production system is down 1 hour
Two – Critical Any component failure or loss of functionality not covered in Severity 1 that is hindering operations, such as, but not limited to: excessively slow response time, functionality degradation; error messages; backup problems; or issues affecting the use of the module or the data
2 hours
Three - High Lesser issues, questions, or items that minimally impact the work flow or require a work around
2 business days;
excludes
holidays and
weekends
Four – Routine Issues, questions, or items that don’t impact the work flow.
Issues that can easily be scheduled such as an upgrade or patch
4 business days;
excludes
holidays and
weekends
3. Error Reporting and Diagnosis.
a. CITY (also referred to herein as “Client”) must designate a representative as the contact that will report Errors to Innovative and be Innovative’s primary contact for the provision of Maintenance and Support pursuant to the terms of this Agreement (such representative is referred to herein as the “Client Contact”). When a Client Contact reports an Error, Innovative will use commercially reasonable efforts to diagnose the root cause of the Error (“Diagnosis”). Upon completing the Diagnosis, each Error will be classified as either a “Warranty Error” or a “Non-Warranty Error” pursuant to Section 3.b. below. Innovative will use commercially reasonable efforts to diagnose and repair both Warranty and Non- Warranty Errors as described below.
b. “Warranty Errors” are all Errors that do not qualify as Non-Warranty Errors. “Non-Warranty Errors” are Errors resulting from any of the following causes: (i) misuse, improper use, alteration or damage of the Software; (ii) operator error; (iii) incorrect data entry by Client; (iv) third-party software not part of the Software; (v) errors and/or limitations attributable to Client environment; (vi) Client’s failure to incorporate any New Release (as defined below) previously provided to it by Innovative which corrects such Error; (vii) modification of the Software performed by Client; and (viii) technical consulting services provided by Innovative at Client’s request (e.g., change orders, integration development, or DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 36
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
configuration design and implementation), unless Client notifies Innovative of such technical consulting services problem within the applicable warranty period set forth in the governing statement of work, change order or agreement. Client acknowledges that the Software is intended for use only with the software and hardware described in the Specifications provided by Innovative from time to time, and Client will be solely responsible for its adherence thereto. The license granted to Client pursuant to this Agreement will include, at no additional cost, a license to use all new scheduled major releases, service pack releases, and hot fixes of the Software offered generally by Innovative to its clients during the term of this Agreement (collectively, “New Releases”). “New Releases” do not include new or additional modules, applications or other software now or hereafter offered by Innovative, each of which require a separate license and payment of additional license fees. The term “Software” will be deemed to include New Releases. Except to the extent that Client purchases Innovative’s hosting service, additional fees at Innovative's then-prevailing professional service rates will apply for implementation of New Releases. (For the avoidance of doubt, as noted above, Client’s purchase of the Software pursuant to this Agreement includes Innovative’s provision of hosting services.)
c. If the Client is hosting their Software, the Client must provide direct network internet access to the Software, including any firewalls. Innovative requires such access to correct Software bugs and carry out modifications of the Software for the purpose of maintaining the Software.
4. Complimentary and Chargeable Support. Innovative will respond to all reported Errors pursuant to Section 2 above and will use commercially reasonable efforts to resolve Warranty Errors at no additional charge if Client has purchased and is current on its payment for Maintenance and Support; however, Innovative may charge Client for such effort with respect to Non-Warranty Errors according to the following process: (i) When the Client Contact reports any Error, prior to commencing the Diagnosis for the Error, Innovative will notify the Client Contact that the Diagnosis and repair effort will be at no charge to Client unless the reported Error is determined to be a Non-Warranty Error, in which case only the first two hours of Diagnosis will be at no charge; and (ii) Innovative will then commence the Diagnosis unless instructed otherwise by the Client Contact. If more than two hours are required for the Diagnosis of Non-Warranty Errors, then such additional Diagnosis hours will be charged to Client at Innovative’s then-current rate for technical services. Once the Diagnosis is complete, the Client Contact will be given the option of having Innovative proceed with repairing the Non-Warranty Error, and, if so requested, Innovative will provide an estimate of the total cost for such effort. If agreed to by the Client Contact, Innovative will undertake to repair the Non-Warranty Error and charge Client for the associated technical services performed. Any additional charges will be implemented pursuant to the Task Order provisions of Section 4 (Not to Exceed Compensation) regarding Additional Services or pursuant to an amendment to this Agreement per Section 29.4 herein.
5. Ticket Management and Escalation. Innovative manages all reported issues using a ticket management system, and provides an Internet portal for Clients to report issues. Clients may review the status of issues reported online. When an Error is either unresolved or not resolved in a timely fashion, the Client should contact Innovative representatives pursuant to Innovative’s escalation policy made available on Innovative’s Internet portal.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 37
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Included under Tasks 1 & 2: Software Hosting Services Terms and Conditions (“Hosting Terms”)
1. Hosting Services. The following terms apply for all purposes to Client’s license to and use of the Software under this Agreement.
2. Hosting Solution. Innovative offers clients a standard cloud-based hosting option (the “Standard Plan”). The table below sets forth the features of the Standard Plan. This option provides industry-leading security and monitoring at a SOC 1/SOC 2 Type 2/ISO 27001-audited datacenter by a top-tier cloud hosting provider (the “Hosting Provider”), with the flexibility to meet clients’ data storage, data recovery, and information security policy requirements. To meet clients’ global hosting needs, Innovative offers hosting options in datacenters located in the United States, Canada, United Kingdom, Ireland, Australia and the Asia-Pacific region, however, Innovative reserves the right to increase, decrease and/or relocate its datacenters at anytime.
3. Hosting Solution System Configuration. The hosting systems are configured to meet the solution requirements as per these Hosting Terms set forth on the Pricing Exhibit provided in Exhibit C (Compensation) of this Agreement.
4. Security Controls.
a. Generally. Subject to the terms of the Agreement, Innovative implements industry-recognized best practices to prevent the unintended or malicious loss, destruction or alteration of Client’s data resident in the Software.
b. Network Systems Audit Logging. All firewall logon activity and password changes are logged, monitored, controlled and audited. All intrusion detection and firewall log monitoring is done through services provided by Innovative and those pertinent log files and configuration files are retained for ninety (90) days and can be made available upon request for audit and problem resolution, as may be required.
c. Network Monitoring. All network systems and servers are monitored 24/7/365. Innovative will monitor its systems for security breaches, violations and suspicious (questionable) activity. This includes suspicious external activity (including, without limitation, unauthorized probes, scans or break-in attempts) and suspicious internal activity (including, without limitation, unauthorized system administrator access, unauthorized changes to its system or network, system or network misuse or program information theft or mishandling). Innovative will notify Client as soon as reasonably possible of any known security breaches or suspicious activities involving Client’s production data or environment, including, without limitation, unauthorized access and service attacks, e.g., denial of service attacks.
d. Audit and Security Testing. Hosting Providers perform regular security audits and testing. Client’s may not perform own audits of hosting providers.
e. Information Security Auditing/Compliance. Innovative’s hosting providers undergo SOC 1/SOC 2 Type 2/ISO 27001 audits each year by independent third-party audit firms.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 38
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
f. **The 99.9% guaranteed infrastructure uptime is subject to the following Service Level Agreement (SLA):
i. Hours of operation/exclusive remedy for service unavailability.
Innovative offers a monthly infrastructure uptime target of 99.9% of Scheduled Up-Time to Client. Scheduled Up-Time means all of the time in a month that is not Scheduled Downtime (defined below) or Third Party Unavailability. In the event that Innovative fails to provide Client with 99.9% infrastructure uptime for three consecutive months, Client will be entitled to receive a credit equal to the prorated amount of the Fees for the period in which Innovative failed to provide such infrastructure uptime during such months upon receipt of written notice from Client. The remedies set forth in this Paragraph (i) are the exclusive remedies of the Client for Innovative’s failure to provide Client with 99.9% infrastructure uptime.
ii. Scheduled Downtime. Scheduled Downtime means the period of time which Innovative or the Hosting Provider, conduct periodic scheduled system maintenance and release updates for which Innovative will provide the Client with advance notice. Innovative will make commercially reasonable efforts to provide Client notice of scheduled system maintenance 48 hours in advance and notice of release updates three weeks in advance.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 39
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 40
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.
Tasks/ Milestones
Commencement/Completion
as specified below
1. Sierra ILS Software including Licensing, Hosting,
Maintenance and Support
Continuation (immediate) of
Access to and Use of Sierra ILS
Software per Exhibit A a) Year 1 (from March 1, 2022 to February 28, 2023) b) Year 2 (from March 1, 2023 to February 29, 2024)
c) Year 3 (from March 1, 2024 to February 28, 2025)
d) Year 4 (from March 1, 2025 to February 28, 2026)
e) Year 5 (from March 1, 2026 to February 28, 2027)
2. Innovative Mobile App for Sierra ILS with RFID,
including Licensing, Hosting, Maintenance and Support
Access to and Use of Innovative
Mobile App upon implementation
per Exhibit A implementation
services SOW
a) Year 1 (from March 1, 2022 to February 28, 2023)
b) Year 2 (from March 1, 2023 to February 29, 2024)
c) Year 3 (from March 1, 2024 to February 28, 2025)
d) Year 4 (from March 1, 2025 to February 28, 2026)
e) Year 5 (from March 1, 2026 to February 28, 2027)
3. Innovative Mobile App for Sierra ILS, Implementation (Implementation Services SOW per Exhibit A)
Commencement of implementation
services to be established during the
initial stage of the implementation
SOW
4. Configure RFID Beacons Implementation
(Implementation Services SOW per Exhibit A)
To be established during the initial
stage of the implementation SOW
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.)
The schedule of p erformance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 41
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for S ervices performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as E xhibit C-1 up to the not to exceed budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
*Pricing for Sierra ILS Software is further detailed below in the Pricing Exhibit for Sierra ILS Software. **Pricing for Innovative Mobile is further detailed below in the Pricing Exhibit Innovative Mobile. ***Pricing for Implementation Services is further detailed below in the Pricing Exhibit for Implementation Services (Innov. Mobile App & RFID).
TASKS
NOT-TO-
EXCEED
AMOUNT
SUBTOTALS
/ TOTAL
1. Sierra ILS Software including Licensing, Hosting, Maintenance & Support* a) Year 1 (from March 1, 2022 to February 28, 2023)*
$155,059.59*
b) Year 2 (from March 1, 2023 to February 29, 2024)* $160,486.69* c) Year 3 (from March 1, 2024 to February 28, 2025)* $166,103.72* d) Year 4 (from March 1, 2025 to February 28, 2026)* $171,917.35* e) Year 5 (from March 1, 2026 to February 28, 2027)* $177,934.46* Subtotal for Task 3 – Sierra ILS Software (5 Years)* $831,501.81*
2. Innovative Mobile App for Sierra ILS with RFID, including Licensing, Hosting, Maintenance and Support**
a) Year 1 (from March 1, 2022 to February 28, 2023)** $11,000.00** b) Year 2 (from March 1, 2023 to February 29, 2024)** $11,385.00** c) Year 3 (from March 1, 2024 to February 28, 2025)** $11,783.48** d) Year 4 (from March 1, 2025 to February 28, 2026)** $12,195.90** e) Year 5 (from March 1, 2026 to February 28, 2027)** $12,622.75** Subtotal for Task 2 – Innovative Mobile App (5 Years)** $58,987.13**
3. Innovative Mobile App Implementation (Implementation Services SOW per Exhibit A)***
$1,000.00***
4. Configure RFID Beacons Implementation (Implementation Services SOW per Exhibit A)***
$2,500.00***
Subtotal for Tasks 3 & 4 (Implementation Services, Innovative Mobile & RFID)*** $3,500.00*** Subtotal for Services (Tasks 1 – 4) $893,988.94
Reimbursable Expenses (if any): $0.00
Total for Services and Reimbursable Expenses: $893,988.94 Additional Services (if any per Section 4): $89,398.89 Maximum Total Compensation: $983,387.83
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 42
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
PRICING EXHIBIT FOR SIERRA ILS SOFTWARE
Item Item Category Qty Description Options Original
Rate
Discount Amount
Sierra Core
Bundle – Public
Sierra Cloud
Hosting
Staff User Licenses
Web OPAC Menus
(Languages)
AirPAC
Automatic SIP2
Sorter Licenses
Batch interface for
loading MARC
records
Circa Wireless
Assistant (RFID)
Circa Wireless
Inventory (RFID)
Circulation Patron
Images (Internally
Stored)
Community
Information
Database option
Electronic Serials
Invoicing
Mobile Worklists
App
OCLC Interactive
Via the Network
Online Message
Log for Batch Bib
Interface
OPAC Export
Resequence
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License – Term
License - Term
1 1
100
3 1
1 1
1 1
1 1
1 1
1 1
1 1
Sierra Public Core Bundle
Sierra Cloud Hosting
Includes Cloud Hosting with
Standard Backup for Sierra
production only
Staff User Licenses
Web OPAC Menus (Languages)
AirPAC
Automatic SIP2 Sorter Licenses
Batch interface for loading
MARC records
Circa Wireless Assistant (RFID)
Circa Wireless Inventory (RFID)
Circulation Patron Images
(Internally Stored)
Community Information
Database option
Electronic Serials Invoicing
Mobile Worklists App
OCLC Interactive Via the
Network
Sierra Online Message Log for
Batch Bib Interface
OPAC Export
Resequence attached records
Languages:
Chinese
Languages2:
Russian
Languages3:
Spanish
74,636.93
32,609.12
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 43
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
attached records
by location
Sierra Chilifresh
Subscription
Sierra Content Cafe
Subscription
Sierra ERM
Sierra Homebound
Patron / Remote
Patron
Sierra NCIP ILL
Responder
Sierra Premium API
Support
Sierra Program
Registration
Sierra SMS
Notifications - US
ONLY
Sierra Training/Test
Server Core
SISAC Checkin
Synchronize
bibliographic
locations
Unlimited SIP2
Licenses
URL checker
User Licenses for
training machine
Decision Center
Subscription
Indexing Using
Special Filing
Rules
Indexing Using
Special Filing Rules
Resource Sharing
–Returnables
(INN-Reach)
License - Term
License – Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
License - Term
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
by location
Sierra Chilifresh Subscription
Sierra Content Cafe Subscripti...
Sierra ERM
Sierra Homebound Patron /
Remote Patron
Sierra NCIP ILL Responder
Sierra Premium API Support
Sierra Program Registration
Sierra SMS Notifications - US -
Subscription
Sierra Training/Test Server Core
SISAC Checkin
Synchronize bibliographic
locations
Unlimited SIP2 Licenses
URL checker
User Licenses for training
machine.
Decision Center
Indexing Using Special Filing
Rules
Indexing Using Special Filing
Rules
Resource Sharing –
Returnables (INN-Reach)
Chilifresh
Option:
Review
Engine
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
11,781.00
3,720.15
3,720.15
28,592.24
Total Fees (Year 1) $155,059.59
Pricing in years 2-5 includes a 3.5 % increase over the previous year’s pricing: Year 1 of 5 $155,059.59 Year 2 of 5 $160,486.69
Year 3 of 5 $166,103.72
Year 4 of 5 $171,917.35
Year 5 of 5 $177,934.46
5-Year Total: $831,501.81
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 44
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
PRICING EXHIBIT FOR INNOVATIVE MOBILE APP
Item Item Category Qty Description Options Original
Rate
Amount Discount
Innovative
Mobile App –
Sierra
License – Term
1 Innovative Mobile is a mobile
library application designed to
extend the walls of your library
through advanced capabilities
such as discovery, patron
account access, and “Click and
Collect” which allows patrons to
reserve items and then be
notified when it’s time to pick up.
8,500.00 8,500.00 n/a
RFID Annual
Subscription
License - Term 5 Checkout and checkin with RFID
for Innovative mobile app.
Includes an installation (free) of
an additional SIP2 license.
500.00 500.00 2,500.00 n/a
Total Fees (Year 1) $11,000.00 n/a
Pricing in years 2-5 includes a 3.5 % increase over the previous year’s pricing: Year 1 of 5 $11,000.00 Year 2 of 5 $11,385.00
Year 3 of 5 $11,783.48
Year 4 of 5 $12,195.90
Year 5 of 5 $12,622.75
5-Year Total: $58,987.13
n/a
PRICING EXHIBIT FOR IMPLEMENTATION SERVICES (INNOV. MOBILE APP &RFID) Item Item Category Qty Description Options Original
Rate
Unit Price Amount
Innovative Mobile
App –
Implementation for
Sierra
Services 1
Innovative Mobile is a mobile
library application designed to
extend the walls of your library
through advanced capabilities
such as discovery, patron
account access, and “Click and
Collect” which allows patrons to
reserve items and then be
notified when it’s time to pick up.
1,000 1,000.00 1,000.00
RFID Self-Check
Implementation for
Polaris
Services 5 Checkout and checkin with RFID
for Innovative mobile app.
Includes an installation (free) of
an additional SIP2 license.
500.00 500.00 2,500.00
Total Fees $3,500.00
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 45
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Service Hourly Rate
Consulting Services (remote price) $200.00
Software Development/Implementation (remote price) $250.00 Project Management (remote price) $250.00
Training (remote price) $200.00
Configuration Setup (remote price) $200.00
Design / Analysis (remote price) $250.00
Integration / Interfaces (remote price) $200.00
Testing (User Accept. Testing / Load) $250.00
Reports (remote price) $200.00
Project Transition / Close $250.00
Deployment $200.00
Travel Expense actual expense
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 46
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
EXHIBIT D
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT
OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY
STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING PERSONAL
INJURY, BROAD FORM PROPERTY DAMAGE
BLANKET CONTRACTUAL,
PRODUCTS/COMPLETED OPERATIONS AND FIRE
LEGAL LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$2,000,000
$2,000,000
$2,000,000
YES TECHNOLOGY ERRORS AND OMISSIONS
LIABILITY COVERAGE. THE POLICY SHALL AT A
MINIMUM COVER PROFESSIONAL MISCONDUCT
OR LACK OF REQUISITE SKILL FOR THE
PERFORMANCE OF SERVICES DEFINED IN THE
CONTRACT AND SHALL ALSO PROVIDE
COVERAGE FOR THE FOLLOWING RISKS:
(i) NETWORK SECURITY LIABILITYARISING
FROM UNAUTHORIZED ACCESS TO, USE OF, OR
TAMPERING WITH COMPUTERS OR COMPUTER
SYSTEMS, INCLUDING HACKERS, EXTORTION,
AND
(ii) LIABILITY ARISING FROM
INTRODUCTION OF ANY FORM OF MALICIOUS
SOFTWARE INCLUDING COMPUTER VIRUSES
INTO, OR OTHERWISE CAUSING DAMAGE TO
THE CITY’S OR THIRD PERSON’S COMPUTER,
COMPUTER SYSTEM, NETWORK, OR SIMILAR
COMPUTER RELATED PROPERTY AND THE DATA,
SOFTWARE AND PROGRAMS THEREON.
CONTRACTOR SHALL MAINTAIN IN FORCE
DURING THE FULL LIFE OF THE CONTRACT.
THE POLICY SHALL PROVIDE COVERAGE FOR
BREACH RESPONSE COSTS AS WELL AS
REGULATORY FINES AND PENALTIES AS WELL AS
CREDIT MONITORING EXPENSES WITH LIMITS
SUFFICIENT TO RESPOND TO THESE
OBLIGATIONS.
ALL DAMAGES $2,000,000 $2,000,000
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 47
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
YES CYBER AND PRIVACY INSURANCE.
SUCH INSURANCE SHALL INCLUDE COVERAGE
FOR LIABILITY ARISING FROM COVERAGE IN AN
AMOUNT SUFFICIENT TO COVER THE FULL
REPLACEMENT VALUE OF DAMAGE TO,
ALTERATION OF, LOSS OF, THEFT,
DISSEMINATION OR DESTRUCTION OF
ELECTRONIC DATA AND/OR USE OF
CONFIDENTIAL INFORMATION, “PROPERTY” OF
THE CITY OF PALO ALTO THAT WILL BE IN THE
CARE, CUSTODY, OR CONTROL OF VENDOR,
INFORMATION INCLUDING BUT NOT LIMITED
TO, BANK AND CREDIT CARD ACCOUNT
INFORMATION OR PERSONAL INFORMATION,
SUCH AS NAME, ADDRESS, SOCIAL SECURITY
NUMBERS, PROTECTED HEALTH INFORMATION
OR OTHER PERSONAL IDENTIFICATION
INFORMATION, STORED OR TRAMSITTED IN
ELECTRONIC FORM.
ALL DAMAGES $2,000,000 $2,000,000
YES AUTOMOBILE LIABILITY, INCLUDING ALL HIRED,
NON-OWNED
BODILY INJURY
1. EACH PERSON
2. EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
PROFESSIONAL LIABILITY, INCLUDING, ERRORS
AND OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE,
SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY.
I. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 48
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
VENDORS ARE REQUIRED TO SEND THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES TO THE CITY OF PALO ALTO.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 49
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
City of Palo Alto
Information Security
Document Version: V3.0
Doc: InfoSec 110
EXHIBIT E
CYBERSECURITY TERMS AND CONDITIONS
In order to assure the privacy and security of the personal information of the City's customers and people who do business with the City, including, without limitation, vendors, utility customers, library patrons, and other individuals and companies, who are required to share such information with the City, as a condition of receiving services from the City or selling goods and services to the City, including, without limitation, the Software as a Service services provider (the "Consultant") and its subcontractors, if any, including, without limitation, any Information Technology ("IT") infrastructure services provider, shall design, install, provide, and maintain a secure IT environment, described below, while it renders and performs the Services and furnishes goods, if any, described in the Statement of Work, Exhibit B, to the extent any scope of work implicates the confidentiality and privacy of the personal information of the City's customers. The Consultant shall fulfill the data and information security requirements (the "Requirements") set forth in Part A below.
A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided to the City, including connection to the City's IT systems; (b) the Consultant's operations and maintenance processes needed to support the environment, including disaster recovery and business continuity planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable environment and service availability to the City. "IT infrastructure" refers to the integrated framework, including, without limitation, data centers, computers, and database management devices, upon which digital networks operate.
In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing, one or more alternate countermeasure options to the Requirements (the "Alternate Requirements" as set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information Security Manager (the "ISM").
Part A. Requirements:
The Consultant shall at all times during the term of any contract between the City and the Consultant:
(a) Appoint or designate an employee, preferably an executive officer, as the security liaison to the City with respect to the Services to be performed under this Agreement. (b) [RESERVED]:
(c) Have adopted and implemented information security and privacy policies that are documented, are accessible to the City, and conform to ISO 27001 – Information Security Management Systems (ISMS) Standards. See the following:
http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103
http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=5029 7 City of Palo Alto
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 50
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
Information Security
Document Version: V3.0
Doc: InfoSec 110
(d) Conduct routine data and information security compliance training of its personnel that is appropriate to their role.
(e) Develop and maintain detailed documentation of the IT infrastructure, including software versions and patch levels.
(f) Develop an independently verifiable process, consistent with industry standards, for performing professional and criminal background checks of its employees that (1) would permit verification of employees' personal identity and employment status, and (2) would enable the immediate denial of access to the City's confidential data and information by any of its employees who no longer would require access to that information or who are terminated.
(g) Provide a list of IT infrastructure components in order to verify whether the Consultant has met or has failed to meet any objective terms and conditions. (h) Implement access accountability (identification and authentication) architecture and support role-based access control ("RBAC") and segregation of duties ("SoD") mechanisms for all personnel, systems, and Software used to provide the Services. "RBAC" refers to a computer systems security approach to r estricting access only to authorized users. "SoD" is an approach that would require more than one individual to complete a security task in order to promote the detection and prevention of fraud and errors.
(i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of the Services' environment design and deployment are known to the City, and (2) it has implemented measures in accordance with industry best practices applicable to secure coding and secure IT architecture.
(j) Provide and maintain secure intersystem communication paths that would ensure the confidentiality, integrity, and availability of the City's information. (k) Deploy and maintain IT system upgrades, patches and configurations conforming to current patch and/or release levels by not later than within thirty (30) days of its date of release. Emergency security patches must be installed within 24 hours after its date of release.
(l) Provide for the timely detection of, response to, and the reporting of security incidents, including on-going incident monitoring with logging.
(m) Notify the City within a commercially reasonable timeframe of detecting a security incident that results in the unauthorized access to or the misuse of the City's confidential data and information. Consultant will notify City once an incident is confirmed and without undue delay. This is typically under 72 hours.
(n) Inform the City that any third party service provider(s) meet(s) all of the Requirements. (o) Perform security self-audits on a regular basis, and provide the required summary reports of those self-audits to the ISM on the annual anniversary date or any other date agreed to by the Parties. Such reports are confidential and proprietary to Consultant and City shall treat them as such including with regard to any public records request for any such report. (p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's performance of random site security audits at the Consultant's site(s), including the site(s) of a third-party service provider(s), as applicable. The scope of these audits will extend to the Consultant's and its third-party service provider(s)' awareness of security policies and practices, systems configurations, access authentication and authorization, and incident detection and response.
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 51
City of Palo Alto Professional Services
Contract No. C22182951 Rev. Dec.15, 2020
City of Palo Alto
Information Security
Document Version: V3.0
Doc: InfoSec 110
(q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and regulations, and the Confidential Information will be accessible only by the Consultant and any authorized third-party service provider's personnel. (r) Perform regular, reliable secured backups of all data needed to maximize the availability of the Services. Adequately encrypt the City of Palo Alto's data, during transit, hosted at rest, and the backup stage at the Vendors' environment (including Vendor's contracting organization's environment).
(s) [RESERVED]
(t) Maintain the Confidential Information in accordance with applicable federal, state, and local data and information privacy laws, rules, and regulations. (u) [RESERVED]
(v) Provide Network Layer IP filtering services to allow access only from the City of Palo Alto's IP address to the Vendor environment (primarily hosted for the City of Palo Alto). (w) Offer a robust disaster recovery and business continuity (DR -BCP) solutions to the City for the systems and services the Vendor provides to the City. (x) Provide and support Single Sign-on (SSO) and Multifactor Authentication (MFA) solutions for authentication and authorization services from the "City's environment to the Vendor's environment," and Vendor's environment to the Vendor's cloud services/hosted environment."
(y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct, indirect or punitive damages whatsoever including, without limitation, damages for loss of use, data or profits, arising out of or in any way connected with the City's IT environment, including, without limitation, IT infrastructure communications. (z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s
EXHIBIT “D” INSURANCE REQUIREMENTS.
Part B. Alternate Requirements: None
DocuSign Envelope ID: 383B82B7-770D-4CC4-8749-9D6304B2F03A
4.a
Packet Pg. 52
City of Palo Alto (ID # 14074)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Finance Committee Recommends the City Council Direct Staff to Update the Park, Library, and Community Center Development Impact Fee Nexus Study to Create New Fee Categories, Update the Park Land Valuation to $17.6m, Move to a Square -foot basis for F ees Imposed on Housing, and Conduct an Economic Feasibility Study (Including on the Parkland Dedication Fee)
From: City Manager
Lead Department: Community Services
Recommendation
Finance Committee and Staff recommend the City Council:
1. Approve the following recommended adjustments in the ‘Working Draft Supplement’ to Park, Library, and Community Center Development Impact Fee Justification Study (Attachment A) and direct staff to return to Council for approval of a ‘Final Supplement’ report:
a) Differentiate the commercial/industrial fee structure into five separate categories:
hotel, retail, office, industrial, and commercial;
b) Maintain the office density calculation of 200 square ft. per employee; c) Update the fee study every 4-6 years (in compliance with new state law requirements in Assembly Bill 602 that stipulates a minimum of every 8 years); d) Amend the ‘Working Draft Supplement’ to apply the following land valuation for use in calculating the Park Development Impact Fees: increase the land valuation to $17.6 million/acre based on the average of the last 5 years of underutilized Palo Alto properties sales data; and
e) Convert residential fees to reflect a per-square-foot basis, rather than a single amount per dwelling regardless of size.
2. Conduct an economic feasibility study on the ‘Final Supplement’ to the Park, Library, and Community Center Development Impact Fee Justification Study and park dedication in lieu fee.
NOTE: If Council would like the park, community center, and library fees imposed on housing to remain on a per-unit basis (instead of a square-foot basis as recommended by Finance Committee on May 3, 2022), staff recommends that Council pull this item from consent and 5 Packet Pg. 53
City of Palo Alto Page 2
adopt a Final Supplement to the nexus study prior to July 1, 2022. Otherwise, the City will be required under AB 602 to move to a square-footage basis if it makes any changes to the nexus study after July 1, 2022.
Executive Summary
This report forwards additional work, originally directed by the City Council in 2021 as follow-up to the 2021 Nexus Study regarding Parks, Library, and Community Center Development Impact Fee. Staff have worked with the Parks & Recreation Commission, Finance Committee, and consultants to review and update the six (6) additional tasks as directed by the Council. This report reflects the Finance Committee’s unanimous motion that recommends 1) adjustments to the current “working draft supplemental” report to the Parks, Library, and Community Center Development Impact Fee, 2) commissioning of a feasibility study, and 3) a restructuring of fees in alignment with current legislation that goes into effect on July 1, 2022.
The Working Draft Supplement itself is not being recommended for approval at this time. If Council proceeds with the Finance Committee’s and staff’s recommendations, then the following steps would occur:
• Working Draft Supplement will be amended to reflect changes approved by the Council and a ‘Final Supplement’ report will be agenized at a later date for Council approval. • The Final Supplement will amend the 2021 Nexus Study and serve as the basis for implementing the changes to the impact fees as described in this staff report. • Staff will commission an economic Feasibility Study based on the ‘Final Supplement’. • Once the economic feasibility study is complete, staff will bring the results to Council and recommended fee changes, inc luding converting residential fees to reflect a per - square-foot basis for Council review and adoption.
The discussion in this report addresses the tasks DTA completed so far in the Working Draft Supplement that informed the Finance Committee’s recommendat ion and addressed the Council’s prior direction.
Background
Under California law (AB 1600), cities can charge new development for its relative share of the cost to fund the acquisition of land and improvements to public facilities. Impact fees are established based on the reasonable relationship, or nexus, between impacts caused by new development and the improvements to mitigate those impacts that will be funded by the fee.
New Nexus Study and Fees Approved in 2021
On November 8, 2019, staff released a Request for Proposals (RFP) for a Parks, Library, and Community Center Development Impact Fee Nexus Study. DTA was determined to be the most qualified consultant. DTA prepared a Park, Community Center, and Library Development Impact Fee Justification Study, which provided a detailed legal framework for the imposition of impact fees, defined the City facilities addressed in the study, illustrated the calculation methodology used, and specified the maximum fee levels which the City could charge to new development. 5 Packet Pg. 54
City of Palo Alto Page 3
On December 15, 2020, staff and DTA presented the draft study to Finance Committee (Staff Report) to receive feedback prior to presenting to Council. Finance Committee passed a motion to recommend that the City Council approve any adjustments to fee levels and direct staff to return with the necessary ordinance and fee schedule update s, and the addition of a possible tiered approach to implement the fees.
On February 23, 2021, staff and DTA presented to the Parks and Recreation Commission (Staff Report). The Commission passed a motion with a 5 -2 vote to recommend that City Council adopt an ordinance based on study recommendations to update the City’s Park, Community Center, and Library Impact Fee Program. Dissenting commissioners expressed concerns that the fair market value land valuation figure seemed too low and square footage p er employee used as demographics information seemed too high. Additionally, there was a request to see commercial fees differentiated between retail and office space.
On April 12, 2021, staff and DTA presented the study and recommendations to the City Cou ncil, and the Council passed a motion approving the nexus study and the fees recommended in the study. Council also directed the Finance Committee and Parks and Recreation Commission to review the fee structures in Fiscal Year 2022 with a focus on:
i. Updated land acquisition costs;
ii. The differentiating fee structure for retail space versus office space; iii. An update on office density;
iv. Recommendation from the Finance Committee on the frequency these schedules should be updated; and
v. Recommendations on if ther e should be changes between multi and single -family fee structures.
The April 12 th Staff Report and a Parks, Library, and Community Center Development Impact Fee Nexus Study can be found here. Following in Table 1 are the City of Palo Alto’s current Park, Community Center, and Library Development Impact Fees.
5 Packet Pg. 55
City of Palo Alto Page 4
Table 1: 2021 Development Impac t Fee Summary Adopted by City Council on April 12, 2021 Land Use Type Park
Community
Center Library Total Fees
Single-Family Residential
(Per Unit) $57,420 $4,438 $2,645 $64,504
Multi-Family Residential
(Per Unit) $42,468 $3,283 $1,956 $47,707
Commercial/Industrial
(Per Net New Sq. Ft.)
$16.837/
sq. ft.
$1.301/
sq. ft.
$0.776/
sq. ft.
$18.914/
sq. ft.
Hotel/Motel
(Per Net New Sq. Ft.)
$2.866/
sq. ft.
$0.222/
sq. ft.
$0.132/
sq. ft.
$3.220/
sq. ft.
*Note: Some figures may not sum due to rounding.
Follow-Up to the 2021 Nexus Study
Staff engaged DTA to prepare a follow up analysis to address the tasks from the April 1 2, 2021 Council motion. DTA is currently in the process of drafting a Supplement to the Development Impact Fee Justification Study . This staff report contains DTA’s analysis that will be included in the Final Supplement. If approved, the recommendations above will help staff and DTA move forward on finalizing the proposed changes in the Final Supplement (see next steps described in the Timeline section below).
Following is a discussion of each of the additional tasks requested for follow up by Council:
• Task A - Update land acquisition costs.
• Task B - Differentiate the fee structure for retail space versus office space. • Task C - Update office density from 250 sq. ft. per employee to 190 sq. feet per employee.
• Task D - Recommend the frequency with which these schedules should be updated. • Task E - Evaluate whether the multi- and single-family fee categories should be divided into multiple categories based on total square feet or some other measure. • Task F - Evaluate options for a reduction in fees for new multi-family housing construction for projects that exceed required percentages of below market rate (“BMR”) units.
Working Draft Supplement to Nexus Study Reviewed by Parks and Recreation Commission On February 22, 2022, staff and DTA presented the Working Draft Supplement to the Parks and Recreation Commission. The Parks and Recreation Commission passed a motion approving the methodology detailed in Tasks B, C, and E (no comment on D) of the nexus study as found in the Working Draft Supplement. The Commission requested further study related to Task A on land valuation costs based on realistic considerations for acquiring land, including res idential and commercial teardown acquisition data, and to provide alternative fee calculation data based on a) existing per unit methodology, and b) residential square footage. The following motion was approved by a 5-0 vote:
5 Packet Pg. 56
City of Palo Alto Page 5
The Parks and Recreation Commission recommends:
1. The Finance Committee approve the methodology for points 2, 3, and 5 (no comment on 4) of the nexus study as found in the Supplement to Park, Community Center, and Library Development Impact Fee Justification Study (the “Study”).
2. Further study on land valuation costs based on realistic considerations for acquiring land, including residential and commercial teardown acquisition data.
3. Provide alternative fee calculation data based on a) existing per unit methodology, and b) residential square footage.
Discussion
On May 3, 2022 staff and DTA presented the Working Draft Supplement to the Finance Committee. The May 3 rd Staff Report can be found here. The Finance Committee passed the following motions by a 3-0 vote:
Finance Committee recommend the City Council:
1. Approve the following recommendations from the Supplement to Park, Librar y, and Community Center Development Impact Fee Justification Study:
a) Differentiate the commercial/industrial fee structure into five separate categories:
hotel, retail, office, industrial and commercial.
b) Maintain the office density calculation of 200 square ft. per employee. c) Update the fee study every 4-6 years, in compliance with new state law requirements in Assembly Bill 602.
2. Apply the following land valuations for use in calculating the Park Development Impact Fees a) Increase the land valuation to $17 .6 million/acre based on the average of the last 5 years of underutilized Palo Alto properties sales data.
3. Direct staff to conduct an economic feasibility study on the new nexus study and park dedication in lieu fee.
4. To convert residential fees to reflec t a per-square-foot amount, rather than a single amount per dwelling regardless of size.
The following Discussion addresses the tasks DTA completed so far in the Working Draft Supplement to the Development Impact Fee Justification Study that informed the Finance Committee’s recommendation.
Differentiate Fee Structure for Retail vs Office (Task B) Currently, the City’s Development Impact Fee structure reflects two non-residential fee categories:
commercial/industrial and hotel/motel. Staff was asked to break commercial/industrial into more specific categories for (1) retail, (2) office space, (3) industrial; (4) other commercial. Other commercial includes any non-residential project with a land use that does not fall under the Retail, Office, Industrial, or Hotel/Motel categories. Table 2 show the maximum fees under the new valuation. Finance Committee supported this change.
5 Packet Pg. 57
City of Palo Alto Page 6
Table 2: Maximum Development Impact Fee Summary using a $17.6 Million/ Acre valuation Land Use Type Park
Community
Center Library Total Fees
Single-Family Residential
(Per Unit) $138,742 $4,438 $2,645 $145,826
Multi-Family Residential
(Per Unit) $102,613 $3,283 $1,956 $107,852
Retail
(Per Net New Sq. Ft.) $22.247 $0.712 $0.424 $23.383
Office
(Per Net New Sq. Ft.) $48.699 $1.558 $0.928 $51.185
Industrial
(Per Net New Sq. Ft.) $32.966 $1.055 $0.629 $34.649
Hotel/Motel
(Per Net New Sq. Ft.) $6.925 $0.222 $0.132 $7.279
Other Commercial
(Per Net New Sq. Ft.) $27.709 $0.886 $0.528 $29.124
Update on Office Density (Task C)
In response to the request from the Parks and Recreation Commission to evaluate a revised fee structure with the “sq. ft. per employee” assumption reduced from approximately 250 sq. ft. to 190 sq. ft., which is the average based on supporting data from sources the PRC provided, such as the U.S. General Service Administration’s 2012 public sector survey and a 2017 Cushman Wakefield analysis, which indicates that the Bay Area has one of the fastest shrinking square - foot-per-employee ratios in the country.
The CoStar data that DTA evaluated in the Study supports this adjustment as well. By isolating office development into a separate land use category, rather than combining with retail as outlined in the Study, the office fee calculation reflects approximately 200 sq. ft. per employee, therefore the proposed fees outlined in Tables 4 and 5 reflect the requested office density update.
Frequency of Nexus Study Updates (Task D)
It is generally recommended that impact fees be increased annually and that a new fee stud y be completed every five (5) to eight (8) years to ensure that the fees are reflective of the most current projections of future development, as well as infrastructure needs and cost estimates. New state law requires a fee study at least once every eight years (see AB 602).
The Finance Committee recommends updating the nexus fee study every 4 -6 years, which would meet the requirements of AB 602. Updating the nexus fee study is typically done by retaining a consultant who specializes in drafting nexus studies and utilizing staff resources to provide the necessary information requested and oversight of the work .
5 Packet Pg. 58
City of Palo Alto Page 7
Between updates of the nexus study, the amou nts of the fees themselves increase annually based on the construction cost index (“CCI”) in compliance with PAMC 16.58.090. The fees are also subject to annual approval as part of the Municipal Fee Schedule .
Update Land Acquisition Costs to Include Teardown Properties (Task A) The original Study analyzed sales transactions of vacant land within the City over the previous ten (10) years, as well as in the neighboring cities of Campbell, Santa Clara, Sunnyvale, Saratoga, Mountain View, San Jose, and Los Altos. Using vacant land sales is the industry standard for calculating the development impact fees for park facilities. Based on DTA’s research and discussions with the City’s real estate and planning teams regarding their fair market value analysis, a la nd valuation of $5. 7 million per acre was utilized in the Study and in the corresponding updates to the City’s Municipal Code. Feedback from the City Council suggested that the $5.7 million per acre land valuation was too low.
Per the City’s direction, DTA examined transactions that occurred in the 12 months since completion of the Study, finding that the average vacant land valuation per acre within the City has increased from the $5.7 million per acre outlined in the Study to approximately $6. 5 million per acre.
In cases where a city is fully built out and there are very few vacant parcels available, alternative methodologies can be utilized to value the specific types of properties that might be suitable for acquisition and conversion by a city into parkland. Examples of alternative methods include an improved property on which structures could be demolished in the future and replaced with other uses, or “teardown properties.”
On February 22, 2022, DTA was directed by the Parks and Recreation Commission recommendation to evaluate the market value of teardown properties within the City. The City provided DTA with a list of residential and commercial properties classified under this designation; however, sales data for these properties was not available. After discussions with City staff, it was decided that the assessed valuations of teardown properties were not representative of the cost to the City of acquiring potential parkland. In lieu of data on teardown properties, DTA analyzed sales data over the last five (5) years for “underutilized” sites within the City that would be classified as parcels that:
▪ Are considered practically uncompetitive with respect to the needs of typical tenants; ▪ May require significant renovation; and/or
▪ Are possibly func tionally obsolete.
