1 City Council
Special Meeting
Monday, November 7, 2022
5:00 PM
Council Chamber & Virtual
Amended Agenda
Amended agenda items appear below in Red
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person.
HOW TO PARTICIPATE
VIRTUAL PARTICIPATION
CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900-6833
The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and s t r e a m e d t o Midpen Media Center at https://midpenmedia.org.
TIME ESTIMATES
Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.
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] 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 [email protected] at least 24 hours prior to the meeting. Once received, the City Clerk will have them shared a t public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. 2 Special Meeting November 7, 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 ORDERS OF THE DAY (5:00 – 5:10 PM)
1. Proclamation Honoring Law Enforce ment Records and Support Personnel Day - November 8, 2022
STUDY SESSION (5:10 – 6:40 PM)
2. Comprehensive Economic Development Strategy Update and Study Session
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (6:40 – 7:00 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 (7:00 – 7:05 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.
3. Approve Minutes from the October 17, 2022 and October 24, 2022 City Council Meetings
4. Adoption of a Resolution Authorizing Use of Teleconferencing for Council Meetings During Covid-19 State of Emergency
5. Approval of Contract Number C231851 09A With Daleo, Inc., in the Amount of $1,411,059 for Gas Main Replacement Project 24A (GS - 14003) at the Stanford Shopping Center; and Authorization for the City Manager to Negotiate and Execute Related Change Orders Not -to- Exceed of $141,106, for a Total Not-to-Exceed Amount of $1,552,165
6. Approve and Authorize the City Manager or Designee to Execute Contract C23184325A With Gierlich -Mitchell, Inc. With a Total Not -to- Exceed Amount of $100,058 for Sanitary Sewer Level Mon itoring Systems
7. Approval of Am endment No. 1 to Contract # C21180078 with Blue Rhino Studios, Inc. in the Amount of $234,748 for Design and Fabrication of Additional Dinosaur Sculptures and Exhibits for the Palo Alto Junior Museum & Zoo for a total not -to-exceed amount of $449,464
Q&A
Q&A
Public Letter
Presentation
At-Places Memo
3 Special Meeting November 7, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org.
8. Approve and authorize the City Manager or their designee to execute Amendment No. 2 to contract No. C19174515 with Municipal Resource Group for Organizational Development, Succession Planning and Talent Acquisition Services for one additional year.
9. Adoption of a Resolution Vacating Public Utility Easement 773 Allen Court
CITY MANAGER COMMENTS (7:05 – 7:25 PM)
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters.
10. PUBLIC HEARING / LEGISLATIVE. Staff Recommendation to Introduce an Ordinance to Make Permanent Changes Contained in a Temporary Ordinance Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Update Definitions, Broaden Permitt ed Uses and Provide Limits on Certain Uses through Updates to the Conditional Use Permit Thresholds. Environmental Review: CEQA Exemption 15061(b)(3) (7:25 – 8:20 PM)
11. Recommendation from the Policy and Services Committe e to Adopt a City Council Values Statement (8:20 -9:20 PM)
12. Policy and Services Committee Recommendation that the City Council Adopt the 2023 Citywide Legislative Guidelines and Support the Tentative 2023 Legislative Work plan (9:20 – 10:30 PM)
Supplemental Report Added & Amended Title
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.
13. Investment Activity Report for the First Quarter, Fiscal Year 2023
14. FY 2022 Significant Gifts and Donations to the City
15. 2022 City Council Priorities - Major Projects Quarterly Update Late Packet Report
At-Places Memo
Presentation
Public Letter
Presentation
Presentation
4 Special Meeting November 7, 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.
OTHER INFORMATION
Standing Committee Meetings
Policy & Services Committee meeting November 8, 2022 Canceled
Public Comment Letters
Schedule of Meetings
5 Special Meeting November 7, 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 w ill 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 ho w 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 # 14749)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Special Orders of the Day
City of Palo Alto Page 1
Title: Proclamation Honoring Law Enforcement Records and Support Personnel Day - November 8, 2022
From: City Manager
Lead Department: Police
Attachments:
• Attachment1.a: Attachment A: Proclamation Honoring Law Enforcement Records and Support Staff
1 Packet Pg. 6
______________________________
Pat Burt
Mayor
Proclamation
Law Enforcement Records and Support Personnel Day
November 8, 2022
WHEREAS, law enforcement agencies throughout the State depend upon law enforcement records and support personnel to provide them with vital services; and
WHEREAS, law enforcement records and support personnel are crucial to helping law enforcement agencies identify, pursue, capture, and process suspected law breakers; and
WHEREAS, these professionals continually use their expertise and experience to assist in tracking felons, maintaining criminal statistics, and improving apprehension strategies; and
WHEREAS, the California Law Enforcement Association of Records Supervisors held its 49th Annual Training and Technology Conference on October 3 through 7, 2022; and
WHEREAS, it is important to recognize the City of Palo Alto’s law enforcement records and support personnel for their valuable contributions to our law enforcement system.
NOW, THEREFORE, I, Pat Burt, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby proclaim November 8, 2022 as “Law Enforcement Records and Support Personnel Day”
Presented: November 7, 2022
1.a
Packet Pg. 7
City of Palo Alto (ID # 14907)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Study Session
City of Palo Alto Page 1
Title: Comprehensive Economic Development Strategy Update and Study Session
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that the Council receive this report and discuss the economic development activities currently underway.
Executive Summary
Several milestones have recently been completed reflecting the City’s priority of economic recovery and transition, including selection and onboarding a consultant (Streetsense) and hiring a dedicated staff position. This report and study session highlight economic development activities underway, provides an update on preparation of a comprehensive economic development strategy, and seeks Council input.
As recognized by the Council when it directed staff to draft a comprehensiv e economic development strategy, Palo Alto has a unique economic ecosystem . This ecosystem is dependent on interconnected elements including residents, local businesses, Stanford, employees, large employers, business travelers, and other visitors. Through a comprehensive economic development strategy, the City will work not only to maintain the vibrancy of our local economic ecosystem, but also better position to attract and retain businesses that contribute to a sustained, desired community experience.
Streetsense and their subcontractor HdL will present preliminary findings on emerging global, national, and regional trends. This includes factors such as spending, retail recovery trends, impacts from hybrid work schedules, and changes to travel – both business and leisure – as the world emerges from the pandemic . This study session provides Council an opportunity to participate in the information collection and interpretation phase that informs the drafting of the comprehensive economic development strateg y. P erspectives on challenges , areas seen as opportunities, and areas of key focus will be incorporated in staff and consultant work underway.
2 Packet Pg. 8
City of Palo Alto Page 2
Background
Since 2019, the City of Palo Alto has actively engaged in conversations regarding economic develo pment, economic vitality, and the need for a dedicated economic development function in the City. The COVID -19 pandemic highlighted this, as the City took actions to support business and engaged with community stakeholders . In 2021, the City Council adopted Community and Economic Recovery as one of its four priorities for that year. The workplan for that priority included refining the scope of the City’s economic development activities.
In FY 2022, the City contracted with the Good City Company to develop a scope of work to create an economic development strategy and an internal staffing plan. The goal of the Economic Development strategy is to sustain and enhance the economic vitality of Palo Alto through short-term and longer-term projects. The scope of work approved by the City Council in 2021 (Attachment A) was incorporated into the consultant search and the recruitment of a staff position.
In February 2022, the City Council reaffirmed this area as a priority, choosing Economic Recovery and Transition as one of the four City Council priorities for 2022. On April 4, the City Council approved a workplan through CMR 14103. That workplan included 13 different work items that are currently planned or underway. Brief updates on each of those work items is included as Attachment B of this report; the full update on all work items for each of the four City Council priorities has been included as a separate packet item for November 7. Additionally, a number of other related initiatives are underway.
At the end of August 2022, the City hired its first staff position dedicated to econo mic development since 2016. In September 2022, the City Council awarded the contract for development of a comprehensive economic development strategy to Streetsense’s public sector/non-profit team through CMR 14724.
A full timeline of the City’s previous discussions regarding economic development through the past few years at City Council is included as Attachment C to this report.
Discussion
The November 7 Study Session highlights economic development activities underway, provides an update on the drafting of a comprehensive economic development strategy, and seeks Council input on that comprehensive strategy . Streetsense and their subcontractor HdL will present their preliminary findings on emerging global, national, and regional trends.
This study session provides Council an opportunity to participate in the Immersion and Discovery (information collection and interpretation ) phase and inform the drafting of the comprehensive economic development strategy. Specifically, s taff seek s Council feedback on the following areas:
2 Packet Pg. 9
City of Palo Alto Page 3
- Areas presenting challenges for economic development, - Areas seen as opportunities for economic development, and - Areas of key focus and consensus for prioritizing resource allocation.
Feedback, especially areas of general consensus from Council will be incorporated in to the ongoing staff and consultant work. As a study session, staff anticipate broad discussion on this important topic. In anticipation of wide range of interests, the Council may wish to confirm consensus through “straw polls” on priorities.
Economic Development Activities Currently Underway
In addition to the 13 work items detailed in the Economic Recovery and Transition workplan, a number of economic development activities are taking place throughout the organization.
The recently hired Economic Development Coordinator has immediately contri buted to these efforts, helping departments connect and engage with partners. This has helped departments align on various projects and enhanced outreach to various stakeholders, including residents, businesses, and others.
Priorities Underway/Ongoing:
• In partnership with the Palo Alto Chamber of Commerce, staff are coordinating with local restaurants and retail to increase community awareness about opportunities to support local businesses throughout the holidays. Building on experience gained in 2020 and 2021, the City will use “Uplift Local” platforms to showcase holiday promotions to connect customers with local businesses .
Local business es wishing to participate in this effort can contact [email protected] with “Holiday Promotion” as the subject for more information.
• Staff is in direct contact with various members of the community and connecting with businesses and residents. This is being done through one -on-ones, small groups, focus grou ps, and “on the street” visits. Engagements have resulted in responding to questions and requests for assistance from the business community, proactively understanding needs, coordinating and sharing information about city projects and initiatives, and addressing new issues.
• Through this engagement, community feedback has been incorporated into active City initiatives such as the permanent parklet program, alternatives f or California Avenue, and enhancing University Avenue.
Introduction to Streetsense: Comprehensive Economic Development Strategy Streetsense and staff from HdL will share their in-progress work on November 7:
• The purpose and goals of the comprehensive economic development strategy, 2 Packet Pg. 10
City of Palo Alto Page 4
• The phases and timeline of the development of the City’s economic strategy, and • Initial considerations and findings from work to date.
As noted, Streetsense will share their preliminary findings on emerging global, national, and regional trends. This includes factors such as spending, retail trends, impacts from hybrid work schedules, and changes to travel – both business and leisure – as the world emerges from the pandemic.
Palo Alto’s geographic location in the heart of Silicon Valley complicates the challenge the City faces. The City has not seen its daytime population return to pre -pandemic levels. Furthermore, the City faces steep competition up and down the Peninsula and in the greater Bay Area, not only for attracting employees but also for attracting and retaining unique retail and restaurant experiences.
As part of addressing this competition, Streetsense will discuss the concept of commercial districts’ ‘Life Cycles’. This discussion will highlight some attributes of competitive “Class A” commercial districts compared to Palo Alto’s districts. Streetse nse will provide any needed clarification on their preliminary findings, their process, and timeline.
This study session format provide s a forum for engagement with Council on this important strategy development process and inform next steps.
As Council approved in the RFP scope of work and subsequent contract, Streetsense’s process includes three phases:
1) Immersion and Discovery (current phase),
2) Diagnostics - includes Strengths, Weaknesses, Opportunities, and Threats (SWOT) assessment, and
3) Recommended Strategies - the comprehensive economic development strategy.
As part of the Immersion and Discovery (information collection and interpretation) phase, in September StreetSense collected observations and conducted interviews with stakeholders including residents, businesses, City staff, and others. Streetsense has also engaged additional stakeholders through phone calls, video calls, and e-mail. They have been reviewing numerous documents such as the Comprehensive Plan and pandemic- period reports, and synthesizing how global, national, and regional trends are impacting Palo Alto.
Timeline
Streetsense anticipates completing all three phases outlined in the scope of services by summer 2023. At the study session, Streetsense will review the timeline, interi m milestones and work products for creating a comprehensive economic development strategy. Staff anticipates the next discussion with the Council will be scheduled in the first quarter of calendar year 2023 and will focus on the Diagnostics phase. 2 Packet Pg. 11
City of Palo Alto Page 5
Resource Impact
Although the discussion on November 7 is not anticipated to affect immediate resource needs, the resources allocated to Economic Development are an important consideration. The City has ongoing funding for the Economic Development coordinator role and some ongoing funding for limited consultant support (less than $25,000 annually). As the City refines the scope of its economic development function, scaling to align may require further budgetary action.
Staff will work with Streetsense to develop p roposals that appropriately scale the City’s economic development function to align with Council’s feedback and will return with proposals for consideration through the development of the FY 2024 budget.
Policy Implications
The discussion, and ultimate adoption, of a comprehensive economic development strategy is consistent with existing City policies, including the Business and Economics Element of the Comprehensive Plan. That element of the comprehensive plan includes goals and polices related to a thr iving economy, compatability and interdependence of businesses, a culture of innovation and business diversity, efficiency and predicatability from the City government, and retail centers and business employment districts. This work also addresses the 2022 Council priority of Economic Recovery and Transition.
Stakeholder Engagement
Community stakeholders, including residents and representatives from various business sectors, including restaurants, retailers, hoteliers, property owners, and others, have been engaged consistently through the City’s recent work on economic development.
Throughout the COVID-19 pandemic, the City hosted roundtables with local businesses to hear areas of concern, connected businesses with grant opportunities, and created new channels to connect local patrons with local businesses.
As the City transitions out of the pandemic, staff will continue to engage residents and businesses in meaningful dialogue to help inform and maintain the City’s economic vibrancy.
Environmental Review
Neither the City’s current economic development activities nor development of a comprehensive economic development strategy of the type anticipated here will directly or indirectly cause physical changes to the environment and therefore this study session is not a project under the California Environmental Quality Act (CEQA).
Attachments:
• Attachment2.a: Attachment A - Streetsense Scope of Services • Attachment2.b: Attachment B - Economic Recovery and Transition Priority Workplan Updates
2 Packet Pg. 12
City of Palo Alto Page 6
• Attachment2.c: Attachment C - Previous Economic Development CMRs 2 Packet Pg. 13
P
rofessional Services
Rev. Dec.15, 2020
EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”.
CONSULTANT will produce an Economic Development Workplan for the City of Palo Alto, a roadmap for interventions and strategies that can be implemented in the near-term (within three years) and iterated upon for longer-term success by providing the services outlined below:
Task 1.0 – Define Economic Development Goals and deliver a summary memo of the goal setting workshop
Task 1.1 – Document Review
• CONSULTANT will review any publicly available data and relevant background data, including –
but not limited to - area and comprehensive plans, business surveys, previous demographic/market studies, and real estate industry reports (including that of competitive submarkets) to inform understanding of conditions in Palo Alto. • C
ONSULTANT will seek to identify gaps in background information and resolve with the CITY at kickoff meeting.
Task 1.2 – Site Visit
• CONSULTANT will conduct a site visit to gather field data based on predefined study area bounda
ries, including an observational assessment of the public realm public realm/storefronts/access/visibility.
• CONSULTANT’s site visit will include stakeholder interviews.
Task 1.3 – Kickoff Meeting
• CONSULTANT will facilitate a kickoff meeting with all project stakeholders (as mutually determined with the CITY) to establish baseline expectations for ongoing work. • K
ickoff meeting will cover topics including: communication channels to ensure timely and high- quality delivery of project tasks, defining key commercial districts, discussing aspirational markets for comparison, and aligning project objective s methodology, schedule, deliverables, a
nd protocols.
• Project managers will be identified for both the CONSULTANT and the CITY.
Task 1.4 – Goal Setting Workshop
• CONSULTANT will facilitate a visioning session with the steering committee of key stakeholders in the City of Palo Alto to determine a set of measurable economic development goals (or Key Performance Indicators (KPIs)
.
• C
ONSULTANT will work to elicit feedback from stakeholders on KPIs, which typically measure impact through numbers or ratios, e.g. a 20% increase in overnight stays. • T
he workshop will also identify potential tools for measuring those goals and lead partners to m
easure the KPIs.
Task 2.0 – Economic Conditions Snapshot; Strengths, Weaknesses, Opportunities, and Threats (SWOT) Matrix; Presentation Deck for public Distribution
DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918
12.a
Packet Pg. 107
ATTACHMENT A - STREETSENSE SCOPE OF SERVICES
2.a
Packet Pg. 14
Professional Services
Rev. Dec.15, 2020
Task 2.1 – Physical Environment Assessment
• CONSULTANT will gather field data on existing conditions of key commercial districts and corridors through site visit and stakeholder conversations • CONSULTANT will assess major economic assets such as office campuses, manufacturing facilities, lodging facilities, and visitor destinations. • CONSULTANT will assess the strengths and weaknesses of the public realm, private, realm, and accessibility/visibility of each economic cluster
o CONSULTANT will evaluate the public realm, including roadways, sidewalks, rails & trails, and public spaces that support access to, and mobility within and across, communities
o CONSULTANT’S evaluation of the public realm shall include conditions and accessibility of existing open spaces that offer people places to gather and participate in economic activity
o CONSULTANT will evaluate the private realm, including private assets, properties and buildings, and the balance of the physical environment. o CONSULTANT’S evaluation of the private realm will consider existing built assets and the location and site location characteristics (access to customer base, proximity to existing nodes, the ability to create sufficient concentration of offerings to support a new node) of underutilized opportunity sites as well as underlying ownership.
Task 2.2. – Business Environment (Economic Activity) Assessment • CONSULTANT will explore and analyze the “Drivers” of the Palo Alto economy, including the anchors/destinations, concentrations/clusters of business activity (economic clusters), and local business mix and employment
• CONSULTANT will assess each cluster and develop asset maps that identify key business anchors (Across sectors and industries) that drive economic activity and influence tenant mix within each area.
• CONSULTANT will analyze the sales tax growth/contraction against baselines before COVID and during COVID and conduct an economic base analysis to estimate general rate of growth of business activity across sectors
• CONSULTANT will determine if there are any competitive sectors/industries that would benefit from a focused strategy by the CITY in the future
Task 2.3 – Commercial Real Estate Market Assessment
• CONSULTANT will analyze qualitative and quantitative data to understand the supply and demand of commercial real estate in the region
• CONSULTANT will identify if, and how much, latent demand exists in the Palo Alto submarket for new office, retail, and industrial development based on historic real estate performance • CONSULTANT will factor in submarket vacancy rates, construction rates, product type, price points, quality of space, and future competition into its analysis of latent demand
DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918
12.a
Packet Pg. 108
ATTACHMENT A - STREETSENSE SCOPE OF SERVICES
2.a
Packet Pg. 15
Professional Services
Rev. Dec.15, 2020
Task 2.4 – Produce Economic Development Brochure
• CONSULTANT will produce a succinct (two (2) to ten (10) page) brochure that can serve as a marketing tool to help generate interest in Palo Alto as a business location from potential businesses, investors, funders, and founders.
Task 2.5 – Regulatory/Administrative Capacity Assessment • CONSULTANT will analyze the organizational capacity of the CITY to execute and implement economic development programs and initiatives
• CONSULTANT will identify local leaders and partners (including anchor businesses and institutions such as local non-profit organizations) engaged in economic development • CONSULTANT will identify additional resources and funding that may be needed to successfully support implementation of strategies
• CONSULTANT will assess the existing regulatory framework (including, but not limited to, zoning and permitting/licensing processes) that shape what can be built where o CONSULTANT will identify aspects of the regulatory framework that may impeded economic development or encourage market distortion
• CONSULTANT will research and identify other operating challenges to local businesses through stakeholder conversations and business survey input
Task 2.6 – SWOT Matrix of Assessment Findings
• CONSULTANT will organize key findings from the assessments of the physical environment, businesses environment, commercial real estate, and administrative capacity into a SWOT matrix • CONSULTANT will facilitate a discussion of the SWOT matrix with the CITY to focus on priority areas for improvement
Task 2.7 – City Council Presentations
• CONSULTANT will present Economic Scan to City Council and conduct City Council outreach through coordination with CITY’s project manager
• CONSULTANT will provide at least three City Council updates throughout the process at City Council meetings
Task 3.0 - Summary Memo of Global and National Economic Trends • CONSULTANT will research industry-wide changes in business operations, business travel, and trends that serve as indicators for how consumer tastes/preferences are evolving • CONSULTANT’s trend assessment will analyze secondary data from a variety of sources, including, but not limited to,
o Real Estate Brokerage Experts (via CBRE)
o Real Estate Market Outlook Reports (e.g. JLL, Colliers, Newmark) o San Francisco Travel Association
o World Travel and Tourism Council
o Destination Analysts
DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918
12.a
Packet Pg. 109
ATTACHMENT A - STREETSENSE SCOPE OF SERVICES
2.a
Packet Pg. 16
Professional Services
Rev. Dec.15, 2020
o Tourism Economics (Annual Economic Impact Reports)
o Destination Palo Alto’s subscription data
o Other publicly available reporting
Task 4.0 – Draft Report of Strategies for Economic Development, Revisions, and Final Report of Strategies for Economic Development
Task 4.1 – Research and Draft Report of Strategies for Economic Development • CONSULTANT will draft an economic development plan and strategy that prioritizes readily implementable short- and long-term actions and projects. • CONSULTANT will clearly outline key steps that the CITY and stakeholders can take to implement any project or recommendation.
• CONSULTANT will include geographic focus areas of investment which may include economic clusters or specific opportunity parcels or sites.
• CONSULTANT’s draft report recommendations may include, but is not limited to, the following areas:
o Redevelopment in the public realm: Includes any improvements to existing transportation networks, public utility extensions, placemaking/tactical improvements, public space capital projects, and signage and wayfinding.
o Redevelopment in the Private realm: includes programmatic interventions to support and/or incentivize private sector investments in real property improvements. o Business retention and attraction: includes programs that support business attraction, expansions, and relocation (e.g. workforce training, relocation incentives, and other) o Marketing and Promotion: includes tolls that will increase visits and raise awareness of the City’s assets and retail/dining offerings, particularly through digital platforms. o Administrative capacity: includes strategies to address issues of capacity that might otherwise impede implementation of strategies (including capacity-building programs and partnerships with anchor businesses) as well as recommendations to address regulatory or zoning issues that may impede business growth and vitality.
Task 4.2 – Feedback from the City of Palo Alto
• CITY shall provide feedback on the draft report provided by CONSULTANT • CONSULTANT will facilitate a City Council working session on draft strategies after CITY feedback has been incorporated
Task 4.3 – Finalize and Present Report of Strategies for Economic Development • CONSULTANT will incorporate feedback from the working session City Council to create a Final Report on Strategies for Economic Development
Task 5.0 – Research and Draft Retail Market Analysis Report, Draft Tax Analysis Report, Revisions, and Final Market Analysis Report and Final Tax Analysis Report DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918
12.a
Packet Pg. 110
ATTACHMENT A - STREETSENSE SCOPE OF SERVICES
2.a
Packet Pg. 17
Professional Services
Rev. Dec.15, 2020
Task 5.1 – Research and Draft Retail Market Analysis Report and Draft Tax Analysis Report • CONSULTANT will identify additional revenue opportunities through Market Analysis Report and Draft and Final Tax Analysis Report
• CONSULTANT will analyze market-supported retail demand for the past five years through the City’s core commercial cores (Downtown, Stanford Shopping Center, California Ave., and neighborhood shopping centers)
• CONSULTANT will develop a comprehensive analysis of sales tax performance (including a breakdown by major business categories and across each commercial core) • CONSULTANT will transmit draft versions of:
o A sales tax gap leakage analysis: includes consumer demand and market supply assessment to evaluate sales tax performance within Palo Alto and ability to draw consumers from nearby communities and the greater trade area. o Assessment of Palo Alto’s major sources of tax revenue (sales tax, property tax, and transient occupancy tax) for pre-pandemic revenues, current revenues, and a three-year projection.
o A SWOT analysis for Palo Alto to identify challenges and constraints along with opportunities to recognize going challenges as well as future threats to the Palo Alto retail marketplace
o A void analysis to identify market opportunities for Palo Alto to attract new retail and restaurant possibilities that would be a good fit with the Palo Alto market place and market analytics make-up
• CONSULTANT shall submit draft reports to the City of Palo Alto Task 5.2 – Feedback from the City of Palo Alto
• CITY will provide feedback on draft reports to the CONSULTANT Task 5.3 – Finalize Retail Market Analysis Report and T ax Analysis Report • CONSULTANT will incorporate CITY feedback into final versions of Retail Market Analysis Report and Tax Analysis Report
Task 6.0 – Research and Produce Draft and Final Hospitality Market Analysis Report
Task 6.1 – Research and Draft Hospitality Market Analysis Report • CONSULTANT will investigate and determine potential for hotel development in core commercial districts based on diagnostic assessment of submarket o Assessment will consider quality and quantity of existing hotel rooms, year-over-year occupancy rates, price points, and future competitions
• CONSULTANT will determine any viable demand gaps in the market and provide estimates for RevPAR and occupancy levels
DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918
12.a
Packet Pg. 111
ATTACHMENT A - STREETSENSE SCOPE OF SERVICES
2.a
Packet Pg. 18
Professional Services
Rev. Dec.15, 2020
• CONSULTANT will develop a comprehensive set of recommendations to reinforce the City’s branding to travelers, increase overnight stays and visitor spending, and bolster existing community assets and priorities
• CONSULTANT will research questions around changes in corporate travel policies through iterative conversations and a survey instrument with key companies, institutions, and stakeholders.
• CONSULTANT will convene a focus group discussion with corporate stakeholders to uncover potential competitive advantages from the perspective of business travel. • CONSULTANT will prepare a draft a report synthesizing findings related to the hospitality market which may include, but is not necessarily limited to:
o Strategies for growing demand from visitors: includes raising awareness of existing assets through marketing, promotion, and branding, as well as strategies that improve the accessibility and visibility of the region’s offerings. o Strategies to improve supply of visitors and hospitality: includes the quality and quantity of offerings that are unique to Palo Alto, with an emphasis on strategic destination drivers that reinforce the brand of Palo Alto and further differentiate the City from other regional destinations. May include capital investments to specific assets and/or public realm enhancements that improve the visitor experience.
Task 6.2 – Feedback from the City of Palo Alto
• CITY will provide feedback on the draft report to the CONSULTANT Task 6.3 Finalize Hospitality Market Analysis Report
• CONSULTANT will incorporate CITY feedback into final version of Hospitality Market Analysis Report
Task 7.0 – Summary Memo and Business Profile of the City based on business registry
Task 7.1 – Assess Business Registry
• CONSULTANT will analyze and identify ‘gaps’ in the retail mix through examining the existing supply/landscape of businesses
• CONSULTANT will identify gaps in information currently detailed in the business registry for future revisions
Task 7.2 – Business Profile for the City of Palo Alto
• CONSULTANT will compare information from the business registry and other research to accurately determine any unmet market demand and potential new retail opportunities/expansions • CONSULTANT will prepare a summary memo detailing their findings
DocuSign Envelope ID: 2CD5156D-1B0B-43D8-B20B-37A8C78B3918
12.a
Packet Pg. 112
ATTACHMENT A - STREETSENSE SCOPE OF SERVICES
2.a
Packet Pg. 19
ERT ‐ ECONOMIC RECOVERY AND TRANSITION
ERT1. Do
wntown Business Improvement District (BID)
Status: On Track Progress: 25%
Update: Staff is working in partnership with the Chamber to re‐establish support for the BID, and explore options for the future of BID management, and the re‐establishment of the BID levy. On June 6, 2022 Council voted not to levy assessments against businesses within the Downtown Palo Alto Business Improveme
nt District or FY 2023. Staff will continue work on this item and return to City Council for consideration of next steps for FY 2024.
ERT2. Economic Development Request for Proposal (RFP)
Status: Completed Progress: 100%
Update: The contract for the development of a near‐term and longer‐term Economic Development Strategy was brought before the City Council on September 12, 2022 and approved unanimously.
Streetsense was the firm selected and they will be participating in a study session to discuss the creation of a compre
hensive economic development strategy at the City Council meeting on November 7.
ERT3. Economic Development Committees for Downtown and California Avenue Status: On Track Progress: 60%
Update: Staff is working on the establishment of Economic Development Committees, one focused on the University Avenue downtown area and another for the California Avenue area. Outreach to potential members of the committees has begun and scheduling of the first committee meetings will be the next step.
ERT4. Retail and Retail‐Li
ke Land Uses and CUP Thresholds:
Status: On Track Progress: 85%
Update: Staff brought a permanent ordinance before the Planning & Transportation Commission (PTC) for their recommendation to City Council on August 31, 2022. PTC recommended extending the interim ordinance, allowing more time to holistically address the City’s retail recovery strategy before adopting ATTACHMENT B: ECONOMIC RECOVERY AND TRANSITION PRIORITY WORKPLAN UPDATES
2.b
Packet Pg. 20
a permanent ordinance. It is anticipated that this will be brought before City Council in November 2022 with a recommendation to conclude this effort and focus more on ERT12 and ERT13.
ERT5. University Avenue Streetscape Design Project
Status: On Track Progress: 10%
Update: Staff has begun the work to implement the community engagement strategy, complete data collection, develop concept alternatives, and prepare cost estimates, per the scope of work approved by Council in the consultant contract.
ERT6. California Avenue Closure (closed to vehicular traffic) Status: On Track Progress: 40%
Update: Council has asked staff to return with a short‐term recommendation on an interim design strategy for California Avenue to explore whether the streets should remain closed or should open to vehicular traffic. This work is underway, and staff anticipates returning to City Council with a progress update in winter 2022 or earl
y 2023. A longer‐term recommendation is pending a consultant Alternatives Analysis study.
