Agenda packet — Palo Alto City Council, January 23, 2023 (part 2 of 5)

• Palo Alto is so slow to complete the road work on arastradero between el Camino and Gunn. Has there been a period of even 6 months in the last 10 years where there wasn't an unfinished project? It took 6 months to replace a bike lane this year. There have been ditches by the El Camino stoplights for nearly 6 months. Come on! It's a safe route to school that serves 4 schools and probably at least 1000 kids. Don't start a project and take months to finish it. This literally happens no where else in Palo Alto. Why do you hate our neighborhood! • Permanent ability to offer public comment via zoom/remotely. • Plant more trees
• Please find sites to build LARGE-SCALE affordable housing. Duplexes/fourplexes in single-family neighborhoods is a very bad idea (I know it's the State's idea). I think it's very important to build affordable housing quickly for lower-income people who work here. The city seems to be in no hurry.
• Police lower utility cost and taxes; schools are terrible • politically, don't go extremes either left or right
• Prioritize and expedite the approval of deeply affordable homes/apartments for those in need, including those living without homes on the street.
• Provide fiber internet service to all Palo Alto homes. • Redesign the ridiculous outdated, University Ave./train station loop. • Reduce crime, don't approve building projects that give developers outs re: res zoning, adequate parking and traffic impacts
• Require the PA Public Library to respond to citizen interests, such as returning to the pre-COVID hours, now that their budget has been almost completely restored. The absence of a citizen advisory board has been a disaster as far as assessing the public's needs and interests for the library.
• returning to at least 5 years ago it used to be
• revitalizing our downtown area, redwood city, los altos, menlo park all have better services in downtown area.
• Safer neighborhood and in shopping malls, better organized parking for RVs • Slow down growth, possibly even reduce space dedicated to offices. • Stop increasing the population and adding more high rise buildings • Stop ugly large building--Palo Alto is becoming a nondescript city. It's never going to be a cheap place to live -- just accept that. Build housing for local first responders and service providers but NOT drab and crowded mega cinder blocks.
• Streamline building permit application process.
• street repair
• Vigorous enforcement of gas leafblower ban
• Work on the pricing of home utilities to residents. Provide shredding event like you used to.

Question 19: As a resident of Palo Alto, what one thing do you believe the City does well and would want to maintain?
• 311 services
• Answers above that were positive
• City utilities
• Communication
• Communication with residents
• Continued maintenance of streets and street trees and sidewalks.

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• Create an updated version of Cubberly that has educational and recreation classes, art, dance, FOPAL, including a few non-profits. Ask what the residents near Cubberly what they want in additon to city wide responses. Resolve the Cubberly issue. • Customer service of city employees
• Diversity of experiences in terms of support for art and recreation. Love the park, bike paths, library and art investments that have been made.
• ELECTRIC UTILITY
• Embrace diversity
• encourage green energy
• Engaging with the community on issues.
• environmental concerns
• Excellent programs for children, great education, great libraries • Free Outdoor spaces and bike-ability
• Great communication, good availability for meeting (electeds; not staff) • Great parks, libraries and school system
• hear from voice of palo alto
• I appreciate Foothills Park and the many community parks available to all. • I love all the trees, parks, great schools and carbon-neutral electricity! • I really appreciate the trees in Palo Alto, the green space in the Stanford dish area, and access to wonderful Foothills Park.
• I regularly use the public spaces at Cuberley. This is a tremendous benefit to the community. It is clear that this space needs to be updated and I think that it should continue to be utilized by the Public - playing fields, gyms, studios, music rooms, auditorium. It's a wonderful asset and it could be so much more but I don't want to see it used solely by the PAUSD or sold for housing development.
• Infrastructure
• Keep up the weekly reports...starting during the COVID lockdown...good info in them--we read them every week.
• Keeping our parks and green spaces open and cared for. • Keeping the city looking neat and inviting.
• keeping up maintenance where there are needs
• Libraries
• Libraries
• Libraries, athletic facilities (tennis, swimming, etc.), parks • Listening to residents.
• Maintain and add more park space to catch up to what the comprehensive plan says you should have for each resident in Palo Alto.
• Maintain natural recreation areas, e.g. the baylands, Byxbee Park, Foothills Park, local city parks. • Maintain public parks
• Maintain the character of the city.
• Maintaining recreation services
• Maintains the trees and parks
• Much of what's valuable in the community comes via proximity to the Stanford campus. So • NA
• NA
• NA
• NA
• NA
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• NA
• NA
• NA
• NA
• natural spaces
• Open spaces, the Baylands, the natural environment. Also the schools. • Owning own utilities so that we can have it be from renewable sources (solar, wind) • Owns its own utilities.
• Parks
• Parks
• parks
• Parks and Community Recreation Activities
• Parks and libraries
• Parks and libraries
• parks and libraries and Cubberley.
• Parks and libraries!
• Parks and open space
• Parks and park maintenance
• Parks and recreation department programs are great. A good variety of classes are offered. • Parks, open spaces
• parks. libraries. bike paths
• Peace, quieteness, safety
• Police presence.
• Promoting greener transportation options
• Protect our open space
• Provides excellent libraries and we have our own utilities which is huge! • Public Library
• public works departrment
• Public works.
• Recycling
• Responds to community feedback
• Safe route to school.
• Safe Routes to School program
• Safe Routes to School program
• schools, parks, libraries
• Sense of community...people like to know each other and do things together • Street signs
• Supporting bicyclists
• The ability of all residents to easily access local services by foot, bike, pedicab or bus/shuttle. • The city works to make good long term solutions for problems • The public-facing administrative staff are respectful, polite, and responsive. We are fortunate to have good people providing public service.
• The school system here is good and the only reason we moved here is because my fiance went to school here. If the education system becomes less rigorous, we would likely live in a different city.