An analysis of this data across three land uses – industrial, office, and retail – substantiated an average sales price of approximately $17.6 million per acre had the City acquired these properties with the purpose of converting them i nto parkland facilities. Utilizing data from both vacant land and “underutilized” property sales, DTA determined the anticipated increase in the Park Fees that would occur under the following two scenarios, which are summarized in Tables 3 and 4:
5 Packet Pg. 59
City of Palo Alto Page 8
Table 3: Land Valuation Impact on Park Fees ($6.5 Million /Acre Scenario)
Table 4: Land Valuation Impact on Park Fees ($17.6 Million /Acre Scenario) Land Use Type Current Park Fee
($5.7 M per Acre Valuation)
Proposed Park Fee
($17.6 M per Acre Valuation)
%
Increase
Single-Family Residential
(Per Unit) $57,420 $138,742
141.62%
Multi-Family Residential
(Per Unit) $42,468 $102,613
Commercial/Industrial
(Per Net New Sq. Ft.) $16.837 $40.682
Hotel/Motel
(Per Net New Sq. Ft.) $2.866 $6.925
While the land valuation of $17.6 million dollars may be based on a more realistic set of residential and commercial teardown acquisition data, raising the current Park Impact Fee by 141.62% may have an impact of discouraging development. The proposed fees displayed reflect the maximum possible fee, and the City could choose to set actual fees lower than those shown above. The Finance Committee recommended updating the land valuation to $17.6 million per acre but conducting an economic feasibility study to examine the feasibility of fees based on this significantly higher land valuation. Should Council approve this change, the land valuation will become part of the updated nexus study and will be used to calculate the maximum possible park impact fee and the separate park land in lieu of dedication fee, which is similarly based on the cost of acquiring land for parks. A core tenant from the Finance Committee feedback was a desire to set the nexus study based on the best and most accurate data while acknowledging the policy choice and need to study feasibility. This two-step process, as recommended in this report, would likely result may be setting fees below the maximum possible level.
Conduct Economic Feasibility Study to Evaluate Feasibility of Fee Levels As discussed above, the City needs to prepare an economic feasibility study, which is not included in the current DTA scope of services. The feasibility study would evaluate potential Land Use Type
Current Park Fee
($5.7 M per Acre Valuation)
Proposed Park Fee
($6.5 M per Acre Valuation)
%
Increase
Single-Family Residential
(Per Unit) $57,420 $62,802
9.37%
Multi-Family Residential
(Per Unit) $42,468 $46,448
Commercial/Industrial
(Per Net New Sq. Ft.) $16.837 $18.415
Hotel/Motel
(Per Net New Sq. Ft.) $2.866 $3.135
5 Packet Pg. 60
City of Palo Alto Page 9
impacts that increased fees may have on all categories of development, including housing production and especially multi-family housing. Staff anticipates working with a consultant to conduct this analysis reviewing the impact on all segments. Staff would report back to the Finance Committee and Council with its findings and any recommended changes to fees once the study is completed.
Move to a Per-Square Foot Basis for Fees Imposed on Housing (Task E) The City’s pre-2021 fee program separated resi dential land uses into four categories – single- family units 3,000 square feet or less, single -family units greater than 3,000 square feet, multi-family units 900 square feet or less, and multi -family units greater than 900 square feet.
After discussion s with City staff, DTA’s 2021 Study recommended a revision to this structure, given that the distinction between these land uses no longer reflected the types of proposed housing currently under construction in the City and was difficult to align with unde rlying residential data and current development industry practices. As a result, residential land use types were reduced from four to two categories, as reflected in the fees adopted as of August 23, 2021, and illustrated in Table 1. DTA and staff contin ues to recommend this simplification of the fee structure.
AB 602, which was recently adopted by the State Legislature and came into effect in 2022 , will require that impact fee studies adopted by the City Council after July 1, 2022, designate all impact fee amounts imposed on housing to be charged on a per -square-foot basis. For any updates reflected in this Working Draft Supplement approved after July 1, the per -square-foot fee structure will be required.
The Parks and Recreation Commission requested an alternative fee calculation data based on residential square footage, which is displayed in Table 5 below using the average square footage of recent residential single family (2,154 square feet) and multi-family unit sales (1,255 square feet).
Table 5: Land Valuation Impact on Park Fees ($17.6 Million /Acre Scenario) Land Valuation
/ Acre
Est. Residential
Park Fee / sq. ft.
Sample Park Fee: SFR Unit
(2,154 sq. ft.)
Sample Park Fee: MFR Unit
(1,255 sq. ft.)
$5,700,000 $28.93 $62,323 $36,317
$6,489,851 $31.64 $68,164 $39,721
$17,634,659 $69.91 $150,588 $87,752
Note: Figures are estimates and subject to change.
The Finance Committee recommended the City convert residential fees to reflect a per-square- foot amount, rather than a single amount per dwelling regardless of size. To implement this change, the Working Draft Supplement to the nexus study will be updated and the fee recalculated.
5 Packet Pg. 61
City of Palo Alto Page 10
If Council would like the park, community center, and library fees imposed on housing to remain on a per-unit basis (instead of a square-foot basis), staff recommend that Council pull this item from consent and adopt a Final Supplement to the nexus study prior to July 1.
Otherwise, the City will be required under AB 602 to move to a square-footage basis if it makes any changes to the nexus study after July 1, 2022.
No Changes Proposed to Current Fee Exemptions for Below Market Rate (“BMR”) Units (Task F) In April 2021, the City Council voiced concerns about fee updates disincentivizing multi -family residential devel opment, and therefore negatively impacting the City’s goal of increasing the supply of affordable housing. DTA evaluated a potential reduction or credit in park impact fees for new multi -family housing projects in which the number of BMR units exceeds the City’s requirements for that development. Currently, as outlined in PAMC 16.58.030, any BMR units that exceed the minimum number required by the City’s BMR Housing Program are exempt from park, community center, and library impact fees, so this incentive appears to already be in place.
Municipalities take many different approaches to providing fee credits for BMR units, including:
• Reducing development impact fee obligations within the Development Agreement between the city/county and the developer, which is a commonly utilized approach but would be burdensome for staff to implement;
• Implementing an across -the-board fee discount for BMR units, such as giving a 50% reduction of the fee applicable to all BMR units (whether or not they exceed the required number); or
• Implementing an across -the-board fee exemption for BMR units (whether or not they exceed the required number).
The Finance Committee did not recommend any changes to the existing exemption for BMR units at this time.
Timeline
Based on Council r ecommendation and approval, an economic feasibility study would be completed in FY 2023, and the results of this study would be brought forward for Finance Committee and Council review in FY 2023. Changes to fees would be adopted via an impact fee ordinance that would require City Council approval and formal public notice and would not become effective until 60 days after adoption on a second reading. As the potential changes discussed in this staff report are not anticipated to be adopted with the FY 2023 budget cycle, the existing fee structure will remain for the time being, subject to an inflation adjustment pursuant to PAMC 16.58.090 and Council approval.
Resource Impact
The City needs to prepare an economic feasibility study, which is not included in the current DTA scope of services. The feasibility study would evaluate potential impacts that increased 5 Packet Pg. 62
City of Palo Alto Page 11
fees may have on all categories of development impacted by the fees, including housing . Staff anticipates that the cost of the economic feasibility study would be in the range of $50,000 to $75,000 and staff would request these funds during the FY2023 midyear budget process.
Development Impact Fees provide funding for capital improvements to mitigate the impacts of new development on public servic es. The revenues received each year vary based on the amount of development occurring in Palo Alto during that timeframe and impacts are subject to the fee levels approved by the City Council . CSD will monitor revenues from the Parks, Community Center and Library Development Impact fees and revenue adjustments will be brought forward in the future budget processes as appropriate to recognize the projected impacts of any fee updated and adopted by the City Council.
According to the FY 2020 -21 Annual Status Report on the Development Impact Fees Schedule (CMR #13798, January 24, 2022), a total of approximately $318,561 was collected in Park, Community Center, and Library fees. Note that these fees were collected before the increase in fees that went into effect on August 23, 2021.
DTA projects that the total fee revenues will increase significantly should the fee levels be associated with the increased land valuation of $17.6 million per acre be approved and adopted as new fees. Please see Table 6 below for more detail on projected fees. However, these are the maximum projected revenues under the assumption that the level of development activity is the same as FY 2020 -21 and the fees based on a $17.6 million per acre land valuation are adopted. An economic feasibility study would evaluate potential impacts increased fees m ay have on development, which may result in setting the fees at a lower rate than the potential maximums, changing the revenue projections.
Table 6: FY2020-21 and Projected Revenues1
Fee Category Total Revenues
Collected FY 2020-20212
Maximum Projected Annual Revenues
based on a $17.6 M/ Acre Valuation3
Park $219,423 $1,316,538
Community Center $70,000 $210,000
Library $29,138 $87,414
Total $318,561 $1,613,952
Notes:
1. Projected revenues are an approximation and subject to change
2. Total revenues collected reflect last available report as of period ending June 30, 2021.
3. Projected revenues do not take into consideration whether an increase in fees will generate additional revenue or discourage new development and result in a reduction of total fees collected.
Parkland Dedication in Lieu Fee
In some projects, a parkland dedication in lieu fee applies instead of a park impact fee. This occurs for residential projects that require a subdivision or parcel map, and developers can 5 Packet Pg. 63
City of Palo Alto Page 12
choose to dedicate land for par ks or pay an in -lieu fee. The in -lieu fee is required for subdivisions resulting in more than 50 parcels. ( See PAMC Ch. 21.50). The fee is based on the cost to acquire land for new parks because of housing development. Should the City change the land valu ation for the park impact fee, it should similarly update the parkland in lieu fee.
The Finance Committee recommended including the parkland dedication fee in the economic feasibility analysis.
Stakeholder Engagement
The Community Services department presented the Working Draft Supplement to the Parks and Recreation Commission (PRC) on February 22, 2022, for review and to the Finance Committee on May 3, 2022.
Policy Implications
City Council has the authority to charge new development for its relativ e share of the cost of specific public facilities, as calculated based on a nexus study and pursuant to state law requirements. Council also has the authority, for policy reasons, to restructure fees based on articulated City policies within legal limits and economic feasibility. The information provided in this report allows Council to take the next step towards reevaluating and adjusting the City’s Development Impact Fees for Parks, Community Centers and Libraries.
Environmental Review
The recommended actions are not considered a Project as defined by the California Environmental Quality Act pursuant to CEQA regulation 15061(b)(3). The projects in the 2021 nexus study associated with these fees have been fully analyzed as part of the City’s 2030 Comprehensive Plan and its EIR, as well as the City’s Parks and Open Space Master Plan and its Mitigated Negative Declaration and no further CEQA analysis is necessary.
Attachments:
• Attachment5.a: Attachment A: Consultant Report: Update on Park, Library, and Community Center Impact Fees by DTA
5 Packet Pg. 64
DRAFT
5.a
Packet Pg. 65
DRAFT
5.a
Packet Pg. 66
DRAFT
5.a
Packet Pg. 67
DRAFT
5.a
Packet Pg. 68
DRAFT
5.a
Packet Pg. 69
DRAFT
5.a
Packet Pg. 70
DRAFT
5.a
Packet Pg. 71
DRAFT
5.a
Packet Pg. 72
I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 Bayland Preserve Capital Improvements Integrated Facilities 1.00 Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Commercial/Industrial (per 1,000 SF) 18,772 23,323 0.80 0.29 6,839 Hotel/Motel (per 1,000 SF) 216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05 Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01 Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Commercial/Industrial (per 1,000 SF) 1,946 2,418 0.80 0.29 709 Hotel/Motel (per 1,000 SF) 22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 1.78 23.10 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 0.05 0.65 Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15 Foothills Park Capital Improvements Integrated Facilities 0.01 0.15 VI. Park and Open Space Summary Cost Data
Facility Type [5] Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed Park Development
per Acre [6]
Planning and Design
per Acre [7] Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $6,489,851 26.11 $1,406,530 $84,392 $70,327 $210,213,753 $44,548.00 Natural Open Space Acres 604.38 $64,899 604.38 $40,000 $2,400 $2,000 $66,058, 156 $13,998.89 Total $276,271,909 $58,546.88
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154 23.10 99,326 1.78 23 .10 $663,173 $15,316,334 $3,245.80 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.65 99,326 0.05 0.65 $6,6 93,925 $4,346,862 $921.18 Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000, 000 $3,749,274 $794.54 Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000, 000 $2,249,564 $476.72 Offsetting Revenues ($5,583,312) ($1,183.20)
Total $47,357,098 $20,078,723 $4,255.03
Parks LOS Facilities Fee Total $62,801.92
Notes:
[1] Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident. [2] Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020. [3] Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018. [4] Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan. [5] Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto. [6] Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI). [7] Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities. [8] Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-1
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES O NLY TASK A) Foothills Park Capital Improvements
Foothills Park Capital Improvements
DRAFT
5.a
Packet Pg. 73
I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 Bayland Preserve Capital Improvements Integrated Facilities 1.00 Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Commercial/Industrial (per 1,000 SF) 18,772 23,323 0.80 0.29 6,839 Hotel/Motel (per 1,000 SF) 216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05 Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01 Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Commercial/Industrial (per 1,000 SF) 1,946 2,418 0.80 0.29 709 Hotel/Motel (per 1,000 SF) 22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 1.78 23.10 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 0.05 0.65 Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15 Foothills Park Capital Improvements Integrated Facilities 0.01 0.15 VI. Park and Open Space Summary Cost Data
Facility Type [5] Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed Park Development
per Acre [6]
Planning and Design
per Acre [7] Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $17,634,659 26.11 $1,406,530 $84,392 $70,327 $501,204,061 $106,213.97 Natural Open Space Acres 604.38 $176,347 604.38 $40,000 $2,400 $2,000 $133,415,475 $28,273.09 Total $634,619,536 $134,487.06
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154 23.10 99,326 1.78 23.10 $663,173 $15,316,334 $3,245.80 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.65 99,326 0.05 0.65 $6,693,925 $4,346,862 $921.18 Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000,000 $3,749,274 $794.54 Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000,000 $2,249,564 $476.72 Offsetting Revenues ($5,583,312) ($1,183.20)
Total $47,357,098 $20,078,723 $4,255.03
Parks LOS Facilities Fee Total $138,742.09
Notes:
[1] Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident. [2] Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020. [3] Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018. [4] Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan. [5] Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto. [6] Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI). [7] Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities. [8] Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-2
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES ONLY TASK A) Foothills Park Capital Improvements
Foothills Park Capital Improvements
DRAFT
5.a
Packet Pg. 74
I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 Bayland Preserve Capital Improvements Integrated Facilities 1.00 Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Retail (per 1,000 SF) 1,849 4,200 0.44 0.16 673
Office (per 1,000 SF) 13,778 14,300 0.96 0.35 5,019
Industrial (per 1,000 SF) 3,145 4,823 0.65 0.24 1,146
Hotel/Motel (per 1,000 SF) 216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05 Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01 Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Retail (per 1,000 SF) 192 435 0.44 0.16 70
Office (per 1,000 SF) 1,428 1,482 0.96 0.35 520
Industrial (per 1,000 SF) 326 500 0.65 0.24 119
Hotel/Motel (per 1,000 SF) 22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 1.78 23.10 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 0.05 0.65 Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15 Foothills Park Capital Improvements Integrated Facilities 0.01 0.15 VI. Park and Open Space Summary Cost Data
Facility Type [5] Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed Park Development
per Acre [6]
Planning and Design
per Acre [7] Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $6,489,851 26.11 $1,406,530 $84,392 $70,327 $210,213,759 $44,548.00 Natural Open Space Acres 604.38 $64,899 604.38 $40,000 $2,400 $2,000 $66,058,157 $13,998.89 Total $276,271,917 $58,546.88
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154 23.10 99,326 1.78 23.10 $663,173 $15,316,335 $3,245.80 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.65 99,326 0.05 0.65 $6,693,925 $4,346,862 $921.18 Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000,000 $3,749,274 $794.54 Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000,000 $2,249,564 $476.72 Offsetting Revenues ($5,583,312) ($1,183.20)
Total $47,357,098 $20,078,724 $4,255.04
Parks LOS Facilities Fee Total $62,801.92
Notes:
[1] Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident. [2] Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020. [3] Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018. [4] Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan. [5] Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto. [6] Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI). [7] Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities. [8] Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-3
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES TASKS A, B, AND C) Foothills Park Capital Improvements
Foothills Park Capital Improvements
DRAFT
5.a
Packet Pg. 75
I. Inventory of Existing Park Facilities
Facility Facility Units Quantity
City Parks Acres 174.10
Natural Open Space Acres 4,030.00
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 Bayland Preserve Capital Improvements Integrated Facilities 1.00 Integrated Facilities 1.00
II. Existing Recreation and Park Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Retail (per 1,000 SF) 1,849 4,200 0.44 0.16 673
Office (per 1,000 SF) 13,778 14,300 0.96 0.35 5,019
Industrial (per 1,000 SF) 3,145 4,823 0.65 0.24 1,146
Hotel/Motel (per 1,000 SF) 216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
City Parks Acres 174.10 2.02
Natural Open Space Acres 4,030.00 46.66
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154.00 1.78 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.05 Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.01 Integrated Facilities 1.00 0.01
IV. Future Recreation and Park Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Retail (per 1,000 SF) 192 435 0.44 0.16 70
Office (per 1,000 SF) 1,428 1,482 0.96 0.35 520
Industrial (per 1,000 SF) 326 500 0.65 0.24 119
Hotel/Motel (per 1,000 SF) 22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
City Parks Acres 2.02 26.11
Natural Open Space Acres 46.66 604.38
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 1.78 23.10 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 0.05 0.65 Bayland Preserve Capital Improvements Integrated Facilities 0.01 0.15 Foothills Park Capital Improvements Integrated Facilities 0.01 0.15 VI. Park and Open Space Summary Cost Data
Facility Type [5] Facility Units
Facility Units Funded by
Future Development Land Acquisition per Acre Acres Being Developed Park Development
per Acre [6]
Planning and Design
per Acre [7] Administration (5%) [8]
Total Facility Cost
for New Development Cost per EDU
City Parks Acres 26.11 $17,634,659 26.11 $1,406,530 $84,392 $70,327 $501,204,075 $106,213.97 Natural Open Space Acres 604.38 $176,347 604.38 $40,000 $2,400 $2,000 $133,415,479 $28,273.09 Total $634,619,554 $134,487.06
VII. Parks & Recreation Facility Cost Summary
Facility Type Facility Units Current Development Future Development Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Recreation Facilities (Courts, Play Areas, Ball Fields, etc.) Integrated Facilities 154 23.10 99,326 1.78 23.10 $663,173 $15,316,335 $3,245.80 Special Recreation Facilities (Winter Lodge, Gamble Garden, King Plaza) Acres 4.33 0.65 99,326 0.05 0.65 $6,693,925 $4,346,862 $921.18 Bayland Preserve Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $25,000,000 $3,749,274 $794.54 Foothills Park Capital Improvements Integrated Facilities 1.00 0.15 99,326 0.01 0.15 $15,000,000 $2,249,564 $476.72 Offsetting Revenues ($5,583,312) ($1,183.20)
Total $47,357,098 $20,078,724 $4,255.04
Parks LOS Facilities Fee Total $138,742.10
Notes:
[1] Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident. [2] Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020. [3] Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018. [4] Estimates based on current Park inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan. [5] Estimates based on cost assumptions for Park improvement costs provided by City of Palo Alto. [6] Park development costs have been escalated to Fiscal Year 2019 according to the Construction Cost Index (CCI). [7] Planning and Design Costs have been estimated to be approximately 6% of development costs, as seen in other California communities. [8] Administration costs have been estimated at 5% to appropriately reflect City staff's time.
APPENDIX A-4
CITY OF PALO ALTO
PARK DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES TASKS A, B, AND C) Foothills Park Capital Improvements
Foothills Park Capital Improvements
DRAFT
5.a
Packet Pg. 76
I. Inventory of Existing Community Center Facilities
Facility Facility Units Quantity
Cubberley Community Center Square Feet 65,046
Lucie Stern Community Center Square Feet 12,203
Mitchell Park Community Center Square Feet 15,000
Palo Alto Art Center Square Feet 23,000
Junior Museum and Zoo Square Feet 45,071
Improvements, Upgrades, and Renovations Integrated U nit 5 Building Master Plans Integrated Unit 5
II. Existing Community Center Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Retail (per 1,000 SF) 1,849 4,200 0.44 0.16 673
Office (per 1,000 SF) 13,778 14,300 0.96 0.35 5,019
Industrial (per 1,000 SF) 3,145 4,823 0.65 0.24 1,146
Hotel/Motel (per 1,000 SF) 216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
Cubberley Community Center Square Feet 65,046 753.09
Lucie Stern Community Center Square Feet 12,203 141.28
Mitchell Park Community Center Square Feet 15,000 173. 67 Palo Alto Art Center Square Feet 23,000 266.29
Junior Museum and Zoo Square Feet 45,071 521.82
Improvements, Upgrades, and Renovations Integrated U nit 5 0.06 Building Master Plans Integrated Unit 5 0.06
IV. Future Community Center Facilities EDU Calculation Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Retail (per 1,000 SF) 192 435 0.44 0.16 70
Office (per 1,000 SF) 1,428 1,482 0.96 0.35 520
Industrial (per 1,000 SF) 326 500 0.65 0.24 119
Hotel/Motel (per 1,000 SF) 22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
Cubberley Community Center Square Feet 753.09 9,755.01
Lucie Stern Community Center Square Feet 141.28 1,830.10 Mitchell Park Community Center Square Feet 173.67 2,249.56 Palo Alto Art Center Square Feet 266.29 3,449.33
Junior Museum and Zoo Square Feet 521.82 6,759.34
Improvements, Upgrades, and Renovations Integrated Unit 0.06 0.75 Building Master Plans Integrated Unit 0.06 0.75
VI. Community Center Summary Cost Data
Facility Type [5] Facility Units
Facility Units Funded
by Future Development Cost Per Unit
Total Facility Cost
for Future Development Cost per EDU
Cubberley Community Center Square Feet 9,755.01 $629 $6,135,363 $1,300.19 Lucie Stern Community Center Square Feet 1,830.10 $629 $1,151,029 $243.92 Mitchell Park Community Center Square Feet 2,249.56 $629 $1,414,852 $299.83 Palo Alto Art Center Square Feet 3,449.33 $629 $2,169,439 $459.74 Junior Museum and Zoo Square Feet 6,759.34 $718 $4,856,117 $1,029.10 Improvements, Upgrades, and Renovations Integrated Unit 0.75 $12,469,894 $9,350,610 $1,981.56 Building Master Plans Integrated Unit 0.75 $171,692 $128,744 $27.28 Total $25,206,155 $5,341.63
VII. Community Center Facility Cost Summary
Facility Type Facility Units Current Development Future Development Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Cubberley Community Center Square Feet 65,046 9,755.01 99,326 753.09 9,755.01 $629 $6,135,363 $1,300.19 Lucie Stern Community Center Square Feet 12,203 1,830.10 99,326 141.28 1,830.10 $629 $1,151,029 $243.92 Mitchell Park Community Center Square Feet 15,000 2,249.56 99,326 173.67 2,249.56 $629 $1,414,852 $299.83 Palo Alto Art Center Square Feet 23,000 3,449.33 99,326 266.29 3,449.33 $629 $2,169,439 $459.74 Junior Museum and Zoo Square Feet 45,071 6,759.34 99,326 521.82 6,759.34 $718 $4,856,117 $1,029.10 Improvements, Upgrades, and Renovations Integrated Unit 5 0.75 99,326 0.06 0.75 $12,469,894 $9,350,610 $1,981.56 Building Master Plans Integrated Unit 5 0.75 99,326 0.06 0.75 $171,692 $128,744 $27.28 Offsetting Revenues ($4,261,898) ($903.17)
Total $12,644,820 $20,944,257 $4,438.46
Community Center LOS Facilities Fee Total $4,438.46
Notes:
[1] Employee Adjustment Factor of 19.64% has been applied to capture the reduced hours of facilities usage for an employee compared to a resident. [2] Population estimates based on California Dept. of Finance, Demographic Research Unit - Report E-5 January 1, 2020. [3] Persons Served per Unit based on U.S. Census Bureau's American Community Survey (ACS) 2018. [4] Estimates based on current Community Center inventory as identified within the Palo Alto Parks, Trails, Natural Open Space, and Recreation Master Plan. [5] Estimates based on cost assumptions for Community Center improvement costs provided by City of Palo Alto.
APPENDIX A-5
CITY OF PALO ALTO
COMMUNITY CENTER DEVELOPMENT IMPACT FEE CALCULATION (INCLUDES TASKS B AND C) DRAFT
5.a
Packet Pg. 77
I. Inventory of Existing Library Facilities
Facility Facility Units Quantity
Children's Library (1276 Harriet) Square Feet 6,043
College Terrace Library (2300 Wellesley) Square Feet 2,392 Downtown Library (270 Forest Ave.) Square Feet 9,046
Mitchell Library (3700 Middlefield) Square Feet 41,0 00 Rinconada Library (1213 Newell) Square Feet 29,608
Furniture, Fixtures & Equipment Integrated Unit 5
Volumes Volumes 485,157
Technology Upgrades Integrated Unit 5
II. Existing Library Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 42,392 15,443 2.75 1.00 15,443
Multi-Family 24,992 12,310 2.03 0.74 9,104
Retail (per 1,000 SF) 1,849 4,200 0.44 0.16 673
Office (per 1,000 SF) 13,778 14,300 0.96 0.35 5,019
Industrial (per 1,000 SF) 3,145 4,823 0.65 0.24 1,146
Hotel/Motel (per 1,000 SF) 216 1,577 0.14 0.05 79
Total 86,372 52,653 NA NA 31,465
III. Existing Facility Standard
Facility Type Facility Units Quantity
Facility Units
per 1,000 Persons Served
Children's Library (1276 Harriet) Square Feet 6,043 69 .96 College Terrace Library (2300 Wellesley) Square Feet 2,392 27.69 Downtown Library (270 Forest Ave.) Square Feet 9,046 1 04.73 Mitchell Library (3700 Middlefield) Square Feet 41,0 00 474.69 Rinconada Library (1213 Newell) Square Feet 29,608 342 .80 Furniture, Fixtures & Equipment Integrated Unit 5 0.06
Volumes Volumes 485,157 5,617.05
Technology Upgrades Integrated Unit 5 0.06
IV. Future Library Facilities EDU Calculation
Land Use Type
Number of
Persons Served [1]
Number of Units/
Non-Res 1,000 SF [2]
Residents per Unit/
Persons Served per
1,000 Non-Res. SF [3]
EDUs per Unit/
per 1,000 Non-Res SF
Total
Number of EDUs
Single Family 6,911 2,517 2.75 1.00 2,517
Multi-Family 4,074 2,007 2.03 0.74 1,484
Retail (per 1,000 SF) 192 435 0.44 0.16 70
Office (per 1,000 SF) 1,428 1,482 0.96 0.35 520
Industrial (per 1,000 SF) 326 500 0.65 0.24 119
Hotel/Motel (per 1,000 SF) 22 164 0.14 0.05 8
Total 12,953 7,106 NA NA 4,719
V. Future Facility Standard
Facility Type [4] Facility Units
Facility Units
per 1,000 Persons Served
Facility Units Funded
by Future Development
Children's Library (1276 Harriet) Square Feet 69.96 90 6.27 College Terrace Library (2300 Wellesley) Square Feet 27.69 358.73 Downtown Library (270 Forest Ave.) Square Feet 104.73 1,356.64 Mitchell Library (3700 Middlefield) Square Feet 474. 69 6,148.81 Rinconada Library (1213 Newell) Square Feet 342.80 4,4 40.34 Furniture, Fixtures & Equipment Integrated Unit 0.06 0 .75 Volumes Volumes 5,617.05 72,759.46 Technology Upgrades Integrated Unit 0.06 0.75
VI. Library Summary Cost Data
Facility Type [5] Facility Units
Facility Units Funded
by Future Development Cost Per Unit
Total Facility Cost
for New Development Cost per EDU
Children's Library (1276 Harriet) Square Feet 906.27 628.94 $ $569,997 $120.79 College Terrace Library (2300 Wellesley) Square Feet 358.73 628.94 $ $225,622 $47.81 Downtown Library (270 Forest Ave.) Square Feet 1,356. 64 628.94 $ $853,250 $180.82 Mitchell Library (3700 Middlefield) Square Feet 6,14 8.81 628.94 $ $3,867,262 $819.5 4 Rinconada Library (1213 Newell) Square Feet 4,440.34 628.94 $ $2,792,729 $591.8 3 Furniture, Fixtures & Equipment Integrated Unit 0.75 $500,000 $374,927 $79.45 Volumes Volumes 72,759.46 $50 $3,637,973 $770.95 Technology Upgrades Integrated Unit 0.75 $500,000 $374,927 $79.45 Total $12,696,687 $2,690.65
VII. Library Facility Cost Summary
Facility Type Facility Units Current Development Future Development Buildout Persons Served
Population
Facility Units
per 1,000 Persons Served
Facilities Funded
by Future Development Facility Cost
Total Facilities
for Future Development Cost per EDU
Children's Library (1276 Harriet) Square Feet 6,043 90 6.27 99,326 69.96 906.27 $629 $569,997 $120. 79 College Terrace Library (2300 Wellesley) Square Feet 2,392 358.73 99,326 27.69 358.73 $629 $225,622 $47.8 1 Downtown Library (270 Forest Ave.) Square Feet 9,046 1 ,356.64 99,326 104.73 1,356.64 $629 $853,250 $180.82 Mitchell Library (3700 Middlefield) Square Feet 41,0 00 6,148.81 99,326 474.69 6,148.81 $629 $3,867,262 $819.5 4 Rinconada Library (1213 Newell) Square Feet 29,608 4,4 40.34 99,326 342.80 4,440.34 $629 $2,792,729 $591.8 3 Furniture, Fixtures & Equipment Integrated Unit 5 0.75 99,326 0.06 0.75 $500,000 $374, 927 $79.45 Volumes Volumes 485,157 72,759.46 99,326 5617.05 72,759.46 $50 $3,637,973 $770.95 Technology Upgrades Integrated Unit 5 0.75 99,326 0.06 0. 75 $500,000 $374, 927 $79.45 Offsetting Revenues ($214,779) ($45.52)
Total $1,003,195 $12,481,908 $2,645.14
Library Facilities Fee Total $2,645.14
APPENDIX A-6
CITY OF PALO ALTO
LIBRARY DEVELOPMENT IMPACT FEE CALCULATION (INCLUDE S TASKS B AND C) DRAFT
5.a
Packet Pg. 78
Service Factor (Residents and Employees)
Residents per Unit/**
Number of Adjusted Adjusted Persons Served EDUs per Unit/ Estimated Number of Land Use Type Persons Served* Persons Served per 1,000 Non-Res. SF per 1,000 Non-Res. SF Units/Non-Res. SF Total EDUs Single Family 42,392 100% 42,392 2.75 1.00 15,443 15,443 Multi-Family 24,992 100% 24,992 2.03 0.74 12,310 9,104
Retail (per 1,000 SF) 9,420 19.63% 1,849 0.44 0.16 4,200,000 673 Office (per 1,000 SF) 70,206 19.63% 13,778 0.96 0.35 14,300,000 5,019 Industrial (per 1,000 SF) 16,027 19.63% 3,145 0.65 0.24 4,822,578 1,146 Hotel/Motel (per 1,000 SF) 1,101 19.63% 216 0.14 0.05 1,577,422 79 Total 164,138 86,372 31,465
* Source: David Taussig & Associates; U.S. Census Bureau (ACS); City of Palo Alto Comprehensive Plan Update. ** Persons Served = Residents plus 20% of Employees, customary industry practice designed to capture the reduced levels of service demanded by employees. Subject to change.
Service Factor (Future Residents and Employees)
Residents per Unit/**
Number of Adjusted Adjusted Persons Served EDUs per Unit/ Estimated Number of Single Family 6,911 100% 6,911 2.75 1.00 2,517 2,517
Multi-Family 4,074 100% 4,074 2.03 0.74 2,007 1,484
Retail (per 1,000 SF) 977 19.63% 192 0.44 0.16 435,418 70 Office (per 1,000 SF) 7,278 19.63% 1,428 0.96 0.35 1,482,496 520 Industrial (per 1,000 SF) 1,662 19.63% 326 0.65 0.24 499,962 119 Hotel/Motel (per 1,000 SF) 114 19.63% 22 0.14 0.05 163,533 8 Total 21,015 12,953 4,719
* Source: David Taussig & Associates; California Dept. of Finance, Demographic Research Unit - Report E-5 May 1, 2020. ** Persons Served = Residents plus 20% of Employees, customary industry practice designed to capture the reduced levels of service demanded by employees. Subject to change.
Number of
Potential Recreation Number of Work Hours Per Weekend Days Potential Recreation Hours Percentage of User of Facilities Hours per Work Day Days per Week Weekend Day Per Week Per Week Per Person Household Population Person Hours Employee User Percentage Resident, non-working 10 5 10 2 70 52.38% 37 NA
Resident, working 2 5 10 2 30 47.62% 14 NA
Employee 2 5 0 0 10 NA 10 19.63%
City of Palo Alto Household Population 67,384
City of Palo Alto Labor Force 32,085
Employee Percentage of Household Population 47.62%
APPENDIX A-7
CITY OF PALO ALTO
EDU & EBU CALCULATION YEAR TO BUILD-OUT (2040) (INC LUDES TASKS B AND C) Existing EDU Calculation (FY 2020)
Employment Adjustment
Factor
Future EDU Calculation (FY 2040)
Employment Adjustment
Total Hours of Potential Park, Community Center, and Library Usage per Week DRAFT
5.a
Packet Pg. 79
City of Palo Alto (ID # 14160)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Utilities Advisory Commission Recommend the City Council Adopt the 2022 Annual Water Shortage Assessment Report
From: City Manager
Lead Department: Utilities
RECOMMENDATION
The Utilities Advisory Commission and staff re commend the City Council adopt the 2022 Annual Water Shortage Assessment Report.
EXECUTIVE SUMMARY
Beginning in 2022, every urban water supplier in California must conduct an Annual Water Supply and Demand Assessment as required by California Water Code Section 10632 (a). Each urban water supplier must also submit an Annual Water Shortage Assessment Report to the Department of Water Resources (DWR) on or before July 1, as required by California Water Code Section 10632.1. The City’s Annual Water Shortage Assessment Report (Tables 1 -5 below) shows that planned water conservation actions are anticipated to adequately address anticipated potable water supply shortages.
DWR will prepare a summary report on its review of the Annual Water Supply and Demand Assessment results and provide it to the State Water Resources Control Board (State Board) by September 30 each year. The DWR report will include water shortage information at the supplier level, as well as regional and statewide analysis of water conditions as required by California Water Code Section 10644 (c)(1)(B).
DISCUSSION
To prepare the 2022 Annual Water Shortage Assessment Report, staff followed the procedures outlined in its Water Shortage Contingency Plan, contained in Section 7 of the City’s 2020 UWMP . Palo Alto’s 2022 Annual Water Shortage Assessment Report uses the DWR -developed Optional Annual Assessment Tool format. This format includes the 5 tables shown below. Staff will submit the standard tables to DWR by July 1, 2022. “Table 1. Annual Assessment Information” (Table 1) provides required overview information. The remaining tables project water supply and demand for FY 2023 under continuing dry conditions, and identify shortages and actions to meet those shortages described in more detail below.
Potable Water
Palo Alto receives 100% of its potable water supply from the San Francisco Public Utilities Commission (SFPUC) Regional Water System. “Table 2: Wat er Demands” (Table 2) provides a demand projection for each month of FY 2023 while “Table 3: Water Supplies” (Table 3) provides a supply projection equal to the voluntary monthly water budgets SFPUC provided to Palo Alto. “Table 4(P): Potable Water Shorta ge Assessment” (Table 4(P)) compares projected FY 2023 demand with supply and finds that there is a 6 Packet Pg. 80
City of Palo Alto Page 2
projected shortage of 7%, or a total of 721 Acre Feet (AF), for FY 2023. This means Palo Alto is projected to remain in Stage 1 of the Water Shortage Contin gency Plan (WSCP) for cutbacks up to 10% under the assumed dry conditions. “Table 5: Planned Water Shortage Response Actions” (Table 5) lists the demand reduction actions Palo Alto has implemented and plans to continue to implement throughout FY 2023.
Staff estimates Palo Alto will be able to meet the shortage with the planned demand reduction actions.
Table 5 shows the planned demand reduction actions listed using the required standard drop -down menus. Table 4(P) shows the water use reductions associated w ith the Table 5 demand reduction actions, bringing the revised shortage projection to 0% in each month of FY 2023.
Palo Alto has implemented action plans in past droughts, and during each one Palo Alto residents and businesses have collectively responded to the call for water conservation. In the recent drought of 2015-2017, Palo Alto responded to state -mandated potable water use restrictions by implementing the water restrictions in Stage II of its WSCP. While it is not possible to determine how much of the water conserved can be attributed to each of the specific water use reduction actions/measures imposed, the City exceeded the 24% cumulative reduction target for the June 1, 2015 through May 31, 2016 compliance period compared to calendar year 2013. T o provide the estimates in Table 5, staff used professional judgment to develop the best available estimates showing that the implementation of the planned demand reduction actions will reduce demand enough to meet available supply.
Council implemented th e actions shown in Table 5 through the permanent water use restrictions outlined in the Palo Alto Municipal Code Section 12.32.010 and in Stage 1 of the Water Shortage Contingency Plan (see Council Resolution 10022, March 7, 2022). On March 28, 2022, Gove rnor Newsom issued Executive Order N -7-22 requiring the State Board to consider adopting emergency regulations by May 25, 2022 that require additional actions from urban retail water suppliers. Staff anticipates those additional actions will include requirements for urban water suppliers to submit to the Department of Water Resources a preliminary Annual Water Supply and Demand Assessment no later than June 1, 2022 and to implement Stage II of their Water Shortage Contingency Plans and implement, at a minim um, the demand reduction actions associated with a water shortage level of up to 20%. For Palo Alto, the additional water use restrictions in Stage II of Palo Alto’s Amended 2020 WSCP are:
1) Restaurants and other food service operations shall serve water to customers only upon request.
2) Operators of hotels and motels shall provide guests with the option of choosing not to have towels and linens laundered daily. The hotel or motel shall prominently display notice of this option in each guestroom using clear and easily understood language.
Staff plans to submit a working draft of the Annual Water Supply and Demand Assessment to the Department of Water Resources on or before June 1, 2022. Staff plans to submit a recommendation to the City Council to implement St age II of Palo Alto’s Amended 2020 Water Shortage Contingency Plan.
Additionally, Santa Clara Valley Water District’s Board called upon the County, water retailers and cities to restrict ornamental landscape and lawn irrigation with potable water to no mo re than two days per week.1 Staff plans to recommend that Council restrict irrigation of ornamental landscape and lawn with potable water to two -days per week in Palo Alto, except as it may be required to ensure the health of trees and other perennial non -turf plantings (see Staff Report 14324) . It is important to maintain the health of the urban canopy in Palo Alto because trees have numerous social and environmental benefits.
1 Resolution Amending Resolution No. 21-68 Rescinding Resolution 17-43, Declaring a Water Shortage Emergency Condition Calling for Water Use Restrictions, and Urging the County of Santa Clara to Proclaim a Local Emergency. 6 Packet Pg. 81
City of Palo Alto Page 3
For this reason, potable irrigation of ornamental landscapes or lawns where irri gation benefits the health of trees and other perennial non-turf plantings will be specifically excluded from staff’s proposed two-day per week irrigation restriction. Table 5 includes staff’s draft proposed water use restrictions.
Once the State Board fin alizes its emergency regulations, staff will return to Council if needed, with recommendations for implementing the required additional actions.
Non-Potable Water
For non-potable recycled water, Table 2 provides the demand projection and Table 3 notes t hat there is sufficient supply to meet Palo Alto’s non-potable recycled water demand. For that reason, the supply is set to equal demand and there is no shortage of non -potable water projected in Table 4(NP), “Non Potable Water Shortage Assessment”.