ERT7. Ramona Street Closure (closed to vehicular traffic) Status: On Track Progress: 40%
Update: Council has also asked staff to return with a short‐term recommendation on whether Ramona should remain closed to vehicular traffic or should open to vehicular traffic. Staff anticipates that the work for Ramona will be in tandem with the work for California Ave., building on lessons lear ned from the pandemic and preliminary engagement. As with California Ave., this work is underway, and staff anticipates returning to City Council with a progress update in winter 2022 or early 2023. A longer‐term recommendation for Ramona is also pending a consultant Alternatives Analysis study.
ERT8. Build Out Fiber Backbone as Fo undation for Fiber‐to‐the‐Premises (FTTP) Status: On Track Progress: 25%
Update: On November 2, 2022 staff will present options for next steps to the Utilities Advisory Committee (CMR 14845) and will incorporate their feedback and direction into the item scheduled for City Council December 19, 2022 (CMR 14800). A joint Council/Utilities Advisory Committee study session was previously hel d on September 19, 2022. At that meeting, the Council and Committee discussed risks and advantages of City provided fiber and approved the current direction.
ERT9. Electronic Plan Review RFP to integrate with Accela Status: On Track Progress: 60%
Update: A Request for Proposals (RFP) was posted on August 22, 2022; vendor selection is targeted for the end of November. The City Council action to award the contract is expected to be brought forward in the first quarter of 2023.
ATTACHMENT B: ECONOMIC RECOVERY AND TRANSITION PRIORITY WORKPLAN UPDATES
2.b
Packet Pg. 21
ERT10. Development of New Parking Facilities in the University Avenue Downtown (potential BMR site)
Status: On Track Progress: 50%
Update: The Request for Information (RFI) has been drafted and is expected to be posted no later than December 2022, with Council review expected in the first quarter of 2023.
ERT11. California Avenue Subscription Parking Program (Commercial Uses) Status: Dropped Progress: 0%
Update: Recent changes to State law (AB 2097) make this effort unnecessary. Commercial and residential land uses on California Avenue within ½ mile of qualifying public transit (Caltrain & certain bus lines) are exempt from parking requirements. Land uses, starting January 1, 2023, can intensify without the need of a subscription parki ng program. This program was intended to create an opportunity for restaurants and other more parking‐intensive land uses to establish on California Ave utilizing existing public parking resources.
ERT12. Citywide Retail Recovery Ordinance
Status: On Track Progress: 25%
Update: As part of the development of a comprehensive economic development strategy (ERT2) Streetsense will conduct a retail market analysis. Data gathering, including stakeholder interviews, are underway. The report will outline retail best practices and recommendations and is expected to be completed in the summer of 2023.
ERT13. Retail Preserva
tion
Status: On Track Progress: 25%
Update: As part of the Citywide Retail and Recovery effort, a consultant is reviewing the City’s retail preservation policy and identifying potential implications that support or hinder the City’s policy interests and recommendations for change as appropriate. Consultant work is underway and expected to be shared with the Planning and Transportation commission by end of the second quarter 2023.
ATTACHMENT B: ECONOMIC RECOVERY AND TRANSITION PRIORITY WORKPLAN UPDATES
2.b
Packet Pg. 22
ATTACHMENT C – PREVIOUS ECON. DEV CMRS
Previous City Manager Reports Related to Economic Development The dates of some of the previous conversations with the City Council regarding Economic Development, dating back to November 30, 2020, are included below. These conversations shaped and informed the scope of services included the Request for Proposals.
Following the date, a brief description, the CMR number, and a link to the pertinent report is included.
November 30, 2020 – Study Session on Community and Economic Recovery Strategies (CMR 11790) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2020-2/id-11790.pdf
January 19, 2021 – Feedback and Direction on Economic Recovery Workplan (CMR 11877) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-11877.pdf
February 2021 – The City Council adopted its calendar year 2021 Priorities, including Community and Economic Recovery (CMR 11957)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-11957.pdf
March 22, 2021 – Community and Economic Recovery workplan adopted including item “G: Refine the scope and breadth of the city’s economic support activities” (CMR 12111) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12111.pdf
May 3, 2021 – Update on Community and Economic Recovery (CMR 12206) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12206.pdf
June 1, 2021 – Discussion and Direction on the Scope of Economic Development (CMR 12232) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12232.pdf
June 21, 2021 – Update #2 Community and Economic Recovery Workplan (CMR 12362) https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2021/id-12362.pdf
September 13, 2021 – Discuss and Provide Direction on a Request for Proposals (RFP) for an Economic Development Strategy Consultant and an Internal Staffing Plan to Support Economic Development Issues (CMR 13433)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2021/09-september/20210913/20210913pccsm-amended-linked-final- council-qa.pdf
April 4, 2022 – Review and Approval of Workplans Implementing 2022 City Council Priorities (CMR 14103)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2022/20220404/20220404pccsmamendedlinked1.pdf
2.c
Packet Pg. 23
ATTACHMENT C – PREVIOUS ECON. DEV CMRS
September 12, 2022 – Approval of Contract C23183740 with StreetSense CA, LLC for Economic Development Consulting Services (CMR 14724)
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2022/20220912/20220912pccsm-amended-v2.pdf
2.c
Packet Pg. 24
City of Palo Alto (ID # 14909)
Office of the City Clerk
City Council CAO Report
Meeting Date: 11/7/2022 Report Type: Consent Calendar
Title: Approve Minutes from the October 17, 2022 and October 24, 2022 City Council Meetings
From: Lesley Milton, City Clerk
Staff recommends Council to review and approve the minutes as presented.
ATTACHMENTS:
• Attachment3.a: Attachment A: 20221017amCCsm (PDF)
• Attachment3.b: Attachment B: 20221024amCCsm (PDF)
3 Packet Pg. 25
CITY COUNCIL
DRAFT ACTION MINUTES
Special Meeting
October 17, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M.
Present In Person: Burt, DuBois, Filseth, Kou, Stone, Tanaka Present Remotely: Cormack
Absent: None
Special Orders of the Day
1. Cybersecurity Awareness Month Proclamation
ACTION: Proclamation Issued
Study Session
2. 3400 El CAMINO REAL [22PLN -00227]: Request for Prescreening of the Applicant's Proposal to Rezone the Subject Site From Various Zoning Districts to Planned Housing Zone (PHZ) to Allow Construction of 382 Residential Rental Units (44 studios, 243 one - bedroom, 86 two-bedroom and 9 three-bedroom units) in two Buildings. Environmental Assessment: Not a Project. Zoning District: CS, CS(H), RM -20 (Service Commercial, Hotel, Multi-Family Residential).
ACTION: None taken, comments provided
Agenda Changes, Additions and Deletions
None.
Public Comment
3.a
Packet Pg. 26
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes 10/17/2022
Consent Calendar
MOTION: Council Member DuBois moved, seconded by Vice Mayor Kou to approve Agenda Item Numbers 3-5.
3. Approve Minutes from the September 29, 2022 and October 3, 2022 City Council Meetings
4. Approval of Construction Contract Number C23183908 With GSW Constructi on, Inc., in the Amount of $995,556 for the Two Turnouts Upgrade Project (WS-07000) on California Avenue and Page Mill Road; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not -to-Exceed $99,556; and Approval of Budget Ame ndment in the Water Fund
5. Approval of Implementation of the U.S. Environmental Protection Agency -Funded (U.S.
EPA) Greening Parking Facilities for a Sustainable Community Project and Approval of Agreement Between City of Palo Alto and City of Santa Clara to Partner on Project, and Approval of a Budget Amendment in the Stormwater Management Fund MOTION PASSED: 7-0
City Manager Comments
Ed Shikada, City Manager
Action Items
6. TEFRA Hearing Regarding Conduit Financing for the Kehillah Jewish High School's for the Partial or Full Refinancing of the 2014 Loan and Financing the Development, Construction, Renovation, Improvement and Equipping of the Corporation's Campus at 3900 Fabian Way, Palo Alto; and Approving the issuance of a Tax -exempt Loan by the California Municipal Finance Authority for this Purpose and Other Matters Relating Thereto MOTION: Vice Mayor Kou moved, seconded by Mayor Burt to adopt Resolution 10079 approving the issuance of the loan by the California Municipal finance Authority for the benefit of the Kehillah Jewish high School.
MOTION PASSED: 7-0
7. PUBLIC HEARING: Adoption of Ten Ordinances That Repeal and Adopt Various Sections of the Palo Alto Municipal Code (PAMC) Related to the 2022 CA Building Codes (CA Code of Regulations Title 24) Update and Proposed Local Amendments (1) Chapter 15.04 Incorporating the 2022 CA Fire Code With Local Amendments; (2) Chapter 16.04 Incorporating the 2022 CA Building Code With Local Amendments;
3.a
Packet Pg. 27
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes 10/17/2022
(3) Chapter 16.05 Incorporating the 2022 CA Mechanical Code With Local Amendments;
(4) Chapter 16.06 Incorporating the 2022 CA Residenti al Code With Local Amendments and Amending Chapter 16.52 to Align Federal, State, and Local Flood Hazard Regulations;
(5) Chapter 16.08 Incorporating the 2022 CA Plumbing Code With Local Amendments; (6) Chapter 16.16 Incorporating the 2022 CA Electrical Code With Local Amendments; (7) Chapter 16.18 Incorporating the 2021 International Swimming Pool and Spa Code With Local Amendments;
(8) Chapter 16.14 Incorporating the 2022 CA Green Building Standards Code with Local Amendments;
(9) Chapter 16.17 Incorporating the 2022 C A Energy Code Without Local Amendments.
(10) Chapter 16.19 Incorporating the 2022 CA Energy Code With Local Amendments.
MOTION: Mayor Burt moved, seconded by Council Member Filseth to adopt the proposed ordinances that repeal and adopt various sections of the Palo Alto Municipal Code (PAMC) related to the 2022 California Building Codes (Cal. Code of Regulations Title 24) and proposed local amendments:
(1) Ordinance 5563 repealing PAMC Chapter 15.04 and adopting a new Chapter 15.04 incorporating the 2022 Cal. Fire Code with local amendments; (2) Ordinance 5564 repealing PAMC Chapter 16.04 and adopting a new Chapter 16.04 incorporating the 2022 Cal. Building Codes and local amendments and a new Chapter 16.19 incorporating the 2022 Cal. Historical Building Code and Existing Building Code with local amendments;
(3) Ordinance 5565 repealing PAMC Chapter 16.05 and adopting a new Chapter 16.05 incorporating the 2022 Cal. Mechanical Code with local amendments; (4) Ordinance 5566 repealing PAMC Chapter 16.06 and adopting a new Chapter 16.06 incorporating the 2022 Cal. Residential Code with local amendments and amending PAMC Chapter 16.52 to align federal, state, and local regulations regarding flood hazards;
(5) Ordinance 5567 repealing PAMC Chapter 16.08 and adopting a new Chapter 16.08 incorporating the 2022 Cal. Plumbing Code with local amendments; (6) Ordinance 5568 repealing PAMC Chapter 16.16 and adopting a new Chapter 16.16 incorporating the 2022 Cal. Electrical Code with local amendments; (7) Ordinance 5568 repealing PAMC Chapter 16.18 and adopting a new Chapter 16.18 incorporating the 2021 International Swimming Pool and Spa Code with local amendments;
(8) Ordinance 5570 repealing PAMC Chapter 16.14 and adopting a new Chapter 16.14 incorporating the 2022 Cal. Green Building Standards Code with local amendments; (9) Ordinance 5571 repealing PAMC Chapter 16.17 and adopting a new Chapter 16.17 incorporating the 2022 Cal. Energy Code without local amendments;
3.a
Packet Pg. 28
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes 10/17/2022
MOTION PASSED: 7-0
MOTION: Mayor Burt moved, seconded by Council Member Stone to direct staff return to the Council as soon as feasible with recommendations on strategies to increase our electrification workforce to be able to ensure electric reliability and expand electrification programs in the next year that would incorporate two-way, heat pump, HVAC systems upon replacement upon existing gas systems when a new system is installed in residential and commercial (roof pack) systems.
MOTION FAILED: 3-4, Tanaka, Cormack, Filseth, DuBois voting no Council Member Questions, Comments and Announcements
Adjournment: The meeting was adjourned at 10:49 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 offici al records of both Council and committee proceedings. These recordings are available on the City’s website.
3.a
Packet Pg. 29
CITY COUNCIL
DRAFT ACTION MINUTES
Special Meeting
October 24, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M.
Present In Person: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka Present Remotely: None
Absent: None
Special Orders of the Day
1. Appreciation for Joe Simitian, Santa Clara County Supervisor, for Advocacy on Behalf of the Palo Alto Community for affordable housing and support for mental health, and services to unhoused Palo Altans (including the $4 Million Challenge Grant in Support of Palo Alto Homekey)
Action: No action was taken
2. The Great California Shakeout
Action: No action was taken
Study Session
3. Crime Mitigation Strategies through the Use of Automated License Plate Recognition (ALPR) Technology
Action: No action was taken
Agenda Changes, Additions and Deletions
None.
Public Comment
3.b
Packet Pg. 30
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 10/24/2022
Consent Calendar
Council Membe r Tanaka registered a no vote on Agenda Item Number 6.
MOTION: Council Member Cormack moved, seconded by Mayor Burt to approve Agenda Item Numbers 4-8.
4. Approval of Contract Amendment No. Two with GovernmentJobs.com, Inc. dba Neogov for Recruiting and Onboarding Services, to Extend the Term through June 30, 2025, Add Services, and Increase
Compensation by an Amount Not -To-Exceed $249,883 for a New Contract Total Not-To-Exceed Amount of $411,323
5. Adoption of Resolution 10080 Authorizing a City Application for the State Permanent Local Housing Allocation (PLHA) Funds and Authorization of City Manager or Designee to Manage the Allocation
6. Approval of Fiscal Year 2022 Reappropriation Requests to be Carried Forward Into Fiscal Year 2023 and Budget Amendments in Various Funds
7. Approval of a Professional Services Agreement Contract Number C23185658 With BKF Engineers for the Amount of $900,000 Over a 3- year Term for On-Call Surveying and Design Support Services
8. Approve the Parks and Recreation Commission Recommendation for a New Skate Park; Authorize the Friends of Palo Alto Parks to begin Fundraising; and Direct Staff to Support Outreach
MOTION PASSED Items 4, 5, 7, 8: 7-0
MOTION PASSED Item 6: 6-1 Tanaka no
City Manager Comments
Ed Shikada, City Manager
3.b
Packet Pg. 31
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 10/24/2022
Action Items
9. PUBLIC HEARING: Staff Recommend the City Council Review the North Ventura Coordinated Area Plan (NVCAP) Refined Preferred Alternative, Take Public Comment, and Endorse the Refined Preferred Alternative Plan.
MOTION: Council Member Filseth moved, seconded by Mayor Burt to Continue the item to November 14
th
MOTION PASSED: 6-1, Cormack no
10. Review and Provide Direction to Staff on the Draft Permanent Parklet Program Standards and Policies; Adopt an Interim Ordinance and Resolution to Continue the Pilot P arklet Program and Other On -Street Uses During Transition Period; and Direct Staff to Return with Legislation Implementing a Permanent Parklet Program
ORIGINAL MOTION: Council Member Cormack moved, seconded by Council Member Filseth to:
Adopt Interim Ordinance and draft resolution currently set to expire on December 31, 2022, to extend the temporary parklet program to June 30, 2023, and allow the other on-street and parking lot dining and retail programs to December 31, 2023. Direct staff to continue allowing dining at street grade until June 30, 2023
a) Direct staff to implement Option 2 of the Neighbor consent letter through administrative regulations to begin on January 1, 2023.
SUBSTITUTE MOTION: Council Member Stone moved, seconded by Mayor Burt to substitute as follows as sub-bullets to the above motion:
a) that parklets be allowed without coverings or obstructions above 38” for a fee, to be determined, in front of neighboring businesses b) Allow for a first right of refusal for renting a parklet space, with the first right to go to the business immediately behind the parklet space
SUBSTITUTE MOTION FAILED: 2-5, Tanaka, Kou, Cormack, Filseth, DuBois no
3.b
Packet Pg. 32
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 10/24/2022
MOTION SPLIT FOR PURPOSE OF VOTING
MOTION: Council Member Cormack moved, seconded by Council Member Filseth to adopt Interim Ordinance 5572 and Resolution 10081 currently set to expire on December 31, 2022, to extend the temporary parklet program to June 30, 2023, and allow the other on -street and parking lot dining and retail programs to December 31, 2023. Direct staff to continue allowing dining at street grade until June 30, 2023.
MOTION PASSED: 7-0
MOTION: Council Member Cormack moved, seconded by Council Member Filseth to add as a sub-bullet to the above motion:
a) Direct staff to implement Option 2 of the Neighbor consent letter through administrative regulations to begin on January 1, 2023.
MOTION PASSED: 4-3, Burt, Tanaka, Stone no
MOTION: Council Member Dubois moved, seconded by Vice Mayor Kou to:
1. Direct staff to implement proposed permanent standards upon adopting of a permanent parklet ordinance
2. As to the permanent parklet program, direct staff to:
a. Return to Council establishing an application fee, cleaning fee and security deposit based on cost recovery.
b. Return to Council establishing and annual license fees as soon as possible, set to 70% of ground retail rate for "downtown" and "not downtown" in Table 2
c. Require Consent letter from both neighboring tenant and owner d. Limit Amplified sound to come only from buildings
AMENDMENT: Council Member Tanaka, seconded by Mayor Burt to direct staff to return with a recommendation for continuing propane use pending a phase out based on practical feasibility for restaurants AMENDMENT PASSED: 4-3, Cormack, Kou, DuBois no
3.b
Packet Pg. 33
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 10/24/2022
MOTION INCORPORATING AMENDMENT: Council Member Dubois moved, seconded by Vice Mayor Kou to:
1. Direct staff to implement proposed permanent standards upon adopting of a permanent parklet ordinance
a. Direct staff to return with a recommendation for continuing propane use pending a phase out based on practical feasibility for restaurants
2. As to the permanent parklet program, direct staff to:
a. Return to Council e stablishing an application fee, cleaning fee and security deposit based on cost recovery.
b. Return to Council e stablishing an annual license fees as soon as possible.
c. Require Consent letter from both neighboring tenant and owner. Upon revocation, owner has a minimum of six months before they are required to remove the parklet.
d. Limit Amplified sound to come only from buildings.
MOTION PASSED: 6-1 Tanaka no
Council Member Questions, Comments and Announcements
None
Adjournment: The meeting was adjourned at 12:31 A.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes a re 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
3.b
Packet Pg. 34
DRAFT ACTION MINUTES
(Sp.) City Council Meeting
Draft Action Minutes: 10/24/2022
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.b
Packet Pg. 35
City of Palo Alto (ID # 14436)
Office of the City Clerk
City Council CAO Report
Meeting Date: 11/7/2022 Report Type: Consent Calendar
Title: Adoption of a Resolution Authorizing Use of Teleconferencing for Council Meetings During Covid-19 State of Emergency From: Lesley Milton, City Clerk
Recommendation
Adopt a Resolution (Attachment A) authorizing the use of teleconferencing under Government Code Section 54953(e) for meetings of the Council and its committees due to the Covid-19 declared state of emergency.
Background
In February and March 2020, the state and the County declared a state of emergency due to the Covid-19 pandemic. Both emergency declarations remain in effect.
On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act, effective October 1, 2021, to allow local policy bodies to continue to meet by teleconferencing during a state of emergency without complying with restrictions in State law that would otherwise apply, provided that the policy bodies make certain findings at least once every 30 days.
AB 361, codified at California Government Code Section 54953(e), empowers local policy bodies to convene by teleconferencing technology during a proclaimed state of emergency under the State Emergency Services Act in any of the following circumstances:
(A) The legislative body holds a meeting during a proclaimed state of emergency, and state or local of ficials have imposed or recommended measures to promote social distancing.
(B) The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in perso n would present imminent risks to the health or safety of attendees.
4 Packet Pg. 36
(C) The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B) (B), that, as a result of the emergency , meeting in person would present imminent risks to the health or safety of attendees. (Gov. Code § 54953(e)(1).)
In addition, Section 54953(e)(3) requires that policy bodies using teleconferencing reconsider the state of emergency within 30 days of the first teleconferenced meeting after October 1, 2021, and at least every 30 days thereafter, and find that one of the following circumstances exists:
1. The state of emergency continues to directly impact the ability of the members to meet safely in person.
2. State or local officials continue to impose or recommend measures to promote social distancing.
4 Packet Pg. 37
Discussion
At this time, the circumstances in Section 54953(e)( 1)(A) exist. The Santa Clara County Health Officer continues to recommend measures to promote outdoor activity, physical distancing and other social distancing measures, such as masking, in certain contexts. (See August 2, 2021 Order.) In addition, the California Department of Industrial Relations Division of Occupational Safety and Health (Cal/OSHA) has promulgated Section 3205 of Title 8 of the California Code of Regulations, which requires most employers in California, including in the City, to train and instruct employees about measures that can decrease the spread of COVID-19, including physical distancing and other social distancing measures.
Accordingly, Section 54953(e)(1)(A) authorizes the City to continue using teleconferencing for public meetings of its policy bodies, provided that any and all members of the public who wish to address the body or its committees have an opportunity to do so, and that the statutory and constitutional rights of parties and the members of the public attending the meeting via teleconferencing are protected.
To comply with public health directives and promote public safety, Palo Alto policy bodies have been meeting via teleconference since March 2020. On September 27, 2021, Council considered the format for future Council, committee, and Board and Commission meetings.
Council determined that beginning November 1, 2021, Council meetings would be conducted using a hybrid format that allows Council Members and the public to decide whether to attend in person, following masking and distancing protocols, or participate via teleconference. Council directed that Council standing and ad-hoc committees and Boards and Commissions would continue meeting via teleconference through January 2022.
Adoption of the Resolution at Attachment A will make the findings required by Section 54953(e)(3) to allow the continued use of teleconferencing for Council meetings (for those Council Members who elect to participate remotely) and for Council standing and ad hoc committees. Each Board and Commission will consider and make similar findings.
ATTACHMENTS:
• Attachment4.a: Attachment A: Resolution Allowing Hybrid In-Person and Teleconferenced Meetings under Section 54953(e) (PDF)
4 Packet Pg. 38
NOT YET APPROVED
Resolution No. ____
Resolution Making Findings to Allow Teleconferenced Meetings Under California Government Code Section 54953(e)
R E C I T A L S
A. California Government Code Section 54953(e) empowers local policy bodies to convene by teleconferencing technology during a proclaimed state of emergency under the State Emergency Services Act so long as certain conditions are met; and
B. In March 2020, the Governor of the State of California proclaimed a state of emergency in California in connection with the Coronavirus Disease 2019 (“COVID-19”) pandemic, and that state of emergency remains in effect; and
C. In February 2020, the Santa Clara County Director of Emergency Services and the Santa Clara County Health Officer declared a local emergency, which declarations were subsequently ratified and extended by the Santa Clara County Board of Supervisors, and those declarations also remain in effect; and
D. On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act to allow local policy bodies to continue to meet by teleconferencing during a state of emergency without complying with restrictions in State law that would otherwise apply, provided that the policy bodies make certain findings at least once every 30 days; and
E. While federal, State, and local health officials emphasize the critical importance of vaccination and consistent mask-wearing to prevent the spread of COVID-19, the Santa Clara County Health Officer has issued at least one order, on August 2, 2021 (available online at here), that continues to recommend measures to promote outdoor activity, physical distancing and other social distancing measures, such as masking, in certain contexts; and
F. The California Department of Industrial Relations Division of Occupational Safety and Health (“Cal/OSHA”) has promulgated Section 3205 of Title 8 of the California Code of Regulations, which requires most employers in California, including in the City, to train and instruct employees about measures that can decrease the spread of COVID-19, including physical distancing and other social distancing measures; and
G. The Palo Alto City Council has met remotely during the COVID-19 pandemic and can continue to do so in a manner that allows public participation and transparency while minimizing health risks to members, staff, and the public that would be present with in-person meetings while this emergency continues; now, therefore,
4.a
Packet Pg. 39
NOT YET APPROVED
The Council of the City of Palo Alto RESOLVES as follows:
1. As described above, the State of California remains in a state of emergency due to the COVID-19 pandemic. At this meeting, the Palo Alto City Council has considered the circumstances of the state of emergency.
2. As described above, State and County officials continue to recommend measures to promote physical distancing and other social distancing measures, in some settings.
AND BE IT FURTHER RESOLVED, That for at least the next 30 days, meetings of the Palo Alto City Council and its committees will occur in a hybrid format, where both members of the policy body and members of the public may elect to be present in person, utilizing appropriate distancing and masking practices, or participate by teleconferencing technology. Such meetings of the Palo Alto City Council and its committees that occur using teleconferencing technology will provide an opportunity for any and all members of the public who wish to address the body its committees and will otherwise occur in a manner that protects the statutory and constitutional rights of parties and the members of the public attending the meeting via teleconferencing; and, be it
FURTHER RESOLVED, That the City Clerk is directed to place a resolution substantially similar to this resolution on the agenda of a future meeting of the Palo Alto City Council within the next 30 days. If the Palo Alto City Council does not meet within the next 30 days, the City Clerk is directed to place a such resolution on the agenda of the immediately following meeting of Palo Alto City Council.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
City Attorney City Manager
4.a
Packet Pg. 40
City of Palo Alto (ID # 14640)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Contract Number C23185109A With Daleo, Inc., in the Amount of $1,411,059 for Gas Main Replacement Project 24A (GS -14003) at the Stanford Shopping Center; and Authorization for the City Manager to Negotiate and Execute Related Change Orde rs Not-to-Exceed of $141,106, for a Total Not-to-Exceed Amount of $1,552,165
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute contract C23185109A (Attachment A) with Daleo Inc. in an amount not -to-exceed $1,411,059 for the Gas Main Replacement 24A project (GMR 24A) Capital Improvement Program (GS -14003) at the Stanford Shopping Center.
2. Approve and authorize the City Manager or their des ignee to negotiate and execute one or more change orders to the contract with Daleo Inc. for related additional but unforeseen work, which may develop during the project, the total value of which shall not exceed $141,106 or 10% of the contract amount.
The total not -to-exceed amount is $1,552,165, which includes contract amount of $1,411,059 and a 10% contingency of $141,106.
Executive Summary
This item approves a construction contract to complete GMR 24A project in the Council - approved Capital Improveme nt Program (CIP). This project is designed to ensure reliable gas service for the City of Palo Alto residents and customers. The project targets the replacement of polyvinyl chloride (PVC) and steel distribution main and service pipes in the vicinity of the Stanford Shopping Center that are near or past their operational life expectancy. The City coordinated the work with Simon Property Group Inc. (Stanford Shopping Center’s 5 Packet Pg. 41
City of Palo Alto Page 2
management) for construction work dates of January 2, 2023 through March 31, 2023 and early construction hours between 6:00 a.m. and 3:00 p.m.
Background
The GMR 24A project is part of the Council -approved Capital Improvement Program (CIP) designed to ensure reliable gas service for the City of Palo Alto residents and customers. T he project targets the replacement of polyvinyl chloride (PVC) and steel distribution main and service pipes in the vicinity of the Stanford Shopping Center that are near or past their operational life expectancy.
Over time, PVC pipe material becomes em brittled and is susceptible to cracking during excavation and earth movements, which result in gas leaking from the pipeline. Steel pipe material, when isolated from the rest of the cathodic protection (i.e., electrical current on steel pipelines) system or receiving low cathodic protection current, has an increased chance of becoming corroded and eventually leaking. These PVC and steel pipelines are typically replaced with polyethylene pipelines, which have greater elastic properties and do not require c athodic protection. Repairs on PVC and steel pipelines require specialized tooling and can be very time consuming, disruptive, and difficult.
The location of the existing distribution mains near the Stanford Shopping Center presents a greater risk to p ublic safety in the event of a gas leak due to high occupancy. While there are no active gas leaks on the pipelines surrounding the shopping center, the remaining PVC and steel pipe is recommended for replacement to improve the overall safety near this lo cation.
Replacement of PVC and corroded steel distribution main and services is also required to remain on track with the City’s planned CIP replacement schedule and minimize the impact on resources due to the increased maintenance. Replacement will also minimize greenhouse gas emissions from leaking or damaged PVC and steel pipelines.
Gas Main Replacement 24A was originally included in the Gas Main Replacement 24 project (GMR 24). Staff split the GMR 24 project into two projects (GMR 24A and 24B) due t o (1) the required construction timeframe requested by Stanford Shopping Center and (2) a federal grant funding opportunity under the Infrastructure Investment and Jobs Act . The GMR 24A project consists of work in the Stanford Shopping Center and the GMR 24B project includes work on University Avenue between Webster Street and East Crescent Drive, Geng Road, and Town & Country Village. The Stanford Shopping Center requested the work to be performed in the months of January, February, and March of each year when mall operations are the slowest.
The Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant offers funding for proposed natural gas pipeline material replacement projects and greenhouse gas emission reduction equipment fo r up to $200 million, each year from 2022 to 2026. The GMR 24B project was submitted for approximately $9 million in NGDISM grant funding managed by the Pipeline and Hazardous Materials Safety Administration (PHMSA). The City’s grant 5 Packet Pg. 42
City of Palo Alto Page 3
application was submi tted on August 8, 2022 and award notices are scheduled to be issued by February 8, 2023.
Given the higher potential consequence area surrounding the shopping center and to accommodate Stanford Shopping Center’s scheduling request, the GMR 24A project wa s prioritized and posted for competitive solicitation in summer 2022 to avoid waiting another year to perform the replacement work. As part of the planning and design process, staff coordinated the GMR 24A project with Stanford and Simon Property Group In c. for the work schedule around Stanford Shopping Center. Simon Property Group Inc. is the company that manages all tenants on Stanford Shopping Center property. The City also coordinated with the Stanford University Real Estate Office for the easement a nd with other City departments to minimize interference with other contractors.
Discussion
Project Description
The work to be performed under this contract C23185109A is the installation of approximately 2,450 linear feet of polyethylene (PE) gas distribution pipe, four new PE gas service pipes, and the reconnection of four existing P E gas services to the new gas distribution main pipe within the Stanford Shopping Center (project locations are shown in Attachment C).
Replacing the gas distribution system with PE will enhance the reliability of the gas distribution system, make the system more resilient against corrosion and earth movements, eliminate potential leak s, reduce maintenance costs, and extend the useful life of the gas distribution system. In addition, unlike PVC gas main and services, the new PE pipelines will be installed with a metallic tracer wire, which increases the pipeline locating accuracy and r educes construction dig -ins. Construction dig -ins are the City’s 2 nd through 6 th highest ranked risk scores on the Distribution Integrity Management Plan (DIMP) due to the potential of homeowners, Contractors, and City staff damaging a mismarked pipeline.
The replacement of the existing PVC and steel pipeline at Stanford Shopping Center is prioritized due to the age, location, and material of the gas distribution mains and services.
Stanford Shopping Center is an area with a large concentration of people and is considered a high consequence area. Replacement of the gas distribution mains and services will reduce the overall risk, maintenance costs, and emergency repair disruptions to mall operations. The relocation of the distribution gas mains and servic e from the east side of Stanford Shopping Center’s parking area to the existing roadway will reduce potential interference with future mall building construction.
The City coordinated the work with Simon Property Group Inc. (Stanford Shopping Center’s management) for construction work dates of January 2, 2023 through March 31, 2023 and early construction hours between 6:00 a.m. and 3:00 p.m. The construction timeframe and hours were requested by Simon Property Group Inc. as this is the slowest time of the year for mall operations and the earlier start time will reduce construction during more congested shopping 5 Packet Pg. 43
City of Palo Alto Page 4
center hours. The City coordinated with the Development Services Department for approval of a Noise Exemption Permit for construction work between 6 :00 a.m. and 8:00 a.m., Monday through Friday. The Noise Exemption Permit requires additional notification requirements with a wider radius of notification from the project area. Additionally, the City coordinated with Stanford Real Estate to obtain a temp orary access permit at Stanford Shopping Center to allow the construction and pipeline installation. A final easement application for the new pipeline will be completed and finalized by the contractor as outlined in the GMR 24A project specifications.
To avoid delays in starting the project, the City has pre -purchased all the materials for the project except incidental material (e.g., soil backfill) required to complete the work. Pre - purchasing materials avoids construction delays caused by supply chain i ssues and long lead times recently experienced when materials were ordered by contractors. The pre -purchasing will also allow the City to meet the construction schedule requested by the Stanford Shopping Center’s management company.
Bid Process
On July 15, 2022, the City posted a notice inviting formal bids (IFB) for the GMR 24A project on the City’s electronic procurement system, PlanetBids. The original bidding period was 25 calendar days. One (1) contractor submitted a bid on August 8, 2022. The origi nal bid was $1,604,491, which was substantially greater than the engineering estimate. The City rejected the bid due to its price.
The City rebid the project on August 12, 2022 for a total of 15 calendar days. One (1) contractor submitted a bid on Augu st 26, 2022, but its bid price was less than the previously rejected bid.
The same contractor submitted bids for the two IFBs. Other contractors did not propose a bid because they did not have resources available to meet the construction timeline. City st aff reviewed the rebid and believes it to be responsive considering factors such as the location of the project, existing gas pipeline material, complexity of construction around a shopping mall, and project size in the high cost of this project. City staf f recommends proceeding with awarding the contract due to these factors.
Bid Name/Number
Gas Main Replacement Project 24A
(GS-14003), IFB Number 185109A
Proposed Length of Project 3 months (January 2, 2023, to March 31, 2023)
Number of Vendors notified through PlanetBids 1172
Number of Builder’s Exchanges notified through
PlanetBids TBD
Number of Bid Packages Downloaded by Vendors 14
Total Days to Respond to Bid 15
Pre-Bid Meeting? No, required on original IFB
5 Packet Pg. 44
City of Palo Alto Page 5
Number of Vendors at Pre-Bid Meeting 7 on the original IFB Number of Bids Received: 1
Bid Price Range $1,411,059 (Rebid)
Staff has reviewed the bid submitted and recommends that Daleo Inc. be awarded the contract as the only responsible and responsive bidder as listed in the attached Bid Summary (Attachment B) Contract. The contingency amount of $141,106, which equals 10 percent of the total contract, is requested for additional unforeseen work that may develop during the project.
Additional work is common with construction projects because during construction there may be previously unknown obstructions and ground co nditions that require changes in how construction will proceed, leading to change orders that may create additional costs. A contingency fund is necessary to prevent significant delays in the project to handle these unforeseen conditions, which could othe rwise result in longer road closures and disruptions.
Any unspent contingency funds are returned to reserves at the end of the project.
Staff confirmed with the Contractor's State License Board that Daleo Inc., has an active license on file. Staff chec ked references supplied by the contractor for previous work performed and found no significant complaints. Staff also confirmed that Daleo Inc., is registered and in good standing with the Department of Industrial Relations (DIR).
Resource Impact
The total not -to-exceed amount is $1,552,165 which includes the contract amount of $1,411,059 and a 10% contingency of $141,106. Funding for the contract amount ($1,411,059) and 10% contingency ($141,106) are available in the FY 2023 Adopted Capital Budget fo r project number GS -14003, Gas Main Replacement Project 24A. This project includes funding transfers of $1,248 to the General Fund as an estimate for Street Cut Fees.
Summary of Project Costs for GMR 24A Project (GS-14003) Pre-Design/Design Costs $35,325
Material (City Provided) $35,000
Construction Costs $1,411,059
10% Contingency $141,106
Staff Time (Includes Engineering, Operations, & Inspection) $257,458 Trench Cut Fees $1,248
TOTAL $1,881,196
The size of this project significantly exceeds the City’s in-house construction resources, making it necessary to contract out the work.
Policy Implications
The approval of this contract and implementation of this project are consistent with existing City goals, policies, programs, and plans including:
5 Packet Pg. 45
City of Palo Alto Page 6
Utilities Strategic Plan
The recommendation conforms with the 2018 Utilities Strategic Plan Priority 4 Strategy 1:
“Establish a proactive infrastructure replacement program, based on planned replacement before failure to support reliability and resiliency.”
Distribution Integrity Management Plan (DIMP)
This project is consistent with the City’s 2021 DIMP plan which is compliant with the Department of Transportation (DOT) 49 Code of Federal Regulations Part 192, Subpart P, “Gas Distribution Pipeline Integrity Management” requirements.
Stakeholder Engagement
Utilities infrastructure work has been and will continue to be coordinated with street paving activities with Public Works. Project coordination within the City’s administration is enhanced by using the City’s Geographical Information System Project Coordinator Program to determine potential project conflicts. In addition, the City will continue to work internally with Development Services for compliance with the Noise Exemption Permit. Also, exte rnal coordination will continue with Simon Property Group Inc. and Stanford University Real State group for the easement application. Staff’s GMR 24A project communications will include project notifications mailed to all residents and businesses within a 1,000-foot radius from Stanford Shopping Center at least 30 days prior to the commencement of work. Daleo Inc. will distribute project notifications to each property a minimum of 15 days and again 24 hours prior to beginning work. Three construction mess age boards have been included in the contract to be placed around the mall a month prior to construction to notify mall visitors. A link to the City website for the GMR 24A project will be included in the mailed project notifications. The construction is expected to commence on January 2, 2023.
Environmental Review
The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302(c), replacement or reconstruction of existing utility systems or facilities.
Attachments:
• Attachment5.a: Attachment A: Daleo, Inc. Contract; C23185109A • Attachment5.b: Attachment B: Bid Summary
• Attachment5.c: Attachment C: Map
5 Packet Pg. 46
Rev. September 29, 2021 1 PART 4 – CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
Contract No. C23185109A
City of Palo Alto
Gas Main Replacement (GMR) 24-A
5.a
Packet Pg. 47
Rev. September 29, 2021 2 PART 4 – CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
TABLE OF CONTENTS
SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS…………………………………….………….6
1.1 Recitals……………………………………………………………………………………………………………………...6
1.2 Definitions………………………………………………………………………………………………………………….6 SECTION 2 THE PROJECT………………………………………………………………………………………………………..6 SECTION 3 THE CONTRACT DOCUMENTS.……………………………………………………………………………...7
3.1 List of Documents.…………………………………………………………………………………………..............7
3.2 Order of Precedence…………………………………………………………………………………………….......7 SECTION 4 CONTRACTOR’S DUTY…………………………………………………………………………………………..7
4.1 Contractor's Duties……………………………………………………………………………………………………..7 SECTION 5 PROJECT TEAM……………………………………………………………………………………………………..8
5.1 Contractor's Co-operation…………………………………………………………………………………………..8 SECTION 6 TIME OF COMPLETION………………………………………………………………………………………….8
6.1 Time Is of Essence……………………………………………………………………………………………………….8
6.2 Commencement of Work……………………………………………………………………………………………8
6.3 Contract Time…………………………………………………………………………………………………………….8
6.4 Liquidated Damages…………………………………………………………………………………………………..8
6.4.1 Other Remedies……………………………………………………………………………………………………….8
6.5 Adjustments to Contract Time……………………………………………………………………………………9 SECTION 7 COMPENSATION TO CONTRACTOR………………………………………………………………………9
7.1 Contract Sum………………………………………………………………………………………………………………9
7.2 Full Compensation………………………………………………………………………………………………………9 SECTION 8 STANDARD OF CARE……………………………………………………………………………………………..9
8.1 Standard of Care…………………………………………………………………………………..……………………9 SECTION 9 INDEMNIFICATION…………………………………………………………………………………………..……9
9.1 Hold Harmless……………………………………………………………………………………………………………9
9.2 Survival………………………………………………………………………………………………………………………10 SECTION 10 NON-DISCRIMINATION……..………………………………………………………………………………..10
10.1 Municipal Code Requirement…………….………………………………..……………………………………..10 SECTION 11 INSURANCE AND BONDS.……………………………………………………………………………………10
11.1 Evidence of Coverage…………………………………………………………………………………………………10
5.a
Packet Pg. 48
Rev. September 29, 2021 3 PART 4 – CONSTRUCTION CONTRACT
SECTION 12 PROHIBITION AGAINST TRANSFERS………………………………………………………………….….10
12.1 Assignment…………………………………………………………………………………………………………………10
12.2 Assignment by Law.……………………………………………………………………………………………………10 SECTION 13 NOTICES……………………………………………………………………………………………………………….10
13.1 Method of Notice ………………………………………………………………………………………………………10
13.2 Notice Recipents ……………………………………………………………………………………………………….11
13.3 Change of Address……………………………………………………………………………………………………..11 SECTION 14 DEFAULT…………………………………………………………………………………………………………......12
14.1 Notice of Default………………………………………………………………………………………………………..12
14.2 Opportunity to Cure Default………………………………………………………………………………………12 SECTION 15 CITY'S RIGHTS AND REMEDIES……………………………………………………………………………..12
15.1 Remedies Upon Default………………………………………………………………………………………….....12
15.1.1 Delete Certain Services…………………………………………………………………………………………..12
15.1.2 Perform and Withhold……………………………………………………………………………………………..12
15.1.3 Suspend The Construction Contract………………………………………………………………………..12
15.1.4 Terminate the Construction Contract for Default…………………………………………………….12
15.1.5 Invoke the Performance Bond…………………………………………………………………………………..12
15.1.6 Additional Provisions………………………………………………………………………………………………13
15.2 Delays by Sureties……………………………………………………………………………………………………….13
15.3 Damages to City………………………………………………………………………………………………………….13
15.3.1 For Contractor's Default………………………………………………………………………………………….13
15.3.2 Compensation for Losses………………………………………………………………………………………..13
15.4 Suspension by City……………………………………………………………………………………………………..13
15.4.1 Suspension for Convenience……………………………………………………………………………………13
15.4.2 Suspension for Cause…………………………………………………………………………………………......13
15.5 Termination Without Cause……………………………………………………………………………………….14
15.5.1 Compensation…………………………………………………………………………………………………………14
15.5.2 Subcontractors………………………………………………………………………………………………………….14
15.6 Contractor’s Duties Upon Termination………………………………………………………………...........14 SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES…………………………………………………………………15
16.1 Contractor’s Remedies……………………………………..………………………………………………………….15
16.1.1 For Work Stoppage……………………………………………………………………………………………………15
5.a
Packet Pg. 49
Rev. September 29, 2021 4 PART 4 – CONSTRUCTION CONTRACT
16.1.2 For City's Non-Payment……………………………………………………………………………………………..15
16.2 Damages to Contractor………………………………………………………………………………………………….15 SECTION 17 ACCOUNTING RECORDS………………………………………………………………………………….……….15
17.1 Financial Management and City Access………………………………………………………………………….15
17.2 Compliance with City Requests………………………………………………………………………………………16 SECTION 18 INDEPENDENT PARTIES…………………………………………………………………………………………….16
18.1 Status of Parties……………………………………………………………………………………………………………..16 SECTION 19 NUISANCE……………………………………………………………………………………………………….………..16
19.1 Nuisance Prohibited………………………………………………………………………………………………………..16 SECTION 20 PERMITS AND LICENSES…………………………………………………………………………………………..16 SECTION 21 WAIVER…………………………………………………………………………………………………………………….16 SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS………………………………………..17
22.1 Governing Law…………………………………………………………………………………………………………………17
22.2 Compliance with Laws……………………………………………………………………………………………………..17
22.2.1 Palo Alto Minimum Wage Ordinance ………………………………………….…………………………………17 SECTION 23 COMPLETE AGREEMENT…………………………………………………………………………………………...17
23.1 Integration……………………………………………………………………………………………………………………….17 SECTION 24 SURVIVAL OF CONTRACT…………………………………………………………………………………………..17
24.1 Survival of Provisions……………………………………………………………………………………………………....17 SECTION 25 PREVAILING WAGES…………………………………………………………………………………………………..17 SECTION 26 NON-APPROPRIATION……………………………………………………………………………………………….18
26.1 Appropriation…………………………………………………………………………………………………………………..18 SECTION 27 AUTHORITY……………………………………………………………………………………………………………….18
27.1 Representation of Parties………………………………………………………………………………………………..18 SECTION 28 COUNTERPARTS……………………………………………………………………………………………….........18
28.1 Multiple Counterparts……………………………………………………………………………………………………18 SECTION 29 SEVERABILITY…………………………………………………………………………………………………………..18
29.1 Severability…………………………………………………………………………………………………………………….18 SECTION 30 STATUTORY AND REGULATORY REFERENCES ………………………………………………….........18
30.1 Amendments of Laws…………………………………………………………………………………………………….18 SECTION 31 WORKERS’ COMPENSATION CERTIFICATION………………………………………………….……….19
31.1 Workers Compensation…………………………………………………………………………………………………19
5.a
Packet Pg. 50
Rev. September 29, 2021 5 PART 4 – CONSTRUCTION CONTRACT
SECTION 32 DIR REGISTRATION AND OTHER REQUIREMENTS………………………………………..…………19
32.1 General Notice to Contractor……………………………………………………………………………………….19
32.2 Labor Code section 1771.1(a)……………………………………………………………………………………...19
32.3 DIR Registration Required……………………………………………………………………………………………19
32.4 Posting of Job Site Notices……………………………………………………………………………………………19
32.5 Payroll Records…………………………………………………………………………………………………………….19
32.6 Employment of Apprentices…………………………………………………………………………………………20
5.a
Packet Pg. 51
Rev. September 29, 2021 6 PART 4 – CONSTRUCTION CONTRACT
CONSTRUCTION CONTRACT
THIS CONSTRUCTION CONTRACT entered into on November 14. 2022 (“Execution Date”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("City"), and DALEO INC. ("Contractor"), is made with reference to the following:
R E C I T A L S:
A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City.
B. Contractor is a Corporation duly organized and in go od standing in the State of California, Contractor’s License Number 458944 and Department of Industrial Relations Registration Number 100000400. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, ex perience and expertise to perform the obligations set forth in this Construction Contract.
C. On August 12, 2022 , City issued an Invitation for Bids (IFB) to contractors for the Gas Main Replacement (GMR) 24-A (“Project”). In response to the IFB, Contractor submitted a Bid.
D. City and Contractor desire to enter into this Construction Contract for the Project, and other services as identified in the Contract Documents for the Project upon the following terms and conditions.
NOW THEREFORE, in considerati on of the mutual promises and undertakings hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the undersigned parties as follows:
SECTION 1 INCORPORATION OF RECITALS AND DEFINITIONS.
1.1 Recitals.
All of the recitals are substantive parts of this Construction Contract and are hereby incorporated herein by reference.
1.2 Definitions.
Capitalized terms shall have the meanings set forth in this Construction Contract (sometimes referred to herein as the “Contract”) and/or in the General Conditions. If there is a conflict between the definitions in this Construction Contract and in the General Conditions, the definitions in this Construction Contract shall prevail.
SECTION 2 THE PROJECT.
The Project is the Gas Main Replacement (GMR) 24 -A Project, located at Stanford Shopping Mall, 660 Stanford Shopping Center Way, Palo Alto, CA. 94304("Project").
/ /
/ /
5.a
Packet Pg. 52
Rev. September 29, 2021 7 PART 4 – CONSTRUCTION CONTRACT
SECTION 3 THE CONTRACT DOCUMENTS.
3.1 List of Documents.
The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Purchasing Division and are hereby incorporated into this Construction Contract by reference.
1) Change Orders
2) Field Orders
3) Construction Contract
4) Bidding Addenda
5) Special Provisions
6) General Conditions
7) Project Plans and Drawings
8) Technical Specifications
9) Instructions to Bidders
10) Invitation for Bids
11) Contractor's Bid/Non-Collusion Declaration
12) Reports listed in the Contract Documents
13) Public Works Department’s Standard Drawings and Specifications (most current version at time of Bid)
14) Utilities Department’s Water, Gas, Wastewater, Electric Utilities Standards (most curre nt version at time of Bid)
15) City of Palo Alto Traffic Control Requirements
16) City of Palo Alto Truck Route Map and Regulations
17) Notice Inviting Pre -Qualification Statements, Pre -Qualification Statement, and Pre -Qualification Checklist (if applicable)
18) Performance and Payment Bonds
3.2 Order of Precedence.
For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City.
SECTION 4 CONTRACTOR’S DUTY.
4.1 Contractor’s Duties
5.a
Packet Pg. 53
Rev. September 29, 2021 8 PART 4 – CONSTRUCTION CONTRACT
Contractor agrees to perform all of the Work required for the Project, as specified in the Contract Documents, all of which are fully incorporated herein. Contractor shall provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including, but not limited to, provision of all necessary labor, materials, equip ment, transportation, and utilities, unless otherwise specified in the Contract Documents.
Contractor also agrees to use its best efforts to complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents.
SECTION 5 PROJECT TEAM.
5.1 Contractor’s Co-operation.
In addition to Contractor, City has retained, or may retain, consultants and contractors to provide professional and technical consultation for the design and construction of the Project. The Contract requires that Contractor operate efficiently, effectively and cooperatively with City as well as all other members of the Project Team and other contractors retained by City to construct other portions of the Project.
SECTION 6 TIME OF COMPLETION.
6.1 Time Is of Essence.
Time is of the essence with respect to all time limits set forth in the Contract Documents.
6.2 Commencement of Work.
Contractor shall commence the Work on the date specified in City’s Notice to Proceed.
6.3 Contract Time.
Work hereunder shall begin on the date specified on the City’s Notice to Proceed and shall be completed not later than March 31, 2023.
within calendar days () after the commencement date specified in City’s Notice to Proceed.
By executing this Construction Contract, Contractor expressly waives any claim for delayed early completion.
6.4 Liquidated Damages.
Pursuant to Public Contract Code Section 7203, if Contractor fails to achieve Final Completion of the entire Work within the Contract Time, including any approved extensions thereto, City may assess liquidated damages on a daily basis for each day of Unexcused Delay in achieving Final Completion, based on the amount of Three Thousand Five Hundred dollars ($3,500.00) per day, or as otherwise specified in the Special Provisions. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents, regardless of impact on the time for achieving Final Completion. The assessment of liquidated damages is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer by delay in completion of the Work.
The City is entitled to setoff the amount of liquidated damages assessed against any payments otherwise due to Contractor, including, but not limited to, setoff against release of retention. If the total amount of liquidated damages assessed exceeds the amount of un released retention, City is entitled to recover the balance from Contractor or its sureties. Occupancy or use of the Project in whole or in part prior to Final Completion, shall not operate as a waiver of City’s right to assess liquidated damages.
6.4.1 Other Remedies. City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the entire Work within the Contract Time.
5.a
Packet Pg. 54
Rev. September 29, 2021 9 PART 4 – CONSTRUCTION CONTRACT
6.5 Adjustments to Contract Time.
The Contract Time may only be adjusted for time extensions approved by City and memorialized in a Change Order approved in accordance with the requirements of the Contract Documents.
SECTION 7 COMPENSATION TO CONTRACTOR.
7.1 Contract Sum.
Contractor shall be compensated for satisfactory completion of the Work in compliance with the Contract Documents the Contract Sum of One Million Four Hundred Eleven Thousand and Fifty-Nine Dollars ($1,411,059).
[This amount includes the Base Bid and Additive Alternates .]
7.2 Full Compensation.
The Contract Sum shall be full compensation to Contractor for all Work provided by Contractor and, except as otherwise expressly permitted by the terms of the Contract Documents, shall cover all Losses arising out of the nature of the Work or from the acts of the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by City, all risks connected with the Work, and any and all expenses incurred due to suspension or discontinuance of the Work, except as expressly provided herein. The Contract Sum may only be adjusted for Change Orders approved in accordance with the requirements of the Contract Documents.
SECTION 8 STANDARD OF CARE.
8.1 Standard of Care.
Contractor agrees that the Work shall be performed by qualified, experienced and well -supervised personnel. All services performed in connection with this Construction Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project.
SECTION 9 INDEMNIFICATION.
9.1 Hold Harmless.
To the fullest extent allowed by law, Contractor will defend, indemnify, and hold harmless City, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter individually referred to as an “Indemnitee” and collectively referred to as "Indemnitees"), through legal counsel acceptable to City, from and against any and liability, loss, damage, claims, expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in performing the Work or its failure to comply with any of its obligations under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. Contractor shall pay City for any costs City incurs to enforc e this provision. Except as provided in Section 9.2 below, nothing in the Contract Documents shall be construed to give rise to any implied right of indemnity in favor of Contractor against City or any other Indemnitee.
Pursuant to Public Contract Code S ection 9201, City shall timely notify Contractor upon receipt of any third -party claim relating to the Contract.
5.a
Packet Pg. 55
Rev. September 29, 2021 10 PART 4 – CONSTRUCTION CONTRACT
9.2 Survival.
The provisions of Section 9 shall survive the termination or expiration of this Construction Contract.
SECTION 10 NON-DISCRIMINATION.
10.1 Municipal Code Requirement.
As set forth in Palo Alto Municipal Code section 2.30.510, Contractor certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to the race, skin color, gender, gender identity, age, religion, disabi lity, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. Contractor acknowledges that it has read and understands the provisions of S ection 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements , and the penalties for violation thereof, and will comply with all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
SECTION 11 INSURANCE AND BONDS.
11.1 Evidence of coverage.
Within ten (10) business days following issuance of the Notice of Award, Contractor shall provide City with evidence that it has obtained insurance and shall submit Performance and Payment Bonds satisfying all requirements in Article 11 of the General Conditions.
SECTION 12 PROHIBITION AGAINST TRANSFERS.
12.1 Assignment.
City is entering into this Construction Contract in reliance upon the stated experience and qualifications of the Contractor and its Subcontractors set forth in Contractor’s Bid. Accordingly, Contractor shall not assign, hypothecate or transfer this Construction Contract or any interest the rein directly or indirectly, by operation of law or otherwise without the prior written consent of City. Any assignment, hypothecation or transfer without said consent shall be null and void, and shall be deemed a substantial breach of contract and grounds for default in addition to any other legal or equitable remedy available to the City.
12.2 Assignment by Law.
The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if the Contractor is a partnership or joint venture or syndicate or co-tenancy shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract. Contr ol means more than fifty percent (50%) of the voting power of the corporation or other entity.
SECTION 13 NOTICES.
13.1 Method of Notice.
All notices, demands, requests or approvals to be given under this Construction Contract shall be given in writing and shall be deemed served on the earlier of the following:
(i) On the date delivered if delivered personally;
(ii) On the third business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided;
(iii) On the date sent if sent by facsimile transmission; (iv) On the date sent if delivered by electronic mail; or (v) On the date it is accepted or rejected if sent by certified mail.
5.a
Packet Pg. 56
Rev. September 29, 2021 11 PART 4 – CONSTRUCTION CONTRACT
13.2 Notice to Recipients.
All notices, demands or requests (including, without limitation, Change Order Requests and Claims) from Contractor to City shall include the Project name and the number of this Construction Contract and shall be addressed to City at:
To City: City of Palo Alto
City Clerk
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, CA 94303
Copy to: City of Palo Alto
Public Works Administration
250 Hamilton Avenue
Palo Alto, CA 94301
Attn:
[Include Construction Manager, If Applicable.]
_______________________________
_______________________________
_______________________________
_______________________________
City of Palo Alto
Utilities Engineering
250 Hamilton Avenue
Palo Alto, CA 94301
Attn: Aaron Perkins
Email: [email protected]
In addition, copies of all Claims by Contractor under this Construction Contract shall be provided to the following:
Palo Alto City Attorney’s Office
250 Hamilton Avenue
P.O. Box 10250
Palo Alto, California 94303
All Claims shall be sent by registered mail or certified mail with return receipt requested.
All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at:
To Contractor:
Daleo Inc.
550 E. Luchessa Ave.
Gilroy, CA 95020
Attn: Joe Franke
Email: [email protected]
13.3 Change of Address.
5.a
Packet Pg. 57
Rev. September 29, 2021 12 PART 4 – CONSTRUCTION CONTRACT
In advance of any change of address, Contractor shall notify City of the change of address in writing. Each party may, by written notice only, add, delete or replace any individuals to whom and addresses to which notice shall be provided.
SECTION 14 DEFAULT.
14.1 Notice of Default.
In the event that City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, City may give written notice of default to Contractor in the manner specified for the giving of notices in the Construction Contract, with a copy to Contractor’s performance bond surety.
14.2 Opportunity to Cure Default.
Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) Days (or such shorter time as City may reasonably require) after re ceipt of written notice.
However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) Days (or such shorter time as City may reasonably require) and will diligently and continuously prosecut e such cure to completion within a reasonable time, which shall in no event be later than ten (10) Days after receipt of such written notice.
SECTION 15 CITY'S RIGHTS AND REMEDIES.
15.1 Remedies Upon Default.
If Contractor fails to cure any default of this Construction Contract within the time period set forth above in Section 14, then City may pursue any remedies available under law or equity, including, w ithout limitation, the following:
15.1.1 Delete Certain Services . City may, without terminating the Construction Contract, delete certain portions of the Work, reserving to itself all rights to Losses related thereto.
15.1.2 Perform and Withhold . City may, without terminating the Construction Contract, engage others to perform the Work or portion of the Work that has not been adequately performed by Contractor and withhold the cost thereof to City from future payments to Contractor, reserving to itself all rights to Losses related thereto.
15.1.3 Suspend the Construction Contract . City may, wi thout terminating the Construction Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in whic h event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work.
15.1.4 Terminate the Construction Contract for Default . City shall have the right to terminate this Construction Contract, in whole or in part, upon the failure of Contractor to promptly cure any default as required by Section 14. City’s election to terminate the Construction Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Construction Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein.
15.1.5 Invoke the Performance Bond . City may, with or without terminating the Construction Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond.
5.a
Packet Pg. 58
Rev. September 29, 2021 13 PART 4 – CONSTRUCTION CONTRACT
15.1.6 Additional Provisions . All of City’s rights and remedies under this Construction Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not waive the City’s authority to designate other breaches as material nor limit City’s right to terminate the Constru ction Contract, or prevent the City from terminating the Agreement for breaches that are not material. City’s determination of whether there has been noncompliance with the Construction Contract so as to warrant exercise by City of its rights and remedies for default under the Construction Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City.
15.2 Delays by Sureties.
Time being of the essence in the performance of the Work, if Contra ctor’s surety fails to arrange for completion of the Work in accordance with the Performance Bond, within seven (7) calendar days from the date of the notice of termination, Contractor’s surety shall be deemed to have waived its right to complete the Work under the Contract, and City may immediately make arrangements for the completion of the Work through use of its own forces, by hiring a replacement contractor, or by any other means that City determines advisable under the circumstances. Contractor and its surety shall be jointly and severally liable for any additional cost incurred by City to complete the Work following termination. In addition, City shall have the right to use any materials, supplies, and equipment belonging to Contractor and located at the Worksite for the purposes of completing the remaining Work.
15.3 Damages to City.
15.3.1 For Contractor's Default. City will be entitled to recovery of all Losses under law or equity in the event of Contractor’s default under the Contract Documents.
15.3.2 Compensation for Losses . In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to deduct the cost of such Losses from monies otherwise payable to Contractor. If the Losses incurred by City exceed the amount payable, C ontractor shall be liable to City for the difference and shall promptly remit same to City.
15.4 Suspension by City
15.4.1 Suspension for Convenience . City may, at any time and from time to time, without cause, order Contractor, in writing, to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time. The order shall be specifically identified as a Suspension Order by City. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with the order and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order. During the Suspension or extension of the Suspension, if any, City shall either cancel the Suspension Order or, by Change Order, delete the Work covered by the Suspension Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension. A Suspension Order shall not be the exclusive method for City to stop the Work.
15.4.2 Suspension for Cause. In addition to all other remedies available to City, if Contractor fails to perform or correct work in accordance with the Contract Documents, City may immediately order the Work, or any portion thereof, suspended until the cause for the suspension has been eliminated to City’s sati sfaction.