6 Packet Pg. 82
City of Palo Alto Page 4
Table 1. Annual Assessment Information
Annual Assessment Information (Required)
Year Covered By This Shortage Report
Start: July 1, 2022
End: June 30, 2023
Supplier's Annual Assessment Planning Cycle
Start Month:July
End Month: June
Data Reporting Interval Used: MONTHLY
Volume Unit for Reported Supply and Demand:
(Must use the same unit throughout) AF
Water Supplier's Contact Information
Water Supplier's Name: City of Palo Alto
Contact Name: Lisa Bilir
Contact Title: Acting Senior Resource Planner
Street Address: 250 Hamilton Avenue, Palo Alto
ZIP Code: 94301
Phone Number:(650)329-2543
Email Address: [email protected]
Report Preparer's Contact Information
(if different from above)
Preparer's Organization Name:
Preparer's Contact Name:
Phone Number:
Email Address:
Supplier's Water Shortage Contingency Plan
WSCP Title 2020 Water Shortage Contingency Plan of the City of Palo Alto WSCP Adoption Date 6/7/2021
Other Annual Assessment Related Activities
(Optional)
Activity Timeline/ Outcomes / Links / Notes
Annual Assessment/ Shortage Report Title: Optional
Annual Assessment / Shortage Report Approval Date: 6/13/2022 Other Annual Assessment Related Activities:
The 2020 Water Shortage Contingency Plan of the City of Palo Alto states that Palo Alto will utilize the BAWSCA Regional Reliability Model to evaluate water supply availability, however, the plan also permits the City to use SFPUC data since SFPUC is the City's sole supplier. Specifically, the 2020 Water Shortage Contingency Plan states: "Because Palo Alto relies on only one potable water supply source, SFPUC RWS water, the Annual Assessment will rely on key data inputs from the SFPUC." Palo Alto determined the best data to use for water supply is the monthly water budgets provided by SFPUC.
(Add rows as needed)
6 Packet Pg. 83
City of Palo Alto Page 5
= From prior tables
= Auto calculated
Use Type Start Year: 2022 Volumetric Unit Used 2: AF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total by Water Demand Type
All Demands 1213 1105 1063 1031 810 689 648 534 650 855 1097 1080 10776 0 0
0 0
0 0
0 0
0 1213 1105 1063 1031 810 689 648 534 650 855 1097 1080 10776 All Demands Tertiary 54 53 35 22 11 2 2 11 9 24 42 50 315 0 0
0 0
54 53 35 22 11 2 2 11 9 24 42 50 315
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
0 0
0 0
Table 2: Water Demands1
Projected Water Demands - Volume3
Total by Month (Non-Potable)
1Projections are based on best available data at time of submitting the report and actual demand volumes could be different due to many factors. 2Units of measure (AF, CCF, MG) must remain consistent. 3When opting to provide other than monthly volumes (bi-monthly, quarterly, or annual), please see directions on entering data for Projected Water Demand in the Table Instructions.
Notes: Potable unconstrained customer demand determined using the end-use model described in the 2020 UWMP Section 4. Non-potable unconstrained customer demand determined based on 2020 UWMP projection.
Total by Month (Potable)
Additional
Description
(as needed)
Level of
Treatment
for Non-
Potable
Supplies
Drop-down
list
Drop-down list
May select each use multiple times
These are the only Use Types that
will be recognized by the WUEdata
online submittal tool
(Add additional rows as needed)
Demands Served by Potable Supplies
Demands Served by Non-Potable Supplies
Three years ago total demand
Four years ago total demand
Optional (for comparison purposes)
Last year's total demand
Two years ago total demand
6 Packet Pg. 84
City of Palo Alto Page 6
= From prior tables
= Auto calculated
Water Supply Start Year: 2022 Volumetric Unit Used 2: AF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Total by
Water
Supply Type
Purchased/Imported Water
San Francisco
Public
Utilities
Commission
Regional
Water
Supply
System
1132 1031 992 962 756 643 605 498 606 798 1023 1007 10054 0 0
0 0
0 0
0 0
0 1132 1031 992 962 756 643 605 498 606 798 1023 1007 10054 0 Recycled Water
Recycled
Water from
the Regional
Water
Quality
Control Plant
54 53 35 22 11 2 2 11 9 24 42 50 315
0 0
0 0
54 53 35 22 11 2 2 11 9 24 42 50 315 0
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
0 Table 3: Water Supplies1
Projected Water Supplies - Volume3
Water
Quality
Drop-down
List
Total Right
or Safe
Yield*
(optional)
Additional
Detail on
Water
Supply
Drop-down List
May use each category multiple
times.These are the only water
supply categories that will be
recognized by the WUEdata
online submittal tool
(Add additional rows as needed)
Potable Supplies
Non-Potable Supplies
eAR Reported Total Water Supplies
Optional (for comparison purposes)
1Projections are based on best available data at time of submitting the report and actual supply volumes could be different due to many factors. 2Units of measure (AF, CCF, MG) must remain consistent. 3When opting to provide other than monthly volumes (bi-monthly, quarterly, or annual), please see directions on entering data for Projected Water Supplies in the Table Instructions.
Notes: Palo Alto purchases 100% of its potable water from SFPUC; SFPUC declared a water shortage emergency on November 23, 2021 and provided Palo Alto with voluntary monthly water budgets. Palo Alto supplies recycled water for irrigation of the municipal golf course, a park and some other minor applications; there is sufficient supply of recycled water to meet demand.
Total by Month (Potable)
Total by Month (Non-Potable)
6 Packet Pg. 85
City of Palo Alto Page 7
= Auto calculated
= For manual input
Table 4(P): Potable Water Shortage Assessment 1
Start Year: 2022 Volumetric Unit Used 2: AF
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3 Total
Anticipated Unconstrained Demand 1,213 1,105 1,063 1,031 810 689 648 534 650 855 1,097 1,080 10,776 Anticipated Total Water Supply 1,132 1,031 992 962 756 643 605 498 606 798 1,023 1,007 10,054 Surplus/Shortage w/o WSCP Action -81 -74 -71 -69 -54 -46 -43 -36 -43 -57 -73 -72 -721 % Surplus/Shortage w/o WSCP Action -7% -7% -7% -7% -7% -7% -7% -7% -7% -7% -7% -7% -7% State Standard Shortage Level 1 1 1 1 1 1 1 1 1 1 1 1 1 Benefit from WSCP: Supply Augmentation 0.0
Benefit from WSCP: Demand Reduction 81 74 71 69 54 46 43 36 44 57 73 72 722 Revised Surplus/Shortage with WSCP 0 0 0 0 0 0 0 0 0 0 0 0 1 % Revised Surplus/Shortage with WSCP 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% = Auto calculated
= For manual input
Table 4(NP): Non-Potable Water Shortage Assessment 1 Start Year: 2022 Volumetric Unit Used 2: AF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3 Total
Anticipated Unconstrained Demand: Non-Potable 54 53 35 22 11 2 2 11 9 24 42 50 315 Anticipated Total Water Supply: Non-Potable 54 53 35 22 11 2 2 11 9 24 42 50 315 Surplus/Shortage w/o WSCP Action: Non-Potable 0 0 0 0 0 0 0 0 0 0 0 0 0 % Surplus/Shortage w/o WSCP Action: Non-Potable 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Benefit from WSCP: Supply Augmentation 0.0
Benefit from WSCP: Demand Reduction 0.0
Revised Surplus/Shortage with WSCP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 % Revised Surplus/Shortage with WSCP 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% = From prior tables
Planned WSCP Actions
1Assessments are based on best available data at time of submitting the report and actual volumes could be different due to many factors. 2Units of measure (AF, CCF, MG) must remain consistent. 3When optional monthly volumes aren't provided, verify Tables 2 and 3 use the same columns for data entry and are reflected properly in Table 4 and make sure to use those same columns to enter the benefits from Planned WSCP Actions. Please see directions on the shortage balancing exercise in the Table Instructions. If a shortage is projected, the supplier is highly recommended to perform a monthly analysis to more accurately identify the time of shortage. = From prior tables
Planned WSCP Actions
1Assessments are based on best available data at time of submitting the report and actual volumes could be different due to many factors. 2Units of measure (AF, CCF, MG) must remain consistent. 3When optional monthly volumes aren't provided, verify Tables 2 and 3 use the same columns for data entry and are reflected properly in Table 4 and make sure to use those same columns to enter the benefits from Planned WSCP Actions. Please see directions on the shortage balancing exercise in the Table Instructions. If a shortage is projected, the supplier is highly recommended to perform a monthly analysis to more accurately identify the time of shortage.
6 Packet Pg. 86
City of Palo Alto Page 8
July 1, 2022 to June 30, 2023
Enter Amount
(Drop-down
List)
Select % or
Volume Unit
Start Month End Month
1 Expand Public Information Campaign Yes 135 AF July June 1 Offer Water Use Surveys Yes 32 AF July June
1 Provide Rebates on Plumbing Fixtures
and Devices Yes 32 AF July June
1 Provide Rebates for Landscape
Irrigation Efficiency Yes 32 AF July June
1 Provide Rebates for Turf Replacement Yes 32 AF July June 1 Landscape - Restrict or prohibit runoff
from landscape irrigation Yes 17 AF July June
1 Landscape - Limit landscape irrigation
to specific times Yes 17 AF July June
1 Landscape - Prohibit certain types of
landscape irrigation Yes 32 AF July June
1 Landscape - Other landscape restriction
or prohibition Yes 32 AF July June
1 CII - Other CII restriction or prohibition Yes 65 AF July June 1 Water Features - Restrict water use for
decorative water features, such as
fountains
Yes 17 AF July June
1 Other - Customers must repair leaks,
breaks, and malfunctions in a timely
manner
Yes 17 AF July June
1 Other - Require automatic shut of hoses Yes 17 AF July June 1 Other - Prohibit use of potable water for
construction and dust control Yes 17 AF July June
1 Other - Prohibit use of potable water for
washing hard surfaces Yes 32 AF July June
2 CII - Lodging establishment must offer
opt out of linen service No 45 AF July June
2 CII - Restaurants may only serve water
upon request No 45 AF July June
2 Landscape - Limit landscape irrigation
to specific days No 135 AF July June
Table 5: Planned Water Shortage Response Actions
NOTES: Table 5 shows the actions that Palo Alto plans to take based on the supply and demand assessment and that Palo Alto staff plan to recommend to the Palo Alto City Council as a result of Executive Order N-7-22 emergency regulations; Palo Alto has 8 permanent water use restrictions in the Palo Alto Municipal Code Section 12.32.010 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-69362#JD_Chapter12.32; Palo Alto's Amended Water Shortage Contingency Plan, as revised 3/7/22, Stage I, outlines 7 additional demand reduction actions. Palo Alto City Council implemented the Stage I actions on 3/7/22. Palo Alto's Amended Water Shortage Contingency Plan, as revised 3/7/22, Stage II outlines 2 additional demand reduction actions. Palo Alto staff plans to recommend to Palo Alto City Council to implement the 2 additional demand reduction actions in Stage II as well as adding a 2 day per week limit on ornamental landscape and lawn irrigation, except as needed for the health of trees and other perennial non-turf plantings. The Palo Alto City Council may approve staff's proposals or take a different action or no action.
Add additional rows as needed
How much is action going to
reduce the shortage gap?
When is shortage response
action anticipated to be
implemented?Is action
already being
implemented?
(Y/N)
ACTIONS: Demand Reduction, Supply
Augmentation, and Other Actions.
(Drop-down List)
These are the only categories that will
be accepted by the WUEdata online
submittal tool. Select those that apply.
Anticipated
Shortage
Level
Drop-down List of
State Standard
Levels (1 - 6) and
Level 0 (No
Shortage)
6 Packet Pg. 87
City of Palo Alto Page 9
TIMELINE
California Water Code Section 10632.1 requires the Annual Water Shortage Assessment Report to be submitted to DWR by July 1 each year.
RESOURCE IMPACT
Adoption of the 2022 Annual Water Shortage Assessment Report does not have an associat ed resource impact.
STAKEHOLDER ENGAGEMENT
Staff encourages interested parties to comment or provide feedback on the draft Annual Water Shortage Assessment Report at the Council meeting where the report will be discussed or to submit written comments.
COMMISSION REVIEW
The 2022 Annual Water Shortage Assessment Report was presented to the UAC at its June 8, 2022 meeting. An At Place memo will be presented to the Council with the recommendation after this meeting.
ENVIRONMENTAL IMPACT
Approval of the 2022 Annual Water Shortage Assessment Report is exempt from California Environmental Quality Act’s (CEQA) review pursuant to Water Code Section 10652. 6 Packet Pg. 88
City of Palo Alto (ID # 14292)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Amendment No. 2 to Contract S20176879 with Johnson Controls Fire Protection LP, to Add to the Scope of Services and Increase the Contract Amount by $113,466 for a New Three -year Contract Total Amount Not-to-Exceed of $379,050 for the Pro vision of Fire Sprinkler System Inspections and Repair Services
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment No. 2 to contract no. S20176879 with Johnson Controls Fire Protection LP, to increase the scope of services to include the repair of fire sprinkler systems at City locations including Lot S/L, Lot J, Lot R, Lucie Stern Children’s Theater, Lucie Stern Community Theater, Civic Center, MSC -A, MSC -C, Rinconada Pools, and College Terrace Library , and to increase the contract amount by $113,466 for a revised three-year contract total amount not to exceed $379,050.
Background
In May 2020, staff conducted a request for quotations ( RFQ) solicitation for Fire Sprinkler Inspections and Repairs for all City buildings. Johnso n Controls Fire Protection LP (Johnson Controls) was awarded the contract ( S20176879). The Parties entered into Amendment No. 1 on June 7, 2021 SR #12083 to add contract scope and increase the not-to-exceed compensation by $87,207, from $178,377 to a new total not-to-exceed compensation amount of $265,584.
Discussion
Johnson Contr ols, per the Fire Sprinkler Inspection and Repair contract, performed code - required quarterly, annual, and five -year inspections on the fire sprinkler systems at all City facilities in December 2021. During the inspections, Johnson Controls identified repair and maintenance issues needing attention. Many of these issues are because components of the fire sprinkler system are at the end of their service life and/or are corroded. The National Fire Protection Association codes and Palo Alto Fire Department reg ulations require replacement of these components. It is difficult to predict costs for repair and maintenance issues such as these, so funds were not originally included in the base contract with Johnson Controls.
Amendment No. 2 to the contract is for the repair of fire sprinkler systems at multiple City 7 Packet Pg. 89
City of Palo Alto Page 2
facilities, so that the systems will operate as intended in the event of a fire and comply with the codes and regulations.
Scope Overview
The purpose of this amendment is to add to the scope of services of the existing contract the repair of fire sprinkler issues identified during code-required inspections at Lot S/L, Lot J, Lot R, Lucie Stern Children’s Theater, Lucie Stern Community Theater, Civic Center, MSC -A, MSC -C, Rinconada Pools, and the College Terrace Library. Work consists primarily of replacing minor system components that are corroded, past their useful life, damaged, or missing. A detailed scope of work is provided in the attached Amendment No. 2 to the contract.
Timeline
This project is considered urgent and is scheduled to be completed in 60 calendar days from the date of the Notice to Proceed.
Resource Impact
Funding for the contract increase recommended in this report is available in Capital Improvement Program project s PF-14003, Un iversity Avenue Parking Improvements, and PF - 01003, Building Systems Improvements.
Stakeholder Engagement
Stakeholder engagement is not applicable to this contract amendment.
Policy Implications
This contract amendment is in conformance with the City of Palo Alto’s Comprehensive Plan and does not represent any changes to existing City policies.
Environmental Review
This project is categorically exempt from California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA guidelin es as an alteration to an existing facility and no further environmental review is necessary.
7 Packet Pg. 90
City of Palo Alto (ID # 14427)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Contract Amendments to Extend Three Public -Private Partnership Agreements Between the City of Palo Alto and TheatreWorks, Palo Alto Players, and West Bay Opera for the use of the Lucie Stern Community Theatre for an Additional Year
From: City Manager
Lead Department: Community Services
Recommendation
Staff recommends that the City Council approve and authorize the City Manager to execute three amendments to extend the public -private partnership agreements between the City of Palo Alto and TheatreWorks, Palo Alto Players, and West Bay Opera for cooperative use of the Lucie Stern Community Theatre for an additional year (July 1, 2022 – June 30, 2023).
Background
The Lucie Stern Community Theatre is used by three local companies: TheatreWo rks, Palo Alto Players, and West Bay Opera, collectively producing approximately 15 productions each year.
These partnerships provide the companies with an artistic home, an essential component of their ongoing existence, offering stability through the up and downs of the economy during times when cutbacks in government, foundation and corporate funding for the arts are the national norm. In return, the companies collectively provide culturally enriching theatrical experiences for more than 45,000 audience members annually.
TheatreWorks was founded by San Francisco Bay Area native Robert Kelley in 1970 as a theatre arts workshop for teenage and college students. Chartered by the City to produce work that would reflect the concerns of the community during a n unsettled period in American life, the company produced thirteen wholly original works for the stage in its first three years. When the Mountain View Center for the Performing Arts opened in 1991, the company began producing five main stage productions there each season, along with three productions each season at the Lucie Stern Theatre.
Palo Alto Players became the Peninsula’s first theatre company in 1931 when a group of 100 residents gathered together to create a theatre dedicated to the Palo Alto c ommunity. Initially, productions were held at a makeshift performance space in the Palo Alto Community House adjacent to the train station (now MacArthur Park Restaurant). Soon after, Lucie Stern invited 8 Packet Pg. 91
City of Palo Alto Page 2
the Players to be the resident theatre company at th e Community Theatre. In 1974, the Palo Alto Players dissolved their ties with the Parks and Recreation Department, becoming an independent company. Since that time, the City of Palo Alto has continued to support the Palo Alto Players with performance, rehearsal and shop space.
West Bay Opera was founded by Henry Holt in 1955. Originally called the Little Opera Guild, the company began presenting fully staged operatic performances. Under the leadership of Mr.
Holt, who was succeeded by his wife, Maria Holt , and then by the present director, José Luis Moscovich, West Bay Opera has grown steadily.
Discussion
Theatre Works, Palo Alto Players and West Bay Opera’s usage of the Lucie Stern Community Theatre are covered by public -private partnership agreements, which have been in place for decades.
Given the long history of these partnerships and the cultural benefits of providing the Palo Alto community with a diverse range of artistic events, staff recommends that the City Council approve a one -year extension of the existing public -private partnership, with additional measures in place to ensure public safety at live events.
The existing agreement names TheatreWorks Silicon Valley, Palo Alto Players, and West Bay Opera as Resident Theatre Companies of the Co mmunity Theatre, allowing them use of the Lucie Stern Community Theatre auditorium and ancillary spaces, including rehearsal hall, costume shop, scene shop and dressing rooms, for a term of three years (FY 2018 – FY2021) (Staff Report #9684 ). Council approved an amendment to extend the agreement for one additional Fiscal Year, through FY2022 on June 14, 2021. (Staff Report #12257).
The Resident Theatre Companies do not pay rent for us e of the Community Theatre. Pre - pandemic revenue from use of the theatre by the three Resident Theatre Companies , derived from a $2.00 fee (in lieu of rent) for each ticket sold, plus, as of FY 2020, a “Stern Theatre Improvement Fee” of $2.00 for each tick et sold, averaged $58,000 per year over a 5 -year period. The Stern Theatre Improvement fee is collected to offset the costs of building maintenance, enhancements, improvements, repairs and new equipment and furnishings for the theatre facility. Live theat er performances were not allowed or were limited in audience size during most of the pandemic and as a result, the lack of ticket sales resulted in a loss of revenue to the City from these fees.
This amendment extends the existing agreement for one add itional fiscal year, through FY2023.
It also clarifies the terms in Section 24 of Article A of the agreement (“Responsibilities of the Contractor”) related to the Resident Theatre Companies use of space at the Lucie Stern Community Center free of charge fo r up to ten (10) hours per year. The current requirement provided a range of three (3) to ten (10) free hours depending on the room size while this amendment provides a maximum of ten (10) hours regardless of room size. This amendment 8 Packet Pg. 92
City of Palo Alto Page 3
also clarifies that the Theatre Companies may have to pay for a City facility attendant during regularly unstaffed hours. The clarification in this amendment will help reduce any confusion regarding the Theatre Companies use of Lucie Stern Community Center.
Stakeholder Engagement
These agreements have been coordinated with all contracting parties including the amended clarifying language on specific terms of use.
Resource Impact
No additional City resources are required to enact the recommendations in this report, and it is anticipated that this partnership will lead to enhanced programs over the life of the agreement.
Policy Implications
This partnership would be categorized as a public/private partnership under the City’s Public - Private Partnership Policy (Policy 1 -25: Public/Private Partnerships). Staff notes that the City Auditor is currently finalizing an audit of the City’s nonprofit partnership agreements. The recommendations of that audit may lead to policy changes that could be reflected in future partnership agreements.
These partnerships are also consistent with the City’s Comprehensive Plan Policy C -1.5, which states, “Work with Stanford University and other educational institutions, private, nonprofit, faith-based, public community service organizations and neighborhood associations, with the goal of enhancing the quality of life for Palo Alto’s student and residential communities.
Increase opportunities for shared use among groups in the community at different times through public private partnerships and b y developing programs, facilities and community services that ensure safe, non-discriminatory access to community services. “
Environmental Review
Approval of the amendments attached is not a Project within the meaning of the California Environmental Quality Act.
Attachments:
• Attachment8.a: Attachment A: TheaterWorks Silicon Valley - Theater Amendment 2 • Attachment8.b: Attachment B: West Bay Opera - Theater Amendment 2 • Attachment8.c: Attachment C: Palo Alto Players - Theater Amendment 2 8 Packet Pg. 93
City of Palo Alto TheatreWorks Silicon Valley
Form Vers.: Aug. 5, 2019 Amendment No. 2
AMENDMENT NO. 2 TO CONTRACT
BETWEEN THE CITY OF PALO ALTO AND
THEATREWORKS SILICON VALLEY
This Amendment No. 2 (this “Amendment”) to the Agreement For Performing Arts Services Between the City of Palo Alto and TheatreWorks Silicon Valley (the “Contract” as defined below) is entered into as of June 7, 2022 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and TheatreWorks Silicon Valle y, a California nonprofit public benefit corporation , locate d at 350 Twin Dolph in Drive, Suite 127, Redwood City, CA 94065 (“CONTRACTOR”). CITY and CONTRACTOR are referred to collectively as the “Part ies” in th is Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of theatrical productions and use of City facilities, as detailed therein.
B. The Parties now wish to amend the Contract to extend the term of contract by twelve months, from the original end date of June 30, 202 1 through June 30 , 202 3, for th e continued provision of services described in the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean the Contract titled “Agreement for Performing Arts Services Between the City of Palo Alto and TheatreWorks Silicon Valley ,” between CONSULT ANT an d CITY, dated November 10, 2018, as amended by:
i. Amendment No. 1, dated June 8, 2021.
b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 10 of the Contract is hereby amended to read as below. Subsections 10a. through 10d. shall remain as written in the Contract.
10. Term, Termination & Breach. This Agreement shall commence as of November 10, 2018 and shall terminate on June 30, 2023 (the “Term”). The Term of this Agreement may DocuSign Envelope ID: 32481DEF-37B2-400D-BB6A-0C87B274A11C
8.a
Packet Pg. 94
City of Palo Alto TheatreWorks Silicon Valley
Form Vers.: Aug. 5, 2019 Amendment No. 2
be amended by mutual written agreement of th e Parties to this Agreement pur suant to Section 16 (“Amendment”).
SECTION 3. Section 24 of Exhibit A (“Responsibilities of the Contractor”) is hereby amended to read as below:
24. Contractor may be entitled, based on availability and at the discretion of the City, to a maximum of 10 hours of single room usage at the Lucie Stern Community Center to use each fiscal year on a gratis basis. Single room usage that takes place outside of Lucie Stern Community Center hours of operation may be subject to charges associated with a facilities attendant. The 10 hours will not be applicable to Saturday afternoon/evening venue usage, exclusive usage bookings, and is not permissible to use at any rental sites other than the Lucie Stern Community Center. Contractor may schedule no more than 12 calendar months in advance. Contractor may rent spaces at the non-profit rates per the Municipal Fee Schedule if their request does not fall within the 10 hour parameters.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals . The recita ls set forth above are t erms of this Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: 32481DEF-37B2-400D-BB6A-0C87B274A11C
8.a
Packet Pg. 95
City of Palo Alto TheatreWorks Silicon Valley
Form Vers.: Aug. 5, 2019 Amendment No. 2
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
THEATREWORKS SILICON VALLEY
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
DocuSign Envelope ID: 32481DEF-37B2-400D-BB6A-0C87B274A11C Board Chair
Holly Ward
Executive Director
Phil Santora
8.a
Packet Pg. 96
City of Palo Alto West Bay Opera
Form Vers.: Aug. 5, 2019 Amendment No. 2
AMENDMENT NO. 2 TO CONTRACT
BETWEEN THE CITY OF PALO ALTO AND
WEST BAY OPERA
This Amendment No. 2 (this “Amendment”) to the Agreement For Performing Arts Services Between the City of Palo Alto and West Bay Opera (the “Contract” as defined below) is entered into as of June 7, 2022 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and WEST BAY OPERA , a California nonprofit public benefit corporation , located at 221 Lambert Ave, Palo Alto, CA 94306 (“CONTRACTOR”). CITY and CONTRACTOR are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of theatrical productions and use of City facilities, as detailed therein.
B. The Parties now wish to amend the Contract to extend the term of contract by twelve months, from the original end date of June 30, 202 2 through June 30 , 202 3, for the continued provision of services described in the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean the Contract titled “Agreement for Performing Arts Services Between the City of Palo Alto and West Bay Opera,” between CONSULT ANT an d CITY, dated November 10 , 2018, as amended by:
i. Amendment No. 1, dated June 8, 2021.
b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 10 of the Contract is hereby amended to read as below. Subsections 10a. through 10d. shall remain as written in the Contract.
10. Term, Termination & Breach. This Agreement shall commence as of November 10, 2018 and shall terminate on June 30, 2023 (the “Term”). The Term of this Agreement may be amended by mutual written agreement of th e Parties to this Agreement pursuant to Section 16 (“Amendment”).
DocuSign Envelope ID: 5C8AE554-16E0-4458-8182-0D72D475F77B
8.b
Packet Pg. 97
City of Palo Alto West Bay Opera
Form Vers.: Aug. 5, 2019 Amendment No. 2
SECTION 3. Section 24 of Exhibit A (“Responsibilities of the Contractor”) is hereby amended to read as below:
24. Contractor may be entitled, based on availability and at the discretion of the City, to a maximum of 10 hours of single room usage at the Lucie Stern Community Center to use each fiscal year on a gratis basis. Single room usage that takes place outside of Lucie Stern Community Center hours of operation may be subject to charges associated with a facilities attendant. The 10 hours will not be applicable to Saturday afternoon/evening venue usage, exclusive usage bookings, and is not permissible to use at any rental sites other than the Lucie Stern Community Center. Contractor may schedule no more than 12 calendar months in advance. Contractor may rent spaces at the non-profit rates per the Municipal Fee Schedule if their request does not fall within the 10 hour parameters.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals . The recita ls set forth above are t erms of this Amendment and are fully incorporated herein by this reference.
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
WEST BAY OPERA
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
DocuSign Envelope ID: 5C8AE554-16E0-4458-8182-0D72D475F77B Jose Luis Moscovich
General Director
Dr.
Robert Schwartz
8.b
Packet Pg. 98
City of Palo Alto Palo Alto Players
Form Vers.: Aug. 5, 2019 Amendment No. 2
AMENDMENT NO. 2 TO CONTRACT
BETWEEN THE CITY OF PALO ALTO AND
PALO ALTO PLAYERS
This Amendment No. 2 (this “Amendment”) to the Agreement For Performing Arts Services Between the City of Palo Alto and Palo Alto Players (the “Contract” as defined below) is entered into as of June 7, 2022 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Palo Alto Pla yers, a California nonprofit public benefit corporation , located at 1305 Middlefield Road #1, Palo Alto, CA 9430 1 (“CONTRACTOR”). CITY and CONTRACTOR are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of theatrical productions and use of City facilities, as detailed therein.
B. The Parties now wish to amend the Contract to extend the term of contract by twelve months, from the current end date of June 30, 202 2 through June 30 , 202 3, for the continued provision of services described in the Contract.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean the Contract titled “Agreement for Performing Arts Services Between the City of Palo Alto and Palo Alto Players,” between CONSULTANT and CITY, dated November 10, 2018, as amended by:
i. Amendment No. 1, dated June 8, 2021.
b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 10 of the Contract is hereby amended to read as below. Subsections 10a. through 10d. shall remain as written in the Contract.
10. Term, Termination & Breach. This Agreement shall commence as of November 10, 2018 and shall terminate on June 30, 2023 (the “Term”). The Term of this Agreement may be amended by mutual written agreement of th e Parties to this Agreement pursu ant to Section 16 (“Amendment”).
8.c
Packet Pg. 99
City of Palo Alto Palo Alto Players
Form Vers.: Aug. 5, 2019 Amendment No. 2
SECTION 3. Section 24 of Exhibit A (“Responsibilities of the Contractor”) is hereby amended to read as below:
24. Contractor may be entitled, based on availability and at the discretion of the City, to a maximum of 10 hours of single room usage at the Lucie Stern Community Center to use each fiscal year on a gratis basis. Single room usage that takes place outside of Lucie Stern Community Center hours of operation may be subject to charges associated with a facilities attendant. The 10 hours will not be applicable to Saturday afternoon/evening venue usage, exclusive usage bookings, and is not permissible to use at any rental sites other than the Lucie Stern Community Center. Contractor may schedule no more than 12 calendar months in advance. Contractor may rent spaces at the non-profit rates per the Municipal Fee Schedule if their request does not fall within the 10 hour parameters.
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals . The recita ls set forth abov e are t erms of this Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
8.c
Packet Pg. 100
City of Palo Alto Palo Alto Players
Form Vers.: Aug. 5, 2019 Amendment No. 2
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO
City Manager
APPROVED AS TO FORM:
City Attorney or designee
PALO ALTO PLAYERS
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
8.c
Packet Pg. 101
City of Palo Alto (ID # 13661)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Finance Committee Recommends Adoption of six Resolutions: 1) Approving the Fiscal Year 2023 Wastewater Collection Utility Financial Plan, Including Proposed Transfer, and Adopting a Wastewater Collection Utility Rate Increase by Amending Wastewater Collection Rate Schedules S -1, S-2, S- 6 and S-7; 2) Approving the FY 2023 Water Utility Financial Plan, Including Proposed Transfer, and Adopting a Water Utility Rate Increase by Amending Water Rate Schedules W -1, W-2, W-3, W-4, and W-7; 3) Approving FY 2023 Gas Utility Financial Plan, Including Proposed Transfers, and Adopting a Gas Utility Rate Increase by Amending Gas Rate Schedules G -1, G-2, G-3 and G - 10; 4) Approving the FY 2023 Electric Utility Financial Plan, Including Proposed Transfers and Amend ments to the Electric Utility Reserve Management Practices, Amending Utility Rate Schedules E -EEC-1, E-NSE-1, E- 2-G, E-4-G and E-7-G, and Adopting an Electric Utility Rate Increase by Amending Utility Rate Schedules E -1, E-2, E-4, E-4 TOU, E-7, E-7 TOU and E-14; 5) Amending Utility Rate Schedules EDF -1 and EDF -2 to Increase Dark Fiber Rates 4.2 Percent; and 6) Amending Utility Rate Schedule D -1 Increasing the Storm Water Management Fee by 4.20 Percent per Month per Equivalent Residential Unit for FY 2023
From: City Manager
Lead Department: Utilities
Recommendation
Staff and the Finance Committee recommend that the City Council adopt the following:
1. For the Wastewater Collection Utility, a Resolution (Attachment A):
a. Approving the Fiscal Year 2023 Wastewater Collection Financial Plan (Linked Document); and
b. Approving a transfer of up to $5.33 million from the Capital Improvement Projects Reserve to the Operations Reserve in FY 2022; and c. Increasing the Wastewater Collection Utility Rates via the Amendment of Rate Schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial 9 Packet Pg. 102
City of Palo Alto Page 2
Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) (Attachment A2);
2. For the Water Utility, a Resolution (Attachment B):
a. Approving the FY 2023 Water Utility Financial Plan (Linked Document); and b. Approving a transfer of up to $13.964 million from the Capital Improvement Program (CIP) Reserve to the Operations Reserve in FY 2022; and c. Increasing Water Utility Rates via the Amendment of Rate Schedules W-1 (General Residential Water service), W-2 (Water Service from Fire Hydrants), W- 3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non- Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) (Attachment B2);
3. For the Gas Utility, a Resolution (Attachment C):
a. Approving the FY 2023 Gas Utility Financial Plan (Linked Document); and b. Approving a transfer of up to $3 million from the Operations Reserve to the CIP Reserve in FY 2022; and
c. Approving a transfer of up to $2.766 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2022; and
d. Increasing gas rates by amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service) (Attachment C2);
4. For the Electric Utility, a Resolution (Attachment D):
a. Approving the FY 2023 Electric Financial Plan (Linked Document); and b. Amending the Electric Fund Reserve Management Practices (Appendix B of the FY 2023 Electric Financial Plan), specifically amending Section 6: Electric Special Projects Reserve, as follows:
i. Amend part e) setting the goal to commit ESP funds by the end of FY 2025; and
ii. Amend part f) setting the date to revert uncommitted funds to the Electric Supply Operations Reserve to five years after the commitment date (FY 2030)
c. Approving the following transfers at the end of FY 2022:
i. Up to $15 million from the Hydro Stabilization Reserve to the Supply Operations Reserve; and
ii. Up to $5 million from the Electric Special Projects (ESP) reserve to the Supply Operations Reserve; and
iii. As discussed in Staff Report #11556, approve an allocation of Cap and Trade funds up to 1/3 of REC revenue to the Cap and Trade Program Reserve to be spent on local decarbonization programs;
9 Packet Pg. 103
City of Palo Alto Page 3
d. Approving the following rate actions for FY 2023, effective July 1, 2022 (Attachment D2):
i. Increasing retail electric rates E-1 (Residential Electric Service), E-2 (Small Non-Residential Electric Service), E-4 (Medium Non-Residential Electric Service), E-4 TOU (Medium Non-Residential Time of Use Electric Service), E-7 (Large Non-Residential Electric Service), E-7 TOU (Large Non- Residential Time of Use Electric Service) and E-14 (Street Lights) of 5%; and
ii. Updating to the Export Electricity Compensation (E-EEC-1) rate to reflect current projections of avoided cost, effective July 1, 2022; c. An update to the Net Surplus Electricity Compensation (E-NSE-1) rate to reflect current projections of avoided cost; and
iii. Updating the Palo Alto Green program pass-through premium charge on the Residential Master-Metered and Small Non-Residential Green Power Electric Service (E-2-G), the Medium Non-Residential Green Power Electric Service (E-4- G), and the Large Non-Residential Green Power Electric Service (E-7-G) rate schedules to reflect current costs;
5. A Resolution (Attachment E) Amending Utility Rate Schedules EDF-1 and EDF-2 (Attachment E1) to increase Dark Fiber Rates 4.2 percent;
6. A Resolution (Attachment F) Amending Utility Rate Schedule D-1 increasing the Storm Water Management Fee by 4.2 percent consistent with the applicable Consumer Price Index.
Executive Summary
From December 2021 through April 2022, the Utilities Advisory Commiss ion (UAC) and Finance Committee have reviewed preliminary and proposed rate changes recommended by staff for Fiscal Year 2023. This report summarizes the meetings that occurred, including all staff recommendations. This comprehensive utility rates report i ncludes separate sections for each of the Utilities: wastewater collection, water, gas, electric, dark fiber, and storm drainage and surface water. Estimates for retail revenue impacts are included in the FY 2023 budget assumptions. This report outlines th e actions requested, transmits the resolutions from these reviews, and requests City Council approval and adoption. Approval of this item would result in implementation of the finalized rates for FY 2023, beginning July 1, 2022.
Overall the proposed rate increases summarized in the chart below show that the City remains about 9% below the overall average bill of neighboring comparable cities, ensuring a high level of service to the community at an economical cost. The five-year financial forecasts do model a demonstration of increased investment in various utilities including significant investment at the Wastewater Treatment Facility as well as some placeholder assumptions for expected investment in sustainability and climate action plan initiatives. Spec ifically, while specific grid - modernization and electrification projects have not been included in the five -year capital plan, 9 Packet Pg. 104
City of Palo Alto Page 4
staff has included an assumption that Council -approved upgrades will start around FY 2024 or 2025 and require bond funding to com plete. Staff will have better information for next year’s Electric Financial Plan (FY 2024) once progress has been made on the grid modernization study.
Background
Wastewater Collection
Utilities staff presented to the UAC on March 2, 2022 and the Finance Committee on April 19, 2022 a recommendation that Council approve the FY 2023 Wastewater Collection Financial Plan, including a proposed t ransfer of up to $5.33 million from the Capital Improvement Projects Reserve to the Operations Reserve in FY 2022. In addition, s taff recommended increasing w astewater collection rates 3% by amending r ate schedules S -1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and D isposal) and S -7 (Commercial Wastewater Collection and Disposal – Industrial Discharger). See Staff Report #139711 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Water
Utilities staff presented to the UAC on March 2, 2022 and the Finance Committee on April 19, 2022 a recommendation that Council approve the FY 2023 Water Utility Financial Plan, including a proposed transfer of up to $13.964 million from the Capital Improvement Program (CIP) Reserve to the Operations Reserve in FY 2022. Staff also recommended increasing water distribution rates 4% by amending rate schedules W-1 (General Residential Water service), W-2
1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220419/20220419pfcs.pdf#page=4
9 Packet Pg. 105
City of Palo Alto Page 5
(Water Service from Fire Hydrants), W -3 (Fire Service Connections), W -4 (Residential Master - Metered and General Non -Residential Water Service), and W -7 (Non -Residential Irrigation Water Service). The SFPUC is increasing its wholesale water rates by 15.9% due to the drought and related water -purchase cutbacks, resulting in an overall water rate increase for City customers of about 8.9%. The water commodity rate increase will be passed th rough to customers starting August 1, 2022. See Staff Report #139692 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Gas
Utilities staff presented to the UAC on March 2, 2022 and the Finance Committee on April 19, 2022 a recommendation that Council approve the FY 2023 Gas Utility Financial Plan, including proposed transfers of:
a) up to $3 million from the Operations Reserve to the CIP Reserve in FY 2022, and b) up to $2.766 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2022.
In addition, staff recommended increasi ng gas rates overall by 4% (a 6% distribution rate increase) by amending rate schedules G -1 (Residential Gas Service), G -2 (Residential Master - Metered and Commercial Gas Service), G -3 (Large Commercial Gas Service), and G -10 (Compressed Natural Gas Service). See Staff Report #138403 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Electric
Utilities staff presented to the UAC on March 2, 2022 and the Finance Committee on April 19, 2022 a recommendation that Council approve the FY 2023 Electric Utility Financial Plan, including amending the Electric Fund Reserve Management Practices, section 6: Electric Special Projects Reserve, as follows:
1. Amend part e) setting the goal to commit ESP funds by the end of FY 2025; and
2. Amend part f) setting the date to revert uncommitted funds to the Electric Supp ly Operations Reserve to five years after the commitment date (FY 2030).
In addition, staff recommended the following transfers in FY 2022:
1. Up to $15 million from the Hydro Stabilization Reserve to the Supply Operations Reserve;
2. Up to $5 million from the Electric Special Projects (ESP) reserve to the Supply Operations Reserve; and
2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220419/20220419pfcs.pdf#page=24
3 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220419/20220419pfcs.pdf#page=61
9 Packet Pg. 106
City of Palo Alto Page 6
3. As discussed in Staff Report #11556 4, approve an allocation of Cap and Trade funds up to 1/3 of REC revenue to the Cap and Trade Program Reserve to be spent on local decarbonization programs.
Staff also recommended the following rate actions:
1. An increase to retail electric rates E -1 (Residential Electric Service), E -2 (Small Non - Residential Electric Service), E -4 (Medium Non -Residential Electric Service), E -4 TOU (Medium Non -Residential Time of Use Electric Service), E -7 (Large Non -Residential Electric Service), E -7 TOU (Lar ge Non-Residential Time of Use Electric Service) and E -14 (Street Lights) of 5% effective July 1, 2022;
2. An update to the Export Electricity Compensation (E -EEC-1) rate to reflect current projections of avoided cost, effective July 1, 2022;
3. An update to t he Net Surplus Electricity Compensation (E -NSE-1) rate to reflect current projections of avoided cost, effective July 1, 2022; and
4. An update to the Palo Alto Green program pass -through premium charge on the Residential Master-Metered and Small Non -Residential Green Power Electric Service (E - 2-G), the Medium Non -Residential Green Power Electric Service (E -4- G), and the Large Non-Residential Green Power Electric Service (E -7-G) rate schedules (Linked Document) to reflect current costs, effective July 1, 2022.