Contractor shall not be entitled to an increase in Contract Time or Contract Price for a suspension occasioned by Contractor’s failure to comply with the Contract Documents. City’s right to suspend the Work shall not give rise to a duty to susp end the Work, and City’s failure to suspend the Work shall not constitute a defense to Contractor’s failure to comply with the requirements of the Contract Documents.
5.a
Packet Pg. 59
Rev. September 29, 2021 14 PART 4 – CONSTRUCTION CONTRACT
15.5 Termination Without Cause.
City may, at its sole discretion and without cause, terminate this Construction Contract in part or in whole upon written notice to Contractor. Upon receipt of such notice, Contractor shall, at City’s expense, comply with the notice and take all reasonable steps to minimize costs to close out and demobilize. The compensation allowed under this Paragraph 15.5 shall be the Contractor’s sole and exclusive compensation for such termination and Contractor waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind resulting from termination without cause.
Termination pursuant to this provision does not relieve Contractor or its sureties from any of their obligations for Losses arising from or related to the Work performed by Contractor.
15.5.1 Compensation. Following such termination and within forty -five (45) Days after receipt of a billing from Contractor seeking payment of sums authorized by this Paragraph 15.5.1, City shall pay the following to Contractor as Contractor’s sole compensation for performance of the Work:
.1 For Work Performed. The amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor.
.2 For Close-out Costs. Reasonable costs of Contractor and its Subcontractors:
(i) Demobilizing and
(ii) Administering the close -out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) Days after receipt of the notice of termination.
.3 For Fabricated Items. Previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work.
.4 Profit Allowance. An allowance for profit calculated as four percent (4%) of the sum of the above items, provided Contractor can prove a likelihood that it would have made a profit if the Construction Contract had not been terminated.
15.5.2 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Construction Contrac t and that afford no greater rights of recovery against Contractor than are afforded to Contractor against City under this Section.
15.6 Contractor’s Duties Upon Termination.
Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following:
(i) Immediately discontinue the Work to the extent specified in the notice; (ii) Place no further orders or subcontracts for mate rials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work that is not discontinued; (iii) Provide to City a description in writing, no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract;
(iv) Promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all
5.a
Packet Pg. 60
Rev. September 29, 2021 15 PART 4 – CONSTRUCTION CONTRACT
subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and
(v) Thereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto.
Upon termination, whether for cause or for convenience, the provisions of the Contract Documents remain in effect as to any Claim, indemnity obligation, warranties, guarantees, submittals of as -built drawings, instructions, or manuals, or other such rights and obligations arising prior to the termination date.
SECTION 16 CONTRACTOR'S RIGHTS AND REMEDIES.
16.1 Contractor’s Remedies.
Contractor may terminate this Construction Contract only upon the occurrence of one of the following:
16.1.1 For Work Stoppage . The Work is stopped for sixty (60) consecutive Days, through no act or fault of Contractor, any Subcontractor, or any employee or agent of Contractor or any Subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable. This provision shall not apply to any work stoppage resulting from the City’s issuance of a suspension notice issued either for cause or for convenience.
16.1.2 For City's Non-Payment. If City does not pay Contractor undisputed sums within ninety (90) Days after receipt of notice from Contractor, Contractor may terminate the Construction Contract (30) days following a second notice to City of Contractor’s intention to terminate the Construction Contract.
16.2 Damages to Contractor.
In the event of termination for cause by Contractor, City shall pay Contractor the sums provide d for in Paragraph 15.5.1 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind.
SECTION 17 ACCOUNTING RECORDS.
17.1 Financial Management and City Access.
Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Construction Contract in accordance with generally accepted accounting principles and practices. City and City's accountants during normal business hours, may inspect, audit and copy Contractor's records, books, estimates, take -offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, voucher s, memoranda and other data relating to this Project. Contractor shall retain these documents for a period of three (3) years after the later of (i) Final Payment or (ii) final resolution of all Contract Disputes and other disputes, or (iii) for such longer period as may be required by law.
5.a
Packet Pg. 61
Rev. September 29, 2021 16 PART 4 – CONSTRUCTION CONTRACT
17.2 Compliance with City Requests.
Contractor's compliance with any request by City pursuant to this Section 17 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under th e Contract Documents. City many enforce Contractor’s obligation to provide access to City of its business and other records referred to in Section 17.1 for inspection or copying by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony.
SECTION 18 INDEPENDENT PARTIES.
18.1 Status of parties.
Each party is acting in its independent capacity and not as agents, employees, partners, or joint venture rs of the other party. City, its officers or employees shall have no control over the conduct of Contractor or its respective agents, employees, subconsultants, or subcontractors, except as herein set forth.
SECTION 19 NUISANCE.
19.1 Nuisance Prohibited.
Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection in the performance of services under this Construction Contract.
SECTION 20 PERMITS AND LICENSES.
Except as otherwise provided in the Special Provisions and Technical Specifications, the Contractor shall provide, procure and pay for all licenses, permits, and fees, required by the City or other government jurisdictions or agencies necessary to carry out and complete the Work. Payment of all costs and expenses for such licenses, permits, and fees shall be included in one or more Bid items. No other compensation shall be paid to the Contractor for these items or for delays caused by non-City inspectors or conditions set forth in the licenses or permits issued by other agencies.
SECTION 21 WAIVER.
A waiver by either party of any breach of any term, covenant, or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character.
5.a
Packet Pg. 62
Rev. September 29, 2021 17 PART 4 – CONSTRUCTION CONTRACT
SECTION 22 GOVERNING LAW AND VENUE; COMPLIANCE WITH LAWS.
22.1 Governing Law and Venue.
This Construction Contract shall be construed in accordance with and governed by the laws of the State of California, without regard to conflict of law provisions, and venue shall be in a court of competent jurisdiction in the County of Santa Clara, California and no other place.
22.2 Compliance with Laws.
Contractor shall comply with all applicable federal and California laws and city laws, including, without limitation, ordinances and resolutions, in the performance of work under this Construction Contract.
22.2.1 Palo Alto Minimum Wage Ordinance. Contractor shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to th e State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, Contractor shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, Contractor shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060.
SECTION 23 COMPLETE AGREEMENT.
23.1 Integration.
This Agreement represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This Agre ement may be amended only by a written instrument, which is signed by the parties.
SECTION 24 SURVIVAL OF CONTRACT.
24.1 Survival of Provisions.
The provisions of the Construction Contract which by their na ture survive termination or expiration of the Construction Contract or Final Completion, including, without limitation, all warranties, indemnities, payment obligations, and City’s right to audit Contractor’s books and records, shall remain in full force a nd effect after Final Completion or any termination or expiration of the Construction Contract.
SECTION 25 PREVAILING WAGES.
This Project is not subject to prevailing wages and related requirements. Contractor 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:
(1) is not a public works contract;
(2) 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
(3) 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 1773.3(j).
Or
This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations. Contractor is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et
5.a
Packet Pg. 63
Rev. September 29, 2021 18 PART 4 – CONSTRUCTION CONTRACT
seq., as amended from time to time. Pursuant to Labor Code Section 1773, the City has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtain ed at the City’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, website (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. Contractor shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.) , including, but not limited to, Sections 1720, 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time.
SECTION 26 NON-APPROPRIATION.
26.1 Appropriations.
This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code.
This Agreement will terminate without any penalty (a) at the end of any fiscal yea r in the event that the City does not appropriate funds for the following fiscal year for this event, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Construction Con tract are no longer available.
This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 27 AUTHORITY.
27.1 Representation of Parties.
The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.
SECTION 28 COUNTERPARTS
28.1 Multiple Counterparts.
This Agreement may be signed in multiple counterparts, which, when executed by all the parties, shall together constitute a single binding agreement.
SECTION 29 SEVERABILITY.
29.1 Severability.
In case a provision of this Construction Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected.
SECTION 30 STATUTORY AND REGULATORY REFERENCES.
30.1 Amendments to Laws.
With respect to any amendments to any statutes or regulations referenced in these Contract Documents, the reference is deemed to be the version in effect on the date that the Contract was awarded by City, as may be amended from time to time, unless otherwise required by law.
5.a
Packet Pg. 64
Rev. September 29, 2021 19 PART 4 – CONSTRUCTION CONTRACT
SECTION 31 WORKERS’ COMPENSATION CERTIFICATION.
31.1 Workers Compensation.
Contractor shall secure the payment of workers’ compensation to its employees as provided in Labor Code Sections 1860 and 3700.
Pursuant to Labor Code Section 1861, by signing this Contract, Contractor thereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with suc h provisions before commencing the performance of the Work on this Contract.”
SECTION 32 DIR REGISTRATION AND OTHER REQUIREMENTS.
32.1 General Notice to Contractor.
City requires Contractor and its Subcontractors to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Additional information regarding public works and prevailing wage requirements is available on the DIR website (see e.g. http://www.dir.ca.gov) as amended from time to time.
32.2 Labor Code section 1771.1(a)
City provides notice to Contractor of the requirements of California Labor Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contactor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”
32.3 DIR Registration Required.
City will not accept a bid proposal from or enter into this Construction Contract with Contractor without proof that Contractor and its Subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions.
32.4 Posting of Job Site Notices; Compliance Monitoring.
City gives notice to Contractor and its Subcontractors that Contrac tor is required to post all job site notices prescribed by law or regulation and Contractor is subject to compliance monitoring and enforcement by DIR.
32.5 Payroll Records.
Contractor shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461).
City requires Contractor and its Subcontractors to comply with the requirements of Labor Code section 1776, including but not limited to:
5.a
Packet Pg. 65
Rev. September 29, 2021 20 PART 4 – CONSTRUCTION CONTRACT
(i) Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee e mployed by, respectively, Contractor and its Subcontractors, in connection with the Project.
(ii) The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of Contractor and its Subcontractors, respectively.
(iii) At the request of City, acting by its Project Manager, Contractor and its Subcontractors shall make the certified payroll records available for inspection or furnished upon request to the City’s Project Manager within ten (10) days of receipt of City’s request.
City requests Contractor and its Subcontractors to submit the certified payroll records to the City’s Project Manager at the end of each week during the Project.
(iv) If the certified payroll records are not provided as required within the 10-day period, then Contractor and its Subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and City shall withhold the sum total of penalties from the progress payment(s) then due and payable to Contractor. This provision supplements the provisions of Section 15 hereof.
(v) Inform the City’s Project Manager of the location of Contractor’s and its Subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the City’s Project Manager within five (5) business days of any change of location of those p ayroll records.
32.6 Employment of Apprentices.
Contractor shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.
5.a
Packet Pg. 66
Rev. September 29, 2021 21 PART 4 – CONSTRUCTION CONTRACT
IN WITNESS WHEREOF, the parties have caused this Construction Contract to be executed the date and year first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
____________________________
City Attorney or designee
APPROVED:
____________________________
Utilities Director
DALEO INC.
By:___________________________
Name:________________________
Title:__________________________
By:____________________________
Name:__________________________
Title:__________________________
5.a
Packet Pg. 67
ATTACHMENT B
Gas Main Replacement Project 24A Bid Opening Date 8/26/22 GS-14003
179815
Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price 1 2,171 LF Install 4" Gas MDPE pipe by horizontal directional drilling 215.00$ 466,765.00$ 439.35$ 953,828.85$ 2 256 LF Install 4" Gas MDPE pipe by open trench excavation. 450.00$ 115,200.00$ 586.25$ 150,080.00$ 3 1 EA Install Anode Box/Test Station 200.00$ 200.00$ 750.00$ 750.00$ 4 2 EA
Install 1" PE Gas Service Line Including EFV and 1" Riser with OR without a bypass at the existing gas meter location by horizontal directional drilling OR open trench excavattion 6,000.00$ 12,000.00$
9,500.00$
19,000.00$
5 1 EA
Install 1" PE Gas Service Stub and EFV for the City to reconnect the existing 1" PE gas service to new main by horiziontal directional drilling OR open trench excavation 2,750.00$ 2,750.00$ 7,500.00$
7,500.00$
6 2 EA
Install 2" PE Gas Service Line Including 2" PE ball valve and/or EFV and 2" Riser with a 1-1/4" or 2" bypass at existing gas meter location by horizotnal directional drilling OR open trench excavation 7,000.00$ 14,000.00$
10,500.00$
21,000.00$
7 3 EA
Install 2" PE Gas Service Stub with 2" PE ball valve and/or EFV for the City to reconnect the existing 2" PE gas service to new main by horizontal directional drilling OR open trench excavation 3,500.00$ 10,500.00$
8,500.00$
25,500.00$
8 1 EA
Install a 4" commercial steel pipe bollard filled with concrete at existing gas meter location per Standard Detail WGW-05B 600.00$ 600.00$ 750.00$ 750.00$ 9 4 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 25 SF) 3,000.00$ 12,000.00$ 6,500.00$ 26,000.00$ 10 1 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 50 SF) 6,000.00$ 6,000.00$ 8,500.00$ 8,500.00$ 11 2 EA
Replace existing gas meter box and lid with Armorcast Polymere Concrete Utility Box (24" x 36" x 18") with extensions and one-piece cover per Standard Detail GD-21 2,500.00$ 5,000.00$ 4,500.00$
9,000.00$
12 4 EA
Replace existing gas meter box and lid with Armorcast Polymere Concrete Utility Box (30" x 60" x 36") with extensions and two-piece cover per Standard Detail GD-22 3,500.00$ 14,000.00$ 6,500.00$
26,000.00$
13 1 EA Perform GPS survey or Collect survey points 60,000.00$ 60,000.00$ 65,000.00$ 65,000.00$ Total 719,015.00$ 1,312,908.85$
Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price 14 1 EA
Install 1" PE Gas Service Line Including EFV and 1" Riser with OR without a bypass at a NEW gas meter location by horizontal directional drilling OR open trench excavattion 6,000.00$ 6,000.00$ 9,500.00$
9,500.00$
15 2 EA Abandon existing anode box / valve 400.00$ 800.00$ 500.00$ 1,000.00$ 16 3 EA Install sanitary sewer cleanout 3,000.00$ 9,000.00$ 7,500.00$ 22,500.00$ 17 1 CY Recycle asphalt containing petro mat 80.00$ 80.00$ 200.00$ 200.00$ 18 2 EA Removal and replace as section of the sanitary sewer lateral 2,000.00$ 4,000.00$ 5,200.00$ 10,400.00$ 19 300 Inch/SF Install additional pavement (Concrete thickness) 0.60$ 180.00$ 12.00$ 3,600.00$ 20 300 Inch/SF Install additional pavement (AC thickness) 1.00$ 300.00$ 8.00$ 2,400.00$ 21 1,500 Inch/SF Install additional Class 2 Aggregate Base (Base thickness) 0.35$ 525.00$ 3.00$ 4,500.00$ 22 1,500 Inch/SF Install additional pavement thickness (Base thickness) 0.35$ 525.00$ 8.00$ 12,000.00$ 23 100 LF Install additional curb 25.00$ 2,500.00$ 60.00$ 6,000.00$ 24 100 LF Install additional gutter 25.00$ 2,500.00$ 60.00$ 6,000.00$ 25 100 SF Install additional sidewalk 15.00$ 1,500.00$ 50.00$ 5,000.00$ 26 1,000 Inch/LF Sawcut additional pavement (thickness) 0.25$ 250.00$ 2.50$ 2,500.00$ 27 100 LF Perform additional saw cutting 3.00$ 300.00$ 8.00$ 800.00$ 28 1 EA Remove unused meter box 250.00$ 250.00$ 4,000.00$ 4,000.00$ 29 2 Ton Disposal of excavated soils at Class 1 landfill 400.00$ 800.00$ 1,000.00$ 2,000.00$ 30 2 Ton Disposal of excavated soils at Class 2 landfill 350.00$ 700.00$ 1,000.00$ 2,000.00$ 31 5 EA Additional pothole due to the USA mismark or requested by the City for verification 600.00$ 3,000.00$ 750.00$ 3,750.00$ 0 0 0 0 -$ -$ -$
0 0 0 0 -$ -$ -$
Total 33,210.00$ 98,150.00$
Project Title
CIP No.
Section A - GMR 24A - Base Bid
Engineer's Estimate Daleo Inc.
Section B - GMR 24A - Additive Alternate
Engineer's Estimate Daleo Inc.
PR No.
5.b
Packet Pg. 68
© 2022 Microsoft Corporation © 2022 Maxar ©CNES (2022) Distribution Airbus DS 281
331
213
283
BLDG K
BLDG N
BLDG M
BLDG E
BLDG D
BLDG O
PARKING
PARKING
BLDG V
BLDG L
180
EL CAMINO REAL
BUILDING
CC BUILDING
DD
SANTA
880
680
MILPITAS
MATEO
ALTOS
STANFORD
MOUNTAIN
PALO ALTO
280
SAN
UNIV.
PARK
WOODSIDE
REDWOOD MENLO PARK
VIEW
LOS
SUNNYVALE
101
CAMPBELL
SAN
JOSE
CO.
CO.
SANTA CRUZ
SAN MATEO
SAN
GREGORIO
PESCADERO
LA HONDA CUPERTINO
SARATOGA
CO.
SANTA CLARA CO.
CO.
CLARA
SANTA CLARA
80 680
780
VALLEJO
CONTRA COSTA CO.
4 CONCORD
LAFAYETTE
MARTINEZ
4 SAN PABLO
HERCULES
PINOLE
680
HILL
PLEASANT
242
MARIN 101
MILL MADERA
ANSELMO
SAN
LARKSPUR
RAFAEL
SAN
CORTE
CO.
CONTRA COSTA CO.
MARIN CO.
580
580
580 80
80 24ALBANY
BERKELEY
EMERYVILLE
OAKLAND
CONTRA
MORAGA
COSTA CO.
PLEASANTON
ALAMEDA CO.
LIVERMORE
SAN BRUNO
SAN LEANDRO
LORENZO
ALAMEDA
BRISBANE
SOUTH
SAN
238
580
HAYWARD
CONTRA COSTA CO.
SAN FRANCISCO CO.
SAUSALITO
SAN
CITY
MARIN
SAN
280
PACIFICA
CO.
DALY
CITY
FRANCISCO
COLMA
SAN MATEO CO.
SAN FRANCISCO CO.
SAN FRANCISCO
FRANCISCO
VALLEY TIBURON ORINDA WALNUT CREEK
PROJECT AREA
FREMONT
101
SAN
CARLOS
92 BELMONT
MATEO
FOSTER CITYSAN
BURLINGAME
MILBRAE
880
84 NEWARK
UNION CITY
ATHERTON
REDWOOD CITY
MOSS BEACH
MONTARA
LINDA MAR
EL GRANADA
HALF MOON BAY
CRUZ
SANTA
ALAMEDA CO.
ALAMEDA CO.SAN MATEO CO.
SANTA CLARA CO.
ALAMEDA CO.
SCOTTS VALLEY
VICINITY MAP
CO.
\\staff.copa\files\Shared\UTL\EngrOps\WGWEngr\CIP Projects\Gas\GMR 24A\4 - Bid, Award, and Contract\4 - Staff Report\Attachments\GMR24A Project location.dwgFILE:
CITY OF
PALO
ALTO
UTILITIES
Feet
0 100 200
PARKING
BUILDING
PARKING
BUILDING
ATTACHMENT C
GAS MAIN REPLACEMENT 24A
PROJECT LOCATIONS
LEGEND:
- GMR24A WORK LOCATIONS IN STANFORD
SHOPPING CENTER
ORCHARD LANE
SHOPPING CENTER WAY
ORCHARD LANE
SHOPPING CENTER WAY
PEAR LANE
EL CAMINO REAL
SWEET OLIVE WAY
LONDON PLANE WAY
PLUM LANE
QUARRY ROAD
SAND HILL ROAD
ARBORETUM ROAD
BLDG P
PARKING
5.c
Packet Pg. 69
City of Palo Alto (ID # 14670)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approve and Authorize the City Manager or Designee to Execute Contract C23184325A With Gierlich -Mitchell, Inc. With a Total Not -to-Exceed Amount of $100,058 for Sanitary Sewer Level Monitoring Systems From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends the Council approve and authorize the City Manager or their d esignee to execute Attachment A, contract with Gierlich-Mitchell, Inc. for a total not-to-exceed amount of $100,058 for sanitary sewer level monitoring systems.
Background
The City currently owns and subscribes to 36 sanitary sewer level monitory systems from Mission Communications, LLC. These self -contained units monitor the sewer level and trigger alarms during high and low surcharges. This allows City Staff to better monitor the entire wastewater system and prevent Sanitary Sewer Overflows (SSOs). The current devices are strategically placed throughout the City in areas where high incidences of overflows occur. The current model in place is a M83 that operate s on the 3G cellular network. Mobile carriers have shut down their 3G networks , making the current manhole monitors obsolete and in need of immediate replacement.
When the Mission Communication monitor senses a high level of wastewater in the manhole it will send out an immediate notification via email and text to our Wastewater Emergency Division. Upon receiving this message, to prevent a Sanitary Sewer Overflow (SSO) , City staff will take quick and necessary actions listed out in the Sanitary Sewer Managem ent Plan (SSMP).
Below is a chart showing how many times the sanitary sewer level monitors triggered a high - level alarm in the past years.
CALENDAR YEAR NUMBER OF HIGH-LEVEL ALARMS
2020 94
2021 65
2022 (January - July) 42
City staff are working dili gently to maintain the City’s wastewater infrastructure and prevent 6 Packet Pg. 70
City of Palo Alto Page 2
SSOs. Sanitary sewer level monitors play a key role in the early detection of potential sewer overflows which helps the City achieve the SSMP goal of eliminating all preventable SSOs.
Discussion
Project Description
The scope of the Sanitary Sewer Level Monitor ing Systems project is to replace the existing monitors with new Mission Communication M84 Manhole Mointors+. Gierlich-Mitchell, Inc. will manage the project by procuring the Miss ion Communication products and contracting Teviotdale, a B licensed general contractor, to remove and dispose of the existing unit s and replace and install the new monitoring system. Gierlich -Mitchell, Inc. staff will train City staff in using the online platform after installation and ensure each monitor is functioning properly.
Bid Process
On May 9, 2022, a request for proposal (RFP) for the Sanitary Sewer Level Monitor ing System was posted at the City’s electronic procurement system, PlanetBids. The b idding period was 16 calendar days. Bids were received from five contractors on May 24, 2022, as listed on the attached Bid Summary.
Bid Name/Number Sanitary Sewer Level Monitoring
Project/184325A
Proposed Length of Project 1 year
Total Days to Respond to Bid 16
Pre-Bid Meeting Non-mandatory
Number of Company Attendees at Pre-Bid Meeting 10
Number of Bids Received 5
Bid Price Range $100,058 - $1,068,600
Staff reviewed the bids and recommends that the bid of $100,058 submitted by Gierlich - Mitchell, Inc. be accepted for the contract award. Gierlich-Mitchell’s proposal was the lowest responsive bid and meets the City’s requirements. City Staff has worked with G ierlich-Mitchell’s staff and subcontractor in the past to deploy the current sewer level monitors. Staff has confirmed that both Gierlich -Mitchell, Inc. and their subcontractor are registered and in good standing with the Department of Industrial Relations (DIR). Both Gierlich-Mitchell, Inc. and their subcontractor have active license on file with the Contractor’s State License Board.
Resource Impact
Funds for this project of $109,000 were re-appropriated from FY 2022 and available in FY 2023 Wastewater Collection CIP WC-13002 (Wastewater Fusion and General Equipment) budget.
Environmental Review
This project is categorically exempt from California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines 15301 (repair, maintenance of existing facilities) and 15302 (replacement or reconstruction of existing facilities).
Attachments:
6 Packet Pg. 71
City of Palo Alto Page 3
• Attachment6.a: Attachment A: Gierlich-Mitchell, Inc. Contract; C23184325A • Attachment6.b: Attachment B: Bid Table
6 Packet Pg. 72
City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C23184325A
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 17th day of October , 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Gierlich-Mitchell Inc., a California Corporation, located at 179 Niblick Rd #210, Paso Robles, CA 93446 Telephone Number: -714-236-6070 (“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree as follows:
1. SE
RVICES. CONTRACTOR shall provide or furnish the services ( the “Services”) described in the Scope of Services, attached at Exhibit A.
2. EXHIBITS AND APPENDIXES. The following exhibits and appendixes are attached to and made a part of this Agreement:
“A” - Scope of Services
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
“E” - Performance and/or Payment Bond
“F” – DIR Registration for Public Works Contracts
“G” – Claims Process for Public Works Contracts
C
ONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3 . TERM.
The term of this Agreement is from October 17, 2022 to October 16, 2023 inclusive, subject to the provisions of Sections R and W of the General Terms and Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not-to-exceed compensation for the full performance of the Services and reimbursable expenses, if any:
The total maximum lump sum compensation of One Hundred Thousand
6.a
Packet Pg. 73
City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
Fifty-Eight dollars and Seventy-Nine cents ($100,058.79).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the same as the original term; OR
CONTRACTOR’s compensation rates shall be adjusted effective on the commencement of each Additional Term. Th e lump sum compensation amount, hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the San Francisco -Oakland- San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Term, which shall be compared with the CPI published most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRACTOR’s compensation rates be increased by an amount exceeding five percent of the rates effective during the immediately preceding term. An y adjustment to CONTRACTOR’s compensation rates shall be reflected in a written amendment to this Agreement.
7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 7, 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. Public Contract Code Section 9204 mandates certain claims procedures for Public Works Projects, which are set forth in “Appendix G Claims for Public Contract Code Section 9204 Public Works Projects”.
This project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Appendix G, attached hereto and incorporated herein.
6.a
Packet Pg. 74
City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project Manager is: Venessa Fujii, Dept.: Utilities WGW Operations , 3201 E Bayshore Road, Palo Alto, CA 94303 Email: [email protected] T elephone:
(650)496-6994. Invoices shall be submitted in arrears for Services performed.
Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt.
G
ENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 8 above, these general terms and conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled “SER VICES,” and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, includi ng all federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. C ONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors.
6.a
Packet Pg. 75
City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR’s business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONTRACTOR shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR’s performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR’s performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR’s request. When the grounds described above are removed, payment shall be made for amounts withheld because of them.
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of
6.a
Packet Pg. 76
City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
the Services and shall survive the completion of the Services or termination of this Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR’s work is completed in a satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years fro m the date of final payment, CONTRACTOR’s records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement.
M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement.
N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described at Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A- :VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk Manager must approve deductibles and self- insured retentions. In addition, all policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONT RACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to the Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insu rance coverages and endorsements to the Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements
6.a
Packet Pg. 77
City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
for each subcontractor that meet all the requirement s of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O. HOLD HARMLESS. To the fullest extent permitted by law and without limitati on by the provisions of section N relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney’s fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. CONTRACTOR’s obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that CONTRACTOR shall not be obligated to indemnify for liability arising from the sole negligence or willful misconduct of CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or termination of this Agreement.
P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
Q. WORKERS' COMPENSATION . CON TRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of Califor- nia which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services.
R. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination.
6.a
Packet Pg. 78
City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination is for cause, CITY may deduct from such payment the amount of ac tual damage, if any, sustained by CITY due to CONTRACTOR’s failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of CITY. No amendments, changes or variations of any kind are authorized without the written consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR 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 this Agreement. CONTRACTOR further covenants that, in the performance of this Agreemen t, it will not employ any person having such an interest. CONTRACTOR certifies that no C ITY o fficer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement . CONTRACTOR agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws of the State of California.
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the servi ces that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written.
W. 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. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section
6.a
Packet Pg. 79
City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with CITY ’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Division, which are incorporated by reference and may be amended from time to time.
CONTRACTOR 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, CONTRACTOR shall comply with the following zero waste requirements:
• All printed materials provided by CONTRACTOR to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double- sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY ’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or g reater post -consumer material and printed with vegetable based inks.
• Goods purchased by Contractor on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including, but not limited to , Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division’s office.
• Reusable/returnable pallets shall be taken back by CONTRACTOR, at no additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the Agreement is not a public works contract, if Agreement does not include a public works construction project of more than $25,000, or the Agreement does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000.
6.a
Packet Pg. 80
City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
OR
Contractor is required to pay general prevailing wages as defined in Subchapter 3, Title 8 of the California Code of Regulations and Section 16000 et seq. and Section 1773.1 of the California Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the Agreement for this Project from the Director of the Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the Purchasing Division’s office of the City of Palo Alto. Contractor shall provide a copy of prevailing wage rates to any staff or subcontractor hired, and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of all sections, including, but not limited to, Sections 1775, 1776, 1777.5, 1782, 1810, and 1813, of the Labor Code pertaining to prevailing wages.
AA
. DIR REGISTRATION. In regard to any public work construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONTRACTOR and its listed subcontractors to comply with the requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the Agreement is awarded.”
CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR is required to post all job site notices prescribed by law or regulation and CONTRACTOR is subject to SB 854-compliance monitoring and enforcement by DIR.
CITY requires C ONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code section 1776, including:
6.a
Packet Pg. 81
City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONTRACTOR and its listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project.
I
f the certified payroll records are not produced to the project manager within the 10-day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the case of any conflict between the terms of this Agreement and the exhibits hereto or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR’s proposal, the exhibits shall control.
6.a
Packet Pg. 82
City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
GIERLICH-MITCHELL INC.
Officer 1
By:_____________________________
Name:__________________________
Title:___________________________
Officer 2
By:____________________________
Name:_________________________
Title:__________________________
6.a
Packet Pg. 83
City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
EXHIBIT A
SCOPE OF SERVICES
RFP184325A – Sanitary Sewer Level Monitoring System
Contractor shall provide a self-contained wireless sanitary sewer level monitoring system capable of producing immediate alarms for surcharge conditions to prevent sanitary sewer overflows. These self-contained devices shall withstand the corrosion normally associated with sanitary sewer conditions and may be deployed in various sanitary sewer appurtenances including but not limited to manholes and pump stations. Additionally , Contractor shall provide a software program shall be capable of storing historical data trends of wastewater flow levels and alert surcharge conditions via email, text, and phone-based communications. All Contractor services and equipment shall be in conformity to the RFP and the City’s requirements.