See Staff Report #139705 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Storm Drain
On May 3, 2022, Public Works staff presented the Finance Committee with a recommendation that the City Council adopt a resolution amending Utility Rate Schedule D -1 (Storm and Surface Water Drainage) to im plement a 4.2 percent rate increase consistent with the applicable Consumer Price Index, increasing the monthly charge per Equivalent Residential Unit by $0.64, from $15.34 to $15.98 for Fiscal Year 2023. See Staff Report #141076 for more information.
The Finance Committee unanimously recommended approval of this proposal.
Discussion
4 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-11566.pdf
5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220419/20220419pfcs.pdf#page=87
6 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220503/20220503pfcslinked.pdf#page=3
9 Packet Pg. 107
City of Palo Alto Page 7
From December 2021 through February 2022, the UAC and Finance Committee received preliminary projections of rate increase needs for FY 2023. Based on their feedback and updated financial information, staff brought to the UAC on March 2, 2022 and the Fin ance Committee on April 19, 2022, various utility financial plans, transfer requests, and rate changes recommended by staff. This report outlines the actions requested, transmits the resolutions from these reviews, and requests City Council approval and adoption.
Attached to this report are several documents, referenced throughout the recommendation language and the report. In addition, this report also includes links to the City’s website for all the staff reports presented throughout the review process t o the UAC, Finance Committee, and City Council.
Staff and the Finance Committee recommend that the City Council approve the Utility financial, proposed plans, proposed transfers and rate changes listed below.
Proposed Rate Changes and Financial Plans
Wastewater Collection Proposal
The FY 2023 Wastewater Collection Utility Financial Plan (Linked Document ) includes projections of the utility’s costs and revenues through FY 2027. The Financial Plan projects costs to rise over the forecast horizon due primarily to increasing treatment costs related to capital improvements and increasing operat ional costs at the Regional Water Quality Control Plant (RWQCP), as well as increasing collection system and Capital Improvement Program (CIP) costs.
A 3% overall revenue increase is needed in FY 2023, and staff projects overall revenue increases of approximately 5% will be required annually through FY 2027 to cover current and projected costs.
One of the main drivers for the increase in the Wastewater Collection Utility’s costs (and therefore rates) over the next several years is the cost for wastewater treatment, which is projected to increase by about 7.7% per year from FY 2021 to FY 2027 as the City makes several upgrades to the RWQCP. Future projects include secondary treatment upgrades as well as replacement of the headworks facility. Beyond FY 2027 some of the upward pressure on treatment costs is expected to be relieved, as the projected growth in treatment costs decreases to approximately 2.3% on average annually between FY 2027 and FY 2032.
Wastewater Collection operations and CIP costs (excluding costs associated with treatment) are projected to increase by approximately 4.2% annually from FY 2021 to FY 2027. This Financial Plan also projects revenue reductions due to COVID -19 primarily from the Restaurant and Commercial customer classes, with ann ual revenue reductions to be highest during FY 2022 at approximately $1 million and recovering slowly through FY 2025. The total revenue reduction included in the estimate for the Wastewater Collection utility is $2.4 million from FY 2022 through FY 2025.
9 Packet Pg. 108
City of Palo Alto Page 8
The proposed FY 2023 Wastewater Collection Utility Financial Plan includes an increase in rates of 3% for rate schedules S -1 (Residential Wastewater Collection and Disposal), S -2 (Commercial Wastewater Collection and Disposal), S -6 (Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) (Attachment A2).
The Plan also includes a proposed transfer of up to $5.33 million from the CIP Reserve to the Operations Reserve in FY 2022 . The CIP Reserve aims to stabilize uneven annual funding associated with ongoing CIP projects that are scheduled to occur every other year, such as main replacement projects, and is a source for one -time or immediately needed projects.
Withdrawals from the CIP Reserve for use on capital projects require Council action. See Staff Report #13971 for more information.
The Finance Committee members had questions about how transfers betwe en reserves worked, as well as how Palo Alto compared to other agencies and why some were much higher and others lower. Staff responded that it was mainly due to how much their relative treatment plants had been upgraded. After deliberating the proposal, t he three members of the Finance Committee voted unanimously in favor of the 3% rate increase proposal put forth by staff.
Water Proposal
The FY 2023 Water Utility Financial Plan (Linked Document) includes projections of the utility’s costs and revenues through FY 2027. Overall costs , including water purchases, operating and capital costs are p rojected to rise by about 4% per year over the next several years from FY 2022 to FY 2027 . Some capital projects were deferred in FY 2017 through FY 2021 leading to lower capital costs than budgeted. Many of these deferred capital projects are anticipated to be completed in FY 2022 and FY 2023, and a combination of funds from the Operations, CIP, CIP Reappropriations and Commitments reserve balances are available to provide funding. The robustness of these reserve levels has allowed the Water Utility to hol d rates flat for two years (FY 2021 and FY 2022), and will now be used to mitigate distribution rate increases (rates that cover the cost to deliver water within the City) to under 5% annually from FY 2023 through FY 2027. This is possible despite the ong oing drought conditions and the expected impact to water sales and revenue while still funding essential capital investments.
On November 23, 2021, the San Francisco Public Utilities Commission (SFPUC) declared a local water shortage emergency by Resolution No. 21 -01777 calling for voluntary system -wide 10% water use reductions. SFPUC serves retail customers in San Francisco as well as Palo Alto and 25 other Wholesale Customers in the Bay Area. Wholesale Customers’ collective voluntary water purchase cutback level is 13.7% from FY 2020 levels while Palo Alto’s voluntary water purchase cutback level is 8% from FY 2020 levels. Because of these expected drought -related w ater purchase cutbacks as well as increasing debt service for major capital projects on the Hetch Hetchy Regional Water System, SFPUC approved a wholesale rate increase of 15.9%8, on May 10, 2022. This SFPUC commodity rate increase in addition to the City’s 4% distribution rate
7 https://sfpuc.sharefile.com/share/view/se538152342864c05bba400824a295984 8 https://sfpuc.sharefile.com/share/view/s6fc1dddfd2454f60af70efaa8bc5712f 9 Packet Pg. 109
City of Palo Alto Page 9
increase is estimated to result in an 8.9% systemwide average total increase for the City’s water rates in FY 2023.
The proposed FY 2023 Water Utility Financial Plan includes an increase in distribution rates of 4% for rate W-1 (General Residential Water service), W -2 (Water Service from Fire Hydrants), W-3 (Fire Service Connections), W -4 (Residential Master-Metered and General Non -Residential Water Service), and W -7 (Non -Residential Irrigation Water Service) (Attachment B2 ). In addition, the Plan includes a proposed transfer of up to $13.964 million from the CIP Reserve to the Operations Reserve in FY 2022 . The CIP Reserve aims to stabilize uneven annual funding associated with ongoing CIP projects that are scheduled to occur every other year, such as main replacement projects, and is a source for one -time or immediately needed projects.
Withdrawals from the CIP Reserve for use on capital projects require Council action. See Staff Report #13969 for more information.
Staff informed the Finance committee that Palo Alto received the April rate notice of SFPUC’s
15.9% increase, which translated to an estimated overall rate increase of approximately 8.9% when combined together with the proposed 4% distribution rate increase. Finance committee members discussed possible impacts of future drought conditions coinciding w ith higher CIP costs, both at the SFPUC as well as Palo Alto’s distribution system, to future rate projections.
They also inquired as to whether treating wastewater to potable levels could be paid for with water reserves, and staff stated they could look i nto that possibility. After deliberating the proposal, the three members of the Finance Committee voted unanimously in favor of the 4% distribution rate increase proposal put forth by staff.
In addition to the rate changes described above, staff also added language to the City’s W-1, W- 2, W-4 and W-7 rate schedules to align the City’s notification process about SFPUC’s commodity rate changes with the requirements in Gov. Code Sec. 53756. While the Code permits the City’s 30 day notification of wholesale rate adjustments to be sent via the City’s regular billing statement or by any other mailing to customers, the City’s water rate schedules currently only offer the billing statement option. Section D of the attached W -1, W-2, W-4 and W -7 rate schedules now includes language permitting the option to send a separate mailing, such as a letter or postcard, to notify customers of the change , in addition to billing statement notice.
This change will apply to notice about wholesale rate increases that may occur af ter July 1, 2023.
Gas Proposal
The FY 2023 Gas Utility Financial Plan (Linked Document ) includes projections of the utility’s costs and revenues for FY 2023 through FY 2027. Gas utility costs are made up of supply -related costs (30 percent of costs in FY 2021), which are collected through a supply rate that varies monthly, and distribution -related costs (70 percent of costs in FY 2021), which are collected through a distribution rate that is typically adjusted not more than one time per year.
Distribution rates were last increased on July 1, 2021, which resulted in a roughly 3 percent increase in the total system average gas rate (supply plus the distribution rates). 9 Packet Pg. 110
City of Palo Alto Page 10
The City’s natural gas rates are based on the 2019 Natural Gas Cost of Service and Rates Study, updated with current and proposed operating costs. Commodity prices have increase d markedly in the last few months and are projected to increase by about 3% per year going forward, although weather and/or economic forces can shift this course rapidly. Capital Improvement Project (CIP) expenditures for the last several years were lower than normal while the City was completing the Upgrade Downtown project, but the next phase of the Gas Main Replacement (GMR) program will be the replacement of all Polyvinyl Chloride (PVC) mains with Polyethylene (PE) mains. C osts are anticipated to increa se due to the Gas Utility resuming ongoing main replacement projects and the cross-bore safety verification program.
With the onset of the COVID-19 pandemic, usage amongst businesses dropped to reflect people working and staying at home rather than going to the workplace, as well as restrictions to business operations. Businesses have been operating at minimum staffing conditions or fully remote during the pandemic. City of Palo Alto staff have endeavored to reduce cost increases, and some capital project work has been moved out or restructured to keep costs from rising too much during this time. In order to move towards full cost recovery while minimizing rate impacts in light of pandemic-related economic challenges, staff recommends a distribution rate increase to all customer classes of 6%, which staff estimates will result in a 4% system average rate increase, if supply rates remain unchanged. If, after the pandemic, usage and/or spending looks to be moving in a different direction, staff will suggest a re-balancing of rates.
The proposed FY 2023 Gas Utility Financial Plan includes an increase in distribution rates effective July 1, 2022 and will result in a 4 percent increase to the total system average gas rate if supply rates remain unchanged. This will be done by amending rate schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G -10 (Compressed Natural Gas Service) (Attachment C2).
Additional 4 percent increases to the total system average gas rate are projected over the next three years. See Staff Report #13840 for more information.
Committee members had questions about how future climate goals and gas usage reductions could impact future cost, and staff stated that they were attempting to model that in future Sustainability and Climate Action Plan (S/CAP) work. After deliberating the proposal, the three members of the Financ e Committee voted unanimously in favor of the 4% rate increase proposal put forth by staff.
Electric Proposal
The FY 2023 Electric Utility Financial Plan (Linked Document) includes projections of the utility’s costs and revenues through FY 2027. Staff projects costs for the Electric Utility to increase steadily through the forecast period. Rev enue increases of 5% to 6% over the forecast horizon, along with a significant use of Hydro Stabilization and Electric Special Project Reserves in the short term, are projected to be necessary to keep operating reserves within guideline levels.
9 Packet Pg. 111
City of Palo Alto Page 11
The rate increases are related to several factors: low hydro supply , increasing FY 2022 and FY 2023 purchase costs, increasing transmission costs over the longer term, the need for substantial additional capital investment in the electric distribution system, and i ncreasing operations costs due to larger contracting needs to complete electric distribution system maintenance and capital improvement work. Operations costs are expected to increase by about 2% to 3% per year through the forecast period, and projected capital expenses are higher due to the rebuilding of existing underground districts, substation upgrades, the Foothills rebuild, and utility pole replacements and line voltage upgrades.
While specific grid -modernization and electrification projects have no t been included in the five-year capital plan, staff has included an assumption that Council -approved upgrades will start around FY 2024 or 2025 and require bond funding to complete. Staff has assumed around $150 million in projects to be done over the cou rse of 10 years, starting in 2025 . Assuming bonds will be utilized to fund these , staff has estimated annual payments of $3.2 million starting in 2025, rising to $9.6 million in 2031 once multiple issuances have been completed.
This is a simplified set of assumptions intended as a placeholder, and actual costs are likely to vary. Staff will have better information for next year’s Electric Financial Plan (FY 2024) once progress has been made on the grid modernization study. The City is also evaluating the co st and scope of other system resiliency projects which may increase costs and rates in the future.
As projected in the FY 2021 Financial Plan, the lack of precipitation and resulting poor reservoir levels have increased purchase costs and necessitate the utilization of funds from the Hydroelectric Rate Stabilization Reserve. An additional loan may be required from the Electric Special Projects reserve to help keep the Operations Reserve above minimum guideline levels.
In addition, e lectric loads have been gradually decreasing and are expected to continue to decrease in the long -term, mainly due to declining consumption in the commercial sector, putting gradual upward pressure on rates , but also due to continuing efficiency measures .
Electrification will lik ely reverse some of this trend, although the pace of that impact is uncertain at this time. Consumption is currently around 10% below long -term consumption trends, and c urrent models suggest that pandemic economic recovery will take place through 2022 and 2023, with electric consumption stabilizing on the long run by 2025.
Based on these projections, staff is recommending a 5% rate increase for FY 2023 , effective July 1, 2022 , as well as amendments to the City’s Net Energy Metering (NEM) and PaloAltoGreen (PAG) schedules to reflect current costs (Attachment D2), as follows:
1. Retail electric rates E-1 (Residential Electric Service), E -2 (Small Non -Residential Electric Service), E -4 (Medium Non -Residential Electric Service), E -4 TOU (Medium Non - Residential Time of Use Electric Service), E-7 (Large Non-Residential Electric Service), E-7 TOU (Large Non -Residential Time of Use Electric Service) and E -14 (Street Lights) to be increased by 5%;
2. An update to Net Metering Net Surplus Electricity Compensation (E -NSE-1) rate reflecting current projections of the City’s avoided costs. Customers on th e City of Palo Alto's (CPAU) original NEM program, also called NEM 1, who have chosen to have the 9 Packet Pg. 112
City of Palo Alto Page 12
value of any annual net generation they produced over the past 12 months credited back to their account do so under the Net Metering Net Surplus Electricity Compensation (E-NSE-1) rate, which is calculated using the utility’s avoided costs from the prior year. The compensation rate paid to these customers is increasing slightly based on updated cost calculations for 2021.
3. An update to the Export Electricity Com pensation (E -EEC-1) rate to reflect current projections of avoided cost. Solar customers served by the NEM successor program, or NEM 2 (effective after the City reached its NEM 1 cap at the end of 2017), are compensated at the Export Electricity Compensat ion (E -EEC-1) rate for exported electricity. This buyback rate also reflects the avoided cost or value of customer - generated electricity in Palo Alto, calculated on a forward -looking basis for the upcoming fiscal year. The compensation rate paid to these c ustomers is decreasing slightly, driven by a small decrease in the value of the Renewable Energy Credits (RECs) generated by these solar systems.
4. An update to the Palo Alto Green program pass -through premium charge on the Residential Master-Metered and Small Non-Residential Green Power Electric Service (E - 2-G), the Medium Non -Residential Green Power Electric Service (E -4-G), and the Large Non-Residential Green Power Electric Service (E -7-G) rate schedules (Linked Document) to reflect current costs. The revenue collected through the PAG rate premium is set to fully recover the costs of administering the program. This charge is increasing, reflecting an increase in the wholesale cost of Green-e certified RECs in the Western US market.
Staff is also engaging the services of consultants to review and revise the Electric Utility’s Cost of Service study and rates. This study will examine how costs are allocated among the residential and commercial classes and realign them if needed , and will develop cost -based rates for several emerging groups, such as: all-electric customers, DC-fast charging facilities, and micro-grid customers. When staff brought the COSA guidelines to the UAC, Finance and Council, there was a directive for staff to propose residential rates t o support electrification, prior to a COSA. Staff’s response to that request is provided as Attachment D3.
More information on the electric rate proposal can be found in Staff Report #13970.
Finance Committee members had several questions regarding how the drought will affect long term power purchases and strategies, and staff will be addressing these issues in upcoming Integrated Resource Plan (IRP) work. After deliberating the proposal, the three members of the Finance Committee voted unanimously in favor of the recommendations put forth by staff.
Electric – Hydroelectric Rate Adjuster information
To manage the financial impacts of the annual variability in producti on of the City’s hydroelectric resources, and to allow for the City to maintain a lower target level for its Hydroelectric Stabilization Reserve (HSR), the City adopted a Hydroelectric Rate Adjuster (HRA) 9 Packet Pg. 113
City of Palo Alto Page 13
mechanism effective July 1, 2018 (Staff Report #89629).
After a promising start, it ’s now clear that the 2021 -2022 water year will be the third straight very dry year for California. As of April 26 th, precipitation totals in Northern and Central California are almost 20 -30% below average for this time of year (after being above average through January). Reservoir levels remain very low too – across Northern and Central California, most reservoirs are about 30 -50% below their average levels for this point in time. As a result, Palo Alto’s hydroelectric projections for FY 2022 and FY 2023 a re now very low —they are projected to produce around 245 GWh this fiscal year, which is about 52% of the long -term average level of hydro output, and 285 GWh in FY 2023, which is 60% of the long -term average level
This lost output – the direct result of s everal dry years depleting reservoirs and drying up groundwater supplies – will result in a supply cost impact of $8 -$10 million for the City in FY 2022 and continued higher costs going into FY 2023. In addition, staff is still anticipating utilizing most of the available HSR Reserve (Currently $15.4 million ) to help offset these continuing higher costs. As su ch, Staff recommends the continued use of the HRA at the $0.013/kwh level for FY 2023. Because this rate was activated April 1, 2022 (Staff Report #1390510), no further action is needed until the rate is either changed or de -activated by later Council action.
Dark Fiber
Since 2007, the EDF-1 and EDF-2 rates for Dark Fiber (Attachment E1) customers have increased annually by the annual December change in the Consumer Price Index for All Urban Consumers (CPI-U) in the San Francisco area, as stated in their dark fiber license agreements. Based on prior Utilities Advisory Committee and City Council direction, these rate changes are routinely included as part of the Budget adoption process rather than in a separate staff report. This year’s change in CPI -U was 4.2 percent, as reported b y the Bureau of Labor Statistics. The City has five customers remaining on the EDF-1 rate schedule. All other dark fiber customers are on the EDF -3 rate schedule , which has not been modified since its inception on September 18, 2006.
Storm Water and Surface Water Drainage
On April 11, 2017, a majority of Palo Alto property owners approved a ballot measure approving a monthly Storm Water Management Fee. This fee funds thirteen storm drainage capital improvement projects listed in the ballot measure, enha nced maintenance of the storm drainage system, and a variety of stormwater quality protection programs. The approved ballot measure allows for an annual adjustment based on the Consumer Price Index (CPI) or six percent, whichever is less. The Storm Water a nd Surface Drainage Rate will increase 4.2
9 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2018/final-staff-report-id-8962_hydroelectric-rate-adjustment-mechanism-adoption.pdf 10 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220314/20220314pccsm-amended-final-revised-ppt.pdf#page=98 9 Packet Pg. 114
City of Palo Alto Page 14
percent, increasing the monthly charge per Equivalent Residential Unit by $0.64, from $15.34 to $15.98 for Fiscal Year 2023 effective July 1, 2022, to reflect the annual CPI change. See Staff Report #14107 for more information.
Timeline
Water and Wastewater Collection Rates
After the June 1 3th Public Hearing is opened and testimony from members of the public accepted, City Council may choose to:
1. Close the hearing and take action; or
2. Close the hearing and defer action until the close of the Budget Adoption Hearing on June 13th; or
3. Continue the hearing until the end of the Budget Adoption Hearing (should the Budget Adoption Hearing be continued to another Council meeting), and then reconvene the hearing, take any additional water and wastewater collection rate testimony, close the hearing, and take action.
The latter option has been used in prior years when the Budget Adoption process has spanned multiple City Council meetings. It is customary in such circumstances to continue to accept written protests up until the hearing is closed. Unless written protests are filed by a majority of affected water and wastewater customers, Council may vote on the proposed rate actions. If approved, the water and wastewater rates will become effective July 1, 2022.
Electric, Gas, Dark Fiber and Storm Water rates, as well as Utility Financial Plans The electric, gas, dark fiber and storm drainage rates will be considered at the June 1 3, 2022 public hearing. Should the City Council take action to approve any or all of these rates, they will become effective J uly 1, 2022. The City Council will also consider changes to Financial Plans and/or Reserve Management Policies for the wastewater collection, water, electric and gas utilities, and should they take action to approve any or all of these Plans and/or Policie s, they will also become effective July 1, 2022.
Resource Impact
The resource impact of the recommendations summarized in this report is the continued financial solvency of the various Utilities and, as the City is a ratepayer, an increase to General Fund expenses of $332,000. The estimated FY 2023 revenue impact of the recommendations in this report would be an increase of $7.9 million in the Electric Fund. Normal year sales revenues for the Gas Utility are projected to increase by roughly 4 percent or $1.5 million as a result of the proposed rate increases, not including fluctuations in commodity revenue/cost. Staff projects estimated revenue for the Water Utility in FY 2023 to increase by 8.9% overall ($ 3.9 million), based on the SFPUC wholesale rate i ncrease of 15.9% (approved at the SFPUC Commission meeting of May 10, 2022). For wastewater collection, staff projects normal year revenues to increase by approximately 3% or $600,000 annually beginning in FY 2023 as a result 9 Packet Pg. 115
City of Palo Alto Page 15
of the proposed rate changes. The 4.2 percent increase in Stormwater rates is expected to increase annual revenue to the Stormwater Management Fund by approximately $ 312,000. In addition, the 4.2 percent increase in EDF-1 fiber rate is expected to increase annual revenue by approximately $23,000. The recommendations summarized in this report are reflected in the FY 2023 Proposed Operating Budget with the exception of the Water Utility, which will require revenue and expense adjustments to align with the final SFPUC wholesale rate incre ase, as that information was not available at the time the budget was produced. These adjustments will be brought forward for Council consideration through the annual budget process.
Utility
Systemwide Average
Rate Increase
FY 2023 Estimated
Revenue Impact
Electric 5.0% $7.9 million
Gas 4.0% $1.5 million
Water 8.9% $3.9 million
Wastewater Collection 3.0% $0.6 million
Stormwater Management 4.2% $0.3 million
Fiber 4.2% $0.02 million
Policy Implications
Policy Implications related to the proposed w astewater collection, water, gas, electric and storm water management fee rate actions are detailed fully in the linked Finance Committee reports.
There are no policy changes contained in the adoption of the proposed new Dark Fiber rates.
Stakeholder Engagement
The UAC reviewed preliminary financial forecasts for the Electric, Gas, Water and Wastewater Collection utilities at its December 1, 202 1 meeting ( Staff Report #1 365911), and the Finance Committee reviewed the preliminary forecasts at its February 1, 202 2 meeting ( Staff Report #1383912).
The UAC reviewed staff’s final recommendations for the following utili ties at its March 2, 2022 meeting:
11 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2021/12-01-2021-regular/id-13659.pdf 12 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220201/20220201pfcsm-final-linked.pdf#page=3 9 Packet Pg. 116
City of Palo Alto Page 16
a. Wastewater Collection (Staff Report #1396213)
b. Water (Staff Report #1366014)
c. Gas (Staff Report #1396015)
d. Electric (Staff Report #1396116)
The UAC voted to approve staff’s proposals, each passing 4 -0, with Commissioners Bowie, Scharff and Smith absent.
The Finance Committee reviewed staff’s proposals for the following utilities at its April 19, 2022 meeting, which were all passed unanimously (3-0):
a. Wastewater Collection (Staff Report #1397117)
b. Water (Staff Report #1396918)
c. Gas (Staff Report #1384019)
d. Electric (Staff Report #1397020)
The Finance Committee reviewed staff’s proposals for the Stormwater Management rate ( Staff Report #1410721) at its May 3, 2022 meeting, which was passed unanimously (3-0).
Environmental Review
Adoption of the attached Financial Plans and budgeted transfers does not meet the California Environmental Quality Act’s definition of a project, pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(4) and (5), because it is a go vernmental fiscal and administrative activity which will not cause a direct or indirect physical change in the
13 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/03-02-2022/03-02-2022- packet.pdf#page=127
14 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/03-02-2022/03-02-2022- packet.pdf#page=75
15 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/03-02-2022/03-02-2022- packet.pdf#page=161
16 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2022/03-02-2022/03-02-2022- packet.pdf#page=201
17 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220419/20220419pfcs.pdf#page=4
18 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220419/20220419pfcs.pdf#page=24
19 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220419/20220419pfcs.pdf#page=61
20 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220419/20220419pfcs.pdf#page=87
21 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20220503/20220503pfcslinked.pdf#page=3
9 Packet Pg. 117
City of Palo Alto Page 17
environment. Adoption of the proposed wastewater collection, water, gas, electric, storm water management fee, and dark fiber rates to meet oper ating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
Attachments:
• Attachment9.a: Attachment A: Resolution for the Wastewater Collection Utility • Attachment9.b: Attachment A2: Proposed FY 2023 Wastewater Rates • Attachment9.c: Attachment B: Resolution for the Water Utility • Attachment9.d: Attachment B2: Proposed FY 2023 Water Rate Schedules • Attachment9.e: Attachment C: Resolution for the Gas Utility • Attachment9.f: Attachment C2: Proposed FY 2023 Gas Rates • Attachment9.g: Attachment D: Resolution for the Electric Utility • Attachment9.h: Attachment D2: Proposed FY 2023 Electric Rates • Attachment9.i: Attachment D3: Early Electric Rate Change Memo • Attachment9.j: Attachment E: Resolution for the Fiber Optic Utility • Attachment9.k: Attachment E1: Proposed Fiber Rates
• Attachment9.l: Attachment F: Resolution and Rate Schedule for the StormWater Utility
9 Packet Pg. 118
Attachment A
* NOT YET APPROVED *
6055605
Resolution No. ___
Resolution of the Council of the City of Palo Alto Approving the FY 2023 Wastewater Collection Utility Financial Plan, Including Reserve Transfers, and Adjusting Wastewater Rates by Amending Rate Schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger)
R E C I T A L S
A. Each year the City of Palo Alto (“City”) assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. It does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections.
B. The City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made a part of the Financial Plans.
C. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.
D. On ____, 2022, the City Council held a full and fair public hearing regarding the proposed rate increase and considered all protests against the proposals.
E. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the ________ 2022 pub lic hearing was mailed to all City of Palo Alto Utilities wastewater customers by _______, 2022.
F. The City Clerk has tabulated the total number of written protests presented by the close of the public hearing, and determined that it was less than fifty percent (50%) of the total number of customers and property owners subject to the proposed wastewater rate amendments, therefore a majority protest does not exist against the proposal.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby adopts the FY 2023 Wastewater Collection Utility Financial Plan.
9.a
Packet Pg. 119
Attachment A
* NOT YET APPROVED *
6055605
SECTION 2. The Council hereby approves the following transfer as described in the FY 2023 Wastewater Collection Utility Financial Plan:
a. Up to $5,330,000 in FY 2022 from the Capital Improvement Projects Reserve to the Operations Reserve.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-1 (Residential Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S- 1, as amended, shall become effective July 1, 2022.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-2 (Commercial Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-2, as amended, shall become effective July 1, 2022.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-6 (Restaurant Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-6, as amended, shall become effective July 1, 2022.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-7, as amended, shall become effective July 1, 2022.
SECTION 7. The Council finds that the revenue derived from the wastewater rates approved by this resolution do not exceed the funds required to provide wastewater service, and the revenue derived from the adoption of this resolution shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 8. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.
//
//
//
//
//
9.a
Packet Pg. 120
Attachment A
* NOT YET APPROVED *
6055605
//
SECTION 9. The Council finds that the adoption of this resolution approving the FY 2023 Wastewater Financial Plan and Reserve transfers does not meet the California Environmental Quality Act’s definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental review is required. The Council finds that the adoption of this resolution changing Wastewater collection r ates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Assistant City Attorney City Manager
Director of Utilities
Director of Administrative Services
9.a
Packet Pg. 121
UTI
LITY RATE SCHEDULE S-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-1-1 Effective 79-1-20221
dated 97-1-202119 Sheet No S-1-1
A. APPLICABILITY:
This schedule applies to each Occupied Domestic Dwelling unit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Service.
C. RATES:
Per Month
Each Occupied Domestic Dwelling unit ................................................................................ $44.6243.32
D. SPECIA
L NOTES:
1. A ny dwelling unit being individually served by a W ater, Gas, or E lectric Meter will be considered continuously occupied.
2. For two or more Occupied Domestic Dwelling units served by one Water Meter, the monthly Wastewater charge wil l be calculated by multiplying the current W astewater rate by the number of dwelling units.
3. Each developed separate lot shall have a separate service lateral to a sanitary main or manhole.
{End}
Attachment A2
RESIDENTIAL WASTEWATER COLLECT ION A ND DISPOSAL
9.b
Packet Pg. 122
COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-2-1 Effective 79-1-202221
dated 97-1-202119 Sheet No S-2-1
A. APPLICABILITY:
This schedule applies to all commercial establishments other than those served under Utility Rate Schedule S-1 (Residential Wastewater Collection and Disposal), Rate Schedule S -6 (Restaurant Wastewater Collection and Disposal ) or Rate Schedule S-7 (C ommercial Establishments Wastewater Disposal – Industrial Discharger).
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Services.
C. RATES:
Quantity Rate, per 100 cubic feet (See Section D.1) .......................................................... $8.3309
D. SPECIAL NOTES:
1. T he monthly charge for the quantity rate set forth in Section C of this rate schedule will be based upon the average Water usage for the months of January, February and March, and applied in the following July. If a Water Meter is identified as exclusively serving irrigation landscaping, such Meter will be exempted from Wastewater charge calculations.
Customers without an applicable usage history will be rebuttably presumed to have usage of 4.8 ccf per month until such time as such usage may reasonably be established by the City of Palo Alto Utilities Department.
2. The City of Palo Alto Utilities Department may require W astewater Metering facilities, in which case Service will be governed by terms of a special agreement between the City and the Customer.
{End}
:\\I/~ -.....;: :;.,.,,,"'
PAI E CITY OF PALO ALTO
aaJ\" UTILITIES
9.b
Packet Pg. 123
RESTAURANT WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-6
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-6-1 Effective 79-1-20221
dated 97-1-202119 Sheet No S-6-1
A. APPLICABILITY:
This schedule applies to all restaurants.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Services.
C. RATES:
Quantity Rates, per 100 cubic feet of monthly metered Water usage ...................................$ 12.4307
D. S PECIAL NOTES:
1. The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in which case Service will be governed by terms of a special agreement between the City and the Customer.
{End}
9.b
Packet Pg. 124
COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
– INDUSTRIAL DISCHARGER
UTILITY RATE SCHEDULE S-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-7-1 Effective 79-1-20221
dated 97-1-202119 Sheet No S-7-1
A. APPLICABILITY:
This schedule applies to any establishment requiring sampling of industrial discharges in excess of 25,000 gallons per day, or special discharge monitoring, as defined in Rule 23, Section C.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Wastewater Services.
C. RATES:
1. Collection System Operation, Maintenance, and Infiltration Inflow:
$4.1402 per 100 cubic feet of metered water use.
2. Advanced Waste Treatment Operations and Maintenance Charge:
$1.650 per 100 cubic feet of metered water use
3. $202.23196.34 per 1000 pounds (lbs) of C OD (Chemical Oxygen Demand)
4. $487.58473.38 per 1000 lbs of SS (Suspended Solids)
5. $3,369.05270.92 per 1000 lbs of NH 3 (Ammonia)
6. $ 14,781.25 per 1000 lbs of toxics (chromium, copper, cyanide, lead, nickel, silver, and zinc)
D. SPECIAL NOTES:
1. Water usage will be determined as defined in Rule 23 , Section C . If a Water Meter is identified as exclusively serving irrigation landscaping, such M eter will be exempted from Wastewater charge calculations.
2. The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in which case Service will be governed by terms of a special agreement between the City of Palo Alto and the Customer.
3. Charges for large discharges will be determined on the basis of sampling as outlined in Utilities Rule 23 , Section C . However, for purposes of arriving at an accurate flow estimate, discharge M eters, if installed, can be utilized to measure outflow for billing purposes. Annual charges will be determined and allocated monthly for billing purposes. {End}
~,,,~
-.....;: ;..,--
Iii! ~ CITY OF PALO A. LTO
aaJ\" UTILITIES ,
9.b
Packet Pg. 125
Attachment B
6056604
* NOT YET APPROVED *
Resolution No.__________
Resolution of the Council of the City of Palo Alto Approving the FY 2023 Water Utility Financial Plan and Reserve Transfer, and Increasing Water Rates by Amending Rate Schedules W-1
(General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non- Residential Water Service), and W-7 (Non-Residential Irrigation Water Service)
R E C I T A L S
A. Each year the City of Palo Alto (“City”) regularly assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. The City does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections.
B. The
City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made part of the Financial Plans.
C. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and c harges.
D. On , 2022, the City Council held a full and fair public hearing regarding the proposed rate increase and considered all protests against the proposals.
E. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the 2022 public hearing was mailed to all City of Palo Alto Utilities water customers by ____, 2022.
F. The Ci
ty Clerk has tabulated the total number of written protests presented by the close of the public hearing, and determined that it was less than fifty percent (50%) of the total number of customers and property owners subject to the proposed water rate amendments, therefore a majority protest does not exist against the proposal.
The Council of the City of Palo Alto does hereby RESOLVE, as follows:
9.c
Packet Pg. 126
Attachment A
6056604
SECTION 1. The Council hereby adopts the FY 2023 Water Utility Financial Plan.
SECTION 2. The Council hereby approves a transfer from the Capital Improvement Program Reserve to the Operations Reserve of up to $13,964,000 in FY 2022 as described in the FY 2023 Water Utility Financial Plan.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-1 (General Residential Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-1, as amended, shall become effective July 1, 2022.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-2 (Water Service from Fire Hydrants) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-2, as amended, shall become effective July 1, 2022.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-3 (Fire Service Connections) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-3, as amended, shall become effective July 1, 2022.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-4 (Residential Master-Metered and General Non-Residential Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-4, as amended, shall become effective July 1, 2022.
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-7 (Non-Residential Irrigation Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-7, as amended, shall become effective July 1, 2022.
SECTION 8. The City Council finds as follows:
a. Revenues derived from the water rates approved by this resolution do not exceed the funds required to provide water service.
b. Revenues derived from the water rates approved by this resolution shall not be used for any purpose other than providing water service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
c. The amount of the water rates imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the water service attributable to the parcel.
9.c
Packet Pg. 127
Attachment A
6056604
SECTION 9. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
//
9.c
Packet Pg. 128
Attachment A
6056604
//
SECTION 10. The Council finds that the adoption of this resolution approving the Financial Plan and Reserve transfers does not meet the California Environmental Quality Act’s (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental review is required. The Council finds that the adoption of this resolution changing water rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
________________________________ ________________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
________________________________ ________________________________ Assistant City Attorney City Manager
________________________________
Director of Utilities
________________________________
Director of Administrative Services
9.c
Packet Pg. 129
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-1-1
A. APPLICABILITY:
This
schedule applies to separately metered single- family residential dwellings receiving W ater Service from the City of Palo Alto Utilities.
B. TERRI
TORY:
This schedule applies everywhere the City of Palo Alto provides Water Services.
C. RATES
:
Per Meter
Monthly Service Charge: Per Month
For meters 5/8-inch to 1 inch .................................................................................... $ 20.2521.06 For 1 1/2 inch meter .................................................................................................. 65.4068.02 For 2-inch meter ........................................................................................................ 101.17105.22 For 3-inch meter ........................................................................................................ 214.44223.02 For 4-inch meter ........................................................................................................ 381.37396.63 For 6-inch meter ........................................................................................................ 780.79812.03 For 8-inch meter ........................................................................................................1,436.571,494.04 For 10-inch meter ......................................................................................................2,271.202,362.05 For 12-inch meter .......................................................................................................2,986.603,106.07 Per
Hundred
Cubic Feet
Volumetric Rates: (To be added to Service Charge, applicable to all pressure zones.) Per Month Commo
dity Rate:
Water Delivery Charge from SFPUC ......................................................................... $4.104.72-5.13 Distr
ibution Rate:
Tier 1 usage ........................................................................................................................$ 2.562.67 Tier 2 usage (All usage over 100% of Tier 1) .......................................................................5.976.21 Attachment B2 9.d
Packet Pg. 130
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-1-2
Drought Surcharges (deactivated):
A drought surcharge will be added to the Customer’s applicable commodity rate for Tier 1 and Tier 2 Water usage when the City Council has determined that a Water reduction level is in effect for the City as described in Section D.43. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Tier 1 0.20 0.43 0.64
Tier 2 0.58 1.21 1.85
Temporary Service – Developers
Temporary unmetered service to residential
subdivision developers, per connection ........................................................................ $6.00
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Commodity Rate
The Commodity Charge is based on the wa ter delivery rate per the San Francisco Public Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The Commodity Charge will be passed through automatically via periodic rate adjustments to account for increases in wholesale water charges, as well as inflation. The pass-through period will be effective for fiscal years 2020 through 2024, i nclusive.
Customers will be provided notice of any adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular billing address.
9.d
Packet Pg. 131
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-3 Effective 7-1-202219
dated 7-1-20198 Sheet No W-1-3
3. Calculation of Usage Tiers
Tier 1 Water usage shall be calculated and billed based upon a level of 0.2 ccf per day rounded to the nearest whole ccf, based on Meter reading days of Service. As an example, for a 30-day bill, the Tier 1 level would be 0 through 6 ccf. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
4. Drought Surcharge
During period of Water shortage or restrictions on local Water use, the City Council may, by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought surcharge is to recover revenues lost as a result of reduced consumption.
{End}
9.d
Packet Pg. 132
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-2-1
A. APPLICABILITY:
This schedule applies to all Water taken from fire hydrants for construction, maintenance, and other uses in conformance with provisions of a Hydrant Meter Permit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Service.
C. RATES:
1. Monthly Service Charge.
METER SIZE
5/8 inch ........................................................................................................................... 50.00 3 inch ........................................................................................................................... 125.00
2. Volumetric Rate: (per hundred cubic feet)
Commodity Rate:
Water Delivery Charge from SFPUC ................................................................ $4.104.72-5.13
Distribution Rate: .................................................................................................................$3.613.76
4. Drought Surcharges (deactivated)
:
A drought surcharge will be added to the Customer’s applicable Commodity rate when the City Council has determined that a Water reduction level is in effect for the City as described in Section D.65. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.26 0.53 0.77
D. SPECIAL NOTES:
9.d
Packet Pg. 133
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-2-2
1. Monthly charges shall include the applicable monthly Service Charge in addition to usage billed at the commodity rate.
2. The Commodity Charge is based on the water delivery rate per the San Francisco Public Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The Commodity Charge will be passed through automatically via periodic rate adjustments to account for increases in wholesale water charges, as well as inflation. The pass -through period will be effective for fiscal years 2020 through 2024, inclusive. Customers will be provided notice of any adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular billing address.
3. Any person or company using a hydrant without first obtaining a valid Hydrant Meter Permit shall pay a fee of $50.00 for each day of such use in addition to all other costs and fees provided in this schedule. A hydrant permit may be denied or revoked for failure to pay such fee.
4. A Meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Per mit as a prerequisite to the issuance of a permit and Meter(s). A charge of $50.00 per day will be added for delinquent return of hydrant Meters. A fee will be charged for any Meter returned with missing or damaged parts.
5. Any person or company using a fire hydrant improperly or without a permit, or who draws Water from a hydrant without a Meter installed and properly recording usage shall, in addition to all other applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code.
6. During period of W ater shortage or restrictions on local Water use, the C ity Council may, by resolution, declare the need for citywide W ater conservation at the 10/15%, 20% or 25% level.
While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought surcharge is to recover revenues lost as a result of reduced consumption.
{End}
9.d
Packet Pg. 134
FIRE SERVICE CONNECTIONS
UTILITY RATE SCHEDULE W-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-3-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-3-1
A. APPLICABILITY:
This schedule applies to all public fire hydrants and private fire Service connections.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Service.
C. RATES:
1. Monthly Service Charges
Public Fire Hydrant .................................................................................................... $5.00
Private Fire Service:
2-inch connection .......................................................................................................$4.174.34 4-inch connection .......................................................................................................25.8126.85 6-inch connection ....................................................................................................... 74.9677.96 8-inch connection .......................................................................................................159.74166.13 10-inch connection .....................................................................................................287.27298.77 12-inch connection .....................................................................................................464.02482.59
2. Commodity
(To be added to Service Charge unless Water is used for fire extinguishing or testing purposes.)