The contractor shall provide all labor, equipment, material, transportation, mobilization/demobilization, apparatus, and all other incidentals to perform the Work and comply with all requirements and current standards.
MATERIALS
All components of the self-contained wireless sanitary sewer level monitoring system shall be manufactured using materials resistant to the corrosive environment normally found in a sanitary sewer collection system.
All communication equipment including but not limited to antennas, adhesives, and wiring shall perform and withstand heavy traffic areas including city streets and rights-of-way as well as conditions associated with remote locations. Transmissions must use latest technology that can provide a dependable signal throughout various conditions and terrains so that these units may be placed virtually anywhere and still send and receive a dependable signal.
QUALIFICATIONS
Selected entity shall hold a Class A Engineering License or B General Contractor License
SPECIFIC REQUIREMENTS
1. Contractor will be responsible for providing a self-contained wireless sanitary sewer level monitoring system in all of the aforementioned use locations.
6.a
Packet Pg. 84
City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
2. The system will provide continuous real time monitoring of water level in manholes, pump stations, and other related wastewater facilities.
3. The system will use a self -contained battery suitably sized to provide sufficient power to operate the unit for a minimum of 2 years from the date the unit is placed into service without battery replacement.
4. The system will provide unit maintenance information including battery voltage, internal power supply status, and satellite signal strength.
5. The pro duct manufacturer shall provide active and periodic remote maintenance monitoring of the system to verify operations and communications of the system, including battery voltage, satellite signal strength, power supply voltage and sensor integrity, and report any system abnormalities.
6. The Contractor must comply with all OSHA regulations regarding confined space entry during installation.
7. The system will communicate using a two –way signal to existing satellite networks, or cellular wireless technology in the service area and shall not require any additional system installation other than that of the device itself.
8. Any communication device used by the system shall have FCC approval where applicable.
9. The system shall use a secure web page to display the following information:
o Graphical representation of the data logging of water levels. o Maintenance Information
o Map based graphical user interface to display the location of each unit and the current status
o The alarm status of a unit shall be indicated by a different representation for when the unit is operating safely
o Alarms and alarm history
o Customer input of maintenance and location notes
10. The secure web page shall be capable of the following:
o Sending control commands to the field units for the purpose of turning alarms on or off, or changing the alarm set point o Exporting data using commercially available file formats
11. The field unit shall be designed to work in the harsh ambient conditions of a sanitary sewer system and be capable of surviving immersion in water.
6.a
Packet Pg. 85
City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
12. The system field units can use no less than two alarm floats capable of being adjusted to indicate different surcharge levels inside of the manhole
13. Replacement part shall be available from the manufacture within 5 business days.
14. The antenna shall be specifically designed for and matched to the field unit and shall not be for a general-purpose design. The antenna shall be traffic rated and able to withstand the harsh conditions that exist in high traffic roadways in all seasonal conditions.
15. The field unit shall be capable of remote diagnostic troubleshooting.
16. The complete unit shall be small enough to be installed on a single manhole cover, hatch cover or other entry point cover. Except to ensure proper fit adjustments, unit ins tallation shall not require any modifications to the manhole or surrounding grounds.
17. The field unit shall be designed and installed such that it can easily be moved aside for routine collection system maintenance such as jetting, pump station cleaning, etc.
18. The system shall immediately alert via text, email, phone call, or other previously specified communication when a high-level alarm is triggered.
19. The system shall have a uniform global coverage of its communication system.
WARRANTY
All components of t he self -contained wireless sanitary sewer level monitoring systems unless otherwise stated shall be warranted for a period of no less than two (2) years from the date the unit is placed into service.
LOCATION
Sanitary sewer monitors are to be installed in the same manhole that the existing monitor is currently in. However, the City has the right to change manhole locations if necessary.
6.a
Packet Pg. 86
City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
EXHIBIT B
SCHEDULE OF PERFORMANCE
CONTRACTOR shall perform the Services specified in Exhibit A (Scope of Services) of this Agreement or as assigned by the CITY’s Project Manager.
T
he following work will need to be completed within fifteen (15) working days from Notice to Proceed once all parts are received. Parts may take 4-6 weeks to receive.
Once all units are completed and installed the 2-year warranty for each unit will be available.
6.a
Packet Pg. 87
City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
EXHIBIT C
SCHEDULE OF FEES
CITY shall pay CONTRACTOR according to the following rate schedule . The maximum amount of compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement.
All Payments are based upon CITY’s acceptance of CONTRACTOR’s performance of the phase as evidenced by successful completion of the Deliverable for that Phase. CITY shall have no obligation to pay unless CONTRACTOR has successfully completed and CITY has approved the Project Phase for which payment is due.
Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY.
BID
ITEM
APPROX.
QTY.
UNIT
DESCRIPTION, WITH UNIT PRICE IN WORDS
(EACH BID ITEM SHALL INCLUDE ALL APPLICABLE
TAXES, PROFIT,
INSURANCE, BONDS, AND OTHER OVERHEAD)
UNIT PRICE TOTAL ITEM
PRICE
001
39 EA
Sanitary Sewer Level Monitoring Units
Unit Price in words: -
Nine hundr ed, seventy-six dollars and eighty-eight cents
$ 976.88
$ 38,098.32
002
39 EA
Removal of Existing Units and Installation of
New Units Unit Price in words: -
One t housand, three hundred seven dollars and sixty-
nine cents
$ 1,307.69
$ 50,999.91
003
39 EA
Disposal of Existing Units
Unit Price in words: -
Forty d ollars
$ 40.00
$ 1,560.00
004
39 Lump
Sum
Subscription Service Year 1
Unit Price in words: -
Two hundr ed forty-one dollars and
four cents
$ 241.04
$ 9,400.56
Base Bid Total (items 001 through 004)
(Total in words: One hundred thousand, fifty-eight dollars and seventy-nine cents)
$100,058.79
38,098.32 Remove existing sewer level monitoring units.50,999.91 Install new sewer level monitoring units.1,560.00 Dispose of existing sewer level monitoring units.9,400.56 Subscription service for one year
6.a
Packet Pg. 88
Pr
ofessional Services
Rev. Dec.15, 2020
EXHIBIT D
INSURANCE REQUIREMENTS
CONS
ULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWAR
D IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES GENE RAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PR
OPERTY DAMAGE
BODI
LY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1
,000,000
$1
,000,000
$1 ,000,000
$1
,000,000
$1
,000,000
YES AUTOM OBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PR
OPERTY DAMAGE
BODI
LY 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
NO PR OFESSIONAL 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: CONSULTANT, 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
CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INS
URANCE COVERAGE MUST INCLUDE:
A. A CONT
RACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. TH
E CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDOR
SEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:
A. PR
IMARY COVERAGE
WIT
H 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.
6.a
Packet Pg. 89
Professional Services
Rev. Dec.15, 2020
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL:
HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569
OR
HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
6.a
Packet Pg. 90
City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
EXHIBIT E
BONDS
[ATTACH BOND FORMS IF BONDS ARE REQUIRED]
6.a
Packet Pg. 91
City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
EXHIBIT F
DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONTRACTOR and its listed subcontractors, if any, to comply with all applicable requirements of the Cal ifornia Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26 ( Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement.
CITY provides notice to CONTRACTOR of the requirements of California Labor Code Section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”
This Project is subject to compliance monitoring and enforcement by DIR. All contractors must be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also be registered with DIR . No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with DIR .
Additional information regarding public works and prevailing wage requirements is available on the DIR w eb site (see e.g. http:// www.dir.ca.gov) a s amended from time to time.
CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR is required to post all job site notices prescribed by law or regulation.
CONTRACTOR shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461).
CITY requires CONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code Section 1776, including but not limited to:
6.a
Packet Pg. 92
City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONTRACTOR and its listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its P roject Manager, CONTRACTOR and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the CITY P roject Manager within ten (10) days of receipt of CITY’s request.
CITY requests CONTRACTOR and its listed subcontractors to submit the certified payroll records to CITY’s Project Manager at the end of each week during the Project.
If the certified payroll records are not provided as required within the 10-day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR.
Inform CITY’s P roject Manager of the location of CONTRACTOR ’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to CITY’s P roject Manager within five (5) business days of any change of location of those payroll records.
Eight (8) hours labor constitutes a legal day’s work. CONTRACTOR shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONTRACTOR or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONTRACTOR or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours per week, at not less than one and one-half (1&1/2) times the basic rate of pay, as provided in Section 1815.
CONTRACTOR shall secure the payment of workers’ compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONTRACTOR shall sign and file with the CITY a statutorily prescribed statement acknowledging its obligation to secure the payment of workers ’ compensation to its employees before
6.a
Packet Pg. 93
City of Palo Alto General Services Agreement 12 Rev. March 29, 2018
beginning work (Labor Code 1861). CONTRACTOR shall post job site notices per regulation (Labor Code 1771.4(a)(2)).
CONTRACTOR shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.
6.a
Packet Pg. 94
City of Palo Alto General Services Agreement 13 Rev. March 29, 2018
Appendix G
Claims for Public Contract Code Section 9204 Public Works Projects
The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 related to the Services performed under this Agreement.
1. C
laim Definition . “Claim” means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City.
(B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City.
2. C
laim Process .
(A
) Timing . Any Claim must be submitted to City in compliance with the requirements of this Exhibit no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived.
(B
) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Exhibit, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts.
(C
) Review . Upon receipt of a Claim in compliance with this Exhibit, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph
2. 6.a
Packet Pg. 95
City of Palo Alto General Services Agreement 14 Rev. March 29, 2018
(D ) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
(E
) Payment . Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply.
3. D
isputed Claims
(A
) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Exhibit within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement.
(B
) Mediation . Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a me diator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.
If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws.
(
i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(ii) Unless otherwise agreed to by the City and the Contractor in writing, the
6.a
Packet Pg. 96
City of Palo Alto General Services Agreement 15 Rev. March 29, 2018
mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.
4. C
ity’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Exhibit or to otherwise meet the time requirements of this Exhibit shall result in the Claim being deemed rejected in its entirety.
A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor.
5. I
nterest . Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum.
6. A
pproved Subcontr actor Claims. If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim.
Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.
7. Wai
ver of Provisions . A waiver of the rig hts granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.
6.a
Packet Pg. 97
ADS Corp
DESCRIPTION, WITH UNIT PRICE IN WORDS
(PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES)
Sanitary Sewer Level Monitoring Units
(Unit Price in words: _____________________________________ Removal of Existing Units and Installation of New Units (Unit Price in words: _____________________________________ Disposal of Existing Units
(Unit Price in words: _____________________________________ Subscription Service Year 1
(Unit Price in words: _____________________________________ 186,927.00$
Aqua Sierra Controls
DESCRIPTION, WITH UNIT PRICE IN WORDS
(PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES)
Sanitary Sewer Level Monitoring Units
(Unit Price in words: _____________________________________ Removal of Existing Units and Installation of New Units (Unit Price in words: _____________________________________ Disposal of Existing Units
(Unit Price in words: _____________________________________ Subscription Service Year 1
(Unit Price in words: _____________________________________ 268,679.58$
Castillo Plumbing
DESCRIPTION, WITH UNIT PRICE IN WORDS
(PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES)
Sanitary Sewer Level Monitoring Units
(Unit Price in words: _____________________________________ Removal of Existing Units and Installation of New Units (Unit Price in words: _____________________________________ Disposal of Existing Units
(Unit Price in words: _____________________________________ Subscription Service Year 1
(Unit Price in words: _____________________________________ 1,068,600.00$ Section A - Base Bid Total (items 001 through 004, with all applicable taxes included) 4 1 Lump
Sum 500.00$ 19,500.00$
3 39 Each 400.00$ 15,600.00$
2 39 Each 21,000.00$ 819,000.00$
TOTAL ITEM PRICE
1 39 Each 5,500.00$ 214,500.00$
Section A - Base Bid Total (items 001 through 004, with all applicable taxes included) BID ITEM APPROX.
QTY. UNIT UNIT PRICE
4 1 Lump
Sum 438.27$ 17,092.53$
3 39 Each 19.03$ 742.17$
2 39 Each 1,874.05$ 73,087.95$
TOTAL ITEM PRICE
1 39 Each 4,557.87$ 177,756.93$
Section A - Base Bid Total (items 001 through 004, with all applicable taxes included) BID ITEM APPROX.
QTY. UNIT UNIT PRICE
13,494.00$ 14 346.00$ Lump
Sum
39 Each 512.00$ 19,968.00$
3 39 Each 18.00$ 702.00$
2 1 39 Each 3,917.00$ 152,763.00$
BID ITEM APPROX.
QTY. UNIT UNIT PRICE TOTAL ITEM PRICE
6.b
Packet Pg. 98
Gierlich-Mitchell
DESCRIPTION, WITH UNIT PRICE IN WORDS
(PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES)
Sanitary Sewer Level Monitoring Units
(Unit Price in words: _____________________________________ Removal of Existing Units and Installation of New Units (Unit Price in words: _____________________________________ Disposal of Existing Units
(Unit Price in words: _____________________________________ Subscription Service Year 1
(Unit Price in words: _____________________________________ 100,058.79$
SmartCover
DESCRIPTION, WITH UNIT PRICE IN WORDS
(PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES)
Sanitary Sewer Level Monitoring Units
(Unit Price in words: _____________________________________ Removal of Existing Units and Installation of New Units (Unit Price in words: _____________________________________ Disposal of Existing Units
(Unit Price in words: _____________________________________ Subscription Service Year 1
(Unit Price in words: _____________________________________ 222,289.08$ Section A - Base Bid Total (items 001 through 004, with all applicable taxes included) 4 1 Lump
Sum 390.00$ 15,210.00$
3 39 Each 6.41$ 249.99$
2 39 Each 1,096.35$ 42,757.65$
TOTAL ITEM PRICE
1 39 Each 4,206.96$ 164,071.44$
Section A - Base Bid Total (items 001 through 004, with all applicable taxes included) BID ITEM APPROX.
QTY. UNIT UNIT PRICE
4 1 Lump
Sum 241.04$ 9,400.56$
3 39 Each 40.00$ 1,560.00$
2 39 Each 1,307.69$ 50,999.91$
TOTAL ITEM PRICE
1 39 Each 976.88$ 38,098.32$
BID ITEM APPROX.
QTY. UNIT UNIT PRICE
6.b
Packet Pg. 99
City of Palo Alto (ID # 14764)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Amendment No. 1 to Contract # C21180078 with Blue Rhino Studios, Inc. in the Amount of $234,748 for Design and Fabrication of Additional Dinosaur Sculptures and Exhibits for the Palo Alto Junior Museum & Zoo for a total not -to-exceed amo unt of $449,464
From: City Manager
Lead Department: Community Services
Recommendation
Staff recommends that Council approve an amendment (Attachment A) to the professional services agreement (C21180078) with Blue Rhino Studio, Inc. to increase the contract in the amount of $234,758 for a total not to exceed amount of $449,464 for fabrication of additional dinosaur sculptures and exhibits for the Palo Alto Junior Museum & Zoo (JMZ) “California Dinosaur Garden” Exhibition Project, Capital Improvement Program Project AC-18001.
Background
Founded in 1934, the JMZ is dedicated to enriching the lives of children, ages 0 to 11, through hands -on exploration of the world. Construction of the new JMZ facility was completed in 2021 and opened to the public in November 2021.
The Capital Improvement Project, AC -18001 funds the new JMZ and its exhibits and includes funding for a new permanent outdoor exhibition about dinosaurs that lived in California. The exhibition will include live cretaceous -era plants, turtles, geologic specimens, animations, a fossil dig, and life-size sculptures of several types of dinosaurs and animals from California. The sculptures are the main feature. Attachment B includes a rendering of the outdoor exhibit.
On April 19, 2021, Council awa rded a contract to Blue Rhino Studios in the amount of $214,706 to design and fabricate three large dinosaurs , the long -lead elements of the exhibition (Staff Report 12071 ). As the exhibit design has developed, the scope now includes four additional life -size smaller sculptures and large replica fossil skeletons for the fossil dig experience.
Discussion
7 Packet Pg. 100
City of Palo Alto Page 2
Staff recommends that Blue Rhino Studios fabricate this additional scope of work . Blue Rhino Studios will maintain artistic and scientific consistency across all elements of the exhibit. Their costs for the currently contracted scope of work were very c ompetitive during the initial bid process. During that process Blue Rhino was the second lowest bid out of seven, however ; price was only one of multiple factors evaluated. Refer to Staff Report 12071 for a summary of the initial bid process. Blue Rhino Studios has proven to be competent and did excellent quality of work on this initial contracted scope of work.
The bid for the amended scope is also very competitively priced.
The total design and fabrication budget for this permanent exhibition is $980,000, which includes allocated funds from the CIP in the amount of $430,000, a federal grant in the amount of $250,000, and a contribution from the Friends of the Palo Alto Junior Museum & Zoo (Friends) in the amount of $300,000. Council accepted the federal grant for $250,000 and the corresponding budget amendment to appropriate additional funding for the new exhibition, called “California Dinosaur Garden”, on September 14, 2020 ( Staff Report 11558 ). The $300,000 contribution from the Friends will be expended by them for the remaining exhibit costs. Exhibition cost breakdown is as follows:
The new exhibition will open in Fall of 2023 and is expected to drive attendance to the JMZ by offering a new major attraction. Typically, new museums and attractions face a slump in attendance approximately two years post -opening. New exhibitions counteract that potential attendance decline. It will also increase visitor capacity in the facility by providing new activities in the ticketed outdoor courtyard.
Timeline
The “California Dinosaur Garden” exhibition will open in Fall of 2023.
Resource Impact
Funding for the fabrication of dinosaur sculptures and exhibits for the “California Dinosaur Garden” Exhibition Project, Capital Improvement Program Project AC -18001 is available in the FY 2023 Adopted Capital Budget. The total fabrication budget for this permanent exhibition is $980,000, which includes
7 Packet Pg. 101
City of Palo Alto Page 3
- allocated funds from the CIP in the amount of $430,000, - a federal grant in the amount of $250,000, and
- a contribution from the Friends of the Palo Alto Junior Museum & Zoo (Friends) in the amount of $300,000.
Policy Implications
The exhibition discussed in this report advance many important policy objectives related to the City Comprehensive Plan Policy Goal C -1: Deliver community services effectively and efficiently. These include:
• Policy C -1.4 Promote City parks, open spaces, recreational facilities, libraries, classes and cultural activities for community mem bers recognizing that these facilities and services build and strengthen community. • Policy C-1.16 Provide arts, science and recreational activities that foster healthy children, youth and teen development.
• Policy C -1.20 Leverage available funding to suppo rt the development of, and improved access to, programs that address all types of developmental disabilities, including physical, sensory, cognitive or social/emotional needs.
Stakeholder Engagement
Stakeholders, including the JMZ audience, scientific adv isors, accessibility advisors, and museum experts, have been engaged in the exhibit development process to determine the sculptures and exhibit experiences.
Environmental Review
The new JMZ has been evaluated as a project under CEQA. In December 2017, th e City Council adopted Resolution 9727 which approved a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the new Junio r Museum and Zoo. The scope of work of this Agreement as amended is categorically exempt pursuant to CEQA regulation 15301 (Existing Facilities).
Attachments:
• Attachment7.a: Attachment A: Blue Rhino Studios, Inc. Contract; C21180078, Amendment #1
• Attachment7.b: Attachment B: Dinasuar Exhibit Rendering 7 Packet Pg. 102
Vers.: Aug. 5, 2019
AMENDMENT NO. 1 TO CONTRACT NO. C21180078
BETWEEN THE CITY OF PALO ALTO AND BLUE RHINO STUDIO, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C21180078 (the “Contract” as defined below) is entered into as of August 11, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and BLUE RHINO STUDIO, INC., a Minnesota corporation, located at 3277 Sun Drive, Eagan, MN 55121 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of the artistic creation of three life-size, scientifically realistic sculptures for the Junior Museum and Zoo, as detailed therein.
B. The Parties now wish to amend the Contract in order to add the artistic creation of four life-size, scientifically realistic animal sculptures and two fossil sculptures, extend the term by two months, and increase the compensation by $234,758.00, from a total not to exceed total of $214,706.00 to $449,464.00.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C21180078 between CONSULTANT and CITY, dated April 19, 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 3. TERM. of the Contract is hereby amended to read as follows:
“The term of this Agreement is from Jan 1, 2021 to August 30, 2023 inclusive, subject to the provisions of Sections R and W of the General Terms and Conditions.”
SECTION 3. Section 5. COMPENSATION FOR ORIGINAL TERM. of the Contract is hereby amended to read as follows:
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 103
Vers.: Aug. 5, 2019
“CITY shall pay and CONTRACTOR agrees to accept as not- to-exceed compensation for the full performance of the Services and reimbursable expenses, if any:
A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of Four Hundred Forty Nine Thousand Four Hundred and Sixty Four dollars ($449,464.00).
SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS.
b. Exhibit “A -2” entitled “ PHOTOS OF MODELS AND DRAWINGS OF INSTALLATION”, ADDED.
c. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS.
d. Exhibit “C” entitled “SCHEDULE OF FEES”, AMENDED, REPLACES PREVIOUS.
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6. Incorporation of Recitals . The rec itals set forth above are terms of this Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 104
Vers.: Aug. 5, 2019
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
BLUE RHINO, INC.
Officer 1
By:
Name:
Title:
Attachments:
EXHIBIT “A”: SCOPE OF SERVICES, AMENDED, REPLACES PREVIOUS EXHIBIT “A-2”: PHOTOS OF MODELS AND DRAWINGS OF INSTALLATION EXHIBIT “B”: SCHEDULE OF PERFORMANCE, AMENDED, REPLACES PREVIOUS EXHIBIT “C”: SCHEDULE OF FEES, AMENDED, REPLACES PREVIOUS
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5 Tim Quady
President
7.a
Packet Pg. 105
Vers.: Aug. 5, 2019
EXHIBIT A
SCOPE OF SERVICES
AMENDED, REPLACES PREVIOUS
This project entails the artistic creation of three life-size, scientifically realistic sculptures.
Contract responsibilities include design, communication with JMZ’s scientific advisors, fabrication of full-size sculptures, shipment and onsite oversight during installation. The JMZ will be responsible for hiring a crane (if required) and/or installation crew.
The three sculptures include:
1. Aletopelta coombsi (a type of ankylosaur, approximately 17’ long): This is an outdoor sculpture and will be climbable by visitors and should therefore hold up to the rigors of repeated touch.
2. Augustynolophus morrisi (approximately 30’ long): This is an outdoor sculpture and will be not be touchable by visitors. It will be located in a fenced area.
3. Pteranodon (in flight, 18’ wingspan): The sculpture will be located inside the museum and hung from architectural steel beams via steel cable. It should have structural eyebolts or other hardware to connect cables to. Contractor is responsible for cable spec to ensure structural capability. It will be non-touchable and hung at a height that is out-of-reach by visitors. It must be completed and delivered by Feb. 2021 to assist in marketing and fundraising efforts.
Fabrication methods and materials should meet these specifications:
• Contractor must adhere to the previously approved models, structurally engineered designs, and stamped engineering drawings that were completed in an earlier contract as attached in Exhibit A-1 to this Agreement . Concrete footings based on the stamped drawings have already been installed during building construction by the general contractor. The two large dinosaur sculptures (Aletopelta and Augustynolophus) must structurally attach to these existing footings.
• Exterior should be durable, exterior grade fiberglass, painted in a scientifically accurate manner with detailed, scientifically accurate body textures. The JMZ has scientific advisors for the contractor to utilize and approve in process sculptures.
The Contractor will manage sculpture fabrication in accordance with the terms and conditions of the City contract. Services shall also include but are not limited to the following:
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 106
Vers.: Aug. 5, 2019
• Participate in meetings required to coordinate the work. Submit timely requests for clarification, specifications, and scientific details to City’s Project Manager.
Communicate clearly and seek timely approvals of sculptures.
• Be onsite to manage proper installation of sculptures to existing footings to meet structural engineering drawings. JMZ will secure local contracts and crane (if necessary) for installation as well as manage those contractors.
• Prepare and maintain a schedule for regular updates to City’s Project Manager. Conduct interim sculpture reviews via email and photographs with City’s Project Manager as required.
• Ensure that punch list items are completed promptly, and that incomplete or deficient work is completed/repaired/replaced at no additional cost to the City.
• Provide documentation to the City for maintenance requirements, including a maintenance schedule and any necessary parts, material or touch-up paint specs.
AMENDMENT NUMBER 1:
Amendment Number 1 adds the following scope to the existing scope:
This scope amendment, part of the California Dinosaur Garden exhibition, includes the artistic creation of four life-size, scientifically realistic animal sculptures and two fossil sculptures for the Fossil Dig exhibit area. JMZ will direct general pose based on proposed location.
Contractor responsibilities include:
• Artistic and structural design,
• Communication with JMZ’s scientific advisors who will provide latest research on species along with JMZ and careful paleontological review throughout the sculpting process,
• Fabrication of full-size sculptures with a durable, exterior grade fiberglass, painted in a scientifically accurate manner with detailed, scientifically accurate body textures and fabrication of fossils for dig in a durable concrete to withstand the abuses of a sand matrix,
• Shipment and onsite installation.
The four sculptures include:
• One Ichthyornis (approximately the size of a tern; mounted on a railing or bench back, fish in mouth, wings are folded),
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 107
Vers.: Aug. 5, 2019
Custom sculpted in clay at full size (roughly that of a tern), mold, and cast in two-part tinted epoxy, and paint realistically. Sculpture will include cast metal legs and feet and posed in a way that will allow for secure mounting to railing or surface (provided by JMZ) via threaded rod.
• Two Hypsilophodontids (approximately the size of a deer; 2 of these in slightly different poses),
Custom sculpted directly in foam, fiberglass, and sculpting epoxy with internal steel armatures. Finished sculptures to be approximately 6’ long x <3’ tall, painted realistically. Completed sculptures to be mounted with threaded rod or armature to concrete pads or footings provided by JMZ).
• One Saurornithelestes (feathered carnivore; like a velociraptor)
Custom sculpted at full size directly in foam, fiberglass, and sculpting epoxy with an internal steel armature. Finished sculpture to be approximately 6’ long x <3’ tall, painted realistically. Due to thinness and potential fragility of sculpted feathers, sculpture should be out of reach of visitors. JMZ to direct general pose based on proposed location.
Latest research on species to be provided by client and Scientific Advisor, Ken Kirkland.
Careful paleontological reviews to happen throughout sculpting process. Completed sculptures to be mounted with threaded rod or armature to concrete pads or footings provided by JMZ.
Reference images are below in Exhibit A-2.
Fossil Dig Sculptures:
The exhibition will also include a fossil dig exhibition in an outdoor location. One large fossil set will be in a large in-ground concrete area (already installed) and the other small fossil set will be in the above-ground steel table, accessible to people in wheelchairs.
The fossils in the fossil dig will be buried in sand, rubber granules or a matrix of sawdust and wax. Matrix to be determined.
Reference images and dimensioned drawings of installation areas are below.
Fossil specimen for fossil dig area
The fossil may be a plesiosaur or other agreed upon marine animal from California based upon available specimens and research references. Hydrotherosaurus alexandrae is desirable. This specimen is approximately 23’ in length. Fabricator to research available options and make recommendations. Final specimen choice to be approved by JMZ.
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 108
Vers.: Aug. 5, 2019
Fossil specimen for accessible fossil dig table
There is an accessible fossil dig table for people in wheelchairs. The tabletop is approximately 2’d x 4’w. Fossil sculpture should be a section of the same specimen in ground level fossil dig, with a preference for the skull.
The Contractor will manage sculpture fabrication in accordance with the terms and conditions of the City contract. Services shall also include but are not limited to the following:
• Participate in meetings required to coordinate the work. Submit timely requests for clarification, specifications, and scientific details to City’s Project Manager.
Communicate clearly and seek timely approvals of sculptures.
• Be onsite to manage proper installation of sculptures to existing footings to meet structural engineering drawings. JMZ will be responsible for crane and scissor rentals for installation.
• Prepare and maintain a schedule for regular updates to City’s Project Manager. Conduct interim sculpture reviews via email and photographs with City’s Project Manager as required.
• Ensure that punch list items are completed promptly, and that incomplete or deficient work is completed/repaired/replaced at no additional cost to the City.
• Provide documentation to the City for maintenance requirements, including a maintenance schedule and any necessary parts, material or touch-up paint specs.
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 109
Vers.: Aug. 5, 2019
EXHIBIT A-2
PHOTOS OF MODELS AND DRAWINGS OF INSTALLATION
ADDED
Ichthyornis
Hypsilophodontids
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 110
Vers.: Aug. 5, 2019
Saurornithelestes
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 111
Vers.: Aug. 5, 2019
Fossil Dig Sculptures
Hydrotherosaurus alexandrae
Example of a fossil dig from another museum
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 112
Vers.: Aug. 5, 2019
Image shows fossil dig area on left and accessible fossil dig table.
Dimensions and layout of area
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 113
Vers.: Aug. 5, 2019
EXHIBIT B
SCHEDULE OF PERFORMANCE
AMENDED, REPLACES PREVIOUS
CONTRACTOR shall perform the Services according to the following schedule. Phases may be completed in advance of deadlines. However, CONTRACTOR is responsible for off-site storage if completed in advance (i.e. Sculptures may not be delivered earlier than dates indicated).