Per Hundred Cubic Feet
All water usage .......................................................................................................... $10.00
D. SPECIAL NOTES:
1. Service under this schedule may be discontinued if W ater is used for any purpose other than fire extinguishing or testing and repairing the fire extinguishing facilities. Using hydrants and fire Services for other purposes is illegal and will be subject to the commodity charge as noted above, fines, and criminal prosecution pursuant to the Palo Alto Municipal Code.
2. For a combination W ater and fire Service, the Water Service schedule shall apply.
9.d
Packet Pg. 135
FIRE SERVICE CONNECTIONS
UTILITY RATE SCHEDULE W-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-3-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-3-2
3. Utilities Rule and Regulation No. 21 provides additional information on Automatic Fire Services.
4. Repairs and testing of fire extinguishing facilities are not considered unauthorized use of Water if records and documentation are supplied by the Customer.
{End}
9.d
Packet Pg. 136
RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-4-1
A. APPLICABILITY:
This schedule applies to Water Services to non-residential buildings, and multi-family residential dwellings served through a Master-Meter.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Service.
C. RATES:
Per Meter
Monthly Service Charge
Per Month
For 5/8- inch meter .................................................................................... $ 17.7118.42 For 3/4- inch meter .................................................................................... 23.6724.62 For 1- inch meter .................................................................................... 35.5937.02 For 1 ½- inch meter .................................................................................... 65.4068.02 For 2- inch meter .................................................................................... 101.17105.22 For 3- inch meter .................................................................................... 214.44223.02 For 4- inch meter .................................................................................... 381.37396.63 For 6- inch meter .................................................................................... 780.79812.03 For 8- inch meter ....................................................................................1,436.571,494.04 For 10- inch meter ....................................................................................2,271.202,362.05 For 12- inch meter ....................................................................................2,986.603,106.07
Per Hundred
Cubic Feet
Volumetric Rates: (to be added to Service Charge, applicable to all pressure zones) Per Month
Commodity Rate:
Water Delivery Charge from SFPUC ......................................................$ 4.104.72-5.13
Distribution Rate: ........................................................................................... 3.613.76
Drought Surcharges (deactivated):
9.d
Packet Pg. 137
RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-4-2
A drought surcharge will be added to the Customer’s applicable commodity r ate when the City Council has determined that a Water reduction level is in effect for the City as described in Section D.32. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.26 0.53 0.77
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Commodity Rate
The Commodity Charge is based on the water delivery rate per the San Francisco Public Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The Commodity Charge will be passed through automatically via periodic rate adjustments to account for increases in wholesale water charges, as well as inflation. The pass-through period will be effective for fiscal years 2020 through 2024, inclusive.
Customers will be provided notice of any adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular billing address.
3. Drought Surcharge
During period of Water shortage or restrictions on local Water use, the City Council may, by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought surcharge is to recover revenues lost as a result of reduced consumption.
{End}
9.d
Packet Pg. 138
NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-1 Effective 7-1-202219
dated 7-1-20198 Sheet No W-7-1
A. APPLICABILITY:
This schedule applies to non-residential Water Service supplying dedicated irrigation Meters.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides Water Services.
C. RATES:
Per Meter
Monthly Service Charge
Per Month
For 5/8- inch meter .................................................................................... $ 17.7118.42 For 3/4- inch meter .................................................................................... 23.6724.62 For 1- inch meter .................................................................................... 35.5937.02 For 1 1/2 inch meter .................................................................................... 65.4068.02 For 2- inch meter .................................................................................... 101.17105.22 For 3- inch meter .................................................................................... 214.44223.02 For 4- inch meter .................................................................................... 381.37396.63 For 6- inch meter .................................................................................... 780.79812.03 For 8- inch meter ....................................................................................1,436.571,494 .04 For 10- inch meter ....................................................................................2,271.202,362.05 For 12- inch meter ....................................................................................2,986.603,106.07
Per Hundred
Cubic Feet
Volumetric Rates: (to be added to Service Charge, applicable to all pressure zones) Per Month
Commodity Rate:
Water Delivery Charge from SFPUC ...............................................$ 4.104.72-5.13
Distribution Rate: ........................................................................................... 5.505.72
9.d
Packet Pg. 139
NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-2 Effective 7-1-202219
dated 7-1-20198 Sheet No W-7-2
Drought Surcharges (deactivated):
A drought surcharge will be added to the Customer’s applicable commodity rate when the City Council has determined that a Water reduction level is in effect for the City as described in Section D.32. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.53 1.25 2.02
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Commodity Rate
The Commodity Charge is based on the water delivery rate per the San Francisco Public Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The Commodity Charge will be passed through automatically via periodic rate adjustments to account for increases in wholesale water charges, as well as inflation. The pass-through period will be effective for fiscal years 2020 through 2024, inclusive.
Customers will be provided notice of any adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular billing address.
3. Drought Surcharge
During period of Water shortage or restrictions on local Water use, the City Council may, by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought surcharge is to recover revenues lost as a result of reduced consumption.
{End}
9.d
Packet Pg. 140
Attachment C
* NOT YET APPROVED *
6055597
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving the Fiscal Year 2023 Gas Utility Financial Plan, Including Proposed Transfers, and Increasing Gas Rates by Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G- 10 (Compressed Natural Gas Service)
R E C I T A L S
A. Each year the City of Palo Alto (“City”) regularly assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations, including reserves.
This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. It does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections.
B. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.
C. On ____, 2022, the City Council heard and approved the proposed rate increase at a noticed public hearing.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby adopts the FY 2023 Gas Utility Financial Plan.
SECTION 2.
The Council hereby approves the transfer of up to $2.766 Million from the Rate Stabilization Reserve to the Operations Reserve, and up $3 Million from the Operations Reserve to the CIP Reserve, as described in the FY 2023 Gas Utility Financial Plan approved via this resolution.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-1 (Residential Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-1, as amended, shall become effective July 1, 2022.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-2 (Residential Master-Metered and Commercial Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-2, as amended, shall become effective July 1, 2022.
9.e
Packet Pg. 141
Attachment A
* NOT YET APPROVED *
6055597
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-3, as amended, shall become effective July 1, 2022.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-10, as amended, shall become effective July 1, 2022.
SECTION 7. The City Council finds as follows:
a. Revenues derived from the gas rates approved by this resolution do not exceed the funds required to provide gas service.
b. Revenues derived from the gas rates approved by this resolution shall not be used for any purpose other than providing gas service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 8. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.
SECTION 9. The Council finds that approvin g the Financial Plan does not meet the California Environmental Quality Act’s (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental assessment is required. The Council finds that changing gas rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
//
//
//
//
//
9.e
Packet Pg. 142
Attachment A
* NOT YET APPROVED *
6055597
//
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________ C i t y C l e r k M a y o r
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________ Assistant City Attorney City Manager
___________________________
D i r e c t o r o f U t i l i t i e s
___________________________
Director of Administrative Services
9.e
Packet Pg. 143
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY
OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-1 Sheet No G-1-1
dated 7-1-20201 Effective 7-1-20212
A. APPLICABILITY:
This
schedule applies to the following Customers receiving Gas Service from City of Palo Alto Utilities:
1. S eparately-metered single-family residential Customers.
2. Separately-metered multi-family residential Customers in multi- family residential facilities.
B. TERRI
TORY:
Thi
s schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLE
D RATES: Per Service
Monthly Service Charge: ...............................................................................................$10.8911.54 Tier
1 Rates: Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charge ............................................ $0.00-$0.25
3. Transportation Charge ................................................................. $0.00-$0. 1525
4. Carbon Offset Charge .................................................................. $0.00-$0.10 Distribution Charge:....................................................................................... $0.52905607 Tier
2 Rates: (All usage over 100% of Tier 1)
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-2.00
2. Cap and Trade Compliance Charge ............................................. $0.00-$0.25
3. Transportation Charge ................................................................. $0.00-$0.1525
4. Carbon Offset Charge .................................................................. $0.00-$0.10 Distribution Charge:............................................................................................. ............................................................................................................$1.35261.4 338
O
CITYOF
PALO ALTO
UTILITIES
Attachment C2
9.f
Packet Pg. 144
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-2 Sheet No G-1-2
dated 7-1-20201 Effective 7-1-20212
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with the state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases produced in the burning of natural gas. The Carbon Offset Charge will change in response to changing market conditions, changing sales volumes and the quantity of offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges will fall within the minimum/maximum ranges set forth in Section C. Current and historic per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are posted on the City Utilities website.1
2. Seasonal Rate Changes:
The Summer period is effective April 1 to October 31 and the W inter period is effective from November 1 to March 31. When the billing period includes use in both the Summer
1 Monthly gas and commodity and volumetric rates are available here, or by visiting https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/monthly-gas-commodity-rates.pdf
9.f
Packet Pg. 145
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-3 Sheet No G-1-3
dated 7-1-20201 Effective 7-1-20212
and the W inter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates for each period. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Calculation of Usage Tiers
Tier 1 natural gas usage shall be calculated and billed based upon a level of 0.667 therms per day during the Summer period and 2.0 therms per day during the Winter period, rounded to the nearest whole therm, based on meter reading days of service. As an example, for a 30 day bill, the Tier 1 level would be 20 therms during the Summer period and 60 therms during the Winter period months. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
{End}
9.f
Packet Pg. 146
RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-1 Effective 7-1-20212
dated 7-1-20201 Sheet No G-2-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto Utilities:
1. Commercial Customers who use less than 250,000 therms per year at one site.
2. Master-metered residential Customers in multi-family residential facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:
Per Service
Monthly Service Charge: ...........................................................................................$100.85106.90
Per Therm
Supply Charges:
1. Commodity (Monthly Market Ba sed) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ........................................... $0.00-0.25
3. Transportation Charge ................................................................. $0.00-$0.1525
4. Carbon Offset Charge .................................................................. $0.00-$0.10
Distribution Charge: .................................................................................................. $0.6948 7365
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or Taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
The Commodity C harge is based on the monthly natural gas Bidweek P rice Index for delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Tr ade Compliance Charge reflects the City’s cost of regulatory compliance with the state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required.
9.f
Packet Pg. 147
RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-2 Effective 7-1-20212
dated 7-1-20201 Sheet No G-2-2
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases produced in the burning of natural gas. The Carbon Offset Charge will change in response to changing market conditions, changing sales volumes and the quantity of offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges will fall within the minimum/maximum ranges set forth in Section C. Current and historic per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are posted on the City Utilities website.1
{End}
1 Monthly gas and commodity and volumetric rates are available here, or by visiting https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/monthly-gas-commodity-rates.pdf
9.f
Packet Pg. 148
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-1 Effective 7-1-20212
dated 7-1-20201 Sheet No G-3-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto Utilities:
1. Commercial Customers who use at least 250,000 therms per year at one site.
2. Customers at City-owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:
Per Service
Monthly Service Charge: $461.43489.12
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ...................................................... $0.00-0.25
3. Transportation Charge .......................................................................... $0.00- $0.1525
4. Carbon Offset Charge ........................................................................... $0.00-$0.10
Distribution Charge: .....................................................................................................$0.68797292
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts , surcharges and/or T axes. On a C ustomer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
The Commodity C harge is based on the monthly natural gas Bidweek P rice Index for delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
9.f
Packet Pg. 149
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-2 Effective 7-1-20212
dated 7-1-20201 Sheet No G-3-2
The Cap and Trade Compliance C harge reflects the City’s cost of regulatory compliance with the state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required.
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases produced in the burning of natural gas. The Carbon Offset Charge will change in response to changing market conditions, changing sales volumes and the quantity of offsets purchased within the Council-approved per therm cap.
The Transportation Charge is based on the current PG&E G -WSL rate for Palo Alto , accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges will fall within the minimum/maximum ranges set forth in Section C. Current and historic per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are posted on the City Utilities website.1
2. Request for Service
A qualifying Customer may request service under this schedule for more than one account or meter if the accounts are located on one site. A site consists of one or more contiguous parcels of land with no intervening public right-of- ways (e.g. streets).
3. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable City of Palo Alto full-service rate schedule.
{End}
1 Monthly gas and commodity and volumetric rates are available here, or by visiting https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/monthly-gas-commodity-rates.pdf
9.f
Packet Pg. 150
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-1 Effective 7-1-20212
dated 7-1-20201 Sheet No. G-10-1
A. APPLICABILITY:
This schedule applies to the sale of natural gas to the City-owned compressed natural gas (CNG) fueling station at the Municipal Service Center in Palo Alto.
B. TERRITORY:
Applies to the City’s CNG fueling station located at the Municipal Service Center in City of Palo Alto.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ...............................................................................................$68.2172.30
Per Therm
Supply Charges:
Commodity (Monthly Market Based) ................................................................ $0.10-$2.00 Cap and Trade Compliance Charges .............................................................. $0.00 to $0.25 Transportation Cha rge ................................................................................... $0.00-$0.1525 Carbon Offset Charge ........................................................................................ $0.00-$0.10
Distribution Charge .......................................................................................................$0.01130120
D. SPECIAL CONDITIONS
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applica ble discounts, surcharges and/or Taxes. On a C ustomer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
The Commodity charge is based on the monthly natural gas B idweek Price Index for delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter.
The Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with the state’s Cap and Trade Program, including the cost of acquiring compliance instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap and Trade Compliance Charge will change in response to changing market conditions, retail sales volumes and the quantity of allowances required.
9.f
Packet Pg. 151
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-2 Effective 7-1-20212
dated 7-1-20201 Sheet No. G-10-2
The Carbon Offset Charge reflects the City’s cost to purchase offsets for greenhouse gases produced in the burning of natural gas. The Carbon Offset Charge will change in response to changing market conditions, changing sales volumes and the quantity of offsets purchased within the C ouncil- approved per therm cap.
The Transportation Charge is based on the current PG&E G-WSL rate for Palo Alto, accounting for delivery losses to the Customer’s Meter.
The Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges will fall within the minimum/maximum range set forth in Section C. Current and historic per therm rates for the Commodity, Cap and Trade Compliance, Carbon Offset and Transportation Charges are posted on the City Utilities website.1
{End}
1 Monthly gas and commodity and volumetric rates are available here, or by visiting https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/monthly-gas-commodity-rates.pdf
9.f
Packet Pg. 152
Attachment D
6055603
Utility Electric Rate Schedules
FY23 Electric Financial Plan
*Yet to be Passed*
Resolution No. ____
Re
solution of the Council of the City of Palo Alto Approving the Fiscal Year 2023 Electric Utility Financial Plan and Reserve Transfers, Amending the Electric Utility Reserves Management Practices and Amending Utility Rate Schedules E-1 (Residential Electric Service), E-2 (Residential Master-Metered and Small Non-Residential Electric Service), E-2-G (Residential Master- Metered and Small Non-Residential Green Power Electric Service), E-4 (Medium Non-Residential Electric Service), E-4-G (Medium Non-Residential Green Power Electric Service), E-4 TOU (Medium Non-Residential Time of Use Electric Service), E 7 (Large Non-Residential Electric Service), E-7-G (Large Non- Residential Green Power Electric Service), E-7 TOU (Large Non-Residential Time of Use Electric Service), E-14 (Street Lights), E-NSE (Net Surplus Electricity Compensation Rate), and E-EEC (Export Electricity Compensation)
R E C I T A L S
A. Eac
h year the City of Palo Alto (“City”) regularly assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. It does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates.
The City adopts Financial Plans to summarize these projections.
B. Th
e C ity uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made part of the Financial Plans.
C. Purs
uant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.
D. On Jun
e __, 2022, the City Council heard and approved the proposed rate increase at a noticed public hearing.
Th
e Council of the City of Palo Alto does hereby RESOLVE as follows:
SE
CTION 1. The Council hereby approves the FY 2023 Electric Utility Financial Plan.
9.g
Packet Pg. 153
Attachment A
6055603
Utility Electric Rate Schedules
FY23 Electric Financial Plan
SECTION 2. The Council hereby approves amendments to Section 6 (Electric Special Projects Reserve) of the Electric Utility Reserves Management Practices to read as attached and incorporated.
SECTION 3. The Council hereby approves the following transfers to be made by the end of FY 2022, as described in the FY 2023 Electric Utility Financial Plan:
a. Approve a transfer of up to $15 million from the Hydro Stabilization Reserve to t he Supply Operations Reserve;
b. Approve a transfer of up to $5 million from the Electric Special Projects (ESP) reserve to the Supply Operations Reserve; and
c. Approve an allocation of up to $1 million from the Cap and Trade Program Reserve to be allocated to local decarbonization programs); and
SECTION 4
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-1 (Residential Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-1, as amended, shall become effective July 1, 2022.
SECTION 5
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-2 (Residential Master-Metered and Small Non-Residential Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-2, as amended, shall become effective July 1, 2022.
SECTION 6
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-2-G (Residential Master-Metered and Small Non-Residential Green Power Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-2-G, as amended, shall become effective July 1, 2022.
SECTION 7
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4 (Medium Non-Residential Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-4, as amended, shall become effective July 1, 2022.
SECTION 8
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4-G (Medium Non-Residential Green Power Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall become effective July 1, 2022.
SECTION 9
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-4 TOU (Medium Non-Residential Time of Use Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-4 TOU, as amended, shall become effective July 1, 2022.
9.g
Packet Pg. 154
Attachment A
6055603
Utility Electric Rate Schedules
FY23 Electric Financial Plan
SECTION 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7 (Large Non-Residential Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-7, as amended, shall become effective July 1, 2022.
SECTION 11. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7-G (Large Non-Residential Green Power Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become effective July 1, 2022.
SECTION 12
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-7 TOU (Large Non-Residential Time of Use Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-7 TOU, as amended, shall become effective July 1, 2022.
SECTION 13
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-14 (Street Lights) is hereby amended to read as attached and incorporated.
Utility Rate Schedule E-14, as amended, shall become effective July 1, 2022.
SECTION 14
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E- NSE ( Net Surplus Electricity Compensation Rate) is hereby amended to read as attached and incorporated. Utility Rate Schedule E -NSE-1, as amended, shall become effective July 1, 2022.
SECTION 15
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-EEC-1 (Export Electricity Compensation) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-EEC-1, as amended, shall become effective July 1, 2022.
SECTION 16
. The Council makes the following findings:
a. The revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. b. The fees and charges adopted by this resolution are cha rges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.
//
//
//
9.g
Packet Pg. 155
Attachment A
6055603
Utility Electric Rate Schedules
FY23 Electric Financial Plan
SECTION 17. The Council finds that approving the Financial Plan and Reserve transfers does not meet the California Environmental Quality Act ’s (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental assessment is required. The Council finds that changing electric rates to meet operating expenses, purc hase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a).
After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________ Assistant City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
9.g
Packet Pg. 156
UTILI
TY RATE SCHEDULE E-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-1-1 Sheet No E-1-1
dated 7-1-20198 Effective 7-1-20192022
A. APPLICABILITY:
This Rate Schedule applies to separately metered single -family residential dwellings receiving Electric Service from the City of Palo Alto Utilities.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total Tier 1 usage
$0.0854708
339
$0.0542904971 $0.0046900447 $0.1444513757
Tier 2 usage
Any usage over Tier 1
0.11858115
69 0.0800807351 0.0046900447 0.2033519367
Minimum Bill ($/day) 0.34473283
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a C ustomer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Calculation of Usage Tiers
Tier 1 E lectricity usage shall be calculated and billed based upon a level of 11 kWh per day, prorated by M eter reading days of S ervice. As an example, for a 30 -day bill, the Tier 1 level would be 330 kWh. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
{End}
RESIDENTIAL ELECTRIC SERVICE
O
CITYOF
PALO ALTO
UTILITIES
Attachment D2
9.h
Packet Pg. 157
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL ELECTRIC
SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-1 Sheet No E-2-1
dated 7-1-20198 Effective 7-1-202219
A. APPLICABILITY:
This Rate Schedule applies to the following Customers receiving Electric Service from the City of Palo Alto Utilities:
1. Small non-residential Customers receiving Non-Demand Metered Electric Service; and
2. Customers with Accounts at Master-Metered multi-family facilities.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total Summer Period
$0.121511185
5 $0.0927608551
$0.0046900447
$0.2189620853
Winter Period
0.0871508502
0.0617105675
0.0046900447
0.1535514624
Minimum Bill ($/day)
0.87778359
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a C ustomer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use in both the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 158
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL ELECTRIC
SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-2 Sheet No E-2-2
dated 7-1-20198 Effective 7-1-202219
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a maximum D emand Meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The maximum Demand
in any month will be the maximum average power in kilowatts taken during any 15- minute interval in the month provided that if the Customer’s load is intermittent or subject to fluctuations, the City may use a 5- minute interval. A thermal-type Demand Meter which does not reset after a definite time interval may be used at the City's option.
The billing Demand to be used in computing charges under this schedul e will be the actual maximum D emand in kilowatts for the current month. An exception is that the billing Demand for C ustomers with Thermal Energy Storage (TES) will be based upon the actual maximum Demand of such Customers between the hours of noon and 6 pm on weekdays.
{End}
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 159
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-G-1 Sheet No E-2-G-1
dated 7-1-202119 Effective 7-1-202221
A. APPLICABILITY:
This Rate Schedule applies to the following Customers receiving Electric Service from the City of Palo Alto Utilities under the Palo Alto Green Program:
1. Small non-residential Customers receiving Non-Demand Metered Electric Service; and
2. Customers with Accounts at Master-Metered multi-family facilities.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Palo Alto
Green
Charge Total
Summer Period
$0.12151118
55 $0.09276085
51 $0.004690
0447
$0.007500
60 $0.226462
1453
Winter Period
0.087150850
2 0.061710567
5 0.0046900
447
0.0075006
0 $0.161051
5224
Minimum Bill ($/day)
0.87778359
2. 1000 kWh Block Purchase Option:
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Total
Summer Period
$0.12151118
55 $0.09276085
51 $0.004690
0447
$0.218962
0853
Winter Period
0.087150850
2 0.061710567
5 0.0046900
447
0.1535514
624
Minimum Bill ($/day)
0.87778359
Palo Alto Green Charge (per 1000 kWh block) $7.506.00
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 160
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-G-2 Sheet No E-2-G-2
dated 7-1-202119 Effective 7-1-202221
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount ma y be broken down into appropriate components as calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use in both the Summer and Winter Periods, usage will be prorated based upon the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Palo Alto Green Program Description and Participation
Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilow att-hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewable sources, and create a transparent and sustainable market that encourages new development of wind and solar power.
Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green Program.
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 161
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIAL GREEN POWER
ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-2-G-3 Sheet No E-2-G-3
dated 7-1-202119 Effective 7-1-202221
4. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a maximum D emand Meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The maximum Demand
in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month , provided that if the Customer-s load is intermittent or subject to fluctuations, the City may use a 5 -minute interval. A thermal-type Demand Meter which does not reset after a definite time interval may be used at the City's option.
The billing Demand to be used in computing charges under this schedule will be the actual maximum D emand in kilowatts for the current month. An exception is that the billing Demand for C ustomers with Thermal Energy Storage (TES) will be based upon the actual maximum Demand of such Customers between the hours of noon and 6 pm on weekdays.
{End}
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 162
MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-1 Sheet No E-4-1
dated 7-1-20198 Effective 7-1-202219
A. APPLICABILITY:
This Rate Schedule applies to Demand metered S econdary Electric Service for C ustomers with a maximum Demand below 1,000 kilowatts. This Rate Schedule applies to three-phase Electric Service and may include Service to master -metered multi- family facilities or other facilities requiring Demand-metered Service, as determined by the City.
B. TERRITORY:
This rate schedule applies anywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (per kW)
$4.524.41
$25.8424.50
$30.3628.91
Energy Charge (per kWh)
0.10960105
36 0.0206101865
0.0046900447
0.1349012848
Winter Period
Demand Charge (per kW)
$2.822.75
$17.1016.22
$19.9218.97
Energy Charge (per kWh)
0.07913076
34 0.0206101865
0.0046900447
0.1044309946
Minimum Bill ($/day) 18.137917.2742
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 163
MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-2 Sheet No E-4-2
dated 7-1-20198 Effective 7-1-202219
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive months, a Maximum Demand M eter will be installed as promptly as is practic able and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The Maximum Demand
in any month will be the maximum average power i n kilowatts taken during any 15-minute interval in the month, provided that if the Customer’s load is intermittent or subject to fluctuations, the City may use a 5 -minute interval. A thermal-type Demand M eter which does not reset after a definite time interval may be used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for C ustomers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 pm on weekdays.
4. Power Factor
For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable Metering to calculate a Power Factor. The City may remove such M etering from the Service of a Customer whose Demand has been below 200 kilowatts for four consecutive months.
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 164
MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-3 Sheet No E-4-3
dated 7-1-20198 Effective 7-1-202219
When such meteri ng is installed, the monthly Electric bill will include a “Power Factor Adjustment”, if applicable. The adjustment will be applied to a C ustomer’s bill prior to the computation of any primary voltage discount. The Power Factor Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%.
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt hours to kilovolt -ampere hours consumed during the month. Where time -of-day Metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand.
5. Changing Rate Schedules
Customers may request a rate schedule change at any time to any City of Palo Alto full - service rate schedule as is applicable to their kilowatt -Demand and kilowatt -hour usage profile.
6. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered, but the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the C ustomer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any C ustomer receiving the discount in this section . The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation.
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e), applies to Customers that have a non- utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non- utility generation source.
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 165
MEDIUM NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-4 Sheet No E-4-4
dated 7-1-20198 Effective 7-1-202219
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non- utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non- utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non- utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not re ceive the Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer -generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director.
{End}
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 166
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-1 Sheet No E-4-G-1
dated 7-1-202119 Effective 7-1-20221
A. APPLICABILITY:
This Rate Schedule applies to Demand metered Secondary Electric Service for Customers with a maximum Demand below 1,000 kilowatts (kW) who receive power under the Palo Alto Green Program. This Rate S chedule applies to three -phase Electric Service and may include Service to Master-metered multi-family facilities or other facilities requiring Demand metered Service, as determined by the City.
B. TERRITORY:
The rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Commodity Distribution
Public
Benefits
Palo Alto
Green
Charge Total
Summer Period
Demand Charge (per kW)
$4.524.41
$25.8424.50
$30.3628.
91 Energy Charge (per kWh)
0.109601053
6 0.020610186
5 0.0046900
447
0.007500
60 0.1424013
448
Winter Period
Demand Charge (per kW)
$2.822.75
$17.1016.22
$19.9218.
97 Energy Charge (per kWh)
0.079130763
4 0.020610186
5 0.0046900
447
0.007500
60 0.1119310
546
Minimum Bill ($/day) 18.137917.2742
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 167
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-2 Sheet No E-4-G-2
dated 7-1-202119 Effective 7-1-20221
2. 1000 kWh Block Purchase Option:
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (per kW) $4.524.41 $25.8424.50
$30.3628.
91 Energy Charge (per kWh)
0.109601053
6 0.020610186
5 0.0046900
447
0.1349012
848
Palo Alto Green Charge (per 1000 kWh block) $7.506.00 Winter Period
Demand Charge (per kW) $2.822.75 $17.1016.22
$19.9218.
97 Energy Charge (per kWh)
0.07913076
34 0.0206101865
0.0046900
447
0.1044309
946
Palo Alto Green Charge (per 1000 kWh block) $7.506.00 Minimum Bill ($/day) 18.137917.2742
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges, and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt -hours for three consecutive months, a Maximum Demand Meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has dropped below 6,000 kilowatt -hours for twelve consecutive months, whereupon, at the O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 168
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-3 Sheet No E-4-G-3
dated 7-1-202119 Effective 7-1-20221
option of the City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month, provided that if the Customer’s load is intermittent or subject to fluctuations, the City may use a 5 -minute interval. A thermal-type Demand Meter, which does not reset after a definite time interval, may be used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays.
4. Power Factor
For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applica ble Metering to calculate a Power Factor. The City may remove such Metering from the Service of a Customer whose Demand has dropped below 200 kilowatts for four consecutive months.
When such Metering is installed, the monthly Electric bill will include a “Power Factor Adjustment”, if applicable. The adjustment will be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor Adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%.
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt - hours to kilovolt -ampere hours consumed during the month. Where time -of-day Metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand.
5. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicabl e full-service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile.
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 169
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-4 Sheet No E-4-G-4
dated 7-1-202119 Effective 7-1-20221
6. Palo Alto Green Program Description and Participation
Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every mont h, or for the purchase of 1000 kilowatt -hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and cr eates a transparent and sustainable market that encourages new development of wind and solar.
Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green Program.
7. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be offered, but the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving the discount in this s ection. The Customer then has the option to change the system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation.
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non- utility generation source interconnected on the Customer’s side of the City’s revenue M eter and that occasionally require backup power from the City due to non-operation of the non- utility generation source.
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 170
MEDIUM NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-G-5 Sheet No E-4-G-5
dated 7-1-202119 Effective 7-1-20221
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters: A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit:
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non- utility generators on the Customer’s side of the City’s revenue Meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non- utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non- utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section.
e. Exemptions:
(1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer -generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director.
{End}
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 171
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-1 Sheet No E-4-TOU-1
dated 7-1-201918 Effective 7-1-202219
A. APPLICABILITY:
This voluntary R ate Schedule applies to Demand metered S econdary Electric Service for Customers with Demand between 500 and 1,000 kilowatts per month and who have sustained this level of usage for at least three consecutive months during the most recent 12 month period.
This Rate Schedule applies to three -phase Electric Service and may include Service to M aster- Metered multi- family facilities or other facilities requiring Demand -metered Service, as determined by the City. In addition, this R ate Schedule is applicable for C ustomers who did not pay power factor adjustments during the last 12 months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW)
Peak $2.712.61 $8.898.44 $11.6011.05
Mid-Peak 0.9795 8.898.44 9.869.39
Off-Peak 0.9795 8.898.44 9.869.39
Energy Charge (per kWh)
Peak
$0.1002209
642 $0.0206001864 $0.0046900447 $0.1255111954
Mid-Peak
0.12647121
42 0.0206001864 0.0046900447 0.1517614453
Off-Peak
0.07721074
51 0.0206001864 0.0046900447 0.1025009763
Winter Period
Demand Charge (per kW)
Peak $1.571.53 $9.539.04 $11.1010.57
Off-Peak 1.571.53 9.539.04 11.1010.57
Energy Charge (per kWh)
Peak
$0.1226811
781 $0.0206001864 $0.0046900447 $0.1479714092
Off-Peak
0.10516101
13 0.0206001864 $0.0046900447 0.1304512425
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 172
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-2 Sheet No E-4-TOU-2
dated 7-1-201918 Effective 7-1-202219
Commodity Distribution Public Benefits Total
Minimum Bill ($/day) 18.137917.2742
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Definition of Time Periods
SUMMER PERIOD (Service from May 1 to October 31):
Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays)
Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m.
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays
WINTER PERIOD (Service from November 1 to April 30):
Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays)
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays
SEASONAL RATE CHANGES: When the billing perio d includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Demand Meter will be installed as promptly as is practicable and 0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 173
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-3 Sheet No E-4-TOU-3
dated 7-1-201918 Effective 7-1-202219
thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The Billing Demand
to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts taken during any 15 -minute interval in each of the designated time periods as defined under Section D.2.
4. Power Factor Adjustment
Time of Use Customers must not have had a power factor adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-ampere hours consumed during the month, and must not have fallen below 95% to avoid the power factor adjustment.
Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to power factor adjustments, the Customer will be removed from the E-4-TOU rate schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage.
5. Changing Rate Schedules
Customers electing to be served under E-4 TOU must remain on said Rate Schedule for a minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a Rate Schedule change to any applicable City of Palo Alto full- service Rate Schedule as is suitable to their kilowatt Demand and kilowatt-hour usage.
6. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered, but the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving the discount in this section. The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation.
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 174
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-4 Sheet No E-4-TOU-4
dated 7-1-201918 Effective 7-1-202219
7. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(7)(e), applies to Customers that have a non- utility generation source interconnected on the Customer’s side of the City’s revenue M eter and that occasionally require backup power from the City due to non-operation of the non- utility generation source.
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the non- utility generators on the Customer’s side of the City’s revenue M eter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non- utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non- utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Cus tomer meets the definition of an “Eligible Customer -generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended.
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 175
MEDIUM NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-4-TOU-5 Sheet No E-4-TOU-5
dated 7-1-201918 Effective 7-1-202219
(3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director.
{End}
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 176
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-1 Sheet No E-7-1
dated 7-1-201918 Effective 7-1-202219
A. APPLICABILITY:
This Rate S chedule applies to Demand M etered Service for large non-residential Customers with a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (kW) $5.165.03 $27.0625.66 $32.2230.69
Energy Charge (kWh)
0.11476109
32 0.0005900053 0.0046900447 0.1200411432
Winter Period
Demand Charge (kW) $2.962.89 $14.9414.16 $17.9017.05
Energy Charge (kWh)
0.07597072
38 0.0005900053 0.0046900447 0.0812507738
Minimum Bill ($/day) 51.569649.1139
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 177
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-2 Sheet No E-7-2
dated 7-1-201918 Effective 7-1-202219
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the summer and in the winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Request for Service
Qualifying Customers may request Service under this schedule for more than one Account or one Meter if the Accounts are on one site. A site, for the purposes of this Rate Schedule, consists of one or more Accounts which cover contiguous parcels of land with no intervening public right -of-ways (e.g. streets) and which have a common billing address.
4. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt -hours for three consecutive months, a Maximum Demand M eter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt -hours for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The Maximum Demand
in any month will be the maximum average power in kilowatts taken during any 15- minute interval in the month provided that if the Customer’s load is intermittent or subject to fluctuations, the City may use a 5 -minute interval. A thermal - type Demand Meter which does not reset after a definite time interval may be used at the City's option.
The Billing Demand
to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month . An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 pm on weekdays.
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 178
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-3 Sheet No E-7-3
dated 7-1-201918 Effective 7-1-202219
5. Power Factor
For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option to install applicable Metering to calculate a Power Factor. The City may remove such M etering from the Service of a Customer whose Demand has been below 200 kilowatts for four consecutive months.
When such metering is installed, the monthly Electric bill shall include a “Power Factor Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The power factor adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%.
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt hours to kilovolt -ampere hours consumed during the month. Where time -of-day Metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand.
6. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile.
7. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered, but the City is not required to supply Service at a particular lin e voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving the discount in this section . The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kVA size limitation.
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 179
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-4 Sheet No E-7-4
dated 7-1-201918 Effective 7-1-202219
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non- utility generation source interconnected on the Customer’s side of the City’s revenue M eter and that occasionally require backup power from the City due to non-operation of the non- utility generation source.
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section D.4) occurs when one or more of the non- utility generators on the Customer’s side of the City’s revenue Meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non- utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non- utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer -generator” as defined in California Public Utilities Code O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 180
LARGE NON-RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-5 Sheet No E-7-5
dated 7-1-201918 Effective 7-1-202219
Section 2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director.
{End}
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 181
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-1 Sheet No E-7-TOU-1
dated 7-1-201918 Effective 7-1-202219
A. APPLICABILITY:
This voluntary R ate Schedule applies to Demand M etered Service for non- residential Customers with a Maximum Demand of at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months. In addition, this R ate Schedule is applicable for Customers who did not pay power factor adjustments during the last 12 months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW)
Peak $3.243.11 $9.088.62 $12.3211.73
Mid-Peak 0.990.97 9.088.62 10.079.60
Off-Peak 0.990.97 9.088.62 10.079.60
Energy Charge (per kWh)
Peak
$0.11921113
56 $0.0005900053 $0.0046900447 $0.1244911856
Mid-Peak
0.150111429
9 0.0005900053 0.0046900447 0.1553914799
Off-Peak
0.092120877
6 0.0005900053 0.0046900447 0.0974009276
Winter Period
Demand Charge (per kW)
Peak $1.511.47 $7.567.17 $9.078.63
Off-Peak 1.511.47 7.567.17 9.078.63
Energy Charge (per kWh)
Peak
$0.07997076
19 $0.0005900053 $0.0046900447 $0.0852508119
0 CITY OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 182
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-2 Sheet No E-7-TOU-2
dated 7-1-201918 Effective 7-1-202219
Off-Peak
0.068640654
0 0.0005900053 0.0046900447 0.0739207040
Minimum Bill ($/day) 51.569649.1139
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Definition of Time Periods
SUMMER PERIOD (Service from May 1 to October 31):
Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays)
Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays) 6:00 p.m. to 9:00 p.m.
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday All day Saturday, Sunday, and holidays
WINTER PERIOD (Service from November 1 to April 30):
Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays)
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays
SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bi ll calculation and proration, refer to Rule and Regulation 11.
3. Request for Service
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 183
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-3 Sheet No E-7-TOU-3
dated 7-1-201918 Effective 7-1-202219
Qualifying Customers may request Service under this schedule for more than one Account or one Meter if the A ccounts are on one site. A site, for the purposes of this Rate Schedule, consists of one or more Accounts which cover contiguous parcels of land with no intervening public right - of-ways (e.g. streets) and which have a common billing address.
4. Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt -hours for three consecutive months, a Demand Meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt -hours for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The Billing Demand
to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts taken during any 15- minute interval in each of the designated time periods as defined under Section D.2.
5. Power Factor Adjustment
Time of Use C ustomers must not have had a power factor adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt- ampere hours consumed during the month, and must not have fallen below 95% to avoid the power factor adjustment.
Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to power factor adjustments, the Customer will be removed from the E -7-TOU rate schedule and placed on another applicable rate schedule as is suitable to t heir kilowatt Demand and kilowatt-hour usage.
6. Changing Rate Schedules
Customers electing to be served under E -7 TOU must remain on said Rate S chedule for a minimum of 12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a Rate Schedule change to any applicable City of Palo Alto full -service Rate Schedule as is suitable to their kilowatt Demand and kilowatt-hour usage.
7. Primary Voltage Discount
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 184
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-4 Sheet No E-7-TOU-4
dated 7-1-201918 Effective 7-1-202219
Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered, but the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements, as determined in the City’s sole discretion . The Ci ty retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving the discount in this section. The Customer then has the option to change his system so as to receive Service at the new line vo ltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt -ampere size limitation.
8. Standby Charge
a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non- utility generation source interconnected on the Customer’s side of the City’s revenue M eter and that occasionally require backup power from the City due to non-operation of the non-utility generation source.
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue Meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non- utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 185
LARGE NON-RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-TOU-5 Sheet No E-7-TOU-5
dated 7-1-201918 Effective 7-1-202219
(2) If the non- utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer -generator” as defined in California Public Utilities Code Section 2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director.
{End}
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 186
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-1 Sheet No E-7-G-1
dated 7-1-202119 Effective 7-1-202221
A. APPLICABILITY:
This Rate Schedule applies to Demand metered Service for large non-residential Customers who choose Service under the Palo Alto Green Program. A Customer may qualify for this R ate Schedule if the Customer’s Maximum Demand is at least 1,000KW per month per site, who have sustained this Demand level at least 3 consecutive months during the last twelve months.
B. TERRITORY:
The rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Commodity Distribution
Public
Benefits
Palo Alto
Green
Charge Total
Summer Period
Demand Charge ( per kW) $5.165.03 $27.0625.66
$32.223
0.69 Energy Charge (per kWh)
0.11476109
32 0.000590005
3 0.0046900
447
0.0075006
0 0.12754
12032
Winter Period
Demand Charge (per kW) $2.962.89 $14.9414.16
$17.901
7.05 Energy Charge (per kWh)
0.07597072
38 0.000590005
3 0.0046900
447
0.0075006
0 0.08875
08338
Minimum Bill ($/day) 51.569649.1139
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 187
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-2 Sheet No E-7-G-2
dated 7-1-202119 Effective 7-1-202221
2. 1000 kWh Block Purchase Option:
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW) $5.165.03 $27.0625.66
$32.223
0.69 Energy Charge (per kWh)
0.11476109
32 0.000590005
3 0.0046900447
0.12004
11432
Palo Alto Green Charge (per 1000 kWh block)
$7.506.0
0 Winter Period
Demand Charge (per kW) $2.962.89 $14.9414.16
$17.901
7.05 Energy Charge (per kWh)
0.07597072
38 0.000590005
3 0.0046900447
0.08125
07738
Palo Alto Green Charge (per 1000 kWh block)
$7.506.0
0 Minimum Bill ($/day) 51.569649.1139
D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period , and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kilowatt -hours for three consecutive months, a Maximum Demand Meter will be installed as promptly as is O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 188
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-3 Sheet No E-7-G-3
dated 7-1-202119 Effective 7-1-202221
practicable and thereafter continued in Service until the monthly use of energy has dropped below 6,000 kilowatt -hours for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The Maximum Demand
in any month will be the maximum average power in kilowatts taken during any 15-minute interval in the month, provided that if the Customer’s load is intermittent or subject to fluctuations, the City may use a 5 -minute interval. A thermal-type Demand Meter which does not reset after a definite time interval may be used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on weekdays.