Jun. 1, 2021 – PHASE 1, Fabrication of full-scale Pteranodon & 50% Fabrication of Aletopelta • Fabrication of Pteranodon (includes coordination with JMZ and scientific advisors to achieve approval on details and coloration);
• Storage of sculpture if completed in advance
• Completion of interior of full-scale Aletopelta sculpture: steel armature & foam
Nov. 1, 2021 – PHASE 2, 100% Fabrication of Aletopelta
• Completion of exterior of full-scale Aletopelta sculpture: resin, detailing & painting; • Storage of sculpture if completed in advance
Jan. 14, 2022 – PHASE 3, Shipping and Delivery of Pteranodon
Jun. 1, 2022 – PHASE 4, 50% Fabrication of Augustynolophus • Completion of interior of full-scale Augustynolophus sculpture: steel armature & foam
Nov. 1, 2022 – PHASE 5, 100% Fabrication of Augustynolophus • Completion of exterior of full-scale Augustynolophus sculpture: resin, detailing & painting;
• Storage of sculpture if completed in advance
Jan. 16, 2023 – PHASE 3, Shipping, Delivery & Installation of Aletopelta and Augustynolophus • Shipment of Aletopelta and Augustynolophus
• Onsite management of delivery and installation (NOTE: Installation to be completed by City staff and City-hired crane company)
Jan. 31, 2023 – ACCEPTANCE TEST, Two Weeks of Testing With Staff and Visitors; Resolution of Any Issues
• Maintenance documentation delivered
• Completion of any deficient work
AMENDMENT NUMBER 1:
Amendment Number 1 revises the schedule by incorporating the additional scope of work and extending the deadlines because the exhibition’s opening date was revised to mid-June.
Jun. 1, 2021 – PHASE 1, Fabrication of full-scale Pteranodon& 50% Fabrication of Aletopelta DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 114
Vers.: Aug. 5, 2019
• Fabrication of Pteranodon (includes coordination with JMZ and scientific advisors to achieve approval on details and coloration);
• Storage of sculpture if completed in advance
• Completion of interior of full-scale Aletopelta sculpture: steel armature & foam
Nov. 1, 2021 – PHASE 2, 100% Fabrication of Aletopelta
• Completion of exterior of full-scale Aletopelta sculpture: resin, detailing & painting; • Storage of sculpture if completed in advance
Jun. 1, 2022 – PHASE 3, 100% Fabrication of Augustynolophus • Completion of interior of full-scale Augustynolophus sculpture: steel armature & foam
Jan. 1, 2023 – PHASE 4, 50% Fabrication of Ichthyornis, two Hypsilophodontids, Saurornitholestes, two Fossil Dig sculptures
• Completion of artistic direction and interior of full-scale Ichthyornis, two Hypsilophodontids, Saurornitholestes sculptures: steel armature & foam • Completion of artistic direction and 50% full-scale Ichthyornis: steel armature & clay • Completion of artistic direction and 50% of full-scale Fossil Dig sculptures in concrete • Storage of sculptures if completed in advance
Apr. 1, 2023 – PHASE 5, 100% Fabrication of Ichthyornis, two Hypsilophodontids, Saurornitholestes, two Fossil Dig sculptures
• Completion of exterior of full-scale two Hypsilophodontids, Saurornitholestes, sculptures: resin, detailing & painting;
• Completion of exterior full-scale Ichthyornis: mold & painting • Completion of two Fossil Dig sculptures in sections: concrete • Storage of sculptures if completed in advance
May 5, 2023 – PHASE 6, Shipping, Delivery & Installation of all sculptures • Shipment of all sculptures
• Onsite installation
Jun. 30, 2023 – ACCEPTANCE TEST, Two weeks of testing With Staff and Visitors after exhibition opening; Resolution of Any Issues
• Maintenance documentation delivered
• Completion of any deficient work
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 115
Vers.: Aug. 5, 2019
EXHIBIT C
SCHEDULE OF FEES
AMENDED, REPLACES PREVIOUS
Compensation based upon deliverables
CITY shall compensate CONTRACTOR for performance of the Services according to the following schedule, with the maximum amount of compensation not to exceed the amount stated in Sections 5 and 6 of this Agreement:
PHASE OF PROJECT DELIVERABLE % OF
TOTAL
AMOUNT
(INCLUDING
REIMBURSABLES)
PHASE ONE 100% FABRICATION OF PTERANODON &
50% FABRICATION OF ALETOPELTA
9.5 $42,941.20
Completion of full-scale Pteranodon
Storage of sculpture if completed in advance
Completion of interior of full-scale
Aletopelta sculpture: steel armature & foam
PHASE TWO 100% FABRICATION OF ALETOPELTA 7 $32,205.90
Completion of exterior of full-scale
Aletopelta sculpture: resin, detailing &
painting
Storage of sculpture if completed in advance
PHASE THREE 100% FABRICATION OF AUGUSTYNOLOPHUS 21 $94,470.64 Completion of interior of full-scale
Augustynolophus sculpture: steel armature
& foam
Completion of exterior of full-scale
Ausgustynolophus sculpture: resin, detailing
& painting
Storage of sculpture if completed in advance
PHASE FOUR 50% FABRICATION OF ICHTHYORNIS, TWO
HYPSILOPHODONTIDS,
SAURORNITHOLESTES, TWO FOSSIL DIG
SCULPTURES
25 $111,805.03
Completion of artistic direction and interior
of full-scale Ichthyornis, two
Hypsilophodontids, Saurornitholestes
sculptures: steel armature & foam
Completion of artistic direction and 50% full-
scale Ichthyornis: steel armature & clay
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 116
Vers.: Aug. 5, 2019
Completion of artistic direction and 50% of
full-scale Fossil Dig sculptures in concrete
PHASE FIVE 100% FABRICATION OF ICHTHYORNIS, TWO
HYPSILOPHODONTIDS,
SAURORNITHOLESTES, TWO FOSSIL DIG
SCULPTURES
25 $111,805.03
Completion of exterior of full-scale two
Hypsilophodontids, Saurornitholestes,
sculptures: resin, detailing & painting;
Completion of exterior full-scale Ichthyornis:
mold & painting
Completion of two Fossil Dig sculptures in
sections: concrete
Storage of sculptures if completed in
advance
PHASE SIX SHIPPING, DELIVERY & INSTALLATION OF ALL
SCULPTURES
7.5 $33,763.00
Shipment of all sculptures
Onsite installation (NOTE: City-hired crane
company)
ACCEPTANCE TEST TWO WEEKS OF TESTING WITH STAFF &
VISITORS; RESOLUTION OF ANY ISSUES
5 $22,473.20
Maintenance documentation delivered
Completion of any deficient work
TOTAL 100% $449,464.00
All Payments are based upon CITY’s acceptance of CONTRACTOR’s performance of the phase as evidenced by successful completion of the Deliverable for that Phase. CITY shall have no obligation to pay unless CONTRACTOR has successfully completed and CITY has approved the Project Phase for which payment is due.
The maximum amount of compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts stated in Sections 5 and 6 of the Agreement. Any hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY.
DocuSign Envelope ID: A8B00FF1-4931-4D51-9023-3D70DDBA13F5
7.a
Packet Pg. 117
7.b
Packet Pg. 118
City of Palo Alto (ID # 14808)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approve and authorize the City Manager or their designee to execute Amendment No. 2 to contract No. C19174515 with Municipal Resource Group for Organizational Development, Succession Planning and Talent Acquisition Services for one additional year.
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Amendment No. 2 to contract No. C19174515 with the Municipal Resource Group, for one additional year.
Background
In 2018 a Request for Proposal ( RFP) was conducted for professional services in the areas of organizational development, coaching, counseling and leadership development training, as well as succession planning, recruiting , and talent management. The RFP process resulted in the selection of f our vendors as resources City departments could utilize under this agreement for these professional services with a not to exceed amount of $450,000. To date a total of $270,000 has b een utilized across the four approved vendors.
These services have been crucial to various City departments experiencing multiple transitions at all levels within our organization . The Municipal Resource Group has demonstrated the ability to provide timely response and excellent professional services.
Discussion
The City continues to experience the impacts of the pandemic and the great resignation which have strained traditional approaches for conducting these organizational needs.
The unprecedented l abor market has also resulted in a high number of vacancies throughout various City departments . The services provided by Municipal Resource Group are needed to address urgent organizational development needs , coaching and recruitment services.
These se rvices are especially needed during a time when the Human Resources 8 Packet Pg. 119
City of Palo Alto Page 2
Department capacity is impacted by several vacancies as well as handling numerous organizational priorities . This 12 -month extension will allow time for the HR team to conduct an RFP process for a new term and establish a new contract.
It is important to acknowledge even fully staffed that the City would need professional services like this agreement to provide departments with the level of organization al development and leadership train ing currently being requested . Succession planning is also expected to be a focus as numerous promotions have occurred during the last 12 months resulting in need to continue strengthening the bench . The professional services provided by MRG will be deploy ed as needed to continue addressing these organizational challenges.
Resource Impact
Staff is not requesting any increase to the not -to-exceed amount. This action only extends the duration of the agreement for 12 months to provide urgent service delivery needs until which time a new RFP is conducted and a new contract for these services is in place.
Stakeholder Engagement
This contract continues to be a valuable resource that departments throughout the organization have drawn on to assist in v arious organizational needs. Departments such as Utilites, Human Resources, and Administrative Services are coordinating internally to manage needs and contract authority.
Environmental Review
Approval of the Contracts does not require review under the California Environmental Quality Act (“CEQA”) because the scope of work of these consulting contracts is not a project under CEQA.
Attachments:
• Attachment8.a: Attachment A: Amendment No. 2 to C19174515 Professional Services AGreement with MRG
8 Packet Pg. 120
Vers.: Aug. 5, 2019
AMENDMENT NO. 2 TO CONTRACT NO. C19174515
BETWEEN THE CITY OF PALO ALTO AND
MUNICIPAL RESOURCE GROUP, LLC
This Amendment No. 2 (this “Amendment”) to Contract No. C19174515 (the “Contract” as defined below ) is entered into as of September 4, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MUNICIPAL RESOURCE GROUP, LLC, a California limited liability company, located at 675 Har tz Avenue, Suite 300, Danville, California 94526 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties to provide organizational development services, as detailed therein.
B. The Parties entered into Amendment No. 1 to in order to extend the contract term by six (6) additional months, through September 4, 2022, with no additional cost to the City, as detailed therein.
C. The Parties now wish to amend the Contract in order to extend the contract term by twelve (12) additional months, through September 4, 2023, with no increase to the not to exceed amount, as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C19174515 between CONSULTANT and CITY, dated March 4, 2019.
Amendment No. 1, dated February 25, 2022
b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2, “TERM, “ of the Contract is hereby amended to read as follows:
The term of this Agreement shall be from the date of its full execution through September 4, 2023, unless terminated earlier pursuant to Section 19 of this Agreement.
DocuSign Envelope ID: C15A8572-B467-4C70-BCCC-1EA44E5131AD
8.a
Packet Pg. 121
Vers.: Aug. 5, 2019
SECTION 3. 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 4. Incorporation of Recitals . The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: C15A8572-B467-4C70-BCCC-1EA44E5131AD
8.a
Packet Pg. 122
Vers.: Aug. 5, 2019
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
MUNICIPAL RESOURCE GROUP, LLC
By:__________________________
Name:_______________________
Title:________________________
DocuSign Envelope ID: C15A8572-B467-4C70-BCCC-1EA44E5131AD Managing Partner
Mary Egan
8.a
Packet Pg. 123
City of Palo Alto (ID # 14871)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Adoption of a Resolution Vacating Public Utility Easement 773 Allen Court
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the City Council approve the attached resolution ordering the summary vacation of a portion of a public service easement for utilities located on the single-family property at 773 Allen Court, Palo Alto, CA.
Discussion
The public service easements shown on the map of Tract No. 1137 Midfair w ere dedicated to the City and accepted by the City Council at its May 11, 1953 meeting and by Resolution No. 2443. One of the easements is for public utilities and a portion of it affects the northeasterly five feet and northwesterly 10 feet of the parcel located at 773 Allen Court, Palo Alto, CA. The property owner has requested that the City vacate the approximate 525 square foot portion of the easement that affects their property. The City’s Utilities Department has reviewed the vacation request and has determined that the proposed portion o f the easement to be vacated is excess and there are no other public facilities located within the easement. Therefore, the easement may be vacated in accordance with the summary proceeding authorized in Section 8333 of the California Streets and Highways Code.
Resource Impact
The easement vacation processing fee of $1,761 as set forth in the FY 2022 Municipal Fee Schedule was paid by the property owner in Fiscal Year 2022.
Policy Implications
The recommendation does not represent any change to City policies.
Environmental Review
Council action on this item is not a project as defined by CEQA because summary vacation of a public utilities easement is an organizational or administrative activity that 9 Packet Pg. 124
City of Palo Alto Page 2
will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).
Attachments:
• Attachment9.a: Attachment A: Easement Vacation Resolution 773 Allen Court • Attachment9.b: Attachment B: Plat Map and Legal Description 773 Allen Court PUE Vacation
9 Packet Pg. 125
Attachment A
Attachment A - 1
Recorded at no charge in accordance with
Streets & Highways Code Section 8336 at
the request of and when recorded return to:
City of Palo Alto
Real Estate Division
250 Hamilton Avenue
Palo Alto, CA 94301
SPACE ABOVE LINE FOR RECORDER’S USE
APN: 127-52-039
Address: 773 Allen Court
Palo Alto, CA 94303
SUMMARY VACATION
RESOLUTION NO. _____
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
SUMMARILY VACATING A PORTION OF A PUBLIC SERVICE EASEMENT AT 773 ALLEN COURT, PALO ALTO, CA
WHEREAS, Section 833 3 of the Streets and Highways Code authorizes the City Council to summarily vacate a public service easement in any of the following cases: (a) the easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation , (b) the date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was n ot used continuously since that date , (c) the easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement; and
WHEREAS, the City Council of the City of Palo Alto at its May 11, 1953 meeting and by Resolution No. 2443 accepted the dedication of the public service easements for public use as shown on map of Tract No. 1137 Midfair; and
WHEREAS, the City of Palo Alto Utilities Department has evaluated and determined that a portion of the easement that runs through the property located at 773 Allen Court, Palo Alto, CA 94303 is excess and there are no other public facilities located within th is portion of the easement; and
WHEREAS, the City Council of the City of Palo Alto intends to summarily vacate the portion of public service easement as more particularly described in Exhibit “A” attached to this resolution and depicted on the plat map attached as Exhibit “B” to this resolution; and
NOW, THEREFORE, the City Council does hereby RESOLVE as follows:
9.a
Packet Pg. 126
Attachment A
Attachment A - 2
SECTION 1 . This vacation is made under the authority of California Streets and Highways Code Chapter 4 of part 3 of Division 9, commencing at Section 8330 et. seq.
1. The portion of the public service easement described herein on Exhibit “A” and depicted on the plat map attached as Exhibit “B” is excess; and
2. There are no other public facilities located within the easement.
SECTION 2. Based upon the findings made in Section 1 of this Resolution and the provisions of Section 8333 of the Streets and Highways Code, the City Council does hereby order that the portion of public service easement as shown on the said Exhibits “A” and “B” shall be summarily vacated.
SECTION 3. The City Clerk, acting by and through the Real Property Manager, is hereby directed to record at the Santa Clara County Clerk-Recorder’s Office a certified copy of this Resolution, including the Map.
SECTION 4 . The portion of public service easement for utilities and incidental purposes described in Exhibit “A” and depicted in the plat map attached as Exhibit “B” will no longer constitute a public service easement from and after the date of recordation of the documents identified in Section 3 of this Resolution.
SECTION 5 . The Council finds that the summary vacation of the public service easement is exempt from review under the California Environmental Act pursuant to Title 14 California Code of Regulations section 15305 as a minor alteration in land use limitations.
9.a
Packet Pg. 127
Attachment A
Attachment A - 3
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________
City Clerk
APPROVED AS TO FORM:
______________________________
City Attorney or designee
APPROVED:
______________________________
Mayor
______________________________
City Manager
______________________________
Director of Administrative Services
9.a
Packet Pg. 128
9.b
Packet Pg. 129
9.b
Packet Pg. 130
City of Palo Alto (ID # 14703)
City Council Staff Report
Report Type: Action Items Meeting Date: 11/7/2022
City of Palo Alto Page 1
Summary Title: Recommendation on Ordinance for CUP Thresholds Title: PUBLIC HEARING / LEGISLATIVE. Staff Recommendation to Introduce an Ordinance to Make Permanent Changes Contained in a Temporary Ordinance Amending Title 18 (Zoning) of the Palo Alto Munic ipal Code to Update Definitions, Broaden Permitted Uses and Provide Limits on Certain Uses through Updates to the Conditional Use Permit Thresholds. Environmental Review: CEQA Exemption 15061(b)(3)
From: City Manager
Lead Department: Planning and Developme nt Services
Recommendation:
Staff recommends the City Council take the following action:
1. Introduce an ordinance (Attachment A) for changes to the Palo Alto Municipal Code Chapter 18 to make permanent a temporary ordinance modifying retail use definitio ns, limiting certain commercial uses, and relaxing conditional use permit (CUP) thresholds for certain uses.
Executive Summary:
On April 12, 2021, the City Council adopted a temporary ordinance (#5517) to amend the Palo Alto Municipal Code (PAMC) modify ing retail use definitions, limiting certain commercial uses, and relaxing conditional use permit (CUP) thresholds for certain uses. In its motion to adopt the temporary ordinance, the City Council directed staff and the PTC to consider a related permanent ordinance. The temporary ordinance was extended on May 16, 2022 with a new expiration date of December 16, 2022 (Ordinance #5549). The temporary ordinance included some discrete changes to promote economic recovery due to the coronavirus disease 2019 (COVID-19) pandemic.
10 Packet Pg. 131
City of Palo Alto Page 2
Staff recently presented the PTC a draft permanent ordinance (Attachment A), following the Council’s direction. The PTC reviewed the draft ordinance and recommended Council extend the temporary ordinance so the PTC can receive additional information on retail revitalization best practices. The PTC in its recommendation acknowledged that Council may decide to make the temporary ordinance permanent; should that occur, the PTC provided an alternative recommendation focused on selected issues . Staff has not included these additional recommendations in the attached ordinance for reasons described below but can easily incorporate them as directed by Council.
This report provides an update on the temporary ordinance and summarizes the PTC recommendations made at its August 31, 2022 meeting. If Council neither adopts a permanent ordinance to replace the temporary ordinance, nor extends the temporary ordinance, the zoning code will revert to the prior language.
Background:
Since November 9, 2020 , the City Council has acted upon community and economic recovery strategies in response to the COVID -19 pandemic. 1 One strategy was to adopt a temporary ordinance providing a quick response to community concerns. The first reading of the temporary ordinance on December 14, 2020, included discrete amendments to the zoning code that broadened the definition of retail uses and relaxed the CUP thresholds for certain uses. 2,3 In summary, these amendments included:
• Relaxing CUP thresholds for medical offices
• Relaxing CUP thresholds for fitness studios/commercial recreation • Changing the definition of eating and drinking to clearly define what is a dining establishment versus a retail establishment selling food • Establishing a definition for tutoring centers (learning centers)
The intent of these amendments was to swiftly act upon feedback from stakeholders about what was necessary to help support businesses. It was also intended that, once a temporary ordinance was adopted, staff would begin work on a permanent o rdinance replacing the temporary ordinance with these discrete changes. Other, more substantive policy changes would be incorporated following a more comprehensive analysis of retail on a citywide or district level (also included in the November 9, 2020 motion).
1 November 9, 2020 City Council Action Meeting Minutes:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=42635.86&BlobID=79443 2 December 14, 2020 City Council Staff Report:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=60118.96&BlobID=79480 3 December 14, 2020 City Council Action Meeting Minutes:
https://www.cityofpaloalto.org/civicax/filebank/documents/79829 10 Packet Pg. 132
City of Palo Alto Page 3
During the second reading of the temporary ordinance on March 8, 2021 the Council directed several amendments to the ordinance. 4,5 The amendments addressed concerns about the displacement of traditional retail uses with certain personal service use s along University Avenue, California Avenue, and within the Town & Country Village Shopping Center. For reference, the March 8, 2021 motion is included as Attachment B. The Council amendments included:
• Prohibiting nail salons and day spas on California Avenue • Exceptions to the relaxing of CUP thresholds for fitness studios/commercial recreation uses fronting California Avenue, University Avenue, and within the Town & Country Village Shopping Center
• Exceptions to the relaxing of CUP thresholds for tutoring centers fronting University Avenue and California Avenue
• Exceptions to the relaxing of CUP thresholds for Medical Offices fronting California Avenue and University Avenue
In addition to these amendments, the Council provided direction to the PTC to furt her evaluate commercial recreation thresholds and occupancy limits, as well as ways to further define regulations for dining establishments.
On April 12, 2021, with the inclusion of the amendments, the Council adopted temporary ordinance #5517.6 This ordinance was set to expire on June 30, 2022.
On March 30, 2022 the PTC reviewed a draft ordinance that was intended to make permanent the revisions contained in the temporary ordinance. 7,8 The PTC voted 6 -0 to continue the
4 March 8, 2021 City Council Staff Report:
https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-12054.pdf
5 March 8, 2021 City Council Action Meeting Minutes:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2021/03-08-21-ccm-action-minutes.pdf
6 April 12, 2021 City Council Staff Report:
https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-12165.pdf
7 March 30, 2022 PTC Staff Report:
https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/planning-and- transportation-commission/2022/ptc-03.30.2022-cup.pdf
8 March 30, 2022 PTC Action Meeting Minutes:
https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/planning-and- transportation-commission/2022/ptc-3.30.2022-summary-tracked-changes-af.pdf 10 Packet Pg. 133
City of Palo Alto Page 4
discussion of the item to a date uncertain until staff receives an extension to the temporary ordinance allowing further evaluation. PTC members expressed a desire to study the issues more thoroughly.
On May 2, 2022, the City Council supported an ordinance (#5549) extending the expirati on of the temporary ordinance to December 16, 2022.9
On August 31, 2022, the PTC conducted a public hearing on staff’s recommendations for the draft ordinance.10 The PTC recommended the Council extend the temporary ordinance so that additional information can be presented on retail revitalization best practices and consider more comprehensive updates. Additionally, the PTC recommended changes to the draft ordinance in the event Council decides to move forward with a permanent ordinance.
Since the March 20 22 PTC meeting, staff has been working with Michael Baker International (consultant) to assist the City with an analysis and recommendations on best practices for retail recovery both citywide and district-by-district, as directed by Council. This effort combined with work commissioned by the City Manager’s Office to prepare a comprehensive economic analysis and priorities for short - and long -term economic development strategies will help inform future retail policy; this work may take nine months to complete. Rather than extending the ordinance on an interim basis as recommended by the PTC, staff recommends the previously Council-endorsed regulations be codified with the understanding that there may be further refinement following the more comprehensive stu dy. The Commission recommended refinements are not currently included in the attached ordinance but can be incorporated into the second reading of the ordinance if directed by Council.
Discussion:
The retail industry continues to shift towards online s ales and greater use of physical locations for restaurants, services, and experience -based uses. The City recognized this shift when Council adopted the retail preservation provisions (PAMC 18.40.180) and made changes to the “retail services” definition (PAMC 18.04.030).
The COVID -19 pandemic put further pressure on retailers because of lockdowns, occupancy restrictions, supply chain issues, and employee attraction/retention issues. This led to the City
9 May 2, 2022 City Council Staff Report:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220502/20220502pccsmamended-linked.pdf#page=52 10 August 31, 2022 Planning & Transportation Commission Staff Report:
https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/planning-and- transportation-commission/2022/ptc-08.31.2022-cup.pdf
10 Packet Pg. 134
City of Palo Alto Page 5
Council initiating discussions on economic recovery for Palo Alto businesses and adopting a temporary ordinance. The intent of the temporary ordinance with discrete changes was to streamline the process and attempt to limit storefront vacancies. Attachment C includes a comparison of the various versions of the PAMC (prior to November 2020, the temporary ordinance, and the draft ordinance) for reference.
Effects of the Temporary Ordinance on Relaxed CUP Thresholds According to Use & Occupancy records, since the adoption of the temporary ordinance, several identified businesses took advantage of the changes. These businesses fell into two categories:
medical offices and ready to eat shops, such as a bakery and a tea shop. The medical offices did not require a CUP and the ready to eat shops took advantage of no t being classified as a restaurant that requires more parking. It may be too soon to speculate whether there is an ongoing trend related to these revisions, considering other contextual occurrences such as the ongoing pandemic and the economy. However, it appears these changes to the municipal code have otherwise helped these applicants.
Referrals to PTC from City council
As part of the March 2021 motion, the City Council sought specific input from the PTC on the following items:
• The best way to define restrictions for dining establishments (Motion Item E). • Occupancy levels for commercial recreation (Motion Item D). • A threshold for gyms greater than 1,800 square feet on University Avenue and Town & Country Shopping Center (Motion Item B).
The PTC had lim ited discussion on these referral items, primarily because they sought additional information allowing for a more thorough analysis prior to making recommendations.
Staff Proposed Permanent Ordinance and PTC Recommendation Consistent with Council directio n, staff prepared an ordinance that would make the temporary ordinance permanent. On August 31, 2022, the PTC reviewed the draft permanent ordinance.
The proposed permanent ordinance (Attachment A) maintains the substantive revisions contained in the tempo rary ordinance and presents revisions in a format that will be easy to implement in the PAMC. For example, where the temporary ordinance includes regulations in a footnote, the draft permanent ordinance places the regulations in an appropriate subsection o r table. An additional revision is to update the term ‘eating and drinking services’ to ‘restaurant’ to be consistent with other jurisdictions.
Overall, the draft permanent ordinance still reserves more significant policy recommendations for future public hearings and analysis. Some of this additional effort may stem from the work 10 Packet Pg. 135
City of Palo Alto Page 6
the City’s consultants are conducting regarding retail recovery. Staff will share the results of the Michael Baker International study when it is complete and provide an update o n other economic development strategies.
In their deliberations, the PTC was unable to recommend adoption of the draft permanent ordinance. The PTC recommendation was that the temporary ordinance should be extended so that staff can present the consultant ’s results on retail revitalization best practices. This discussion would allow for a more comprehensive evaluation of the City’s regulations and provide a long-term approach to the issue.
Alternative PTC Recommendation
Despite the PTC’s primary recommend ation to extend the temporary ordinance, the PTC recognized Council may adopt the draft permanent ordinance (Attachment A). The PTC, therefore, provided an alternative recommendation that provides input on certain sections of the draft ordinance. The follo wing includes the PTC recommendations, references to previous Council motions when applicable, and discussion of any revisions to the temporary ordinance.
For more detail on what was presented to the PTC, please review the March 30, 2022 PTC staff report (the link is in footnote 7 of this report).
Alternative Motion Regarding Permanent Ordinance
As an alternative motion, the PTC recommended the City Council take the following action:
Adopt the draft permanent ordinance (Attachment A) with the following considerations:
a. Impose a cap on current number of nail salons, spas, and barber shops, etc. limited to the number of such businesses that currently exists;
b. Explore a cap on the number of tutoring centers, schools, and related functions; c. Not to make perman ent the regulations for medical offices and revert to the original ordinance language; and
d. Defer work on items Council referred to the PTC until after receiving the City’s consultant report on retail revitalization best practices.
If the Council would lik e to incorporate any of the above recommendations into the ordinance, can may direct those changes. Staff, however, does not have information to guide direction on a cap for certain land uses or whether that is a prudent course of action. The regulations concerning medical office can be removed from the ordinance essentially restoring the original zoning code standard. Item d acknowledges that Council directed the PTC to make a recommendation on three discrete issues but the Commission does not believe it c an render a recommendation without the additional studies underway.
Based on the foregoing and imminent expression date of the interim ordinance, staff 10 Packet Pg. 136
City of Palo Alto Page 7
recommends the Council codify the existing regulations that appear to help some applicants and conclude this discrete assignment. There are other work efforts underway related to retail and economic strategies that require attention may influence further policy changes, these include the aforementioned work on a citywide economic strategy; citywide retail study and recommendations; analysis of the retail preservation policy and retail parking standards.
Summary of Key Issues:
Staff recommends the City Council adopt the attached ordinance.
Some businesses have benefited from the temporary ordinance. Exte nding the temporary ordinance would maintain the standards that are currently in place. This would allow staff to continue to monitor the effectiveness of the standards. Additionally, this would allow staff and its consultant time to complete a report on r etail recovery best practices and inform the PTC and City Council of its recommendations. The PTC supported a holistic approach to addressing retail recovery by understanding national trends and what other jurisdictions are doing, rather than incrementally adopting changes. However, having a temporary ordinance does provide some uncertainty for property owners and businesses as to what would ultimately become permanent and this work effort is diverting staff from other related policy efforts.
Adopting the draft ordinance would make permanent the temporary standards. Staff and the consultant would continue to complete the report on retail recovery best practices and later, inform the PTC and City Council of its recommendations.
Policy Implications:
The cod e amendments represent one strategy outlined by the City Council in addressing vacancies caused by the pandemic. These amendments were intended in part to streamline the process for businesses and in part intended to maintain a robust retail character alon g University Avenue, California Avenue, and within the Town & Country Village Center. Some time has passed since the initial discussion of these strategies addressing vacancies and understanding the forthcoming retail recovery best practices may result in a different long-term policy.
Timeline:
The existing temporary ordinance will expire on December 16, 2022, unless it is extended or replaced by another ordinance. If Council adopts the draft ordinance, after second reading, it will become effective prior to the expiration of the existing temporary ordinance.
Stakeholder Engagement:
In addition to the required public notification, staff conducted outreach including an email blast to businesses within the University Avenue district and the California Avenu e district; postcard 10 Packet Pg. 137
City of Palo Alto Page 8
notification to property owners within the University Avenue district and the California Avenue district. Staff spoke with interested property owners regarding the project and conducted outreach to businesses within the Downtown and Ca lifornia Avenue areas. Feedback received confirmed that most of the changes were moving in a positive direction. Some feedback included providing additional flexibility for locating other retail-like businesses such as medical- related retail uses. Additio nally, some were interested in how more primarily ‘take -out’ uses would affect parking differently than restaurants providing sit-down dining spaces.