4. Request for Service
Qualifying Customers may request Service under this schedule for more than one Account or one Meter if the Accounts are at one site. A site, for the purposes of this Rate Schedule, consists of one or more Accounts which cover contiguous parcels of land with no intervening public right -of-ways (e.g. streets) and which have a common billing address.
5. Power Factor
For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable Metering to calculate a Power Factor. The City may remove such Metering from the Service of a Customer whose Deman d has dropped below 200 kilowatts for four consecutive months.
When such Metering is installed, the monthly Electric bill shall include a “Power Factor Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The power factor adjustment is applied by increasing the total energy and Demand charges for any month by 0.25 percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%.
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 189
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-4 Sheet No E-7-G-4
dated 7-1-202119 Effective 7-1-202221
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt - hours to kilovolt -ampere hours consumed during the month. Where time -of-day Metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand.
6. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile
7. Palo Alto Green Program Description and Participation
Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every mont h, or for the purchase of 1000 kilowatt -hour (kWh) blocks. These REC purchases support the production of renewable energy, increase the financial value of power from renewal sources, and creates a transparent and sustainable market that encourages new development of wind and solar.
Customers choosing to participate shall fill out a Palo Alto Green Power Program application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo Alto Green Program.
8. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered, but the City is not required to supply Service at a qualified line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's Electrical requirements , as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time after providing reasonable advance notice to any Customer receiving the discount in this section . The Customer then has the option to change the system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation.
9. Standby Charge
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 190
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-5 Sheet No E-7-G-5
dated 7-1-202119 Effective 7-1-202221
a. Applicability: The standby charge, subject to the exemptions in subsection D(9)(e), applies to Customers that have a non- utility generation source interconnected on the Customer’s side of the City’s revenue M eter and that occasionally require backup power from the City due to non-operation of the non- utility generation source.
b. Standby Charges:
Commodity Distribution Total
Standby Charge (per kW of
Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters: A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit:
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non- utility generators on the Customer’s side of the City’s revenue Meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non- utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non- utility generation source does not operate for an entire billing cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section.
e. Exemptions:
(1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer -generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director.
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 191
LARGE NON-RESIDENTIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-7-G-6 Sheet No E-7-G-6
dated 7-1-202119 Effective 7-1-202221
{End}
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 192
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-14-1 Sheet No. E-14-1
dated 7-1-201918 Effective 7-1-202219
A. APPLICABILITY:
This Rate Schedule applies to all street and highway lighting installations , which CPAU elects to operate and maintain.
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City.
C. RATES:
Per Lamp Per Month
Class A: CPAU supplies
electricity and switching servic e
only.
Lamp Rating:
High Pressure Sodium Vapor Lamps
100 watts 6.215.91
200 watts 11.4610.91
250 watts 14.0813.41
310 watts 17.4216.59
400 watts 22.4321.36
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 193
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-14-2 Sheet No. E-14-2
dated 7-1-201918 Effective 7-1-202219
Per Lamp Per Month –
Class C : CPAU supplies
electricity and switching and
maintains lighting system,
including lamps and glassware.
Lamp Rating:
Mercury-Vapor Lamps
400 watts 35.8334.12
High Pressure Sodium Vapor Lamps
70 watts 32.9731.40
100 watts 34.5532.90
150 watts 37.1735.40
250 watts 42.4240.40
Light Emitting Diode (LED) Lamps
70 watts-equivalent 29.4828.08
100 watts-equivalent 30.6829.22
150 watts-equivalent 31.7730.26
250 watts 34.7833.12
D. SPECIAL CONDITIONS:
1. Type of Service : This Rate S chedule applies to series , multiple, and single lamp street lighting systems to which CPAU delivers Service at secondary voltage. Unless a variation is approved by CPAU in its sole discretion, Service to street lighting systems will be delivered at 120/240 volts, three -wire, single -phase or 120/208 volt th ree-wire, single phase from star-connected poly-phase lines. Single phase service from 480-volt sources will be available in certain areas at CPAU’s discretion. All voltages stated herein are nominal, and reasonable variations may occur. New lights will normally be installed as multiple lamp systems with a single Service point or single lamp with and individual Service point.
2. Point of Delivery: Delivery will be made to the Customer's system at a Service point or at points designated by CPAU. CPAU will furnish the Service connection to one point for each O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 194
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-14-3 Sheet No. E-14-3
dated 7-1-201918 Effective 7-1-202219
lamp or group of lamps, provided the C ustomer has designed the system to include the minimum number of delivery points. CPAU will make a ll underground connections to CPAU’s system at the Customer's expense.
3. Switching: CPAU will perform switching (on CPAU's side of the points of delivery) at no Charge, provided there are at least 10 kilowatts of lamp load on each circuit separately switched, including all lamps on the circuit whether served under this Rate S chedule or not.
An extra charge of $2.50 per month will be made for each circuit separately switched unless such switching installation is made for CPAU's convenience.
4. Annual Burning Schedule : The rates in this Rate Schedule apply to lamps which will be turned on and off once each night in accordance with a regular burning schedule approved by CPAU and not exceeding 4,100 hours per year.
5. Maintenance: The Class C rates in this Rate Schedule include all labor necessary for replacement of glassware, including inspection and cleaning. Maintenance of glassware by CPAU is limited to standard gla ssware that is commonly used and manufactured in reasonably large quantities, as determined by CPAU in its sole discretion. The Class C rates include maintenance of circuits between lamp posts and of circuits and equipment in and on the posts, provided these are all of good standard construction as determined by CPAU .
CPAU in its sole discretion may decline to grant Class C rates for maintenance of systems with non-standard glassware, or inadequate circuitry and equipment . Class C rates applied to any agency other than the City of Palo Alto also include painting of posts with one coat of good ordinary paint , as determined by CPAU to be needed to maintain good appearance .
Maintenance does not include replacement of posts damaged by third parties or acts of nature.
6. System Owned In- Part by CPAU: If CPAU agrees to a Customer’s request for CPAU to install, own, or maintain any portion of the lighting fixtures, supports, and/or interconnecting circuits, the Customer shall be responsible for an extra monthly Charge of one and one-fourth percent of CPAU's contribution to the cost of the street lighting system.
7. Rates For Lamps Not on this Rate Schedule: In the event a Customer installs a lamp which is not represented on this Rate S chedule, CPAU will prepare an interim rate reflecting CPAU's estimated costs associated with the specific lamp. This interim rate will serve as the effective rate for billing purposes until the new lamp rating is added to Rate Schedule E-14. {End}
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 195
EXPORT ELECTRICITY COMPENSATION
UTILITY RATE SCHEDULE E-EEC-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-EEC-1 Sheet No.E-EEC-1
dated 7-1-202119 Effective 7-1-202221
A. APPLICABILITY:
This Rate S chedule applies in conjunction with the otherwise applicable R ate Schedules for each Customer class. This Rate S chedule may not apply in conjunction with a ny time-of-use Rate Schedule. This Rate Schedule applies to Customer -Generators as defined in Rule and Regulation 2 who are either not eligible for Net Energy Metering or who are eligible for Net Energy metering but elect to take Service under this Rate Schedule.
B. TERRITORY:
Applies to locations within the service area of the City of Palo Alto.
C. RATE:
The following buyback rate shall apply to all e lectricity exported to the grid.
Per kWh
Export electricity compensation rate $0.10451078
D. SPECIAL CONDITIONS
1. Metering equipment: Electricity delivered by CPAU to the Customer -Generator or received by CPAU from the Customer-Generator shall be measured using a M eter capable of registering the flow of electricity in two directions (aka “bidirectional meter”). The electrical power measurements will be used for billing the Customer -Generator. CPAU shall furnish, install and own the appropriate Meter.
2. Billing:
a. CPAU shall measure during the billing period, in kilowatt -hours, the electricity delivered and received after the Customer-Generator serves its own instantaneous load. b. CPAU shall bill the Customer-Generator consumption charges for the electricity delivered by CPAU to the Customer-Generator based on the Customer-Generator’s applicable Rate Schedule.
c. In the event the electricity generated exceeds the electricity consumed and therefore is received by CPAU, the Customer will receive a credit for all e lectricity received by CPAU at the buyback Rate designated in section C above.
{End}
O
CITYOF
PALO ALTO
UTILITIES
9.h
Packet Pg. 196
NET METERING NET SURPLUS ELECTRICITY COMPENSATION
UTILITY RATE SCHEDULE E-NSE-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No. E-NSE-1 Sheet No.E-NSE-1
dated 07-01-202119 Effective 7-1-202221
A. APPLICABILITY:
This Rate S chedule applies to eligible residential and small commercial N et Energy M etering Customers who, at the end of an annual settlement period, as described in Rule 29, are N et Surplus Customer-Generators of electricity who elect to receive monetary compensation as such preference is indicated on the net surplus electricity election form. This Rate S chedule only applies to Customers who participate in Net Energy Metering , and does not apply to Customers that take service under the City’s Net Energy Metering Successor Rate, as each of these terms are defined in Rule and Regulation 2.
B. TERRITORY:
This rate schedule applies anywhere the City of Palo Alto provides electric service.
C. RATES:
Per kWh
Net Surplus Electricity Compensation rate $0.10260992
D. SPECIAL CONDITIONS
1. Net Surplus Electricity Compensation Rate eligibility shall be determined as specified in Rule
29. Net surplus electricity, as specified in Rule 29, if applicable, will be multiplied by the above compensation rate to determine the C ustomer’s annual net surplus electricity compensation stated in dollars.
2. Additional terms, conditions and definitions govern Net Energy Metering Service and Interconnection, as described in Rule 29.
{End}
O
CIT Y OF
PALO ALTO
UTILITIES
9.h
Packet Pg. 197
MEMORANDUM
DATE: March 2, 2022
SUBJ
ECT: Evaluation of Implementing an All-Electric rate prior to COSA Ex
ecutive Summary
During the Finance Committee (CMR 13544 1) and City Council ( CMR 13546 2) meetings to review and recommend guidelines for an Electric Cost of Service Analysis (COSA), set to commence in FY 2022 and anticipated for completion in FY 2023, the Finance Committee passed the following motion:
Direct staff to study options for an interim modification to (residential electric) tiers that would support electrification, and return to the Utilities Advisory Commission, the Finance Committee and City Council at a future date.
Setting rates without a COSA in place can be responsibly accomplished through implementation of a pilot rate; staff recommends against using that mechanism. This conclusion was drawn after reviewing the City’s adopted and published COSA (CMR 68573) and evaluating the resource impacts and technical and operational challenges of developing a pilot rate.
Discussion
Palo Alto’s Rate-setting Process
Palo Alto’s rates are designed to collect revenues sufficient to cover the cost to serve each customer or customer group. It is industry practice to periodically perform a COSA to ensure that a utility’s rates meet this requirement . Proposition 26 (2010) amended the California Constitution, which defines all government-imposed charges, including electric rates, as taxes requiring voter approval, unless certain exceptions are met. Cost- based electric rates may be adopted by the City Council. The COSA helps the utility ensure that rates represent the cost to serve customers.
Council-adopted COSA Guidelines
1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2021/20211005/20211005pfcs.pdf
2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-agendas-minutes/2021/11- november/20211101pccs-amended.pdf
3 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-archive/2016/final- staff-report-id-6857_electric-utility-financial-plan-and-rate-changes.pdf Attachment D3
9.i
Packet Pg. 198
The Electric Utilities’ last published COSA and was approved by City Council on June 13, 2016 (CMR 69324).
In preparation for that study, Council adopted a set of guidelines (CMR 60615) including:
“For this cost of service study, and to the extent feasible, energy charges should be based on existing rate structures. This includes: a tiered rate design structure for residents.” Prior to the study, Palo Alto’s residential rates had three tiers. The results of th e study indicated a reduction in the number of tiers from three to the current two was necessary to adequately reflect the cost to provide service . B ased upon an analysis of median residential baseload energy use, the daily allowance of energy per household allocated for the first tier was increased from 10 kwh/day to 11kwh/day.
Alternative rate structures, such as a uniform/single-tier rate structure, were not addressed in the report, nor was the creation of different classes of residential customer ( such as all-electric or Electric Vehicle (EV) specific rates).
The Utilities Department is planning to update the COSA model, commencing in FY 2022 and completing the work in FY 2023. Several options for residential rates will be evaluated including: (1) whether better or alternative cost allocation methods could be utilized, (2) whether tiered rates should be changed (increased, lowered, or condensed to a single tier) , and (3) whether multiple rate options could be available to customers within a rate class (residential, etc.) while still maintaining adequate and equitable revenue collection for the rate class as a whole.
Pilot Rate Option
It is possible to create a separate rate for customers pursuing electrification under a ‘pilot’ or test -case program. Pilot rates are designed to study the impact of the rate design on customer behavior.
Resource Constraints
Implementing rate changes will require staff time and resources. Staff estimates three to four months needed to analyze and determine new rates, configuration, design and testing of the billing system , customer service training, and outreach.
This resource need will be in direct competition for the need to complete an updated COSA . It is anticipated this effort will take two to three months followed by three months to analyze, design configure and test new rates. These changes will also require staff resources for billing system changes, customer outreach, etc. Dividing work on these two tasks will lengthen the time to complete the COSA.
Technical and Operational Constraints
. Typically an all- electric rate or electric vehicle rate would encourage customers to consume more electricity in off-peak vs. on-peak hours. Since Palo Alto does yet have time of use or interval metering, that kind of study is infeasible at this time.
4 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-archive/2016/6932- merged.pdf
5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-cmrs/year-archive/2015/final- staff-report-id-6061_adoption-of-design-guidelines-for-electric-cost-of-service-analysis.pdf
9.i
Packet Pg. 199
Many administrative challenges exist for a pilot rate study. Determining customer eligibility for a pilot rate (such as not having a gas meter, EV ownership, etc.) will be difficult. Additional administrative challenges such as managing caps on participation (pilot rates are limited in size), monitoring pilot vs. non-participant behaviors, and making sure there are no un anticipated revenue changes arising from rate switching are require a significant investment of staff time.
9.i
Packet Pg. 200
Attachment E
* NOT YET APPROVED *
6056632 1
Resolution No. _________
Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase and Amending Rate Schedules EDF-1 (Dark Fiber Licensing Services) and EDF-2 (Dark Fiber Connection Fees)
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-1 (Dark Fiber Licensing Services) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-1, as amended, shall become effective July 1, 2022.
SECTION 2
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-2 (Dark Fiber Connection Fees) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-2, as amended, shall become effective July 1, 2022.
SECTION 3
. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
//
//
//
//
//
//
//
//
//
//
//
//
//
9.j
Packet Pg. 201
Attachment E
* NOT YET APPROVED *
6056632 2
SECTION 4. The Council finds that the adoption of this resolution increasing dark fiber rates by the Consumer Price Index to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________ Assistant City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
9.j
Packet Pg. 202
DARK FIBER LICENSING SERVICES
UTILITY RATE SCHEDULE EDF-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-1-1 Effective 07-01-20221
dated 7-01-20210 Sheet No. EDF-1-1
A. APPLICABILITY:
Thi
s rate schedule applies to customer accounts established prior to September 18, 2006, unless the customer elects to apply the EDF-3 rate to the entire customer account. This rate applies to Fiber Optic services from the City of Palo Alto Utilities (CPAU) pertaining to the City's network (Backbone and associated connections).
B. TERRI
TORY:
Wit
hin the incorporated limits of the City of Palo Alto and land owned or leased by the City.
C. FEES:
1. DAR
K FIBER BACKBONE LICENSE FEES:
The val
ues or ranges for each of these price components are shown below:
(1) Fiber Price………………………………………………………………. $ 432.32414.72/FM/month (2) Quantity discount ……………………………………………………… $0 to $5 9.84/FM/month (3) Buffer tube discount……………………………………………………….. $0 to $59.84/FM/month (4) Route length discount…………………………………………………….. $0 to $7 7.80/FM/month (5) Ring topology discount………………………………………………………$0 to $2 3.94/FM/month (6) Length of term discount…………………………………………………… $0 to $4 6.80/FM/month Minimum Backbone License Fee
$653.86627.24/month
Proj
ect Minimum Backbone Fees apply to any project proposal signed after September 18, 2006 in which the project connects with the Backbone.
Description for Discounts:
Quantity discount: based on an array of discounts for quantities of fiber licensed on a specific path.
Buffer tube discount: discount for numbers of full buffer tubes licensed on a specific path.
Route length discount: based on the route length licensed on a specific project.
Ring topology discount: The ring topology discount for customers contracting for complete rings.
Term discount: based on an array of discounts for contracts greater than one and less than ten years.
2. DARK FI
BER LATERAL CONNECTION FEES:
Cust
omer responsibilities and fees for drop and custom cable construction are described in the CPAU Rules and Regulations, Rate Schedule EDF-2, project proposals and other associated documents. In all cases, the Licensee shall pay an annual Drop/Custom Cable Management Fee based on the follow per foot fees:
(1)
Drop Cable Management Fees (for the first 12-Fibers) …………………………… $0.03-$0.08/ft/month (2) Custom Cable Management Fees (for the first 12-Fibers)……………………….. $0.420/ft/month (3) Fees for additional Drop or Custom Cable fibers (each additional set of 12-Fibers) $0.08/ft/month Minimum Drop or Custom Cable Management Fees .................................................. $ 323.08309.93/month Minimum Drop Cable Management Fees apply to any project proposal signed after September 18, 2006.
Attachment E1
9.k
Packet Pg. 203
DARK FIBER LICENSING SERVICES
UTILITY RATE SCHEDULE EDF-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-1-2 Effective 07-01-20221
dated 7-01-20210 Sheet No. EDF-1-2
3. EARLY TERMINATION FEES:
If the Licensee chooses to terminate for convenience the License Agreement or the term of any project under the License Agreement, then the Licensee shall pay the applicable termination payment as specified in this schedule or in the License Agreement, as provided below.
Unless otherwise provided in the License Agreement, the Licensee shall pay a termination fee in one of the following amounts, whichever is less:
• Annual fee of the contract year that the Licensee chooses to terminates in full without term discounts, or
• Remaining fees of the project term as indicated in the License Agreement.
D. SPECIAL NOTES:
1. All fees must be paid to the City in accordance with the terms of the Dark Fiber License Agreement, the customer’s project proposals and all the applicable Utilities Rates, Rules, and Regulations.
2. All fees and minimum charges are subject to Consumer Price Index (CPI) adjustments, to be applied annually, except as defined by Section D.3 of this Rate Schedule. Discounts will not be modified by changes to CPI.
3. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year December CPI by the December CPI in the year rates last changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is required, a change to rate schedules may not be made for the upcoming year. Future rate changes will take the last year of change as the new base year for purposes of calculation.
{End}
9.k
Packet Pg. 204
DARK FIBER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE EDF-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-2-1 Effective 7-01-20221
dated 7-01-20210 Sheet No. EDF-2-1
A. APPLICABILITY:
This schedule applies to all connections, expansions, and upgrades to the City's Dark Fiber network (Backbone).
B. TERRITORY:
All territory within the incorporated limits of the City and land owned or leased by the City.
C. FEES:
1. ADVANCE ENGINEERING FEES:
Advance engineering (AER) fees must be paid to start the engineering process and are non- refundable. The fees will be credited against the estimated project cost prior to the collection of the project construction fees.
(1) Commercial/Industrial AER minimum fee ..................................................................... $ 1032990.00 (2) Special conditions (requiring expert assessment) ........................................................... By Estimate
2. ESTIMATED SERVICE CONNECTION AND RECONFIGURATION FEES
All estimated service connection and reconfiguration fees must be paid prior to t he scheduling of any construction or reconnections to the City's Dark Fiber network.
(1) Service connection (Interconnection) fee ...................................................... By Estimate (2) Reconfiguration Fees ..................................................................................... By Estimate
Labor rates are subject to change as stated in the Utility Rate Schedule C-1.
D. NOTES:
1. The Customer is responsible for the installation and maintenance of all ducts and pathways from the facility to the property line in compliance with City of Palo Alto Utilities Rules and Regulations and contract agreements.
2. The City shall not be held liable for delays or interruptions in service, but will make reasonable efforts to provide timely continuous service.
3. All fees are subject to Consumer Price Index (CPI) adjustments, to be applied annually. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland- San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year December CPI by the December CPI in the year rates last changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is required, a change to rate schedules may not be made for the upcoming year. F uture rate changes will take the last year of change as the new base year for purposes of calculation. {End}
9.k
Packet Pg. 205
Attachment F
*Not Yet Passed*
6056633
Resolution No. ______
Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage) to Increase the Storm Water Management Fee by 4.2% Per Month Per Equivalent Residential Unit for Fiscal Year 2023
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1
. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule D-1 (Storm and Surface Water Drainage) is hereby amended to read in accordance with sheet D-1-1, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2022.
SECTION 2. The Council finds that this rate increase is being imposed to offset the effects of inflation on labor and material costs pursuant to the annual inflationary fee escalator provision of the Storm Water Management Fee ballot measure, which was approved by a majority of Palo Alto property owners on April 11, 2017.
SECTION 3
. The Council finds that the revenue derived from the authorized adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
/ /
/ /
/ /
/ /
/ /
/ /
/ /
/ /
/ /
/ /
/ /
//
9.l
Packet Pg. 206
Attachment F
*Not Yet Passed*
6056633
//
SECTION 4. The Council finds that the adoption of this resolution changing the Storm Water Management Fee to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a).
After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ _____________________________ Assistant City Attorney City Manager
_____________________________
Director of Public Works
_____________________________
Director of Administrative Services
9.l
Packet Pg. 207
GENERAL STORM AND SURFACE WATER DRAINAGE
UTILITY RATE SCHEDULE D-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-2022
Supersedes Sheet No.D-1-1 dated 7-1-2021 Sheet No. D-1-1
A. APPLICABILITY:
This schedule applies to all Storm and Surface Water Drainage Service, excepting only those users and to the extent that they are constitutionally exempt under the Constitution of the State of California or who are determined to be exempt pursuant to Rule and Regulation 25.
B. TERRITORY:
Inside the incorporated limits of the city of Palo Alto and land owned or leased by the City.
C. RATES:
Per Month:
Storm Water Management Fee per Equivalent Residential Unit (ERU) .......................... $15.98
D. SPECIAL NOTES:
1. An Equivalent Residential Unit (ERU) is the basic unit for computation of storm drainage fees for residential and non-residential Customers. All single-family residential properties shall be billed the number of ERUs specified in the following table, based on an analysis of the relationship between impervious area and lot size for Palo Alto properties.
RESIDENTIAL RATES (Single-Family Residential Properties PARCEL SIZE (sq.ft.) ERU
<6,000 sq.ft. 0.8 ERU
6,000 - 11,000 sq.ft. 1.0 ERU
>11,000 sq.ft. 1.4 ERU
All other properties will have ERU's computed to the nearest 1/10 ERU using the following formula:
No. of ERU =
Impervious Area (Sq. Ft.)
2,500 Sq. Ft.
2. For more details on the Storm Water Management Fee, refer to Utilities Rule and Regulation 25.
{End}
9.l
Packet Pg. 208
City of Palo Alto (ID # 14477)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Policy and Services Committee Recommendations on Pending State Assembly Bills 2181 (VTA) and 1944, 2449, and 2647 (Local Meeting Procedures)
From: City Manager
Lead Department: City Manager
Recommendation
The Policy & Services Committee recommends that the City Council discuss recommendations on pending legislation regarding governance of Valley Transportation Authority ( Assembly Bill 2181) and meeting procedures for local governing bodies (Assembly Bills 1944, 2449, and 2647) and provide direction to staff on the City’s advocacy positions.
Background
The Policy and Services Committee received updates on federal and state legislation on March 8, 2022 (CMR 14117; Minutes) and May 10, 2022 ( CMR 14379; Minutes). The motions passed were as follows:
March 8, 2022 Motion:
Consider supporting Senate Bill 1100 to con duct orderly meetings. (3-0, passed unanimously)
❖ Support and encourage legislation for all participants to participate in remote meetings even during non-emergencies.
(Passed, 2-1)
May 10, 2022 Motion:
❖ Support Assembly Bill 1944, Assembly Bill 2449, and Assembly Bill 2647 that allow virtual meetings, remote participation, and encourage adoption of technology. (Passed, 2-1)
❖ C. Support Assembly Bill 2181 Santa Clara Valley Transportation Authority: board of directions.
(Passed, 2-1)
10 Packet Pg. 209
City of Palo Alto Page 2
B. Support with amendments Assembly Bill 1737 Children’s camps: local registration and inspections.
(3-0, passed unanimously)
The items with a ‘
’ denote those motions that passed 2 -1 and are the subject of this current staff report focused on pending S tate legislat ion for the full City Council to discuss the City’s position. The unanimous items will be brought to Council as a Consent report for the City Council to consider.
Discussion
As mentioned above, the bills for City Council discussion as a follow up to the Policy and Services Committee meetings are:
- Assembly Bill 2181 (Santa Clara Valley Transportation Authority: board of directors) - Assembly Bill 1944 (Local Government: open and public meetings) - Assembly Bill 2449 (Open meetings: local agencies: teleconferences) - Assembly Bill 2647 (Local government: open meetings)
The Policy and Services Committee recommended support for each of these bills, but the votes were not unanimous. Thus, the bills are being brought forward to the City Council to consider whether to support the bills, support with amendments, oppose the bills, or oppose unless amended for each one. A description of each bill , current status , and timeline is included in Attachment A.
Specific to AB 2181, there have been a variety of opinions on th is bill from different municipalities. The City of Campbell supported the bill while the City of Morgan Hill and City of Mountain View opposed the bill. The City of Mountain View’s opposition letter is included in this report as Attachment B for reference.
Staff and the City’s state legislative advocate from Townsend Public Affairs will be present at the City Council meeting to address questions.
Timeline and Resource Impact
Staff would submit the letters on behalf of the City upon direction from the Cit y Council on these bills. As mentioned in Attachment A, the bills will be heard by variou s committees in the coming weeks.
Attachments:
• Attachment10.a: Attachment A: Townsend Updated State Legislation Memo June 2022
• Attachment10.b: Attachment B: Mountain View - AB 2181 - Oppose Unless Amended - Sen Transportation Committee
10 Packet Pg. 210
State Capitol Office ▪ 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383 Federal Office ▪ 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555 Southern California Office ▪ 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215 Central California Office ▪ 744 P Street • Suite 308 • Fresno, CA 93721 • Phone (949) 399-9050 • Fax (949) 476-8215 Northern California Office ▪ 300 Frank Ogawa Plaza • Suite 204 • Oakland, CA 94612 • Phone (510) 835-9050 • Fax (510) 835-9030
MEMO
To: Ed Shikada, City Manager
Chantal Cotton Gaines, Deputy City Manager
From: Christopher Townsend, President, Townsend Public Affairs, Inc.
Niccolo De Luca, Vice President
Andres Ramirez, Senior Associate
Carly Shelby, Legislative Associate
Date: June 1, 2022
Subject: Updated Memo relating to state legislation on public meetings and the Santa Clara Valley Transportation Authority (AB 2181)
SUMMARY
Townsend Public Affairs, Inc. (TPA) has prepared this updated report for the City of Palo Alto as we move forward in the 2022 Legislative session. This memo highlights four pieces of legislation that were discussed in the Policy and Services Committee and deal with public meetings and the Santa Clara Valley Transportation Authority. The city can take a position of support, oppose, or watch. The analysis below is based off text of the legislation, committee analysis, discussions with Members, and others.
Assembly Bill 1944 (Lee) Local Government: open and public meetings Last amended: May 25, 2022
Status: The bill passed out of the Assembly on a vote of 44-12 with 22 abstentions. Its now in the Senate and will be scheduled for its first Senate policy committee hearing which has not yet been set.
Focus of the legislation: Allows members of a legislative body of a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting or proceeding, and without making each teleconference location accessible to the public.
This measure sunsets on Jan. 1, 2030.
Argument in Support: A coalition including the Urban Counties of California, the Rural County Representatives of California, the California State Association of Counties, the Association of California Healthcare Districts, the Association of California School Administrators, the California Association of Public Authorities for IHSS, and the League of California Cities, in support, w rite, “AB 1944 represents an important modernization to the Brown Act that protects local elected officials’ location when participating from a non- public, remote location, while improving access to members of the public via a teleconferencing option. “As you know, local agencies subject to the Brown Act were able to utilize remote participation for elected officials and for the public during the COVID -19 public health crisis. Those processes worked well, allowing for local agencies to continue to conduct t he public’s business in a safe manner. In fact, many of our local agencies report increased participation and interaction with
10.a
Packet Pg. 211
2 members of the public who would otherwise have been unable to access such meetings as a result. At the same time, the ability for local elected officials to participate remotely without having to share the address of their whereabouts allowed them to do so without risking their own well - being and that of their families and neighbors.
“While authority to maintain remote participation continues after the approval of last year’s AB 361 (R. Rivas), based on public health recommendations at the time, this authorization of remote participation by local elected officials, as well as members of the public, is slated to sunset at the end of 2023. Developing a long-term framework for remote participation is a critical update of the Brown Act. We have learned during the pandemic that such participation is effective, transparent, and encourages participation from a broader component of the public than was anticipated. “These positive effects on the conduct of the public’s business would suggest that the conditions outlined in AB 1944 are both reasonable and appropriate to incorporate into our post -pandemic practice of delivering open and public meetings.”
Argument in Opposition: A coalition including the California News Publisher’s Association, the American Civil Liberties Union, the First Amendment Coalition, the Howard Jarvis Taxpayers Association, Californians Aware, the Leadership Counsel for Justice and Accountability, the Society for Professional Journalists Los Angeles, the Orange County Press Club, and the National Writers Union of Southern California, in opposition, writes, “…we must respectfully oppose AB 1944 (Lee), which would make a fundamental change to the Brown Act, enshrining government officials’ ability to teleconference from private locations not identified or accessible to the public.
While temporary accommodations may be necessary, such as to address public health needs during the COVID-19 pandemic, this bill would abolish longstanding democratic protections that require public meetings be held in public venues where government officials can be seen and engaged by the public.
“Further, this bill would change the Brown Act’s requirement that a quorum be present during a teleconference, allowing government bodies to vote to allow themselves to teleconference from outside the jurisdiction, indefinitely and without justification. While this bill includes some provisions that may expand access for members of the public who wish to participate, the cost to democratic principles and public protection is too great… “AB 1944 as written, would allow a body to vote to govern themselves with a teleconference scheme that does not require members to identify the location from which they are taking the meeting, nor make that location accessible to the public. Without disclosing the locations, they are participating from there is no mechanism to ensure that a quorum of members, or any members, are within the jurisdiction about which they are making decisions
Assembly Bill 2449
(Rubio) Open meetings: local agencies: teleconferences
Last amended: May 23, 2022. One of the amendments includes ending these provisions by January 1, 2028.
Status: The bill passed out of the Assembly on a vote of 65 - 4 with 9 abstentions. Its now in the Senate and will be scheduled for its first Senate policy committee hearing which has not yet been set.
Focus of the legislation: Allows members of a legislative body of a local agency to use teleconferencing without identifying each teleconference location in the notice and agenda of the meeting, and without making each teleconference location accessible to the public, if at least a quorum of the members of the body participates in person.
Argument in support: Three Valleys Municipal Water District, sponsor of this measure, writ es, “As part of his response to the COVID-19 pandemic, Governor Newsom originally issued a series of Executive Orders to expand public access to meetings of local agencies by suspending some
10.a
Packet Pg. 212
3 of the restrictions on teleconferencing. The effect was an expanded use of teleconferencing for meetings of the legislative body, resulting in enhanced public access and increased participation by the public.
“The expiration of the Executive Orders immediately gave way to the new AB 361, essentially allowing for the teleconference provisions detailed in the Executive Orders to continue during a period of emergency declaration. However, once an emergency declaration has ended, local agencies will again be required to comply with antiquated provisions of existing law, maki ng it potentially more difficult to hold meetings of the legislative body by teleconference. While current law does allow for “teleconference locations” under normal circumstances, it requires various actions to be taken at the teleconference locations and fails to recognize in the digital age that a teleconference location is wherever there is a person with a computer, a tablet, or even a mobile phone.
“AB 2449 will eliminate the previously existing concept of teleconference locations and will revise notice requirements to allow for greater public participation in teleconference meetings of local agencies. The bill does not require teleconferencing, rather it modernizes existing law to ensure greater public participation in meetings of the legislative bodies of local agencies who choose to utilize teleconferencing. Similarly, in acknowledgement of the critical importance of maintaining transparency and accountability, the bill requires that a quorum of the governing body be physically present at a clearly identified meeting location for all public meetings.” Argument in opposition:
A coalition including the California News Publisher’s Association, the ACLU California Action, the First Amendment Coalition, the Howard Jarvis Taxpayers Association, Californians Aware, the Leadership Counsel for Justice and Accountability, and the Society for Professional Journalists Los Angeles, in opposition, writes, “If enacted, AB 2449 would fundamentally alter the Brown Act by providing express authorization to members of legislative bodies to teleconference into public meetings from private locations not identified or accessible to the public at any time, without a compelling reason. While temporary accommodations may be necessary, such as during the COVID -19 public health em ergency, this bill would excise the longstanding democratic protection afforded by requiring the entire legislative body to directly face the public. We must be mindful before making substantial changes to the laws that have ensured democracy at the local government level for generations. There are many examples of remote meetings increasing public participation in many respects, but there are still many lessons to learn as we continue to move out of the COVID-19 pandemic…
“To be clear, we support increased public access, such as the provisions of this bill that increase remote participation for the public; however, AB 2449, as written, ties that expanded access to removal of existing requirements for those who have sought and agreed to public service in local government. We greatly appreciate that the bill has incorporated many of the provisions that were the result of discussion on AB 339 (Lee) & AB 361 (R. Rivas) last year, including requiring members to be on camera, providing telephonic access for those who do not have stable internet, addressing technological disruptions, and others. However, those bills differed in that AB 339 sought to only expand access for the public, and AB 361’s allowances for legislative bodies are confined to states of emergency and required a vote every 30 days to continue. “We are also very glad to see that a quorum must be in the same physical location with the public in this bill, but it is essential to narrow the circumstances in which members outside of the quorum can participate remotely, so that the same members cannot avoid physically appearing without circumstances that justifies limiting the public’s access to the member who is supposed to be serving their interests.”
10.a
Packet Pg. 213
4 Assembly Bill 2647 (Levine) Local government: open meetings Last amended: April 19, 2022
Status of the Legislation: The bill passed out of the Assembly on a vote of 62-0 with 16 abstentions. Its now in the Senate and will be scheduled for its first Senate policy committee hearing which has not yet been set.
Focus of the legislation: Allows writings that have been distributed to members of a legislative body of a local agency less than 72 hours before an open meeting to be posted online to satisfy specified requirements of the Brown Act.
Argument in support: The League of California Cities, sponsor of this bill, writes in support, “Recently the Third District Court of Appeals held that posting meeting documents online does not satisfy this requirement of the Brown Act, and that local governments must place phy sical copies of the document in a designated office open to the public. Requiring physical access at a public location as the only way to satisfy the Brown Act could impair the conduct of the people’s business. Without a legislative solution, the Court’s decision requires local agencies to keep an office open to the public during evenings and/or weekends when a writing is distributed to a local agency’s legislative body. Alternatively, the local agency would have to withhold late breaking information from t he legislative body until an office is open which could impact the ability of a legislative body to be best informed with less time to consider additional information. “This measure would clarify that writings distributed to the majority of a local legislative body less than 72 hours before a meeting can be posted online if physical copies are made available for public inspection at the beginning of the next regular business hours at a public office or designated location. By reducing delays, the public and the community will be better informed to engage in the meeting with the flexibility and transparency this measure provides. This change would advance meaningful public access to government information.” Argument in opposition: There is no argument in opposition, or any opposition listed.
Assembly Bill 2181 (Berman) Santa Clara Valley Transportation Authority: board of directors
Last amended: May 2, 2022
Status: The bill passed out of the Assembly on a vote of 69 -2 with 7 abstentions. Its now in the Senate and will be scheduled for its first Senate policy committee hearing which has not yet been set.
Focus of the legislation: This legislation seeks to make changes to the Board of the Santa Clara Valley Transportation Authority (VTA), including:
1) Specifies that the government of VTA shall be vested in a board of directors that shall consist of 12 voting members, as follows:
a) Two representatives of Santa Clara County, who shall be appointed by the president of the board of supervisors wit h board of supervisors’ approval by at least a four -fifth vote, consistent with both of the following requirements:
i) One representative shall be a nonelected community member with expertise in financing and accounting.
ii) One representative shall be a nonelect ed community member with expertise infrastructure management, construction management, or project management. b) Five representatives of the City of San Jose, who shall be appointed by the mayor of the City of San Jose with city council approval, consistent with the following:
i) At least two representatives shall be city council members or the mayor of the City of San Jose.
10.a
Packet Pg. 214
5 ii) At least two representatives shall be nonelected community members who, to the extent possible, have expertise, experience, or knowledge rel ative to transportation issues.
iii) The mayor of the City of San Jose shall appoint at least one representative who uses public transit as their primary mode of transportation. c) Five representatives of the cities in the county, other than the City of San Jose, elected in a manner consistent with the following:
i) At least two representatives shall be nonelected community members who, to the extent possible, have expertise, experience, or knowledge relative to transportation issues.
ii) At least two representatives shal l be city council members or mayors of the cities in the county, other than the City of San Jose.
iii) To the extent possible, each regional group, as provided for by the agreements among the cities in the county, other than the City of San Jose, shall be represented on the board of directors by a representative elected pursuant to this bill. iv) The representatives shall be elected through the following ranked choice voting process:
(1) VTA shall develop an application process.
(2) To be eligible to be selected, a candidate shall complete an application and submit the application to VTA.
(3) VTA shall create one ranked choice ballot that includes only those candidates that submitted complete applications.
(4) The city council of each city in the county, other than the City of San Jose, shall in a public forum, rank those candidates using the ranked choice ballot and submit the ranked choice ballot to VTA by a date determined by VTA. (5) VTA shall count the ranked choice ballots submitted pursuant to (4) above. v) Provides that if a representative who is elected as a city council member or mayor of a city in the county, other than the City of San Jose, no longer serves in that capacity as a city council member or mayor, the representative may continue to serve on the board of directors until their term on the board of directors expires, unless as otherwise specified.
2) Specifies that in addition to the 12 voting members of the VTA Board, VTA’s Board may include ex officio nonvoting members from regional transportation or governmental bodies. 3) Requires VTA to ensure that representatives of a single city do not compose most of the board of directors.
4) Provides that a representative appointed or elected pursuant to this bill shall serve a four-year term and may be reappointed without limitation.
5) Specifies that VTA shall implement guidelines for the removal for cause of a representative appointed or elected to the Board.
6) Removes, as of January 1, 2024, the provision in existing law that provides that the term of office for each director shall be two years and until the appointment and qualification of their successor, and specified vacancy requirements.
7) Specifies that this bill shall become operative on July 1, 2023.
Argument in Support: There is no formal support.
Per the author, “Valley Transportation Authority provides essential public transit options that help get Santa Clara County’s two million residents to and from work, school, and home. However, three Civil Grand Jury Reports over the last 17 years have concluded that VTA’s governance structure is a root cause of the agency’s poor performance and is in need of structural reform. AB 2181 delivers this structural reform by transitioning the current board —a rotating group of 12
10.a
Packet Pg. 215
6 elected officials and 6 alternates in Santa Clara County—to a 12-member hybrid board composed of both elected officials and qualified members of the public. This bill honors local control by building in flexibility, while prioritizing both regional accountability and equity in using a regional ranked choice voting process. The new VTA board members would be selected by city and county officials in a transparent public process, ensuring that expertise related to transportation, infrastructure or project management, and budgetary expertise are represented on the board. A more experienced, transparent, and regionally focused VTA Board will be better positioned to meet Santa Clara County’s complex transportation needs.” Argument in Opposition: There is no formal opposition.
Per the most recent Grand Jury report, “The Grand Jury concluded that today, more so than in 2004 or 2009, the VTA Board is in need of structural change to enable it to better protect the interests of the County’s taxpayers and address the many complex challenges presented by emerging trends in transportation, rapidly evolving technology and the changing needs of Silicon Valley residents. The Grand Jury recommends several changes to the governance structure and operations of the VTA Board which will improve the Board’s ability to effectively perform its important oversight and strategic decision-making functions.”