Environmental Review:
The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is determined to be exempt from CEQA pursuant to CEQA Guidelines 15061(b)(3) in that it can b e seen with certainty that the ordinance will not have a significant impact on the environment. The ordinance makes minor adjustments to land use definitions and modest changes to the thresholds for discretionary review.
Attachments:
Attachment10.a: Attachment A - Ordinance Amending PAMC Title 18 Ch 18.04 18.16
18.18 and 18.30 Relaxing CUP Requirements (PDF)
Attachment10.b: Attachment B - March 8, 2021 City Council Motion (DOCX) Attachment10.c: Attachment C - PAMC Comparison Table (DOCX) 10 Packet Pg. 138
*NOT YET APPROVED*
1 0160066_20220628_ay16
Ordinance No. ___
Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts), 18.18 (Downtown Commercial (CD) Districts) and 18.30 (A) and (C) – the Retail and Ground Floor combining districts and making Conforming Changes to Various Sections of the Palo Alto Municipal Code.
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On April 5, 2021, the Palo Alto City Council adopted interim Ordinance No. 5517, relaxing certain zoning regulations in the City’s commercial zoning districts to address some of the economic challenges created by the COVID-19 pandemic and to spur economic activity.
B. On May 16, 2022, the Council adopted Ordinance No. 5549, extending the temporary regulations to December 16, 2022.
C. The Planning and Transportation Commission held a public hearing and recommended adoption of this ordinance on __________, 2022.
SECTION 2. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
18.04.030 Definitions
(a) Throughout this title the following words and phrases shall have the meanings ascribed in this section.
[. . .]
(45) “Drive-in/drive-through service” means a feature or characteristic of a use involving sales of products or provision of services to occupants in vehicles, including drive-in or drive-up windows and drive- through services such as mechanical automobile washing, pharmacy windows, coffee stands, automatic teller machines, etc. Related definitions are provided in subsections (47)(A) Restaurant, Drive-in/drive-through service and (125)(B) Intensive Retail Use”.
[. . .]
(124.5)(47) “Restaurant Eating and drinking service” means a use providing preparation and retail sale of food and beverages with a full menu and providing indoor seating area. Eating and drinking service Restaurants include presence of a full commercial kitchen and commercial dishwasher. For establishments with incidental sale alcoholic beverages, a minimum of 50% of
10.a
Packet Pg. 139
*NOT YET APPROVED*
2 0160066_20220628_ay16
revenues from a ‘Restaurant’ an ‘eating and drinking service’ must be derived from the sale of food. Related definitions are provided in subdivisions (A) and (B) to this definition and in subsections (45) (Drive-in/drive- through service, (125)(B) (Intensive retail service)and (136) (Take-out service). References in the Palo Alto Municipal Code to “Eating and drinking” shall have the same meaning as “Restaurant,” as defined herein. (A) “Restaurant, drive-in/drive-through service” means a feature or characteristic of a restaurant use involving sales of products or provision of services to occupants in vehicles, including drive-in or drive-up windows and drive- through services. (B) “Restaurant, take-out service” means a characteristic of a restaurant which encourages, on a regular basis, consumption of food or beverages, such as prepared or prepackaged items, outside of a building, in outdoor seating areas where regular table service is not provided, in vehicles parked on the premises, or off-site. Take-out service does not include intensive retail service uses, as defined in subsection (125)(B). [. . .]
(95) “Medical office” means a use providing consultation, diagnosis, therapeutic, preventive, or corrective personal treatment services by doctors, dentists, medical and dental laboratories, and similar practitioners of medical and healing arts for humans, licensed for such practice by the state of California. Incidental medical and/or dental research within the office is considered part of the office use, where it supports the on-site patient services. Medical office use does not include the storage or use of hazardous materials in excess of the permit quantities as defined in Title 15 of the Municipal Code. Medical gas storage or use shall be allowed up to 1,008 cubic feet per gas type and flammable liquids storage and use shall be allowed up to 20 gallons total (including waste).
(95.1) “Medical research” means a use related to medical and/or dental research, testing and analysis, including but not limited to trial and clinical research. Biomedical and pharmaceutical research and development facilities are not included in this definition. Medical Research does not include the storage or use of quantities of hazardous materials above the exempt quantities listed in Title 15 of the Municipal Code nor any toxic gas regulated by Title
15. Additionally, Medical Research may include storage and use of etiological (biological) agents up to and including Risk Group 2 or Bio Safety Level 2 (Center for Disease Control). (95.2) “Medical support retail” means a retail use providing sales, rental, service, or repair of medical products and services to consumers or businesses, and whose location near hospitals or medical offices facilitates the provision of medical care or medical research.
Examples of medical retail uses typically include, but are not limited to, pharmacies, sale of prosthetics, and sale of eyeglasses or other eye care products. (95.3) “Medical support service” means a use providing administrative support functions for healthcare providers or facilities, intended to support the operations of hospitals or of medical and dental office uses, and whose location near those medical facilities enhances the interaction between medical providers and/or facilitates the provision of medical care or
10.a
Packet Pg. 140
*NOT YET APPROVED*
3 0160066_20220628_ay16
medical research. Examples of medical support service uses typically include, but are not limited to, administration and billing services, public relations, training, and fundraising.
Hospitals and ambulance services are not included in this definition. [. . .]
(114) “Personal service” means a use providing services of a personal convenience nature, and cleaning, repair or sales incidental thereto, including:
(A) Beauty shops, nail salons, day spas, and barbershops; (B) Self-service laundry and cleaning services; laundry and cleaning pick-up stations where all cleaning or servicing for the particular station is done elsewhere; and laundry and cleaning stations where the cleaning or servicing for the particular station is done on site, utilizing equipment meeting any applicable Bay Area Air Quality Management District requirements, so long as no cleaning for any other station is done on the same site, provided that the amount of hazardous materials stored does not at any time exceed the threshold which would require a permit under Title 17 (Hazardous Materials Storage) of this code; (C) Repair and fitting of clothes, shoes, and personal accessories; (D) Quick printing and copying services where printing or copying for the particular service is done on site, so long as no quick printing or copying for any off-site printing or copying service is done on the same site;
(E) Internet and other consumer electronics services; (F) Film, data and video processing shops, including shops where processing for the particular shop is done on site, so long as no processing for any other shop is done on the same site;
(G) Art, dance or music studios intended for an individual or small group of persons in a class (see “commercial recreation” for other activities); and (H) Fitness and exercise studios, or similar uses, in a space having 5,000 square feet or fewer of gross floor area (see “commercial recreation” for uses exceeding 5,000 square feet). (I) Learning centers intended for individual or small group settings, including tutoring, standardized test preparation, language classes, after-school programs, cooking classes, and similar uses.
[. . .]
(125) “Retail service” means a use open to the public during typical business hours and predominantly engaged in providing retail sale, rental, service, processing, or repair of items primarily intended for consumer or household use.
(A) “Extensive retail service,” as used with respect to parking requirements, means a retail sales use having more than seventy-five percent of the gross floor area used for display,
10.a
Packet Pg. 141
*NOT YET APPROVED*
4 0160066_20220628_ay16
sales, and related storage of bulky commodities, including household furniture and appliances, lumber and building materials, carpeting and floor covering, air conditioning and heating equipment, and similar goods, which uses have demonstrably low parking demand generation per square foot of gross floor area.
(B) “Intensive retail service” as used with respect to parking requirements, means any retail service use not defined as extensive retail service and including limited food service (i.e. ‘ready-to-eat’ food and/or beverage shops without a full commercial kitchen, where food and/or beverages are ready to consume at the time of sale and any seating area is limited; examples include sandwiches, frozen desserts, non-alcoholic beverages, and baked items). (125.1) “Retail-like use” means a use generally open to the public during typical business hours and predominantly engaged in providing services closely related to retail services, including but not limited to:9
(A) Eating and drinking services Restaurant, as defined in subsection (47 124.5 );
(B) Hotels, as defined in subsection (73);
(C) Personal services, as defined in subsection (114); (D) Theaters;
(E) Travel agencies;
(F) Commercial recreation, as defined in subsection (33); (G) Commercial nurseries;
(H) Auto dealerships, as defined in subsection (12.5); and (I) Day care centers, as defined in subsection (42).
[. . .]
(136) Reserved. “Take-out service” means a characteristic of an eating or drinking service which encourages, on a regular basis, consumption of food or beverages, such as prepared or prepackaged items, outside of a building, in outdoor seating areas where regular table service is not provided, in vehicles parked on the premises, or off-site. Take-out service does not include intensive retail service uses, as defined in subsection (125)(B). [. . .]
SECTION 3. Section 18.16.040 (Land Uses) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
The uses of land allowed by this chapter in each commercial zoning district are identified in the following tables. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables ("Subject to Regulations in")
10.a
Packet Pg. 142
*NOT YET APPROVED*
5 0160066_20220628_ay16
includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well. (a) Commercial Zones and Land Uses
Permitted and conditionally permitted land uses for each commercial zone are shown in Table 1:
TABLE 1
PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use CUP = Conditional Use Permit Required LAND USE CN (4) CC, CC(2) CS (4) Subject to Regulations In:
ACCESSORY AND SUPPORT
USES
Accessory facilities and activities
customarily associated with or
essential to permitted uses, and
operated incidental to the principal
use.
P P P 18.42
Drive-in/drive-through services or
take-out services associated with
permitted uses(3)
CUP CUP CUP 18.42
Restaurant, drive-in/drive-through
services or take-out services,
associated with permitted uses (3)
CUP CUP CUP 18.42
Tire, battery, and automotive service
facilities, when operated incidental to
a permitted retail service or
shopping center having a gross floor
area of more than 30,000 square
feet.
CUP 18.42, 18.40.160
Safe Parking 18.42.160
EDUCATIONAL, RELIGIOUS, AND
ASSEMBLY USES
[. . .] [. . .] [. . .] [. . .] [. . .]
OFFICE USES
Administrative Office Services P 18.16.050
Medical Offices CUP
(5)
CUP (5) CUP (5) 18.16.050
Up to 5,000 square feet P P P 18.16.050, 18.30(A)
10.a
Packet Pg. 143
*NOT YET APPROVED*
6 0160066_20220628_ay16
Exceeding 5,000 square feet CUP CUP CUP 18.16.050, 18.30(A) Professional and General Business
Offices
P P P 18.16.050
PUBLIC/QUASI-PUBLIC USES
Utility Facilities essential to provision
of utility services but excluding
construction or storage yards,
maintenance facilities, or corporation
yards.
CUP CUP CUP
RECREATION USES
Commercial Recreation CUP
(5)
CUP (5) CUP (5) 18.40.160
Outdoor Recreation Services CUP CUP CUP
RESIDENTIAL USES
[. . .] [. . .] [. . .] [. . .] [. . .]
RETAIL USES
Eating and Drinking Services
Restaurant, excluding drive-in/drive-
through and take-out services
P P P 18.40.160
Retail Services, excluding liquor
stores
P P P 18.40.160
Liquor stores CUP P P 18.40.160
Shopping Centers P 18.16.060(e), 18.40.160
SERVICE USES
[. . .] [. . .] [. . .] [. . .] [. . .]
Banks and Financial Services V CUP P(2) P(2)
General Business Services CUP P
Hotels P P 18.16.060(d), 18.40.160
Mortuaries CUP P P
Neighborhood Business Services P 18.16.060(f)
10.a
Packet Pg. 144
*NOT YET APPROVED*
7 0160066_20220628_ay16
Personal Services P P (6) P 18.16.060(f), 18.40.160,
18.30(A)
Reverse Vending Machines P P P
TEMPORARY USES
[. . .] [. . .] [. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit Required Footnotes:
(1) Residential is only permitted: (i) as part of a mixed use development, pursuant to the provisions of Section 18.16.060(b), or (ii) on sites designated as housing inventory sites in the Housing Element of the Comprehensive Plan, (iii) on CN or CS sites on El Camino Real, or (iv) on CC(2) sites, all pursuant to the provisions of Section 18.16.060(b) and (c).
(2) Except drive-in/drive-through services.
(3) So long as drive up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet, and each use shall not be less than 150 feet from one another.
(4) For properties in the CN and CS zone districts, businesses that operate or have associated activities at any time between the hours of 10:00 p.m. and 6:00 a.m. require a conditional use permit. (5) A conditional use permit is not required for medical office or commercial recreation uses up to 5,000 greater than 1,800 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required: (A) medical office fronting on California Avenue and in the Midtown Shopping District; (B) commercial recreation uses fronting on California Avenue and when located in the Town and Country Village Shopping Center. (6) A conditional use permit is required for the following uses when fronting on California Avenue:
(A) Fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area; and (B) Learning centers intended for individual or small group settings. A conditional use permit is required for fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area in Town and Country Village Shopping Center.
[. . .]
(c) CN District: Special Use Requirements in the Charleston and Midtown Shopping Centers The following regulations shall apply to areas of Charleston Center and the Midtown Shopping Center as defined in Section 18.16.030.
10.a
Packet Pg. 145
*NOT YET APPROVED*
8 0160066_20220628_ay16
Table 2 shows the uses permitted and conditionally permitted on the ground floor of the applicable areas of the Charleston Center and Midtown Shopping Centers. Permitted and conditional uses specified in subsection (a) of this section shall only apply to the ground floor of the areas of the Charleston and Midtown Shopping Centers as listed in Table 2. Uses lawfully existing on January 16, 2001 may be continued as non-conforming uses but may only be replaced with uses permitted or conditionally permitted under this subsection.
TABLE 2
CHARLESTON AND MIDTOWN SHOPPING CENTERS GROUND FLOOR USES P = Permitted Use CUP = Conditional Use Permit Required X = Prohibited Use LAND USES Charleston
Shopping
Center
Midtown
Shopping
Center
Subject to
Regulations in:
ACCESSORY AND SUPPORT USES
[. . .] [. . .] [. . .] [. . .]
RETAIL USES
Restaurants Eating and Drinking Services,
excluding drive-in/drive-through and take-
out services
P P 18.40.160
Retail Services, excluding liquor stores P P 18.40.160
Liquor stores CUP CUP 18.40.160
[. . .] [. . .] [. . .] [. . .]
P = Permitted Use CUP = Conditional Use Permit Required X = Prohibited Use
[. . .]
SECTION 4. Section 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
18.16.060 Development Standards
[. . .]
(b) Mixed Use and Residential
Table 4 specifies the development standards for new residential mixed use developments and residential developments. These developments shall be designed and constructed in compliance with the following requirements and the context-based design criteria outlined in Section 18.16.090, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and development services, pursuant to Section 18.76.020.
10.a
Packet Pg. 146
*NOT YET APPROVED*
9 0160066_20220628_ay16
Table 4
Mixed Use and Residential Development Standards
CN CC CC(2) CS Subject to regulations in:
Minimum Site
Specifications
[. . .] [. . .] [. . .] [. . .] [. . .] [. . .]
Footnotes:
(1) Twenty-five-foot driveway access permitted regardless of frontage; build-to requirement does not apply to CC district.
[. . .]
(6) Ground floor commercial uses generally include retail, personal services, hotels and eating and drinking establishments restaurants. Office uses may be included only to the extent they are permitted in ground floor regulations.
[. . .]
(10) In the CC(2) zone and on CN and CS zoned sites on El Camino Real, there shall be no minimum mixed use ground floor commercial FAR for a residential project, except to the extent that the retail preservation requirements of Section 18.40.180 or the retail shopping (R) combining district (Chapter 18.30(A)) applies.
(1) Nonresidential uses that involve the use or storage of hazardous materials in excess of the exempt quantities prescribed in Title 15 of the Municipal Code, including but not limited to dry cleaning plants and auto repair, are prohibited in a mixed use development with residential uses.
(2) Residential mixed use development is prohibited on any site designated with an Automobile Dealership (AD) Combining District overlay.
(c) Exclusively Residential Uses
[. . .]
(f) Size of Establishments in the CN District
In the CN district, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 5. Such uses may be allowed to exceed the maximum establishment size, subject to issuance of a conditional use permit in accord with Section
18.76.010. The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use.
//
10.a
Packet Pg. 147
*NOT YET APPROVED*
10 0160066_20220628_ay16
TABLE 5
MAXIMUM SIZE OF ESTABLISHMENT
Type of Establishment Maximum Size (sq ft)
Personal Services 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services Restaurants 5,000
Neighborhood business services 3,000
[. . .]
(h) Outdoor Sales and Storage
(2) In the CC district and in the CC (2) district, the following regulations shall apply to outdoor sales and storage:
(A) Except in shopping centers, all permitted office and commercial activities shall be conducted within a building, except for:
(i) Incidental sales and display of plant materials and garden supplies occupying no more than 2,000 square feet of exterior sales and display area, (ii) Outdoor eating areas operated incidental to permitted eating and drinking services restaurants or intensive retail uses,
(iii) Farmers’ markets that have obtained a conditional use permit, and (iv) Recycling centers that have obtained a conditional use permit. (B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a conditional use permit.
SECTION 5. Sections 18.18.050 (Land Uses) of Chapter 18.18 (Commercial Downtown (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
18.18.050 Land Uses
The uses of land allowed by this chapter in each commercial zoning district are identified in the following table. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well.
Permitted and conditionally permitted land uses for the CD district are shown in Table 1:
Table 1
CD Permitted and Conditionally Permitted Uses
10.a
Packet Pg. 148
*NOT YET APPROVED*
11 0160066_20220628_ay16
P Permitted Use • CUP Conditional Use Permit Required CD-C CD-S CD-N Subject to
regulations in:
ACCESSORY USES
Accessory facilities and activities associated with or
essential to permitted uses, and operated incidental
to the principal use
P P P
Drive-in/drive-through or Take-out Services
associated with permitted uses (2)
CUP CUP CUP
Restaurant, Drive-in/Drive-through or Take-out
Services associated with permitted uses (2)
CUP CUP CUP
Tire, battery, and automotive service facilities, when
operated incidental to a permitted retail service or
shopping center having a gross floor area of more
than 30,000 square feet
CUP
18.40.160
Safe Parking
18.42.160
EDUCATIONAL, RELIGIOUS, AND ASSEMBLY
USES
[. . .] [. . .] [. . .] [. . .] [. . .]
OFFICE USES
Administrative Office Services
P
18.18.060(f)
Medical, Professional, and General Business Offices P P P 18.18.060(f),
18.30(C)
PUBLIC/QUASI-PUBLIC FACILITY USES
Utility Facilities essential to provision of utility
services but excluding construction or storage yards,
maintenance facilities, or corporation yards
CUP CUP
RECREATION USES
Commercial Recreation CUP
(3)
CUP
(3)
CUP
(3)
18.30(C)
10.a
Packet Pg. 149
*NOT YET APPROVED*
12 0160066_20220628_ay16
Outdoor Recreation Services CUP CUP CUP
RESIDENTIAL USES
[. . .] [. . .] [. . .] [. . .] [. . .]
RETAIL USES
RestaurantsEating and Drinking Services, except
drive-in or take-out services
P P P 18.18.060(g) , 1
8.40.160
Retail Services, excluding liquor stores P P P 18.18.060(g) , 1
8.40.160
Shopping Centers P
18.18.060(g) , 1
8.40.160
Liquor Stores P P CUP 18.40.160
SERVICE USES
[. . .] [. . .] [. . .] [. . .] [. . .]
Personal Services P (4) P (4) P (4) 18.18.060(g),
18.40.160,
18.30(C)
[. . .] [. . .] [. . .] [. . .] [. . .]
P Permitted Use CUP Conditional Use Permit Required (1) Residential is only permitted as part of a mixed use development, pursuant to the provisions of Section 18.18.060(b), or on sites designated as Housing Opportunity Sites in the Housing Element of the Comprehensive Plan, pursuant to the provisions of Section 18.18.060(c). (2) Drive-up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet and each use shall not be less than 150 ft from one another.
(3) A conditional use permit is not required for commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required: (A) medical office fronting on University Avenue; (B) commercial recreation uses fronting on University Avenue.
10.a
Packet Pg. 150
*NOT YET APPROVED*
13 0160066_20220628_ay16
(4) A conditional use permit is required for the following uses when fronting on University Avenue: (A) Fitness or exercise studios, and similar uses; and (B) Learning centers intended for individual or small group settings.
SECTION 6. Section 18.18.060 (Development Standards) of Chapter 18.18 (Commercial Downtown (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
[. . .]
(g) Restrictions on Size of Commercial Establishments in CD-N Subdistrict In the CD-N subdistrict, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 4. Such uses may be allowed to exceed the maximum establishment size, subject to the issuance of a conditional use permit in accordance with Chapter 18.76. The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use.
TABLE 4
MAXIMUM SIZE OF ESTABLISHMENT
Type of Establishment Maximum Size (ft 2 )
Personal Services 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Restaurants Eating and drinking services 5,000
(h) Outdoor Sales and Storage.
The following regulations shall apply to outdoor sales and storage in the CD district:
(1) CD-C Subdistrict
In the CD-C subdistrict, the following regulations apply:
(A) Except in shopping centers, all permitted office and commercial activities shall be conducted within a building, except for:
(i) Incidental sales and display of plant materials and garden supplies occupying no more than 2,000 square feet of exterior sales and display area,
10.a
Packet Pg. 151
*NOT YET APPROVED*
14 0160066_20220628_ay16
(ii) Outdoor eating areas operated incidental to permitted eating and drinking services restaurants or intensive retail uses,
(iii) Farmers' markets which have obtained a conditional use permit, and (iv) Recycling centers that have obtained a conditional use permit. (B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a conditional use permit.
(C) Exterior storage shall be prohibited, except recycling centers which have obtained a conditional use permit.
(2) CD-S Subdistrict
In the CD-S subdistrict, outdoor sales and display of merchandise, and outdoor eating areas operated incidental to permitted eating and drinking services restaurants and intensive retail uses shall be permitted subject to the following regulations:
(A) Outdoor sales and display shall not occupy a total site area exceeding the gross building floor area on the site, except as authorized by a conditional use permit. (B) Areas used for outdoor sales and display of motor vehicles, boats, campers, camp trailers, trailers, trailer coaches, house cars, or similar conveyances shall meet the minimum design standards applicable to off-street parking facilities with respect to paving, grading, drainage, access to public streets and alleys, safety and protective features, lighting, landscaping, and screening.
(C) Exterior storage shall be prohibited, unless screened by a solid wall or fence of between 5 and 8 feet in height.
(3) CD-N Subdistrict
In the CD-N subdistrict, all permitted office and commercial activities shall be conducted within a building, except for:
(A) Incidental sales and display of plant materials and garden supplies occupying not more than 500 square feet of exterior sales and display area, and (B) Farmers' markets that have obtained conditional use permits. (i) Employee Showers
Employee shower facilities shall be provided for any new building constructed or for any addition to or enlargement of any existing building as specified in Table 5.
//
10.a
Packet Pg. 152
*NOT YET APPROVED*
15 0160066_20220628_ay16
TABLE 5
EMPLOYEE SHOWERS REQUIRED
Uses Gross Floor Area of New
Construction (ft 2 )
Showers
Required
Medical, Professional, and
General Business Offices,
Financial Services, Business and
Trade Schools, General Business
Services
0-9,999 No requirement
10,000-19,999 1
20,000-49,999 2
50,000 and up 4
Retail Services, Personal Services,
and Restuarants Eating and
Drinking Services
0-24,999 No requirement
25,000-49,999 1
50,000-99,999 2
100,000 and up 4
[. . .]
SECTION 7. Section 18.30(A).040 (Permitted Uses) of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:
Except to the extent a conditional use permit is required pursuant to Section 18.30(A).050, the following uses shall be permitted in an R district:
(a) Restaurants Eating and drinking services, except drive-in/drive-through and take- out services.
(b) Personal services, except the following on California Avenue:
(i) the following shall be prohibited on the ground floor on California Avenue:
beauty shops; nail salons; day spas; barbershops; laundry and cleaning services as defined in Section 18.04.030(114)(B); and
(ii) the following shall require a conditional use permit on the ground floor on California Avenue: fitness or exercise studios exceeding 1,800 square feet in gross floor area; and learning centers intended for individual or small group settings.
(c) Retail services.
(d) All other uses permitted in the underlying commercial district, provided they are not located on a ground floor.
SECTION 8. Section 18.30(A).050 (Conditional Uses) of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:
10.a
Packet Pg. 153
*NOT YET APPROVED*
16 0160066_20220628_ay16
The following uses may be conditionally permitted in an R district, subject to the issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval):
(a) Financial services, except drive-in services, on a ground floor. (b) All other conditional uses allowed in the underlying commercial district provided they are not located on a ground floor.
(c) On California Avenue:
(i) Formula retail businesses; on California Avenue.
(ii) Fitness or exercise studios exceeding 1,800 square feet in gross floor area; (iii) Commercial recreation uses;
(iv) Learning Centers intended for individual or small group settings; and (v) Medical offices.
(d) Beauty shops, nail salons, and barbershops, except as prohibited on California Avenue, fitness or exercise studios exceeding 1,800 square feet in gross floor area; and learning centers intended for individual or small group settings.
SECTION 9. Section 18.30(C).020 (Permitted Uses) of Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:
(a) The following uses shall be permitted in the GF combining district, subject to restrictions in Section 18.40.160180:
(1) Restaurants Eating and drinking;
(2) Hotels;
(3) Personal services, except the following are prohibited when located on University Avenue: for parcels with frontage on University Avenue, where uses defined in Section 18.04.030(114)(B), (G), and (H), and (I) are not permitted (A) Laundry and cleaning services as defined in Section 18.04.030(114)(B); (B) Art, dance or music studios intended for an individual or small group of persons in a class;
(C) Fitness and exercise studios, or similar uses exceeding 1,800 square feet or more of gross floor area; and
(D) Learning centers intended for individual or small group settings. (4) Retail services;
10.a
Packet Pg. 154
*NOT YET APPROVED*
17 0160066_20220628_ay16
(5) Theaters;
(6) Travel agencies;
(7) Commercial Recreation up to 5,000 square feet in gross floor area, except for parcels with frontage when located on University Avenue; (8) All other uses permitted in the underlying district, provided such uses are not on the ground floor.
(b) Elimination or conversion of basement space currently in retail or retail-like use or related support purposes is prohibited.
(c) Entrance, lobby, or reception areas serving non-ground floor uses may be located on the ground floor to the extent reasonably necessary, provided they do not interfere with the ground floor use(s), and subject to the approval of the Director.
SECTION 10. Section 18.30(C).030 (Conditional Uses) of Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:
(a) The following uses may be conditionally allowed on the ground floor in the GF ground floor combining district, subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approvals) and with the additional finding required by subsection (b), subject to restrictions in Section 18.40.160:
(1) Business or trade school;
(2) Commercial recreation over 5,000 square feet in gross floor area or with
frontage located on University Avenue;
(3) Day care;
(4) Financial services, except drive in services;
(5) General business service;
(6) Learning centers intended for individual or small group settings, except as prohibited on University Avenue;
(7) All other uses conditionally permitted in the applicable underlying district, provided such uses are not on the ground floor.
(b) The director may grant a conditional use permit under this section only if he or she makes the following findings in addition to the findings required by Chapter 18.76 (Permits and Approvals):
(1) The location, access or design of the ground floor space of the existing building housing the proposed use, creates exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district. (2) The proposed use will not be determined to the retail environment or the pedestrian-oriented design objectives of the GF combining district.
10.a
Packet Pg. 155
*NOT YET APPROVED*
18 0160066_20220628_ay16
(c) Any use conditionally permitted pursuant to this section shall be effective only during the existence of the building that created the exceptional circumstance upon which the finding set forth in subsection (b) was made.
SECTION 11. Sections 18.13.040 (Site Development Standards) of Chapter 18.13 (Multiple Family Residential (RM-20, RM-30, and RM-40) Districts); 18.16.010 (Purposes) and
18.16.050 (Office Use Restrictions) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC, and CS) Districts); 18.20.040 (Site Development Standards) of Chapter
18.20 (Office, Research, and Manufacturing (MOR, ROLM, RP, and GM) Districts); 18.34.030 (Land Uses) of Chapter 18.34 (Pedestrian and Transit Oriented Development (PTOD) Combining District Regulations); and 18.42.030 (Accessory Uses and Facilities) and 18.42.090 (Alcoholic Beverages) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code are amended to read as follows:
18.13.040 Development Standards
[. . .]
(f) Personal Services, Retail Services, and Restaurants Eating and Drinking Services in the RM- 30 and RM-40 Districts
Within a single residential development containing not less than 40 dwelling units, personal services, retail services, and restaurants eating and drinking services solely of a neighborhood- serving nature to residents in the development or in the general vicinity of the project may be allowed upon approval of a conditional use permit, subject to the following limitations and to such additional conditions as may be established by the conditional use permit:
(1) Total gross floor area of all such uses shall not exceed 5,000 square feet or three percent of the gross residential floor area within the development, whichever is smaller, and may not occupy any level other than the ground level or below grade levels. (2) A maximum of 2,500 square feet of retail and/or service and/or restaurant eating and drinking uses shall be allowed per establishment.
(3) Personal services, retail services, and restaurants eating and drinking services provided in accordance with this section shall not be included in the gross floor area for the site. (4) The conditional use permit for the project may preclude certain uses and shall include conditions that are appropriate to limit impacts of noise, lighting, odors, parking and trash disposal from the operation of the commercial establishment. The hours of operation shall be limited to assure compatibility with the residential use and surrounding residential uses. (5) Allowable Neighborhood-Serving Uses. A neighborhood-serving use primarily serves individual consumers and households, not businesses, is generally pedestrian oriented in design, and does not generate noise, fumes or truck traffic greater than that typically expected for uses with a local customer base. A neighborhood-serving use is also one to which a significant number of local customers and clients can walk, bicycle or travel short distances, rather than relying primarily on automobile access or the provider of the goods or
10.a
Packet Pg. 156
*NOT YET APPROVED*
19 0160066_20220628_ay16
services traveling off-site. Allowable neighborhood-serving personal services, retail services and restaurants eating and drinking services may include, but are not limited to, "agent" dry cleaners, flower shops, convenience grocery stores (excluding liquor stores), delicatessens, cafes, fitness facilities, day care facilities, and similar uses found by the Planning Director to be compatible with the intent of this provision.