10.a
Packet Pg. 216
10.b
Packet Pg. 217
10.b
Packet Pg. 218
10.b
Packet Pg. 219
10.b
Packet Pg. 220
City of Palo Alto (ID # 13983)
City Council Staff Report
Meeting Date: 6/13/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Revenue -Generating Ballot Measures (Affirmation of the Natural Gas Utility Transfer and New Business Tax): Direction to Staff on Key Policy Questions and Measure Characteristics, and Direction to Return with Final Documents for Placement of Ballot M easure(s) on the November 2022 Election and a Non -Binding Resolution for Intended Use of Business Tax Proceeds
From: City Manager
Lead Department: Administrative Services
RECOMMENDATION
Staff recommends that the City Council:
1) Review and discuss additional information provided to inform decision-making on two potential ballot measures for voter consideration as part of the November 2022 election a) affirmation of the natural gas utility transfer and b) new business tax:
a. Analysis of comparison agencies and impact of potential tax offsets b. Summary polling results of the third and final round of polling.
2) Direct staff to return to the City Council on June 20 with completed documents for placement of a ballot measure on the November 2022 election for affirmation of the natural gas utility transfer as outlined in Attachment D and summarized in Table 2.
3) Direct staff to return to the City Council with completed documents for placement of a ballot measure on the November 2022 election for a new business tax with the following refinements:
a. Recommended “Key Policy Questions” as summarized in this report to be reflected in the ordinance;
b. Recommended final tax rate not to exceed $0.10/sq ft per month c. Characteristics as outlined in summary Table 3 or as amended per Council determination.
4) Review the draft non-binding Resolution to inform the public of Council’s intentions regarding the use of Business Tax proceeds if passed by voters (Attachment C) and 11 Packet Pg. 221
City of Palo Alto Page 2
affirm content or direct staff to make revisions. Staff will return to the City Council with a final Resolution for Council adoption on June 20.
Please note staff expect to release a supplemental memorandum on June 9 that will transmit the summary results of the 3rd round of polling, the draft ordinance for a new Business Tax, and a draft resolution to inform the public of Council’s intentions regarding use of Business Tax proceeds.
EXECUTIVE SUMMARY
The information provided in the following staff report represents several months of work exploring potential ballot measure options for voter consideration during the November 2022 election to maintain high quality City services at fiscally sustainable levels. The two ballot measure proposals under review seek to address the City’s long-term structural budget issues through new revenue, in order to enhance priority services to the community, prepare for the future, and help build on Palo Alto’s services as community needs evolve and grow.
Over the last six months, staff and consultants organized a series of conversations about the City’s budget and fiscal sustainability efforts, holding several focus groups, informational sessions, online surveys, mailed surveys and polls to hear from residents and businesses about these potential ballot measures. As this has been an iterative process with the City Council, the steps taken to date respond to feedback received in many ways (Table 1 below). Adjustments based on feedback seek to provide balanced revenue measures that continue to further the City’s interest in investing for the future while also recognizing the importance of business to the community.
TABLE 1: Community and Stakeholder Business Tax Structure Feedback Feedback Recommended Adjustments
Implementation /
Timing
• Retrospective or prospective
• Staff recommends that any tax and offsets/credits be assessed retrospectively
• Not the right time – that businesses need to recover from the economic impacts of the pandemic.
• Tax and offsets/credits for calendar 2023 would be due in early 2024
• Two-year phase in is included in Council’s 4/25 direction Square Footage
Calculation
• Multiple locations and/or facilities
• See staff’s recommendation to calculate multiple locations and/or facilities in the aggregate
• Residential property
• See staff’s recommendation to exclude living areas (apartments and bedrooms) but to include all common areas where
commercial services are provided
11 Packet Pg. 222
City of Palo Alto Page 3
Feedback Recommended Adjustments
Exemptions /
Offsets
• Vacant property
• See staff’s recommendation to consider an offset for vacant property
• Hotel exemption or offset
• See staff’s financial impact for an offset for TOT Remittal Annual CPI • Without a cap, the CPI would continually increase. • 5% cap on CPI is included Council’s 4/25 direction
Sunset
• Lack of specified end date, coupled with no CPI cap, is viewed as problematic.
• Not included in Council direction
Spending Plan
• A plan should be developed that specifies how business tax revenue will be spent
• See CMR 13571 on 4/18 for draft spending plan; non-binding resolution regarding use of potential Business Tax Proceeds will be released on June 9th in a supplemental memo
Through this staff report, staff is seeking direction on key policy questions and the final tax structure. Policy questions for Council consideration and direction for the ordinance are:
effective date and timing of tax assessment; treatment of vacant property for tax assessment; calculation of square feet for a business with multiple locations and/or facilities; inclusion of residential property/use in calculation of square feet; calculation of square feet for a property management type business; and, offset/credit allocation. The report outlines staff recommendations and alternatives on these policy questions for City Council decision-making.
In addition, based on Council direction, a draft resolution outlines spending priorities for the use of business tax proceeds if passed by voters and include:
- New/enhanced services, specifically investment in public safety services - Investment in train crossing safety, and transportation - Investment in affordable housing and unhoused services - Investment in economic development support through support of University Avenue and California Avenue streetscapes and placemaking work.
The schedule anticipates Council discussion on June 13 and June 20 with a series of proposed actions related to the two proposed revenue measures. These actions allow the City to meet requirements set forth by the Registrar of Voters to place items on the ballot for November 2022. Actions include:
June 13 City Council Meeting:
- Receive and review results of third and final round of polling 11 Packet Pg. 223
City of Palo Alto Page 4
- Review and provide direction on draft full ballot language and ballot questions for potential ballot measure(s)
- Review and provide updates on additional analysis, comparisons, policy questions and calculations for additional offsets/credits
- Provide final refining direction to staff for official action at the June 20 meeting
June 20 City Council Meeting:
- Final Approval of November 2022 Ballot Measure(s) for voter consideration
There has been tremendous value in the input and feedback gained to date, provided by both residents and businesses. The staff report outlines engagement activities completed since April.
The feedback has been critical to this process. Notably, in May, staff held another facilitated focus group with businesses, and feedback was considered in preparing the draft ordinance and key policy questions for Council consideration.
BACKGROUND
On April 18 and 25, 2022, the City Council continued discussions exploring revenue generating ballot measures for the November 2022 election (CMR 13571, packet p. 162). This meeting followed the March 28, 2022 Finance Committee meeting (CMR 13981, packet p. 3), where the Committee recommended affirmation of the current Gas Utility Transfer; business tax characteristics, including exemptions, rates, an adjustment based on CPI, and phase-in; and recommendation to Council to proceed with the third round of polling.
The April 25th report to Council summarized the tax framework for the proposed business tax and measure to affirm the gas funds transfer. The report also included results of the outreach efforts of the Community and Stakeholder Engagement Plan and results of the second round of polling. The following is Council’s direction to staff on April 25th:
Direct staff to continue work regarding potential ballot measures for voter consideration during the November 2022 election, including execution of the third round of polling, drafting of ballot questions and the full ballot measure text in accordance with the following characteristics:
1) Continue to pursue a ballot measure seeking to affirm the natural gas utility transfer, at the current rate of up to 18% of natural gas utility gross receipts as outlined in Table 2 in the staff report;
2) Continue to pursue a ballot measure seeking to establish a new Business Tax based on square footage with the following characteristics:
a) Tax is determined based on a business’s square footage in Palo Alto, b) Tax rate of $0.10/sq. ft. per month or $0.12/sq. ft. per month, c) Tax rate to increase by the CPI, capped at 5% per annum with excess CPI carrying over to future years,
d) Two-year phase-in provision: reduced rate of 50% in the year of initiation of the tax, and the full rate to be charged in the second year (initiation date to be refined later), 11 Packet Pg. 224
City of Palo Alto Page 5
e) No sunset
f) Exemptions for the following:
i) Grocery stores (requires a given % of sq ft of food sales to qualify as a grocery) ii) Seasonal businesses operating less than 90 days
iii) First 5,000 square feet
g) Direct staff to evaluate the impacts of allowing an offset for hotels based on remittance of TOT
h) Direct staff to research offsets for businesses based on remittance of sales & use tax where the point of sales has discretion and is designated in Palo Alto. i) Confirm that the City’s Business Registry program will continue to operate and be required for all businesses except as exempted by the program ordinance. j) Direct staff to draft a non-binding resolution to inform the public of Council’s intentions regarding the use of Business Tax proceeds,
i) Explore through polling regarding the use of Business Tax Proceeds: funds would be used for grade separation and rail safety, affordable housing and homeless programs, public safety, and improvements to University and California Avenue business districts
The Summary of Prior Work on Potential Revenue Generating Ballot Measures can be found in Attachment F.
DISCUSSION
The City Council has been systematically evaluating and refining two potential ballot measures since June 2021, and previously since 2016. Specifically, because of rising costs and needs for affordable housing and the expected significant investment in transportation infrastructure for safe train crossings, the Council was reviewing a potential tax measure for the November 2020 election. In recognition of the onset of a worldwide pandemic, this work was placed on pause until June 2021 when the discussions were resumed. Below and attached are continued information to assist the Council in its decision making as it considers two potential ballot measures to place before the voters. As part of this action, staff has outlined remaining information as requested by the City Council on April 25, 2022, or as included in the original Ballot Measure workplan.
Staff is seeking the following actions from the Council:
1) Approval of a ballot question and ordinance language for a potential measure that would affirm the current practice of transferring proceeds from the natural gas utility to the General Fund. Staff will return to Council on June 20, 2022, with final documents for approval.
2) Approval of a ballot question and direction on initial draft ordinance language for a potential measure that would implement a new Business Tax, including direction on:
11 Packet Pg. 225
City of Palo Alto Page 6
o “Key Policy Questions” summarized below and as drafted in the attached ordinance
o A final tax rate
o Revisions to characteristics as outlined in summary Table 3, and o The draft resolution for intended use of tax proceeds if passed by voters.
Staff will return to Council on June 20, 2022 with final documents for approval.
In order to assist the Council in these decisions, the outline below identifies the additional information in this report and intended to be provided in a supplemental report that will be published on June 9th. Following this outline is a high-level summary of the timeline between now and the November 2022 election.
1) Measure to Affirm Natural Gas Funds Transfer
• Draft Ballot Question and Ordinance (Attachment D)
2) New Business Tax
• Summary of Additional Analysis (Attachment A): Financial impacts of tax offsets/credits for hotel tax and sales & use tax, & Analysis of tax impacts compared to neighboring jurisdictions
• Draft Ballot Question, Initial Draft Ordinance & Key Policy Questions (Attachment B) • Draft Resolution Identifying Intended Spend of Tax Proceeds (Attachment C) 3) Stakeholder Engagement
• Updates to fiscal sustainability community engagement (Polling results will be brought forward on June 9th in a late packet memorandum once this work is complete)
• Community Feedback Survey (Attachment E)
• Ongoing community feedback and focus groups (Attachment F) 4) Resource Impacts
• Summary of costs to date
• Estimated election costs
5) Timeline
The following documents will be provided in a supplemental late packet memorandum to be issued no later than Thursday, June 9, 2022:
• Third and final round of polling results from FM3
• Attachment B, Initial Draft Ordinance for a New Business Tax • Attachment C, Draft resolution identifying intended spend of business tax proceeds
Summary Timeline
Below is a summary timeline of the remaining components for consideration of and potentially placement of a ballot measure(s) for voter consideration on the November 2022 election. Most significantly, the Council must ensure their consideration and vote for placement of a measure(s) is completed in time for submittal to the County Registrar of Voters (ROV) by the due date of August 12, 2022. Key components of information to be sent to the ROV is below, 11 Packet Pg. 226
City of Palo Alto Page 7
specific due date for each component can be found in the “TIMELINE” section later in this report.
The City Council will adopt a resolution (which does not become a part of the ballot) calling a local election and sending the measure or measures to the County Registrar of Voters. Lastly, if chosen, the Council may adopt a resolution communicating intentions for use of proceeds for a successful Business Tax measure.
Measure to Affirm Natural Gas Funds Transfer
Natural Gas Funds Transfer: Ballot Question and Ordinance (Attachment D) For decades, Palo Alto gas ratepayers have funded contributions to the City’s General Fund to support a variety of City programs and services, including police protection, fire and emergency medical services, local parks, community centers and libraries. Most municipal utilities in California make similar transfers to help fund government services. Investor-owned utilities also collect ratepayer funds that are paid to the cities where they operate, typically in the form of franchise fees or taxes.
In 1950, Palo Alto voters approved the use of some rate revenues for City services via an amendment to the City’s Charter. Since then, California law has evolved through a series of statewide initiatives and court decisions governing how cities set and impose charges for the services they provide. In FY 2021 the Santa Clara Superior court held that a portion of Palo Alto’s annual transfer of funds from the gas utility was a tax that required voter approval to continue. Both sides have appealed, and City leaders believe it is prudent to seek voter affirmation that the City may continue its current and longstanding general fund transfer.
The draft ballot question and ordinance are attached in Attachment D.
11 Packet Pg. 227
City of Palo Alto Page 8
TABLE 2: Summary of Affirmation of Natural Gas Transfer Purpose • Affirm the City’s past practice of annually transferring from the natural gas utility (established in City charter in the 1950’s) Disposition
of Revenue • Allocated to the General Fund for general government purposes Calculation
• Measured by gross revenue of the natural gas utility
• Projected cost of the transfer included in the City’s retail natural gas utility rates as a cost of providing gas services
Rate
• Transfer up to 18% of the gross revenues of the natural gas utility • No change in natural gas utility rates, confirmation of the City’s past and current practice
Council
Authority • Council may decide to transfer a lesser amount from voter approved levels
After the court decision in 2021, the City began setting aside the disputed funds pending resolution of the legal challenge. As a result of this action and revenues shortfalls resulting from the pandemic -related economic contraction, service reductions were made across the organization – including fire and emergency services, police protection, library hours, an d community center programs. One-time federal relief funds mitigated some of these cuts.
As part of the FY 2023 Proposed Operating Budget, staff included a recommended allocation of projected one-time excess funds to restore services previously eliminated. These include areas such as police officers, fire services, support for the City’s community centers, children’s theater productions, library hours, and support for the City’s current and long-range planning efforts.
Voter approval through this ballot measure can help sustain ongoing funding of these services, should future Councils so direct.
New Business Tax
Business Tax Summary of Analysis (Attachment A)
The City Council directed staff in their April 25, 2022 meeting to research and evaluate the impacts of business tax offsets for hotels and designated sales and use tax point of sale. Staff’s research and analysis includes:
• Sales and use tax revenues where the reporting business designates the place where the principal negotiations are carried on resulting in the City of Palo Alto as the point of sale. • Transient occupancy tax (TOT) revenues.
To provide the Council with additional context for consideration and evaluation of the proposed business tax rates and offsets, staff reviewed the City’s possible top five business tax payors to determine the range of annual business tax to be paid as currently constructed.
Detailed discussion and financial impact analysis for the two business tax offsets and the possible top five business tax payors can be found in Attachment A. 11 Packet Pg. 228
City of Palo Alto Page 9
Potential Top Five Business Tax Payors
Using the CoStar real estate database and a variety of other online real estate resources, staff researched and analyzed the potential top five business tax payors in the City and also surveyed surrounding cities for their top five business tax payors to calculate the range of tax these businesses would possibly pay if they were to operate in the City of Palo Alto.
In comparing Palo Alto’s range of annual square footage tax for the top five business payors with other agencies, the low end of the tax range, $0.3 million, aligns with the cities of Mountain View and East Palo Alto, using Palo Alto’s proposed rates. In contrast, on the high end of Palo Alto’s range, the top business tax payor is estimated to pay $1.7 million in annual business tax. If Mountain View’s top business tax payor were to operate in Palo Alto, this business would pay approximately $7.3 million in business tax, assuming the monthly $0.12 per square foot rate.
Financial Impact of Business Tax Offset for Sales & Use Tax Council directed staff to research a potential offset for businesses that designate Palo Alto as the point of sale for remittal of sales and use tax. Based on this review, the potential annual business tax offset ranges between $1.3 million and $3.0 million across all businesses. When fully implemented, the monthly $0.10 per square foot rate is estimated to generate gross receipts of $22 million; this offset would reduce estimated gross receipts to range between $20.7 million and $19.0 million. Similarly, the monthly $0.12 per square foot rate is estimated to generate gross revenues of $26 million; this offset would reduce estimated gross receipts to a range of $24.7 million to $23 million.
Financial Impact of a Business Tax Offset for TOT or “Hotel Tax” Remittal Council directed staff to evaluate the impacts of an offset for hotels based on TOT remittals.
Previously, staff had modeled a full exemption for business tax remittance for hotels. TOT is imposed by the City and is paid by individuals staying at hotels within the City. Attachment A details staff’s calculation of the financial impact of this offset, assuming a two-year phase in beginning January 1, 2024, through FY 2028. After the two-year implementation, the potential TOT Business Tax offset ranges from $1.4 million to $1.8 million through FY 2028. Based on these calculations and compared to projected TOT revenue, hotels operating in the City will effectively offset their Business Tax obligation if every $1 in TOT receipts offsets every $1 in Business Tax liability; one hotel would only be able to offset approximately 50 percent of their Business Tax obligation with this credit and would be responsible for the remaining tax liability.
Estimated business tax revenues totaling $22 million (monthly $0.10/sf) and $26 million (monthly $0.12/sf) included the hotel exemption. This offset would not change these estimated totals since remittance of TOT is higher than the estimated business tax to be paid.
Business Tax: Ballot Question, Initial Draft Ordinance, & Key Policy Questions (Attachment B) As directed by Council in April, staff has prepared an initial draft of a potential ordinance creating a new Business Tax (Attachment B). This ordinance, in outline form, was posted to the 11 Packet Pg. 229
City of Palo Alto Page 10
City’s webpage along with a blog post and discussed as part of a recent focus group to solicit feedback from stakeholders. Although substantially complete there remain some policy questions for the Council’s consideration which are highlighted below. Otherwise, the draft was prepared based on the most recent direction and outline of terms in the table below as directed by the Council and informed by feedback from stakeholder engagement.
TABLE 3: Summary of Business Tax Characteristics
Purpose Allocated to the General Fund for general government purposes, without a sunset
Calculation Measured by square feet
Rate
• $0.10/sq ft/mo or $0.12/sq. ft. per month
• 2-year phase in
• 5% CPI cap, excess carrying over to future years
• Penalties and interest to be assessed for non-compliance • Continue current Business Registry Certificate Program for all eligible businesses
Exemptions
The following would be exempt from payment of the tax
• First 5,000 square feet of all businesses
• Grocery or Supermarket stores
• Seasonal businesses operating less than 90 days
Offset/
Credit
Qualifying businesses may apply annually to the Tax Administrator to offset up ____% of the business’s Business Tax obligation as follows • Remittance of hotel tax receipts, aka Transient Occupancy Tax (TOT) • Remittance of sales & use tax designated by a point or place of sale that has discretion
• Vacant space
Council
Authority
Designate authority for the City Council to adjust rates or other provisions in any manner that does not increase the tax.
Policy questions for Council consideration and direction that are stipulated in the draft ordinance are highlighted below. Direction from Council either affirming staff’s recommendation or amending is an important part of the Council’s decision making as part of this item. This direction will be included in a final revised full text ordinance for the Council’s final vote and direction if the Council desires to place this on the ballot for voters’ consideration.
11 Packet Pg. 230
City of Palo Alto Page 11
A) Effective date and timing of tax assessment
• Recommendation: Staff recommends that the tax and any offset/credits be assessed in a retrospective manner, no less frequently than once a quarter. For example, the tax assessment including any offsets for the January-March period would be due within 30 days of the close, or April 1-April 30. Tax remittance would be determined delinquent if received on or after May 1. Council may choose the effective date of the tax itself; staff recommends a date no earlier than January 2023 and as stated before, does not expect to be able to administer the tax until January 2024 should voters affirm this measure in November 2022. This means that taxes incurred during calendar year 2023 would be due in a lump sum in early 2024.
• Alternatives: Annual prospective assessment: the tax would be assessed and due within the first 30 days of the tax year and would cover the tax for the coming 12 months. For example, the tax assessed in January 2021, would be for the period of January 2021 through December 2021. Offsets could either 1) be estimated for the same 12-month period and reconciled based on actuals, or 2) reflect actual receipts from the prior 12 month period. A prospective assessment alleviates the risk that a business could leave Palo Alto part way through the year without paying the appropriate tax for the partial year of operations. However, the stable data that a retrospective assessment affords coupled with a quarterly billing to mitigate the risk of tax leakage during a final year of operation balances the options.
B) Treatment of vacant property for tax assessment
• Recommendation: Staff recommends that the tax be established to address vacant property in the following ways:
o Vacant property shall not be assessed as part of the tax. Businesses that own or control (lease) square footage that they are not using would report that vacant square footage and apply for an offset/credit.
“Vacant” is to mean a severable portion of the physical location that a business is operating, such as an entire floor, a building, or a portion of a floor with independent entrance/exits, that is free from any use, fixtures, furniture, and equipment, and is available for immediate use by a new tenant.
• Alternatives: Staff explored whether the tax ordinance could be applied to all square feet that are currently owned or controlled by a business, regardless of whether in active use. Staff does not recommend this approach because the proposed Business Tax uses square footage as a measure of taxable business activity in Palo Alto. Vacant and unused square footage does not correspond to business activity.
11 Packet Pg. 231
City of Palo Alto Page 12
C) Calculation of square feet for a business with multiple locations and/or facilities • Recommendation: Staff recommends that should a business operate at multiple locations, the calculation of square feet be the aggregate of all locations in Palo Alto.
This situation may apply to various types of activity, including large corporate campuses with multiple buildings and addresses of operation, as well as smaller operations that may operate locations in various shopping centers. In any of these instances, the total square footage of all locations of the business would be aggregated, the aggregate of any offsets would be applicable, as well as the first 5,000 square feet of the aggregate total would be applied once to the aggregate total as opposed to each individual location.
• Alternatives: Square feet could be calculated by each individual facility. In this instance, if a business has three locations of 7,000 square feet each, the business would be taxed on 6,000 square feet instead of 16,000 square feet. Staff will develop definitions and standards for determining businesses with common ownership that are truly separate.
D) Shall residential property/use be included in the calculation of square feet? • Recommendation: Staff considered businesses that are engaged in the activity of providing residential property for rent and businesses that provide housing in conjunction with services (such as assisted living and other congregate housing facilities). Staff recommends that the calculation of square footage exclude actual living areas (such as apartments and bedrooms) but include all common areas and areas where commercial services are provided, or administration occurs. Therefore, businesses such as apartments or congregate living facilities would be taxed on the square feet of common areas, administrative offices, and areas where services are provided; areas solely for individual or family sleeping/living/cooking/hygiene would be excluded.
• Alternatives: All square feet of a residential property business, including those facilities with square footage solely used for individual or family sleeping/living/cooking/hygiene could be included in the calculation of square feet for assessment of the tax. This action would likely increase the estimated gross receipts from levels provided to the Council thus far, as staff has been excluding any residential property in calculations based on prior direction for assessment on commercial activities. Another alternative could be to simply exempt all residential property including common areas which would result in the near exemption of all apartment operations as well as likely assisted living facilities businesses. Other cities do include businesses such as apartments or property owners/managers in their tax calculations, however, it is typically based on number of units, total lease revenues, or headcount of staff employed by the business.
11 Packet Pg. 232
City of Palo Alto Page 13
E) Calculation of square feet for a property management type business: commercial developer, property manager, etc.
• Recommendation: Staff recommend that a property manager’s tax obligations relating to unleased developments or multitenant buildings partially occupied by property management functions be limited to the space occupied by administrative offices and operations.
• Alternative: Alternatively, the property management business’ tax obligation could include the “common” areas or “services areas” that are unlikely to be assigned to a specific lessee. The draft ordinance currently requires proportioning common space among tenants, unless assigned to a specific business. In either case, only one business would be responsible for tax associated with a given building space.
F) Offset/Credit Allocations
• Recommendation: Staff recommend that any offset/credit be able to adjust the business tax assessment within the following parameters:
o Sales & Use Tax receipts 2:1 ratio: every $2 of eligible sales & use tax received would offset $1 of business tax liability up to 75% of the tax liability. o All other, such as TOT receipts or vacant space 1:1 ratio: for every $1 of hotel tax remitted, $1 of business tax liability would be offset
• Alternative: For the Sales & Use or TOT offsets, Council could choose a different ratio or cap than the staff recommendation above.
Business Tax: Resolution Identifying Intended Use of Tax Proceeds (Attachment C) As outlined in April 2022 and directed by the Council on April 25, 2022, is preparing a draft Resolution that the Council may choose to adopt in parallel with the placement of a potential Business Tax on the November 2022 ballot. The Resolution will be published late-packet on June 9. Currently proposed as a general tax, the priority uses of funds is not legally binding, however, is a form of communication clearly identifying the intended uses of any tax proceeds generated. The City Council has successfully honored its representations to voters with respect to the change in the Transient Occupancy Tax rate (hotel tax), with all proceeds from a rate change approved in 2014 and another in 2018 being dedicated to investment and completion of the City Council 2014 approved Infrastructure Plan. TOT receipts have funded major projects such as the new Public Safety Building, Bike & Pedestrian Plan, and the new parking garage in the California Avenue district. Based on the Council direction, this draft Resolution will include the following spending priorities:
- New/enhanced services, specifically investment in public safety services - Investment in train crossing safety, and transportation - Investment in affordable housing and unhoused services - Investment in economic development support through support of University Avenue and California Avenue streetscapes and placemaking work.
11 Packet Pg. 233
City of Palo Alto Page 14
STAKEHOLDER ENEGAGEMENT
The Ballot Measure Workplan integrates stakeholder engagement through constituent polling and extensive direct stakeholder outreach. Staff as gained valuable input and feedback to date from the City Council, Finance Committee, community members, and the business community.
Per City Council direction, the City has engaged with FM3 to perform polling, Lew Edwards Group for stakeholder engagement planning, and the Public Dialog Consortium (PDC) for stakeholder engagement.
Updates to fiscal sustainability community engagement
Since April, staff continue to implement the various tenants of the community and stakeholder engagement plan. In the last two months, staff have updated the Fiscal Sustainability Webpage, engaged in Community group information presentations, and hosted a focus group for feedback on the draft ordinance. In addition, staff have published blog posts, provided online information and continued to make the survey responses available. Lastly the City did complete a third round of polling. Polling results will be brought forward in a late packet memorandum on June 9.
The Fiscal Sustainability: A Community Conversation webpage was updated for the most current actions by the City Council as well as the documents that have been released to date.
Most notable, a blog post issued May 19, 2022 here as well as the posting of a community information presentation here and the draft ordinance for the public’s review here were provided. Staff have been reaching out to large community groups offering to provide an informational presentation on the Fiscal Sustainability Plan including its nexus with the FY 2023 Budget process, with the presentation linked above.
Ongoing community feedback and focus groups (Attachment F) On May 19, 2022, staff held another facilitated focus group with businesses, specifically to receive feedback on the draft ordinance that was provided in advance of the meeting.
Attachment F is a memo from the Public Dialogue Consortium (PDC) summarizing this conversation. Feedback from this group was considered in preparing the draft ordinance. There was significant discussion in this focus group on how various types of space would be taxed, including commercial leased space, unused space, vacant space listed for lease, and residential leased space. There was discussion of offsets, the measurement of square footage, the treatment of businesses with multiple locations, and the treatment of buildings with multiple businesses. Staff have worked to incorporate feedback in the draft ordinance and in the key policy questions for Council direction above.
Community Feedback Survey (Attachment E)
The fiscal sustainability survey has remained open and the updated results are included in Attachment E. As of June 1, 2022, over 433 respondents had engaged with this feedback tool assisting staff in crafting both the priorities in the FY 2023 Proposed Budget as well as the priority areas for investment should a tax measure pass. The community feedback is 11 Packet Pg. 234
City of Palo Alto Page 15
summarized in Attachment E and remains in line with feedback provided prior to April 7, 2022.
Only 39 new responses were received between April 7th and June 1st.
RESOURCE IMPACT
Staff and Consultant Resource Impacts
Implementation of this workplan to develop a revenue generating local ballot measure has and continues to require significant resources that include internal staff, consultant expertise, and stakeholder engagement. This initiative has required an average of the equivalent of approximately two full time dedicated staff positions, however, in recent months and at present have presented a significant increase in staffing resources including significant focused executive support from multiple members of the Executive Leadership Team. This has impacted progress on other projects as this work has been prioritized over others.
The City Council appropriated funding for this activity as part of the FY 2022 Preliminary 1st Quarter and subsequent actions. Through Council approved budget amendments of $270,400, additional resources supporting this major project include:
▪ Community & Stakeholder Engagement: Lew Edwards Group, $101,695 Council approved on 11/15/2021, CMR 13626
▪ Public Opinion Polling: Fairbank, Maslin, Maullin, Metz & Associates (FM3), $113,500 Council approved on 4/4/2022, CMR 14078
▪ Outside Legal Counsel: Javis Fay LLP, $25,000
▪ Miscellaneous printing and mailing
Ballot Measure Placement Resource Impact
The Santa Clara County Registrar of Voters (ROV) estimates that placing two measures on the November 2022 election ballot will cost approximately $172,000, or $86,000 each; this is revised from the initial estimate of $80,000 per six page measure based on new fees as published by the ROV. When combined with the planned Councilmember elections and assuming two ballot measures, the total estimated cost is $333,000 for the November 2022 election. Appropriation for these funds was brought forward in the FY 2023 Proposed Budget at the prior estimate of $320,000, depending on the final direction, staff may need to appropriate additional funds.
Ballot Measure Revenue Generation Resource Impact
The revenue generated by a potential ballot measure will be directly impacted by the structure and rates approved by the City Council. The revenue estimates are summarized below:
▪ Affirmation of the Gas Utility Transfer: $4 million
This would affirm the current practice of inclusion of this expense in the development of gas utility rates and would not increase gas rates beyond existing forecasted changes.
Current gas utility rates for residential customers remain below comparators such as PG&E. Additional information on gas rate comparisons can be found in the FY 2023 Gas Utility Financial Plan.
11 Packet Pg. 235
City of Palo Alto Page 16
▪ Business Tax: approximately $19 to $26 million gross revenues, annually The total gross revenue will depend on the rate of taxation as well as the offsets/credits and exemptions the Council decides to include. This overall would establish a new tax and revenue to the City’s General Fund where they can be spent on any general government purposes. That decision will be made each year by the sitting Council, however, examples of priority investments are outlined in the draft resolution in Attachment C as directed by the City Council. Administrative costs to collect and implement the tax will impact available funds for spend and administrative expenses are estimated to range between $500,000 and $1 million depending on the tax.
TIMELINE
Ballot Measure(s) Workplan Timeline
June 2022
Council:
- Receive and review results of third and final round of polling - Review and provide direction on draft full ballot language and ballot questions for potential ballot measure(s)
- Review and provide updates on additional analysis, comparisons, policy questions and calculations for additional offsets/credits - Provide final refining direction to staff for official action at the end of June
Staff Work:
- Finalize documents for Council approval
- Continue to provide and support community group information sessions
Council June 20, 2022:
- Final Approval of November 2022 Ballot Measure(s) for voter consideration August 2022
Staff work:
- Language submitted to Santa Clara County Registrar of Voters including:
o Ballot question(s) (a clear, accurate statement that describes what the measure will do, not to exceed 75 words) (Due August 12, 2022) o Full text of the measure(s) (Due August 12, 2022)
o Impartial analysis of the measure prepared by the City Attorney (Due August 23, 2022)
o Arguments for & against (Due August 16, 2022, rebuttal due August 23, 2022)
November
2022 Election
11 Packet Pg. 236
City of Palo Alto Page 17
ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in the CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. .
Attachments:
• Attachment11.a: Attachment A - Business Tax Research and Analysis • Attachment11.b: Attachment B - [placeholder]
• Attachment11.c: Attachment C - [placeholder]
• Attachment11.d: Attachment D - Ballot Measure Affirming Gas General Fund Transfer
• Attachment11.e: Attachment E - Summary of Online Survey Responses • Attachment11.f: Attachment F - Report from PDC re Addtl Focus Groups • Attachment11.g: Attachment G - Summary of Prior Work on Potential Revenue Generating Ballot Measures
• Attachment11.h: Attachment H - [placeholder]
11 Packet Pg. 237
ATTACHMENT A
Square Footage Business Tax Additional Research and Analysis Through the City of Palo Alto’s exploration of a potential business tax, on April 25, 2022 (CMR 14316), the City Council directed staff to continue pursuit of a ballot measure to establish a square footage business tax and to research and evaluate the impacts of allowing the following business tax offsets:
1) Transient occupancy tax (TOT), and
2) Sales and use tax revenues where the reporting business designates the City of Palo Alto as the point of sale.
Using the CoStar database (referenced and presented in detail on November 8, 2021, CMR 13687, p. 115), this attachment presents research and analysis for the City’s possible top five business tax payors that includes the dollar range of revenue, percent of total revenue these businesses may potentially pay in business tax, and comparisons with the top five business tax payors in surrounding agencies. This attachment includes:
1) Top Five Business Tax payors
• Comparison to surrounding agencies
2) Business Tax revenue impact, including scenarios/options for:
• Potential offset TOT remittal
• Potential offset for designated point of sale for sales and use tax offset
Potential Top Five Business Tax Payors
To provide the City Council with additional context for consideration of a potential business tax measure, staff researched and analyzed the potential top five business tax payors in the City and surveyed surrounding agencies to order of magnitude for the proposed Business tax. This research and analysis is presented in Table A1: Possible Top Five Business Tax Payors – Palo Alto and Other Agencies.
Using the CoStar database and internet searches, staff calculated the City’s possible top five business tax payors, should this proposed measure be passed by voters. In Palo Alto, the Business tax assessment for each of the five businesses is estimated to range between $320,000 and $1.4 million based on the monthly $0.10 per square foot, and between $380,000 to $1.7 million based on the $0.12 per square foot monthly rate. Additionally, the proposed Business tax assessed on the top five businesses account for 20 percent of total estimated Business tax revenues. In Palo Alto, the square footage for these businesses ranges from 270,000 to 1.2 million square feet in size.
To provide additional context, staff surveyed surrounding cities that shared local or economic similarities such as types of businesses that operate within that city, basis for tax and how the tax is calculated, and/or whether the tax was modernized via recent tax measure. The Tax Range, shown in the second column of Table A1 calculates the tax range for the top five businesses, based on Palo Alto’s current proposed Business tax rate structure. This table includes the following information:
• Square Footage Tax Range: the range of tax each of the top five business tax payors in Palo Alto other surveyed cities would pay, under the current business tax proposal.
11.a
Packet Pg. 238
ATTACHMENT A
• Other Agency Tax Range / Estimated Rate per Square Foot: the range of tax each of the top five business tax payors in other cities pay; the estimated rate per square foot, based on the range of tax each of the top five businesses pay and estimated building size. • Percent of Total Business Tax Revenue / Total Top Five: percent of total business tax revenue remitted by top five payors and total amount remitted.
• Estimated Building Size: based on real estate data base searches • Total Annual Business Tax: FY 2021 business tax revenue reported by the surveyed city. FY 2021 is Mountain View’s second year of a three-year implementation of the 2018 business tax measure. Table A1 assumes the amounts for a full year.
Calculations in Table A1 assume:
• Full monthly tax rate of $0.10/sf and $0.12/sf after two-year phase in • Exemptions that are currently proposed by Council (5,000 square feet, grocery stores) • Calculated tax before possible offsets for transient occupancy tax and/or remittance of sales and use tax point of sale
Table A1: Possible Top Five Business Tax Payors – Palo Alto and Other Agencies
Square Footage
Tax Range
(Palo Alto Rates)
Other Agency
Tax Range / Est.
Rate per SF
% of Total BT
Revenue /
Total Top 5 Est. Bldg. Size
Total Annual
Business Tax
Palo Alto
Square Footage $0.3M-$1.7M n/a 20% / $4.3M-
$5.2M 270K-1.2M sf $22M - $26M
Mountain View (a)
Employee Headcount $0.2M-$7.3M $0.2M-$4.0M
$0.55-$4.40/sf 77% / $4.8M 170K-5.1M sf $6.3M
East Palo Alto
Business Tax
Gross Receipts $137K-$2.0M $13K-$0.4M
$0.26-$0.50/sf 49% / $0.6M 119K-1.4M sf $1.2M
Parcel Tax (b) $0.2M-$0.3M $0.4M-$0.5M
$2.50/sf 100% / $1.7M 165K-213K sf $1.7M
San Jose (c) n/p $0.2M (cap) %n/p / $0.8M n/p $70M
Notes:
(a) 2018 measure included a three-year implementation. FY 2021 is the second year of implementation; amount presented assumes fully implemented tax.
(b) Top four parcel tax payors were provided.
(c) San Jose uses Employee Headcount as tax basis, Number of Rental Units (housing) and Square Footage (commercial landlords). The general business tax has a $166,311.35 cap; six businesses pay this cap amount. n/p = Not Provided
To compare the proposed business tax structure to other agencies, staff researched real estate databases for the estimated square footage for the possible top five square footage business tax payors for the City’s and other agencies. The estimated business tax to be paid by each of the top five businesses was calculated using the business tax structure detailed in Council’s April 25th motion, excluding possible hotel and/or sales and use tax offsets. If passed by the voters in November 2022, Palo Alto’s top five businesses would pay a range between $0.3 million to $1.7 million, which would represent approximately 20 percent of total business tax revenue.
11.a
Packet Pg. 239
ATTACHMENT A
In comparison, the top five business tax payors of Mountain View pay between $0.2 million to $4.0 million, which comprise approximately 77 percent of total business tax revenue. If Mountain View’s top five business tax payors were to operate in Palo Alto under the current proposed square footage tax structure, these businesses would pay a range between $0.2 million and $7.3 million. While the low end of the range is consistent with Mountain View’s business tax, based on Palo Alto’s rates, the high end of the range ($1.7 million) is 75 percent lower than Mountain View’s top payor would be taxed using Palo Alto’s rates ($7.3 million). As a percentage of total business tax revenue, 20 percent of Palo Alto’s estimated annual business tax revenue is from the top five payors, while 77 percent of Mountain View’s annual business tax revenue is from their top five payors.
Staff also compared the proposed business tax with East Palo Alto’s business tax and parcel tax. Using Palo Alto’s proposed business tax structure, the ranges the top five business tax payors and four parcel tax payors in East Palo Alto would pay are similar, between $0.3 million and $2 million. As a percentage of total business tax revenue, close to 50 percent of East Palo Alto’s business tax revenue is derived from their top five payors; this is 30 percentage points higher than Palo Alto’s estimate.
Financial Impact of Business Tax Offset for Sales & Use Tax The City Council directed staff to research a potential offset for businesses based on remittance of sales and use tax where the point of sale is designated in Palo Alto. The California Department of Tax and Fee Administration (CDTFA) highlights key sections of the Revenue and Taxation Code that discusses sales and use tax law. In addition to typical “brick and mortar” sales tax imposed on goods sold directly to consumers, equipment and products sold to businesses, regardless of whether the business purchasing the good is located within the boundaries of the City, are also subject to sales tax. The business to business segment includes categories such as office and electronic equipment, business services, and leasing activities. According to the Sales Tax Digest Summary for Calendar 2021 Q4 (CMR 14262), close to 30 percent of the City’s total sales tax revenue is attributed to business to business activity. In comparing this to the statewide and San Francisco Bay Area percent of total sales tax, the City’s business to business segment is approximately 13 percentage points higher than the state and 7 percentage points higher than the San Francisco Bay Area (see Attachment A, Chart 1). Chart 7 and Chart 8 in this report provides a break down and analysis of the percent change for the business to business section by comparing to other cities in Santa Clara County and by geographic area in the City.
Staff and the City’s sales tax consultant reviewed data for the fourth quarter of calendar year 2021 by reviewing estimated business to business sales and use tax for all businesses with a sales tax permit.
Based on this review and as summarized in Table A2, the potential annual business tax offset ranges between $1.3 million to $3.0 million across all businesses. When fully implemented, the monthly $0.10 per square foot rate is estimated to generate gross revenues of $22 million; this offset would reduce estimated gross receipts to range between $20.7 million and $19 million. Similarly, the monthly $0.12 per square foot rate is estimated to generate gross revenues of $26 million; this offset would reduce estimated gross receipts to a range of $24.7 million to $23 million.
11.a
Packet Pg. 240
ATTACHMENT A
Table A2: Business Tax Offset for Designated Point of Sale Sales and Use Tax
Estimated Annual
Business Tax Range of Offset
Net Annual Business Tax
Revenue
Monthly $0.10/sf $22M $1.3M-$3.0M $19M-$20.7M
Monthly $0.12/sf $26M $1.3M-$3.0M $23M-$24.7M
Based on staff’s calculation of the possible top five business tax payors and compared to this sales tax data analysis, should the City Council elect to include a business tax offset that is based on a business operator that has the discretion on where the reporting business designates the place where the principal negotiations are carried on resulting in the City of Palo Alto as the point of sale, the top five business may be eligible to offset in part or in full their business tax liability. As noted in the policy questions in the staff report, the Council may choose to adjust the level of offset/credit by establishing an overall cap (e.g. a business may offset business tax up to 75 percent of the business tax liability), and/or a ratio of sales and use tax remittance to offset Business Tax (e.g. $2 of sales & use tax offsets $1 of business tax). If instituted, a threshold or ratio may lessen the impact of the offsets on gross business tax receipts.
Financial Impact of Business Tax Offset for Transient Occupancy Tax (TOT) or “Hotel Tax” Remittal During the April 25th meeting, Council directed staff to evaluate the impacts of an offset for hotels based on TOT remittance (Council meeting minutes). Previously, staff had modeled a full exemption for business tax remittance for hotels. An individual staying at hotels within the City, referred to as a transient, is subject to a 15.5 percent TOT that is imposed by the City and based on the hotel rate paid by the transient (PAMC 2.33.020). Within the past decade, voters have approved two ballot measures (2014, 2018) to increase the TOT rate to support the 2014 Infrastructure Plan.
Staff presented the Finance Committee with analysis and the potential financial impact regarding an exemption for hotels and grocery stores (CMR 13981). The aggregate estimated business tax revenue from hotels, based on CoStar data previously presented to Council is presented below. This calculation assumes the first 5,000 square feet is exempt and applies a monthly rate of $0.10 and $0.12 per square foot.
Table A3 below calculates the financial impact of the TOT remittance offset assuming a two-year phase in beginning January 1, 2024, should the business tax be approved by voters in November 2022. Also assumed in the below calculation is the exemption for the first 5,000 square feet, calculations for both monthly rates of $0.10 and $0.12 per square foot, and an annual 3 percent CPI beginning July 1, 2026.
11.a
Packet Pg. 241
ATTACHMENT A
Table A3: Business Tax Offset for Transient Occupancy Tax Remittance Assumes Business Tax is imposed beginning January 1, 2024, over a two-year phase in, and assumes an annual 3% CPI beginning January 1, 2026.
FY 2024 FY 2025 FY 2026 FY 2027* FY 2028
Est. Annual Business Tax
Monthly $0.10/sf $360 $1,080 $1,440 $1,480 $1,520
Monthly $0.12/sf $430 $1,290 $1,720 $1,770 $1,830
TOT Revenue** $23,580 $27,900 $28,820 $29,700 $30,830
*3% CPI begins July 1, 2026 to align CPI calculation with fiscal year **Source: LRFF Base Case (January 10, 2022, CMR 13800)
Based on CoStar data previously presented to Council (CMR 13875, Attachment A) and after the two- year implementation, the potential TOT Business Tax offset ranges from $1.4 million to $1.8 million through FY 2028. Based on these calculations and compared to projected TOT revenue, while the majority of the hotels operating in the City will effectively offset their Business tax obligation, there is one hotel that will only be able to offset their Business tax obligation by half.
Based on the City’s Long Range Financial Forecast (LRFF) that was transmitted to the Council on January 10, 2022 (CMR 13800), business and other leisure/non-leisure travel has experienced significant reductions in recent years due to public health orders, travel restrictions, and diminishing business and personal travel plans resulting from the pandemic. TOT revenues sharply declined from pre-pandemic levels of $25.6 million in FY 2019 to a low of $4.9 million in FY 2021. The FY 2023 Proposed Budget estimates TOT revenues to be $18.2 million. As public health conditions improve and travel resumes and with the opening of two Marriott hotels in FY 2021, TOT revenue is anticipated to recover and grow, however the FY 2023 estimate remains to be approximately 30 percent lower than pre-pandemic revenue levels of FY 2019. Based on the LRFF base case scenario, TOT revenue is expected to return to pre-pandemic levels within two or three fiscal years (FY 2024 and FY 2025).
11.a
Packet Pg. 242
PLACEHOLDER
Attachment B: Draft Business Tax Ordinance and Ballot Question
This attachment is expected to be released on June 9th in a supplemental report.
11.b
Packet Pg. 243
PLACEHOLDER
Attachment C: Draft Non-Binding Resolution Regarding
the use of Potential Business Tax Proceeds
This attachment is expected to be released on June 9th in a supplemental report.
11.c
Packet Pg. 244
Attachment D
Draft – Not Yet Approved
Ballot Measure Affirming Gas General Fund Transfer
Ballot Question
Shall the measure affirming the City of Palo Alto’s existing and decades-old practice of annually transferring no more than 18% of the gross revenues from the City’s natural gas utility (generated by the City’s retail natural gas rates) to its general fund to support general city services such as libraries; climate change reduction; transportation; police, fire, emergency medical, and 9-1-1 response; providing approximately $7 million annually in existing revenues until ended by voters, be adopted? YES
NO
Ordinance
Chapter 2.28 “Fiscal Procedures” of the Palo Alto Municipal Code is hereby amended by adding Section
2.28.185 as follows:
Section 2.28.185 Gas Utility Transfer
Each fiscal year the City Council may transfer from the gas utility to the general fund an amount equal to 18% of the gross revenues of the gas utility received during the fiscal year two fiscal years before the fiscal year of the transfer. At its discretion, the City Council may decide to transfer a lesser amount. The projected cost of the transfer shall be included in the City’s retail gas rates as part of the cost of providing gas service.
11.d
Packet Pg. 245
ATTACHMENT E
Summary of Responses to Online Community Feedback Survey Status update, June 1, 2022
Starting February 15, 2022, the City provided an online feedback form regarding the City’s Fiscal Sustainability efforts. Community members could rank their priorities for community services, provide suggestions for additional service priorities, and pose questions about the City’s fiscal sustainability efforts and revenue measures.
As of June 1, 2022, the Fiscal Sustainability Community Conversation survey may still be accessed.1 Survey Contents
Community members were asked the following questions:
The City of Palo Alto is engaging the community around long-term fiscal sustainability and community priorities. Below are some of the key priorities Palo Alto residents have historically identified as key to their quality of life. Please give us your feedback by ranking the following priorities from 1 to 8, with “1” being the most important. We will review all comments to ensure that the City continues to address the community’s priorities in its long-range planning.
1. Priorities to be ranked:
• Expanding City Services
• Maintaining basic services
• Improving services such as longer library hours
• Adding public safety services such as police, fire and emergency medical • Investing in community-owned assets like roads and community centers • Funding affordable housing and homeless services
• Repairing streets/roads
• Maintaining after school/summer youth programs
2. Suggestions for additional service priorities:
3. I have the following questions:
Survey Responses
There were 433 responses as of June 1, 2022 (242 online survey responses and 191 mailed survey responses). The most highly ranked priorities for the survey respondents were “Maintaining basic services,” “Repairing streets / roads,” “Investing in community-owned assets,” “Adding public safety services such as police, fire, and emergency medical,” and “Funding affordable housing and homeless services,” as shown in Table 1. Table 1 shows the percentage of respondents who ranked each priority first, second, or third.
1 https://us.openforms.com/Form/07db0c33-8339-497b-839b-6aab75e1f635
11.e
Packet Pg. 246
ATTACHMENT E
Table 1: Percentage of Survey Respondents Ranking Each Priority First, Second, or Third
There were 142 respondents who submitted suggestions for additional service priorities or additional comments and questions via the online survey. The complete comments are included at the end of this attachment, but in summary:
11.e
Packet Pg. 247
ATTACHMENT E
• 44 respondents wrote comments supporting funding for Lucie Stern Theatre facilities and staffing. Of these, 3-5 appeared to be duplicate submittals. • 20 comments related to investments in various other types of City infrastructure • 15 comments related to increasing policing, including code enforcement and traffic enforcement
• 14 comments related to climate action, with a couple of comments opposing City action. • 6 comments related to affordable housing or homeless services, with a couple of comments expressing concern about setting affordable housing goals or homeless services. • Other respondents wrote comments related to traffic safety, traffic congestion, road maintenance, parking, expanding bicycle infrastructure and other alternative transportation options, climate change (both in favor of and opposing action), electric grid reliability, fiber internet, zoning, affordable housing, employee pension costs, community and human services, and other topics.
There were 105 respondents to the mailed version of the survey who submitted additional comments or questions. The complete comments are included at the end of this attachment, but to summarize:
• 21 comments related to infrastructure, with an emphasis on roads • 14 comments focused on increased traffic enforcement, code enforcement, or policing in general.
• 8 comments related to sustainability (climate change, tree canopy, alternative transportation) • Other respondents wrote comments related to airplane noise, affordable housing, the animal shelter, recreation services, fiber to the home, library hours, utility services, zoning, and service levels in general.
11.e
Packet Pg. 248
ATTACHMENT E
Comments from Online Survey
The following comments were submitted in response to the two open-ended survey questions for the online version of the survey.
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
1 Reducing pension and retirement benefit expenses
Switching to a 24/7 mental health crisis team approach like cahoots using mental health and social workers. Police are only needed if there is a threat of violence which is rarely the case. We could save so much money with this approach.
Fiber to the Home; Undergrounding utilities as promised so many years ago. Increasing police response to gangs stealing from stores - there doesn't seem to be much effort here at all.
New Animal Shelter
This survey is poorly written. Most people want all of the above. But I also want. to see ways to save money. We seem to be adding more and more administrators and fewer people who actually perform the work of caring for the city. Do we really need another assistant to the City Manager? We need a new animal shelter which we could have had for a fraction of the cost of the bike bridge. Increasing library hours is so cheap - why isn't this a given? Let's get the police up to fill strength - 79 officers and then decide to get more. The poor showing of the police with only 59 officers does not mean that 79 is not enough, esp. if we outsource mental health calls.
2 Support our downtown retail and business operations. They provide the revenues needed to provide all services. They also provide the vibrancy we all value.
Why does the Council not support businesses? We need them to support our hotels, frequent our retailers, and provide quality jobs.
Why is the Council wanting to tax businesses now with a business tax AND with a district tax?
Why doesn't the Council incentivize housing development by a reduction its fees and an offer to expedite the permitting processes instead of keeping those as the worst in the area and adding more taxes to try and add housing itself?
4 Law enforcement to reduce property crime
5 Please focus on managing the City and prioritize its citizens.
Thanks for the survey.
6 Providing actionable resources to Eichlers to help with green related retrofitting - for instance, I can’t find a non-gas powered boiler for my radiant heating!
11.e
Packet Pg. 249
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
7 I would also encourage the City to scrub the budget and eliminate some unnecessary items that cost too much. In my neighborhood, I can mention the Ross Road street "improvement" that cost a lot, did not do anything and created a lot of controversy.
Also we should aim to make projects less expansive, the pedestrian overpass for 101 at the Baylands should not have costed more than $10M, also the Mitchell Park community center should not have costed as much and taken so long. The city needs to learn how to manage these projects better.
8 Finish work at Shoreline Park
9 Close Churchill Ave Caltrain intersection. It is too dangerous for pedestrians and bikes and cars!!!
10 providing access to Foothills park to mountain bikes through Arastradero and create one bike trail (single track) in Foothill park
11 Stop forcing green energy initiatives on the residents, making it more and more expensive to live in PA. These should be put to a vote by residents, not forced by city council members who think more of themselves in how they can get national publicity than supporting the residents.
12 This should be at the top of the list:
Funding city's future obligations in terms of pensions, etc. I have heard that we haven't funded these obligations anywhere near sufficiently.
What is the city doing to fund the future generous pensions that we owe?
13 Delete the commercial zoning requirement, density, and height requirements on most parcels along El Camino. Especially near transportation.
Especially for affordable housing.
Increase zoning and density along Alma. Especially for affordable housing .
14 As a subset re public safety, consider installation of additional speed limit signage in our residential neighborhoods.
15 Please improve bicycle infrastructure! I see many others biking as I do for transportation, but I often don’t feel safe next to cars on the main road.
16 Preparing for flooding risk.
11.e
Packet Pg. 250
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
17 Dealing with the City has become onerous. 10 years ago, staff were responsive with fewer regulations to navigate. 10 years later, and everything has become complicated - you need high-cost permits for a generator or to get solar. You have fill out forms which are returned for minor issues. Just cut out the red tape - please. And enforce city regulations on leaving trash cans out, safety in walking downtown (arrest people).
18 Affordable housing is a huge problem and we need better solutions. 19 It was a waste of taxpayer’s money for so-called improvement of Ross Road.
20 Addressing climate change Is each city department maximizing each budgeted dollar? 21 A. The item, Maintaining basic services, should include preparing for climate change, especially sea level rise, more frequent droughts and global warming.
B. The item, Investing in community-owned assets ... , should include providing broadband, i.e. fiber optic, internet service to the premises.
C. The item, Expanding City Services, should include providing better intra-city commuter options to reduce the need for individually owned cars.
D. The item, Repairing streets/roads, should include adding new bike lanes and upgrading existing lanes to provide safe use.
22 Law enforcement
23 Free shuttle system
24 Increased policing and enforcement of traffic laws such as parking and speed laws
25 Improved street signage and efficient street lighting.
Encourage CalTrans to improve El Camino road surface !
Consider levy of small city tax on all residents -- sliding scale based on income, not to exceed $100 / year.
11.e
Packet Pg. 251
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
26 I recommend increasing police services to contain burglaries from homes and businesses. Such crime must be addressed.
I emphatically do not recommend increasing fire services. They are more than adequately funded and should be reduced to provide any needed emergency medical services.
I would have given public safety services a higher ranking, but since fire services was included it was given a lower priority.
27 Don’t just fix the potholes on El Camino redo the street material with a mix of tires and asphalt to make them more resilient to the wear and tear. Also can you please pay attention to Barron Park Streets they are looking like very undeveloped countries
The Barron park section of el Camino is a disaster
28 City-funded housing and transportation services for seniors. 29 Putting electrical wires underground.
Replacing large lawn areas with native shrubs (but leaving areas for kids to play).
30 Reduction of city management salaries. Find a hungry person to do it for a fair price.
31 Why is Lucie Stern Community Center so underinvested compared to Cubberley Community Center? It's a beautiful indoor + outdoor space (and home to three award-winning performing arts companies that Palo Alto should be proud to claim as its own!) that can benefit many more community members, especially during COVID-19, if repairs and upgrades are made to the facilities.
32 Make it more difficult for developers/speculators to demolish livable housing to replace it with huge homes that are often not occupied. This is why housing has become unaffordable. Increase incentives to remodel/rehab existing housing stock. Build affordable/low income housing in Palo Alto Square (not sure who owns that). Stop billionaires from buying up multiple neighborhood houses and taking them out of the housing market. Decrease the number of ghost houses.
11.e
Packet Pg. 252
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
33 Do not spend any money on public art until all the potholes in the city are fixed.
How much money is CPA spending on the fiber-optic project? Why is it building this service when fiber optic is already being provided by AT&T and Comcast?
Why is a fire engine dispatched along with an ambulance for every emergency call?
34 Grade Separation on the SP tracks. You can't keep all the people happy all the time. Subsidized Solar Roof plan for residents.
35 Ease traffic congestion and provide more parking.
36 First category above (expanding...) is too vague to be useful.
Cubberley should get sustained attention and investment, leading to purchase from the school district and total renovation, funded by long term bonds. It is a huge opportunity for the future and a pretty ugly testimonial to our confused process and thinking in the present.
How do we compare to MV, RWC, Sunnyvale in per capita spending on various categories. Can we find places where we are overspending this way?
37 Nothing about utilities here. Improving the utility function is a very high priority.
38 Missing from the list: RESTORE cut funding for multi-modal transportation projects, including foot-powered transportation safety, especially at identified safety trouble spots on school commute routes. Before you "Add" public safety services, you need to restore what the city cut. The item should read, "RESTORE public safety services." The survey language is not an honest representation of where we are and what adding funds will really do. Restoration of cut services is not "adding" or "expanding" them. These are misleading options. What are "basic services", if not police, fire, road repair, etc. Utilities? Waste collection? Street cleaning? Arborist? What? The average citizen won't know this. This second item is vague and, in context of the rest of this list especially, requires explanation. This is a poor beginning to a listening exercise. I filled out the priorities so the survey would let me go beyond this page. My prioritization is meaningless because the options you offer are inaccurate and vague. My top priority, mentioned above, is not even on the list. How does one prioritize without understanding current budget constraints and the cost of these items? Too little background information to understand trade-offs and make informed choices. So...what do you really mean? Are we talking about restoration of cut services or adding services above the levels we previously had? Be more clear.
Additional Feedback: See above.
11.e
Packet Pg. 253
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
39 The City of Palo Alto has been doing mayor improvements in certain areas, Loma Verde and Ferne, Charleston from Middlefield to El Camino and beyond but nothing has been done in the Circles, I had asked for a (ONE) STOP sign at the corner of Carlson Rd (coming from Charleston) and Redwood Circle, a very dangerous outlet from my Carlson Circle because of lack of view and speed on Redwood Circles and nothing has been done, while there are bumps on streets that don't really need them and gardens in crossroads that make them more dangerous for pedestrians and children on bikes.
There is no police patrol near schools, example Fairmeadow. Very little patrol on Alma and around the dangerous railroad crossing on Churchill.
Cars drive at 60 plus miles per hour on Alma.
Also Alma is a shame with trash cans all week long. I have to remove my trash cans after they are serviced or somebody complains (I am 80 years old, by myself) and Alma has trash cans always by the street that looks terrible.
Why every neighborhood in Palo Alto does not get the same service? Louise, Ferne, Amarillo ( the road finish on Louise and Amarillo is a shame, already dirty, inadequate and I bet very expensive, it is confusing a total waste of money), Loma Verde and Professor Ville get all the improvements while the Circles get nothing, only high speed cars and even School Busses cut from Alma at full speed on Lindero and Redwood Circle. Why are there so much road construction on Charleston and Alma (almost daily) and Alma in South Palo Alto. This is just the beginning of my questions, I have gone to city meetings and I was never chosen to talk.
I have to also say that the police department was great during my husband long illness, for about three years, they came to our house to lift him from the floor, they took him to the hospital, they were always helpful, and correct. Thanks to them.
40 I am concerned about the conflict between cars and bikes on the Bryant Street Bike Boulevard between Embarcadero and downtown.
We have been promised a traffic circle and or other measures for slowing cars. What is the status of the traffic circle at Kingsley and Bryant Street?
41 Add more police budget to make the residents feel safe. 42 Decide what to do with Cubberley
43 Public safety is by far the highest priority. Besides "police, fire and emergency medical", additional measures for improving public safety will also be important, e.g., community watch, using technology to improve automated surveillance...
11.e
Packet Pg. 254
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
44 Properly funding the trust funds for retiree pensions and medical benefits should be higher than all the priorities you've listed above.
That's the most critical element in achieving fiscal sustainability. The fact that you left this off your list really worries me.
We're seeing a big uptick in crime, and many minor crimes are not followed up on by the police, leading citizens to stop reporting all of these incidents. Thus, I believe that the current crime statistics undercount the true problem. Job #1 for our local government should be maintaining order and taking actions that discourage crime.
As I mentioned in suggestions above, I still can't believe cities like Palo Alto have made promises to retirees (pensions and medical benefits) that are not fully funded. This is a time bomb that will come back to bite us later on, causing a big decrease in non-essential services. I recommend we tackle this problem responsibly.
45 More funding for adult community classes
46 Traffic enforcement.
Improve tree program - natives
47 Get a nighttime curfew for planes out/into SFO, like San Jose. 48 You'll never be able to build enough new housing in our built-out city to even make a dent in housing costs, let alone make it 'affordable.' Don't further bankrupt the town in this futile endeavor. Every additional housing unit does not bring in the revenue to cover the cost of its increased services.
49 Stop digging up the Charleston/Arastradero corridor every year! You keep working on it, wasting money, causing traffic jams - and make it harder to drive and bike (yes, I do both).
50 Funding for task force to identify and eliminate local zoning regulations blocking dense housing development.
Increasing mass transit options.
What percentage of emergency services are for police vs other emergency departments?
51 I believe that all City of Palo Alto efforts related to climate change should be terminated. The existing programs will have no measurable impact on CO2 levels in the atmosphere, but will have measurable and adverse impact on the city's fiscal health. Those people who work in the programs can be re-directed to higher priorities, which I rank above.
52 We also need to find funds to work on climate change
11.e
Packet Pg. 255
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
53 I would like to understand how the city is measuring current program effectiveness and estimating cost effectiveness of new programs. For example, it's hard to know if we need to spend more on
police/fire/medical unless we know how well those services are currently performing now and how much it would cost to make them better buy some increment.
Also, many of these questions seem to assume the conclusion. For example, "Funding affordable housing and homeless services" is a solution, while, "increase housing affordability and reduce homelessness" is the goal. You can increase housing affordability by reducing building restrictions, no additional funding required. And are there any proven cost effective programs for reducing homelessness?
What is the formal measurement process the city is using in evaluating service levels and cost effectiveness of potential improvements? 54 For the Lucie Stern Community Theater:
Allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern Community Theater
55 City-owned facilities such as Lucie Stern Center are important assets and need to be maintained as much as libraries or fire stations. This is more valuable in my view than building a new police building.
Many of the above priorities are overlapping!
56 I specifically think Palo Alto should invest in our grid. It's a durable community asset, and it supports our sustainability goals through electrification.
57 It's difficult for me to rank these needs, one over the other......however I would put funding improvements to the Lucy Stern Theater near the top since it adds immeasurably to the quality of life in Palo Alto Is it possible to sponsor a volunteer position for theater maintenance with cooperation from Avenidas who has a rooster of engaged, talented seniors?
11.e
Packet Pg. 256
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
58 Abilities United used to have a therapy pool that people with disabilities and seniors could use. They no longer have that and Palo Alto could really use a good hot therapy pool. It could be open to the public, and not just disabled and senior people. There is such a big senior population in this town and I don’t understand why there’s not more facilities for seniors. Why don’t we have a functioning animal shelter? Why doesn’t the city take better care of the streets and roads? Why doesn’t the city take better care of the existing parks and facilities? We don’t need another gym.
Why don’t we have a functioning animal shelter? Why doesn’t the city take better care of the streets and roads? Why doesn’t the city take better care of the existing parks and facilities?
59 I am particularly concerned about Lucie Stern Theatre. It is in dire need of maintenance (e.g. seats, plumbing..), facilities upgrade (better ventilation), and personnel to oversee its operation.
60 G
61 Lucie Stern Theatre1
62 We have beautiful community areas (Lucie Stern) that desperately need funding. Please budget for maintaining the resources we have!
63 Addressing traffic congestion and noise pollution. Establishing and Strictly enforcing noise controls from motorcycles and speeding cars at night.
Having the Palo Alto police use their already extensive funds in patrolling at night and break-in prevention tactics.
Maintenance of our public spaces and freeway corridors - our streets and freeways are embarrassingly broken and dirty
These issues have become a major concern in the safety and quality of life for us residents.
How are the current taxes and funds being utilized? How much is going toward paying administrative overhead and city officials salaries vs actual community services?
What is the effectiveness score of our police and city administrators enforcing and implementing safety, noise control, community services, infrastructure maintenance and clean streets?
64 Allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern Community Theater
65 I am a resident of Stanford, not Palo Alto. But I would like to urge you to adequately support the Lucie Stern Theater. Brian White, 881 Tolman Dr, Stanford.
11.e
Packet Pg. 257
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
66 Allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern Community Theater
Add more funds to the Children's Theatre to keep a vibrant community treasure that helps our youth and builds self confidence
67 Lucy Stern Community Center Theatre needs maintenance. Further a city employee needs to be assigned to oversee the theatre. This facility is 100 years old and is showing its age and lack of recent maintenance.
68 Restore and repair the Lucie Stern theatre. It provides an important and necessary cultural center for this university town. It's a legacy that needs to be maintained and cared for.
69 I suggest that city staff opportunities for training regarding interaction with citizens be made available. On two occasions, I attempted to get answers to questions: (1) regarding marking parking spaces so drivers would take up one instead of two spaces; and (2) repair of sidewalks.
The responses from city staff were inadequate, in my opinion. On another occasion, when underground power was being installed in the residential area south of University Avenue, communication from the individual coordinating the operation was adequate. I think the quality of communication should be less varied.
When will the overhead power lines be taken down, now that power is delivered underground?
70 Refurbish Lucie Stern Theater
Move ahead on rebuilding Cubberley Community Center
71 Lucy Stern Theater is a vital resource for our well-respected, top-quality community opera and theater companies, West Bay Opera and Palo Alto Players, but it has been sadly neglected for many years, and is in desperate need of plumbing, heating, and lighting upgrades, as well as both basic maintenance and ongoing care.
72 Lucie Stern facility is in particular need of upgrade, having been around for a century.
Seems that #1 and #3 in my choices have some overlap.
Affordable housing needs developer and probably city tax incentives/subsidies. Might be a different type of investment than other items
11.e
Packet Pg. 258
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
73 Allocate funding through the Capital Improvement Project for Lucie Stern Community Theater facility upgrades.
Restore a theatre facilities manager position for the Lucie Stern Community Theatre.
74 Palo Alto should invest in either a major remodel of Lucie Stern Theater or build a new theater. The theater is worn out, its technology is obsolete making it difficult for our wonderful theater companies to work there, and it is too small. TheatreWorks won a Tony and many of their performances are in Mountain View where they built a wonderful new theater some years ago. We must invest in Palo Alto's wonderful theater talent!
75 Attend to the need of maintenance of the Lucy Stern Theater and Community Center. This is a gem and must be preserved. Many people are affected by the opportunities presented here.
Put it in the budget.
76 Allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern Community Theater
Arts are important to this - any! - community, and the 100 year old Lucie Stern Theater is a landmark that deserves more respectful treatment than it's currently getting. Those of us who produce those arts - plays and operas for example - need your help.
77 Some of these categories appear to overlap. This means that answers won’t be accurate.
78 Allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades and restore a theatre facilities manager position for the Lucie Stern Community Theater.
79 Upgrading the Palo Alto electrical grid so that Electric cars, Electric space heating and water heating can be adequately served. Perhaps even finishing the promise to underground utilities while upgrading them.
Let’s NOT build a Gym.
11.e
Packet Pg. 259
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
80 Please keep in mind the needs of older citizens who no longer can get around easily. The Downtown Library, for just one example, is one thing that needs to be kept available to us.
81 Magical Bridge Playground maintenance, Lucie Stern Theater sets and infrastructure, summer music concerts
82 Provide funding to maintain and upgrade the Lucy Stern complex.
Wiring and plumbing does age and wear out and no longer comply with code. That can place its very existence in jeopardy.
83 Lucie Stern Theater and Community Center are most definitely in need of upgrades. Please put funds toward these very valuable community assets.
84 The school programs through Explore Online are not convenient for double working parents from a timing perspective. Can we check how population mix for parents have changed and adapt to it? Are there reports on current state of infrastructure, crime rates etc. which help understand current investment in defensive/maintenance activities and what’s the right mix?
85 Who is benefitted by the after-school and summer youth programs? Are lower income families appropriately subsidized for these programs? Is the city working on solutions to the problem of people living in RVs around the city? Why do I never see traffic law enforcement any more - speeding and red light running with impunity, creating dangerous situations for kids and adults?
86 Community assets such as the Lucie Stern Theatre have been allowed to atrophy through lack of maintenance & cutting necessary staffing like the theatre facilities manager. It should be much more of a priority to preserve the city's heritage and existing facilities and services than to constantly be on looking for new ways to spend tax revenue on splashy & politically trendy new programs.
87 Repair & improve Lucie Stern theater & the Children’s Theater. 88 Repairs and improvements to Lucie Steen Community Theater are much needed
11.e
Packet Pg. 260
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
89 The city needs to spend money rehabing Lucie Stern, rather than spend money on street striping and building concrete barriers in middle of streets.
There are a number of items that I consider VERY VERY low priority.
Hard to make them all a 10. Comments: city services - do not need any more, think about reducing them. Long library hours - is this needed? Funding homeless services - look how great the city did with the Opportunity center. People were to stay there for a max of 2 years.
Residents do not want to/ do not plan to move. Maintaining after school programs - is this a role for city or for PAUSD
90 3.5 Fiber internet Seeing an increasing number of homeless roaming around our residential streets. What are we doing about it? Not sure why that’s happening, but feel like there should be more planning and action around that on a local, state and national level. More specifically I worry about the mentally ill roaming my neighborhood where my kids are. We spend so much $$ (mortgage and taxes) to live here that it boggles the mind that the homeless can too and I can’t figure out 1. why this is happening more so in the last few months, 2. There seems to be no plan and 3. Why should we just accept all homeless people who come? Does anyone have any good actionable ideas and the ability to execute on those ideas?
91 Repair/Upgrade existing buildings especially:
Build New Animal Shelter
Maintain and upgrade Lucy Stern Theatre
Why are talking about new initiatives when we haven't taken care of existing buildings and programs? We have no need of a new gym until the Animal Shelter is improved and Lucy Stern Theatre Repairs and Maintenance is insured. Why aren't the bathrooms at Lucy Evans Interpretive Center open to hikers? Mt. View has bathrooms available in the Baylands. We have them - we just don't want to maintain them. 92 Repairing, renovating city buildings, parks. Lucie Stern Center should be made more friendly for its demographic -- over 60.
Why aren't we pushing back more on ABAG for its over the top housing requirements for our City?
93 Allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern Community Theater
Why are you pursuing a city gym facility over upgrading a community jewel like the Lucie Stern Community Theater?
11.e
Packet Pg. 261
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
94 Lucie Stern theatre is in wretched condition. As a volunteer crew chief for both Palo Alto Players and West Bay Opera I'm aware of the many problems we face trying to put on a production. Broken seats, insufficient lighting and electrical. Also rodent problems and filthy catwalks for the follow spot operators.
If Palo Alto can fund a bike bridge that serves 100s, can't they fund a theatre that serves
thousands?
95 I believe that public safety services are the most important. If the city is not safe, people actually move out instead of moving into Palo Alto.
The reason why Palo Alto is such a desirable place is that it's safe for families. Thank you so much for all the work that the police have been doing.
96 The Lucie Stern Community Theater is in need of repair. For example, the seats don't stay up, which is a hazard for people with less mobility.
There are also problems with the plumbing, heating, and lighting systems.
Please allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades.
In addition, please restore a theatre facilities manager position for the Lucie Stern Community Theater.
97 We would like more affordable options for renting space to conduct non profit events such as bonsai shows. We'd like to be able to sell bonsai to help fund the rental but the City of Palo Alto's interpretation of the ruling regarding non profits and fundraising has made it quite expensive.
I also like the idea I've heard of a city recreation center. I've been to rec centers in other states that are really fantastic facilities with large lap pools, climbing walls, racket ball facilities, etc. Wish we had something like that here and affordable.
98 Improve Lucie Stern Auditorium.
99 Finish intended improvements to Park-Wilkie Bike Boulevard When will we learn what citizens cared most about?
11.e
Packet Pg. 262
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
100
With the important things above, it seems like the City has enough on its plate. I have not done any home renovations, but neighbors who have say the process is very inefficient.
Does the City consider reducing/modifying programs that do not work well; make decisions based on some sort of representative user feedback;?
Thanks for trying
101 Funding for adaptation to climate change
102 With pressure from the state to expand the population the city will need to focus on maintaining service levels.
103
Why don't City workers work five days a week? Why were they recently given more holidays? Why is the City Council seemingly more concerned about
accommodating City employees than looking after the interests and needs of Palo Alto residents? City Council members need to recognize that they
owe a fiduciary duty not to City employees, or their unions, but City residents.
104
Businesses have significant responsibility to fund housing. The jobs they create causes the demand for new housing (which is always more expensive than depreciated housing) and infrastructure to support population growth (transportation, resources, schools, etc.,) Parks and recreational spaces need to be supported.
How can we get the very wealthy businesses, including Stanford University to pay for the value of the benefits they receive by being here?
105
While local efforts to reduce carbon emissions and sustainability are to be commended, I would NOT invest more in this area. Palo Alto is not responsible for the environment alone, and the effort needs to be more widespread to be effective. As a city, Palo Alto needs to focus on itself first and foremost.
11.e
Packet Pg. 263
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
106
Lucie Stern facilities especially the Theatre needs total do-over. The toilets are ridiculously too small for a capacity theatre. The pavement is dangerous to walk on when it is raining There is no inside access to handicapped readily available without going outside to go down to the lower door (ripe for being sued). There needs to be brick framework near the front door built up as I watched an 80 year old stumble but fortunately agile so able to stop from a serious fall. For a city with the wealth of PA it is disgracefully maintained. Gorgeous though it may be from the outside, the inside is tatty and downright rundown. Need expertise to have a first rate theatre and children's theatre plus the other rooms.... Do retain its charm but have a contest of architects and do it now. I will gladly work to achieve this.
Why can't Theatreworks or the Players use the toilets int he Children's theatre when they are open as well as all the other toilets, whether there is a wedding or not.
107
Lucie Stern Theatre is in great need of upgrading. One major problem is the need for additional bathrooms at this Community Center. When the theatre is in full attendance and there is a wedding or other event there are only 2 bathrooms for about 400 people to use at a 15 minute intermission. We need more bathrooms here and in particular we need to add gender neutral bathrooms so that women have equal access.
108 Improve Lucie Stern theatre.
109
The libraries should be consolidated into two locations, Mitchell Park and Rinconada. Although controversial, this would free up money to improve service at the two locations.
Building a new gym should not be given any priority. It was not being considered until John Arrillaga offered a large donation. Now that his gift is no longer available, and he won't be managing the project, the idea should be postponed indefinitely.
110 Repairing, renovating city buildings, parks. Lucie Stern Center should be made more friendly for its demographic -- over 60.
Why aren't we pushing back more on ABAG for its over the top housing requirements for our City?
111
Allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades
Restore a theatre facilities manager position for the Lucie Stern Community Theater
Why are you pursuing a city gym facility over upgrading a community jewel like the Lucie Stern Community Theater?
11.e
Packet Pg. 264
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
112
Lucie Stern theatre is in wretched condition. As a volunteer crew chief for both Palo Alto Players and West Bay Opera I'm aware of the many problems we face trying to put on a production. Broken seats, insufficient lighting and electrical. Also rodent problems and filthy catwalks for the follow spot operators.
If Palo Alto can fund a bike bridge that serves 100s, can't they fund a theatre that serves
thousands?
113
I believe that public safety services are the most important. If the city is not safe, people actually move out instead of moving into Palo Alto.
The reason why Palo Alto is such a desirable place is that it's safe for families. Thank you so much for all the work that the police have been doing.
114
The Lucie Stern Community Theater is in need of repair. For example, the seats don't stay up, which is a hazard for people with less mobility.
There are also problems with the plumbing, heating, and lighting systems.
Please allocate funding through the Capital Improvement Project (CIP) for Lucie Stern Community Theater facility upgrades.
In addition, please restore a theatre facilities manager position for the Lucie Stern Community Theater.
115
We would like more affordable options for renting space to conduct non profit events such as bonsai shows. We'd like to be able to sell bonsai to help fund the rental but the City of Palo Alto's interpretation of the ruling regarding non profits and fundraising has made it quite expensive.
I also like the idea I've heard of a city recreation center. I've been to rec centers in other states that are really fantastic facilities with large lap pools, climbing walls, racket ball facilities, etc. Wish we had something like that here and affordable.
116 Improve Lucie Stern Auditorium.
117 Finish intended improvements to Park-Wilkie Bike Boulevard When will we learn what citizens cared most about?
11.e
Packet Pg. 265
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
118 With the important things above, it seems like the City has enough on its plate. I have not done any home renovations, but neighbors who have say the process is very inefficient.
Does the City consider reducing/modifying programs that do not work well; make decisions based on some sort of representative user feedback;?
Thanks for trying
119 Funding for adaptation to climate change
120 With pressure from the state to expand the population the city will need to focus on maintaining service levels.
121
Why don't City workers work five days a week? Why were they recently given more holidays? Why is the City Council seemingly more concerned about
accommodating City employees than looking after the interests and needs of Palo Alto residents? City Council members need to recognize that they
owe a fiduciary duty not to City employees, or their unions, but City residents.
122
Businesses have significant responsibility to fund housing. The jobs they create causes the demand for new housing (which is always more expensive than depreciated housing) and infrastructure to support population growth (transportation, resources, schools, etc,) Parks and recreational spaces need to be supported.
How can we get the very wealthy businesses, including Stanford University to pay for the value of the benefits they receive by being here?
123
While local efforts to reduce carbon emissions and sustainability are to be commended, I would NOT invest more in this area. Palo Alto is not responsible for the environment alone, and the effort needs to be more widespread to be effective. As a city, Palo Alto needs to focus on itself first and foremost.
11.e
Packet Pg. 266
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
124
Lucie Stern facilities especially the Theatre needs total do-over. The toilets are ridiculously too small for a capacity theatre. The pavement is dangerous to walk on when it is raining There is no inside access to handicapped readily available without going outside to go down to the lower door (ripe for being sued). There needs to be brick framework near the front door built up as I watched an 80 year old stumble but fortunately agile so able to stop from a serious fall. For a city with the wealth of PA it is disgracefully maintained. Gorgeous though it may be from the outside, the inside is tatty and downright rundown. Need expertise to have a first rate theatre and children's theatre plus the other rooms.... Do retain its charm but have a contest of architects and do it now. I will gladly work to achieve this.
Why can't Theatreworks or the Players use the toilets int he Children's theatre when they are open as well as all the other toilets, whether there is a wedding or not.
125
Lucie Stern Theatre is in great need of upgrading. One major problem is the need for additional bathrooms at this Community Center. When the theatre is in full attendance and there is a wedding or other event there are only 2 bathrooms for about 400 people to use at a 15 minute intermission. We need more bathrooms here and in particular we need to add gender neutral bathrooms so that women have equal access. 126 Improve Lucie Stern theatre.
127
The libraries should be consolidated into two locations, Mitchell Park and Rinconada. Although controversial, this would free up money to improve service at the two locations.
Building a new gym should not be given any priority. It was not being considered until John Arrillaga offered a large donation. Now that his gift is no longer available, and he won't be managing the project, the idea should be postponed indefinitely.
128 : El Camino Real and certain intersections need to be upgraded. : It can take a LONG time to get through Palo Alto at times on El Camnino and lights need to be better coordinated or in sync. 1) When will road repair be done around Palo Alto in 2022/23? 2) Fiber - this is being discussed, but when will it be rolled out? And have we thought of coordinating with other cities around us? Why go piecemeal when working with adjoining cities on a larger scale can cut costs.
129
Expenditures and scope of each of the above priorities as well as duration of time to achieve goals.
11.e
Packet Pg. 267
ATTACHMENT E
Written
Comment
# Suggestions for additional service priorities: I have the following questions:
130
Continuing to reduce our carbon footprint should be a high priority.
Completing (the initiatives we've undertaken to reduce the risk of flooding along San Francisquito Creek should be a high priority. My sense is that there's friction between the city's Development office and homeowners / contractors which I think is unfortunate and should be addressed; I wonder if we're being "over regulated." Water conservation will be increasingly important. Balancing growth vs traffic congestion and citizen quality of life is an ongoing challenge, my sense is that we over prioritize growth. Ensuring that our recyclables are actually recycled and not simply shipped to low income locations around the world is a responsibility we all share; "zero waste" only works if the outcome of recycling is truly zero on the broadest / global scale.
131 Fix the building permit issuance process. I am only hearing how awful it is from everyone
132
Of course the effectiveness of our basic services, street repairs, and public services (especially fire/polce/emergency) are extremely important and should be supported as needed. Once those are reasonably sound, street repairsI would like to see Palo Alto learn from the Los Altos downtown model which seems to prioritize a healthier, more balanced, flexible business model that offers its citizens a richer interaction and connection with the community. I often shop in Los Altos for the fabric store, knitting shop, bakery, bookstore, pet store, skate shop, etc. It is difficult that PA is larger and has several shopping areas--T&C, Midtown, downtown, and Cal Ave, but looking at these resources from a comprehensive perspective--which perhaps you have done--would be a useful embedded/ongoing process. Expanding resources for our high school teens is a rich area to explore--a space where teens can play games, eat, make music, study, take classes, etc. would be a tremendous addition. The MP teen space might be successful for younger ones but it doesn't capture the needs of our older teens. Perhaps we need to find someone who is interested in being a benefactor in the vein of Anne Wojcicki (https://www.bizjournals.com/sanjose/news/2014/07/16/anne- wojcicki-makes-it-official-im-behind-los.html)? I am afraid if we leave the market to dictate the business offerings--especially on California Ave-- we will see a continued decline in utility of, connection with, and income from our downtown businesses.