[. . .]
18.16.010 Purposes
The commercial zoning districts are intended to create and maintain sites for retail, personal services, eating and drinking establishments, hotels and other business uses in a manner that balances the needs of those uses with the need to minimize impacts to surrounding neighborhoods.
(a) Neighborhood Commercial [CN]
The CN neighborhood commercial district is intended to create and maintain neighborhood shopping areas primarily accommodating retail sales, personal service, eating and drinking
restaurant, and office uses of moderate size serving the immediate neighborhood, under regulations that will assure maximum compatibility with surrounding residential areas. [. . .]
18.16.050 Office Use Restrictions
The following restrictions shall apply to office uses:
(a) Conversion of Ground Floor Housing and Non-Office Commercial to Office Medical, Professional, and Business offices shall not be located on the ground floor, unless any of the following apply to such offices:
(1) Have been continuously in existence in that space since March 19, 2001, and as of such date, were neither non-conforming nor in the process of being amortized pursuant to Chapter 18.30
(I);
(2) Occupy a space that was not occupied by housing, neighborhood business service, retail services, personal services, eating and drinking services restaurant, or automotive
service on March 19, 2001 or thereafter;
(3) Occupy a space that was vacant on March 19, 2001; (4) Are located in new or remodeled ground floor area built on or after March 19, 2001 if the ground floor area devoted to housing, retail services, eating and drinking services
restaurant, personal services, and automobile services does not decrease; [. . .]
10.a
Packet Pg. 157
*NOT YET APPROVED*
20 0160066_20220628_ay16
18.20.040 Site Development Standards
Development in the office research, industrial, and manufacturing districts is subject to the following development standards, provided that more restrictive regulations may be required as part of design review under Chapter 18.76 of the Palo Alto Municipal Code. [. . .]
(f) Limitations on Outdoor Uses and Activities.
(1) In the GM district, outdoor sales and display of merchandise and outdoor eating areas operated incidental to permitted restaurants eating and drinking services are permitted subject to the following regulations:
[. . .]
18.34.030 Land Uses
[. . .]
(b) Mixed use development, where residential and non-residential uses are combined, may include two or more of the following uses:
(1) Multi-family residential;
(2) Non-residential uses, limited to:
(A) Retail and personal services;
(B) Restaurants Eating and drinking services;
[. . .]
18.42.030 Accessory Uses and Facilities
(a) Examples of Accessory Uses and Facilities
Accessory uses and facilities include, but are not limited to, the following list of examples; provided that each accessory use or facility shall comply with all provisions of this title:
[. . .]
(5) Newsstands, gift shops, drugstores, and restaurantseating and drinking facilities, or similar services intended solely for the convenience of occupants or employees, or guests thereof, of a principal use, when conducted entirely within a principal facility; [. . .]
//
10.a
Packet Pg. 158
*NOT YET APPROVED*
21 0160066_20220628_ay16
18.42.090 Alcoholic Beverages
(a) Conditional Use Permit Required in Tandem with On-Sale License In any district where otherwise permitted by this title, any eating and drinking establishment restaurant or other use having any part of its operation subject to an on-sale license required by the State of California shall be subject to securing a conditional use permit. [. . .]
SECTION 12. The land use tables in Sections 18.13.030 (Land Uses) of Chapter 18.13 (Multiple Family Residential (RM-20, RM-30, and RM-40) Districts); 18.20.030 (Land Uses) of Chapter 18.20 (Office, Research, and Manufacturing (MOR, ROLM, RP, and GM) Districts);
18.28.040 (Land Uses) of Chapter 18.28 (Special Purpose (PF, OS, and AC) Districts); 18.36.040 (Land Uses) of Chapter 18.36 (Hospital (HD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code shall be amended to replace all references to phrase “Eating and drinking services” with the term “Restaurants,” and the phrase “drive-in” with the phrase “drive- in/drive-through.”
SECTION 13. The Minimum Off-Street Parking and Loading Tables (Tables 1, 2, and 3) in Section 18.52.040 (Off-Street Parking, Loading and Bicycle Facility Requirements) of Chapter
18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code shall be amended to replace all references to phrase “Eating and drinking services” with the term “Restaurants” and the phrase “eating and drinking” with the term “restaurant.”
SECTION 14. All remaining references in the Palo Alto Municipal Code to “Eating and Drinking,” “Eating and Drinking Services,” “Eating and Drinking Facilities,” or “Eating and Drinking Establishments” shall have the same meaning as “Restaurants,” as defined in Section
18.04.030(a)(124.5).
SECTION 15. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.
SECTION 16. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
10.a
Packet Pg. 159
*NOT YET APPROVED*
22 0160066_20220628_ay16
SECTION 17. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because it can be seen.
SECTION 18. This ordinance shall be effective on the thirty-first date after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Planning & Development
Services
10.a
Packet Pg. 160
ATTACHMENT B
March 8, 2021 City Council Motion
The City Council made the following motion at the March 8, 2021 meeting:
MOTION: Vice Mayor Burt moved, seconded by Mayor DuBois to adopt the attached temporary ordinance with the following exceptions:
A. Prohibit allowing nail salons, beauty shops, barber shops, etc. directly on California Avenue street facing;
B. On University Avenue, California Avenue, as well as Town and Country, prohibit the expansion of gyms greater than 1,800 square feet, an d refer this to Planning and Transportation Commission for additional review;
C. Prohibit the expansion of tutoring, schools, and related functions on the main streets of Downtown and California Avenue;
D. Allow the change to commercial recreation to go forward, but also direct the Planning and Transportation Commission to look at occupancy for personal services that are commercial recreation;
E. Refer to the Planning and Transportation Commission the evaluation of the most appropriate way to define restrictions on dining establishments; F. Prohibit expansion of the permissible medical sizes on the main shopping streets of California Avenue, University Avenue and Midtown Shopping Center.
10.b
Packet Pg. 161
Attachment C
Comparison between versions of the Palo Alto Municipal Code PAMC
location
Standard/definition
Prior to 11-
2020
Temporary
Ordinance
Draft
Ordinance
Notes
18.04 Definitions
Drive-in/Drive-
through
Only includes
‘Drive-in’
Adds Drive-
Through to
definition
Adds
‘restaurant
drive-
in/through as
sub
definition.
18.04 Definitions
Eating and Drinking
Service
Included
restaurants,
coffee shops,
sandwich
shops,
taverns, ice
cream shops,
etc.
Classifies
eating and
drinking as
having a full
commercial
kitchen &
dishwasher.
Other uses
now
considered
‘intensive
retail’
Same as
temporary
ordinance
plus changes
term to
‘restaurant’
Parking is
lower for
intensive
retail.
18.04 Definitions
Fitness and exercise
studios
Considered a
space up to
1,800 SF
A space up to
5,000 SF
(except for
University
Ave, California
Ave, and Town
& Country.
(similar uses
over 5,000 SF
are
‘commercial
recreation’
Same as
temporary
ordinance
Considered
a personal
service
18.04 Definitions
Learning Centers Does not exist New definition
under
personal
service.
Same as
temporary
ordinance
Considered
Personal
service
18.04 Definitions
Intensive retail
service
Uses not
defined as
extensive
retail
Added limited
food service
such as ‘ready
to eat’
Same as
temporary
ordinance
18.16.040 CN, CC, CS Districts
Table 1
Medical
offices
require CUP;
Medical
offices require
Same as
temporary
ordinance
Exceptions
for medical
office in
10.c
Packet Pg. 162
PAMC
location
Standard/definition
Prior to 11-
2020
Temporary
Ordinance
Draft
Ordinance
Notes
Commercial
Recreation
requires CUP;
and Personal
Services are
Permitted
a CUP over
5,000 SF.
Commercial
recreation
uses fronting
California and
located in
Town &
Country
requires a
CUP.
Commercial
recreation
uses located
on California
Ave. greater
than 1,800 SF
require a CUP.
but moved
exceptions to
zoning
district to R
combining
district
18.30(A).
18.16.060 CN Development
Standards Table 5
Maximum size of
establishment
Maximum size
of Personal
Service and
Neighborhood
Business
Services is
2,500 SF
Increase
personal
service and
neighborhood
business
services max
size from
2,500 SF to
3,000 SF
Same as
temporary
ordinance
18.18.050 CD District Table 1 Commercial
recreation
requires a
CUP; Personal
services are
permitted;
Medical
offices are
permitted
uses
Commercial
recreation
requires CUP
greater than
5,000 SF
except for
University Ave
(1,800 SF);
Medical office
on University
Ave requires
CUP otherwise
no CUP up to
5,000 SF; CUP
required for
learning
centers on
University Ave
Same as
temporary
ordinance
but moved
regulations
to GF
combining
district
(18.30(C)
10.c
Packet Pg. 163
PAMC
location
Standard/definition
Prior to 11-
2020
Temporary
Ordinance
Draft
Ordinance
Notes
18.18.060 CD-N Development
Standards Table 4
Maximum Size of
Establishment
Maximum size
of personal
services is
2,500 SF
Increases the
personal
services size to
3,000 SF
Same as
temporary
ordinance
18.30(A).040 Retail Shopping (R)
Combining District
Permitted Uses
Permitted
Uses: Added
Fitness studios
exceeding
1,800 SF and
learning
centers
Created
distinctions
for uses on
California
Ave.
18.30(A).050 Retail Shopping (R)
Combining District
Conditional Uses
Beauty shops
required a
CUP
Beauty shops
not permitted
on California
Ave.
Same as
temporary
ordinance.
Amended
section for
clarity.
18.30(C).020 Ground Floor (GF)
Combining District
Permitted Uses
Added
Learning
centers as not
permitted on
University
Ave.
Commercial
recreation up
to 5,000 SF
permitted
except along
University
Ave. (1,800 SF)
Same as
temporary
ordinance
but clarified
text—moved
footnotes
from Chapter
18.18. 18.30(C).030 Ground Floor (GF)
Combining District
Conditional Uses
Distinguish
that
Commercial
recreation
over 5,000 SF
requires a
CUP. Added
learning
centers to CUP
list.
Same of
temporary
ordinance
but clarified
text---moved
footnotes
from Chapter
18.18. 10.c
Packet Pg. 164
City of Palo Alto (ID # 14912)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Recommendation from the Policy and Services Committee to Adopt a City Council Values Statement
From: City Manager
Lead Department: City Manager
Recommendation
The Policy and Services Committee recommends that the City Council adopt a Values Statement as presented in this report.
Background
The Policy and Services Committee followed up on the City Council referral from the February 5, 2022 City Council retreat for the Policy and Services Committee to discuss and recommend to the City Council a set of values that would continue over successive years as values . Council intended the values to reflect enduring goals and intentions —such as Fiscal Sustainability , Social Justice, Healthy City Healthy Community, and Environmental Sustainability—which would allow Council to maintain these enduring intentions while also selecting annua l priorities that reflect shorter-term projects and goals.
The Policy and Services Committee discussed this referral at the April 12, 2022 meeting (CMR #14243; Minutes) and also at the September 13, 2022 meeting (CMR #14731; Minutes). At the September meeting, the Committee passed a motion with the recommended values statement shown in the discussion section below. This motion was not a unanimous vote at Committee.
Discussion
City of Palo Alto Values:
Values are organizational characteristics that are both stated explicitly and regularly reinforced.
When defining values, there is a trad e-off between being specific and being relevant to all aspects of an organization. The effort to define a set of values can ideally both reinforce current practice and recommit to organizational focus. While the City Council is engaged in this effort to define the City Council Values Statement that responds to community priorities, staff is also engaging in a parallel effort to refresh the workforce organizational values. This effort is beginning this Fall.
For the City Council Values Statement, based on the topics the Council asked the Committee to 11 Packet Pg. 165
City of Palo Alto Page 2
explore for a values statement, as well as the existing mission statements, the Committee recommends the following statement for full City Council consideration and adoption:
Draft City Council Values Statement:
The Palo Alto City Council has universally shared values that help guide our decisions and the work we do. These values include:
1. We will make decisions that balance revenues and expenses, now and in the future.
2. We will make decisions that respect the environment, now and in the future.
3. We will integrate equity into our decisions, considering how decisions affect people differently based on their identity or circumstances.
4. We will build a healthy, safe, and welcoming environment for all in our community.
5. We will communicate openly with all members of our community and welcome innovative solutions.
Process:
The Policy and Services Committee designated one member to work with staff to discuss and draft a values statement for full Policy and Service s Committee review . The draft considered existing mission and values statements, including the City’s Mission Statement, the City’s Equity Mission Statement, and the Annual Budget Values Statement. Those statements are reference d here:
City Mission Statement in the Annual City Budget:
The government of the City of Palo Alto exists to promote and sustain a superior quality of life in Palo Alto. In partnership with our community, our goal is to deliver cost- effective services in a personal, responsive and innovative manner.
Equity Mission Statement:
The City of Palo Alto is committed to creating a respectful, fair, and professional workplace and city. We will identify prejudices, eliminate inequities, w elcome many perspectives, and use a collaborative approach to create an environment that works for everyone. The City's commitment to achieve equity in Palo Alto is the shared responsibility of our residents, organizations, governments, and other instituti ons. (link: www.cityofpaloalto.org/raceandequity)
Values Statement in the Annual City Budget:
- Quality: Superior delivery of services
- Courtesy: providing service with respect and concern - Efficiency: Productive, effective use of resources - Integrity: straightforward, honest, and fair relations - Innovation: excellence in creative thought and implementation 11 Packet Pg. 166
City of Palo Alto Page 3
Timeline and Resource Impact
Now that the Policy and Services Committee has reviewed this City Council referral and is bringing forth a recommendation, the full City Council can consider it. If progressing toward adoption, the goal would be for the City Council to adopt a values statement prior to the 2023 City Council retreat. There is no resource impact for the City Council Values Statement process.
Stakeholder Engagement
In previous years, the City Council solicited information from the public about the priorities the City Council should consider for annual priorities. The topic areas included in the draft City Council Values Statement above are based on topics that regularly come up as priority areas for the City Council.
Environmental Review
Adoption of a Values Statement is not a project for the purposes of the California Environmental Quality Act. No environment review is needed. 11 Packet Pg. 167
City of Palo Alto (ID # 14913)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Policy and Services Committee Recommendation that the City Council Adopt the 2023 Citywide Legislative Guidelines and Support the Tentative 2023 Legislative Work plan
From: City Manager
Lead Department: City Manager
Recommendation
The Policy and Services Committee recommends that the City Council approve the 2023 Federal and State Legislative Guidelines ( Attachment A ) and support the tentative 2023 Legislative Workplan.
Background
As part of the City’s legislative program, staff and the City’s c ontracted federal and state advocates work to identify and analyze potentially impactful legislation and communicate the City’s public advocacy positions to legislators. The program is guided by the Advocacy Process Manual, last updated and approved by Cit y Council on January 13, 2020 (CMR #10772).
Additionally, the City Council in June 2021, also reaffirmed the strategy desired for the City’s legislative actions. That reaffirmation is shown in the staff report ( CMR #12344; Minutes) from June 22, 2021. The overall decision was to continue the strategy of Strategically Weighing in on Issues of Interest to the City in the legislative approach taken by the consultant advocates and City staff.
The C ity also maintains a City Council -approved set of legislative guidelines (guidelines) that provide additional City Council policy direction to staff and the City’s state and federal legislative advocates. These are reviewed annually. The guidelines were di scussed at the Policy & Services Committee on October 11, 2022 ( CMR #14827 ) and the Committee made a few suggested changes. Prior to that Policy and Service discussion, the last time the full City Council approved the Guidelines was on February 7, 2022 (at the same meeting City Council approved the legislative guidelines for the Utilities Department; CMR 13904; Minutes).
Staff and the legislative advocates often come to Policy and Services Committee and the full City Council to discuss updates. The last legislative update to the Policy and Services Committee was on May 10, 2022 (CMR 14379; Minutes).
12 Packet Pg. 168
City of Palo Alto Page 2
Discussion
The Policy and Services Committee reviewed the draft 2023 legislative guidelines and proposed the guidelines attached in this report as Attachment A. The changes include basic information such as the year and other technical changes such as a title change to the Environmental section and the addition of a new bullet point in that section. The changes are clearly shown as tracked changes in Attachment A.
What are the Legislative Guidelines
The Legislative Guidelines enhance and add content to the City Council’s overarching priorities; they do not supplant them. The guidelines provide direction to staff and the City’s legislative advocates on issues that are both (a) important to the City Council, and (b) likely to become a legislative issue in 2023. The guidelines are not rank ordered and are inte ntionally reasonably broad rather than specifically narrow to allow for a flexible and quick response.
Further, the guidelines are not proactive instructions; they act as a means by which staff and advocates can respond to federal and state government ac tion, without returning to the City Council each time a bill is introduced or amended.
Utilities Legislative Guidelines
The City Council also annually adopts the Utilities Legislative Guidelines after review and recommendation by the Utilities Advisory C ommission. The Commission will make their recommendations soon, reflecting recent City Council actions and bring the proposed 2023 Utilities Legislative Guidelines for City Council adoption on Consent in early 2023.
Legislative Update
The City’s legislati ve advocates in Sacramento (Townsend Public Affairs) and legislative advocates in Washington, D.C. (Van Scoyoc Associates) provided updates in the October 11 2022 Policy and Services Committee. Those reports are available in Attachment B and also online in the October 11, 2022 Policy and Services Committee packet (CMR #14827).
One bill that has drawn significant attention is AB 2097, which prohibits a city from imposing parking requirements on developments that are within 1/2 mile of a major public transit stop, as defined in state law. The bill includes limited exception s in the event a city can make certain findings, supported by a preponderance of the evidence. To take advantage of these exceptions, the City would have to develop evidence to support findings that the absence of parking requirements would have a substantially negative impact on:
1) the City’s ability to meet its share of RHNA for lower income households; 2) the City’s ability to meet special housing needs identified in its housing element for the elderly or persons with disabilities; or
3) e xisting residential or c ommercial parking within one -half mile of the housing development project.
Of these three options, the third appears to have the broadest applicability; however, it only 12 Packet Pg. 169
City of Palo Alto Page 3
speaks to housing development projects. In other words, this would not be a basis for imposing parking requirements on commercial projects under AB 2097. In addition, where housing projects are concerned, AB 2097 provides several exceptions to these exceptions. For housing projects, a city may not use these findings to impose parking requi rements if: 1) the project reserves at least 20 percent of its units for moderate income households, students, elderly persons, or persons with disabilities; 2) the project contains fewer than 20 units; or 3) the project is subject to other state laws that permit reduced parking. In short, there is only a very limited class of projects for which the City could utilize findings to impose parking requirements: large housing projects that do not provide at least 20 percent of units for moderate income households, students, elderly persons or persons with disabilities.
Tentative Legislative Workplan
To plan for the upcoming legislative session, staff has drafted the following tentative workplan for City Council awareness, review, and comment.
Resource Impact
There is no resource impact associated with adopting legislative guidelines. Items on the tentative legislative workplan have costs associated with them such as any potential visits to Sacramento and Washington, D.C. It is anticipated that should thes e activities be approved by the Council, these costs will be supported by the City Council contingent account in FY 2023.
Staff has started the procurement process (request for proposals) for the state and federal legislative advocacy work. At the appropr iate time staff will bring the contracts to City Council 12 Packet Pg. 170
City of Palo Alto Page 4
for review and approval. The City Council has already allocated funds for these contracts and services.
Stakeholder Engagement
Staff from multiple departments are involved in the legislative process in helping to review the impacts of bills as well as discussing grant oportunities linked to state and federal programs.
Environmental Review
Approval of the 2023 Federal and State Legislative Guidelines and tentative workplan are not projects under the California Environmental Quality Act., See CEQA Guidelines section 15378(b)(2) (general policy making activities).
Attachments:
• Attachment12.a: October 11, Legislative Update to Policy & Services Cmte 12 Packet Pg. 171
City of Palo Alto (ID # 14827)
Policy and Services Committee Staff Report
Meeting Date: 10/11/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Receive Update from the City's Federal and State Legislative Advocates and Discussion and Recommendation on the 2023 Citywide Legislative Guidelines
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that the Policy & Services Committee (a) receive a legislative update from the City’s state and federal advocates, and (b) subject to the Committee’s discussion, recommend that City Council approve the 202 3 Federal and State Legislative Guidelines (Attachment A).
Background
As part of the City’s legislative program, staff and the City’s contracted federal and state advocates work to identify and analyze potentially impactful legislation and communicate the City’s public advocacy positions to legislators. The program is g uided by the Advocacy Process Manual, last approved by City Council on January 13, 2020 (CMR #10772). In addition to the Manual, the City maintains a City Council -approved set of legislative guidelines that provide additional City Council policy direction to staff and the City’s state and federal legislative advocates.
The guidelines were last discussed at the Policy & Services Committee on December 14, 2021 (CMR #13850) and approved by the City Council on February 7, 2022 (at the same meeting City Council approved the legislative guidelines for the Utilities Department ; CMR 13904; Minutes).
Staff will coordinate with Utilities staff to bring both 2023 legislative guidelines to the City Council for adoption. The City Council, in June 2021, also reaffirmed the strategy desired for the City’s legislative actions. That reaffirmation is shown in the staff report ( CMR #12344; Minutes) from June 22, 2021. The overall decision was to continue the strategy of Strategically Weighing in on Issues of Interest to the City in the legislative approach taken by the consultant advocates and City staff.
Also, staff and the legislative advocates often come to Policy and Services Committee and the full City Council to discuss updates. The last legislative update to the Policy and Services Committee was on May 10, 2022 (CMR 14379; Minutes).
1 Packet Pg. 3
12.a
Packet Pg. 172
City of Palo Alto Page 2
Discussion
Legislative Guidelines
The Legislative Guidelines enhance and add content to the City Council’s overarching priorities; they do not supplant them. The guidelines provide direction to st aff and the City’s legislative advocates on issues that are both (a) important to the City Council, and (b) likely to become a legislative issue in 202 3. The guidelines are not rank ordered and are intentionally reasonably broad rather than specifically narrow to allow for a flexible and quick response.
Further, the guidelines are not proactive instructions; they act as a means by which staff and advocates can respond to federal and state government action, without returning to the City Council each time a bill is introduced or amended. The draft 202 3 guidelines are a compilation of the current, approved guidelines, City Council’s 202 2 priorities, and policy issues staff and the City’s legislative advocates have heard interest in. There are no major changes in the draft 2023 guidelines.
Legislative Update
The City’s legislative advocates in Sacramento (Townsend Public Affairs) and legislative advocates in Washington, D.C. (Van Scoyoc Associates) will be present to discuss updates on legislation, the budget, and the coming weeks and months in Sacramento and D.C.
State Update
Attachment B contains the Sacramento update from Townsend Public Affairs. The State legislative session recently ended, and the Governor signed over a thousand bills into law. The memo provides an overview of bills passed and signed by the Governor that are relevant to Palo Alto. It also includes information about state funding advocacy done in this legislative session. This was a very successful legislative session regarding funding with the City securing $7.2 million in state budget earmark requests through Senator Becker and Assembly Member Berman for the Newell Road Bridge project and the Fire Station 4 Replacement project in addition to a $26.6 million Homekey award for an interi m supportive housing shelter to be built in Palo Alto.
Federal Update
Congressional Update
Congress passed a continuing resolution to keep the government funded until December 16, 2022. President Biden quickly signed the continuing resolution into law pr eventing the federal government from shutting down hours before the end of the current fiscal year.
In addition to keeping the federal government operating at fiscal year (FY) 2022 funding levels, the bill also provides $12.4 billion in military and diplo matic spending to help Ukraine in its war against Russia and $18.8 billion for domestic disaster recovery efforts, including recent floods, wildfires, and hurricanes.
1 Packet Pg. 4
12.a
Packet Pg. 173
City of Palo Alto Page 3
The House and the Senate are now in recess until after the midterm elections and will re turn the week of November 14.
Upon return from the recess, the Congress will continue work to pass the FY 2023 appropriations bills, likely through an omnibus bill where all the funding bills are passed as one larger bill. If an agreement is made on FY 2 023 appropriations, other issues could be included in a larger omnibus bill such as policies on pandemic preparedness, mental health, and immigration. If an agreement on FY 2023 appropriations is not made by December 16, another continuing resolution will be needed to be passed in the lame duck session to keep the federal government open past December 16.
Transportation Update
EV Charging Plans Approved : On September 27, FHWA announced that it had approved the state charging plans for all 50 states. As s uch, federal funds for electric vehicle charging facilities will soon be available to every state to implement the plan that each state has submitted to USDOT. The state plans are here.
Vertiport Design Standards : On September 26, FAA released new design guidelines for vertiports, infrastructure that will support Advanced Air Mobility (AAM) aircraft. The design standards will serve as the initial step to provide key information for airport owners, operators and infrastructure developers to begin development of facilities that will support operations of AAM aircraft that are electrically powered and take-off and land vertically.
Housing Update
HUD Opens Choice Neighborhoods Implementation Grant Program: The Department of Housing and Urban Development today began accepting applications for its FY 2022 Choice Neighborhoods Implementation Grant Program. HUD anticipates making almost $380,000,000 in awards.
Choice Neighborhoods I mplementation Grants support the implementation of comprehensive neighborhood revitalization plans that are expected to achieve the following three core goals:
1. Housing: Replace distressed public and assisted housing with high -quality mixed-income housing that is well -managed and responsive to the needs of the surrounding neighborhood;
2. People: Improve outcomes of households living in the target housing related to employment and income, health, and children’s education; and
3. Neighborhood: Create the conditi ons necessary for public and private reinvestment in distressed neighborhoods to offer the kinds of amenities and assets, including safety, good schools, and commercial activity, that are important to families’ choices about their community.
1 Packet Pg. 5
12.a
Packet Pg. 174
City of Palo Alto Page 4
More information on the implementation grant program can be found here on HUD’s website.
The application and supporting documents can be found here on grants.gov.
Climate and Energy Update
Grid Deployment Office Releases New Grid Transmission Programs Funding Website : The Grid Deployment Office has launched the Grid and Transmission Programs Condu ctor, an online clearinghouse and resource repository to point stakeholders to information on financing opportunities through DOE for grid and transmission projects. The new online clearinghouse for grid and transmission funding provided through the U.S. Department of Energy can be viewed here.
Economic Development Update
FEMA and EDA Release Joint Economic Development and Hazard Mitigation Guide : The Federal Emergency Management Agency (FEMA) and the Ec onomic Development Administration (EDA) have published a new resource intended to help both economic development and hazard mitigation planners achieve mutually beneficial outcomes.
The Comprehensive Economic Development Strategy and Hazard Mitigation Pla n Alignment Guide connects economic development and hazard mitigation plans so communities can be more resilient from natural hazards.
Local and state officials can use the guide when preparing or reviewing FEMA Hazard Mitigation Plans and EDA Comprehens ive Economic Development Strategies (CEDS). Included in the guide are approaches to help align strategies with approved local plans.
According to the agencies, when communities align their CEDS and hazard mitigation plans, benefits can include:
• Businesses and business districts are built in safer areas with a lower risk of hazard impacts.
• Private investment is directed to safer areas. It is also developed to be more resilient to hazards.
• Businesses can reopen more quickly after disaster events. • Critical facilities and infrastructure keep working during and after disaster events. • Regional marketability improves as businesses and investors see the community as safe and well prepared.
Hazard mitigation plans and CEDS are key plans to improve resilience. A CE DS must include economic resilience in its strategy while a hazard mitigation plan identifies and plans for natural hazard risks to key sectors, including the economy.
The guide includes economic development concepts to add to hazard mitigation plans. It also encourages integration of information from risk assessments and hazard mitigation ideas to use in a CEDS.
1 Packet Pg. 6
12.a
Packet Pg. 175
City of Palo Alto Page 5
The Comprehensive Economic Development Strategy and Hazard Mitigation Plan Alignment Guide can be downloaded online from the disaster recovery page on the EDA’s website.
Upcoming Discretionary Funding Opportunities: Bipartisan Infrastructure Law National Culvert Removal, Replacement, and Restoration Grant Program : The new Federal Highway Administration program will provide funding for projects that would replace, remove, or repair culverts and weirs that meaningfully improve or restore passage for anadromous fish.
The Bipartisan Infrastructure Law provided $1 billion for the new competitive prog ram that will be spread across the next five years.
Charging and Fueling Infrastructure Grants : The new Federal Highway Administration program will provide discretionary grant funding to install electric vehicle charging and alternative fuel in locations on public roads, schools, parks, and in publicly accessible parking facilities. The Bipartisan Infrastructure Law provided $1.25 billion for the discretionary community charging funding.
Resource Impact
There is no resource impact associated with adoptin g legislative guidelines and hearing from the City’s state and federal advocates. Staff has started the procurement process (request for proposals) for the state and federal legislative advocacy work. At the appropriate time staff will bring the contracts to City Council for review and approval. The City Council has already allocated funds for these contracts and services.
Stakeholder Engagement
Staff from multiple departments are involved in the legislative process in helping to review the impacts of bills as well as discussing grant oportunities linked to state and federal programs.
Environmental Review
This legislative update is presented for informational purposes only with no action required by the Committee.
The Committee’s recommendation to Council is not a project as defined by CEQA because Approval of the 2023 Federal and State Legislative Guidelines is a general policy making activity.
CEQA Guidelines section 15378(b)(2)."
Attachments:
• Attachment A: 2023 Draft legislative guidelines-Oct 2023.docx • Attachment B: 2022 Legislative Session Wrap Up - City of Palo Alto October2022 1 Packet Pg. 7
12.a
Packet Pg. 176
Attachment A: Draft 2023 Guidelines
The City of Palo Alto’s 20232 Federal and State Legislative