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• There are a lot of things the city used to do very well, including hiring experienced, skilled staff who were willing and able to engage productively with citizens. Hire good people, train them and hold onto them... reward excellent performers. Encourage staff to proactively work with citizens and be less guarded. Staff up to plan to support all the new housing. A lot of work needs to be done in preparation for that. We are very understaffed right now. This city has great bones. Please maintain that by making sure we have high quality staff in sufficient numbers to do necessary comprehensive planning--something that the city , until recently, did very well. Get out of the office and engage with citizens--especially in south PA--which seems increasingly, to be an afterthought for the city. Stop treating Cubberley like the basement the city uses to store stuff while you are fixing facilities in other parts of the city. The school district is now following the city's lead on that.

Cubberley MUST be functional to provide community services and a future school site for thousands of new residents who will be living in much smaller spaces than current residents. They are going to NEED community services and spaces.
• Utilities
• utilities seem to work well. i worry that change will only make them worse. especially overly ambitious ESG goals that while well intentioned may not be effective and just end up being a waste of money
• Utilities!
• Utilities, all of them.
• Utilities.
• utility and library services
• Utility Dept is a wonderful asset
• Walkability
• Walkable, bikeable, safe environment
• With the exception of the gas tax, the utilities department seems to be rather well run! • wonderful parks and open spaces
• Zoning of small shopping centers, easily accessible to the neighborhoods.

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Appendix E: Communities Included in National
Benchmark Comparisons
The communities included in the Palo Alto comparisons are listed on the following pages along with their population according to the 2017 American Community Survey.

Adams County, CO ................ 509,844
Albany city, OR ........................ 54,442
Albemarle County, VA ........... 108,819
Albert Lea city, MN .................. 17,804
Alexandria city, VA ................ 158,309
Allegan County, MI ................ 117,104
American Canyon city, CA ..... 20,256
Ankeny city, IA ......................... 64,744
Ann Arbor city, MI ................. 121,093
Apache Junction city, AZ ........ 41,863
Arapahoe County, CO............ 649,980
Asheville city, NC .................... 92,328
Ashland city, OR ...................... 21,138
Ashland town, MA ................... 17,787
Ashland town, VA ...................... 7,819
Athens-Clarke County unified
government (balance), . 124,962
Auburn city, AL ........................ 65,508
Aurora city, CO ...................... 379,434
Avon town, IN .......................... 18,056
Avondale city, AZ .................... 86,091
Bainbridge Island city, WA ...... 24,859
Baltimore County, MD ........... 828,193
Basehor city, KS ........................ 6,225
Batavia city, IL ......................... 26,479
Battle Creek city, MI ................ 51,084
Baytown city, TX ..................... 76,089
Beaumont city, CA .................. 48,272
Bedford city, TX....................... 49,145
Berthoud town, CO .................... 8,574
Bethlehem township, PA ........ 24,122
Bettendorf city, IA ................... 36,214
Billings city, MT ..................... 109,705
Bloomington city, IN ............... 84,691
Bloomington city, MN ............. 85,226
Bonner Springs city, KS............. 7,846
Borger city, TX ......................... 12,534
Boulder city, CO..................... 108,777
Bowling Green city, KY ............ 71,628
Bozeman city, MT ................... 48,330
Brighton city, CO ..................... 38,355
Broadview village, IL ................. 7,677
Brookline CDP, MA .................. 59,223
Brooklyn Center city, MN ........ 30,755
Brooklyn city, OH ..................... 10,788
Broomfield city, CO ................. 69,444
Brownsburg town, IN .............. 26,560
Buckeye town, AZ ................... 74,467
Buffalo Grove village, IL .......... 40,804
Canandaigua city, NY .............. 10,241
Cannon Beach city, OR ............. 1,554
Cañon City city, CO ................. 16,369
Cape Coral city, FL ................ 189,633
Carol Stream village, IL ........... 39,447
Cartersville city, GA ................. 21,331
Cedar Park city, TX ................. 77,181
Cedar Rapids city, IA ............ 133,125
Celina city, TX ......................... 13,608
Centennial city, CO ............... 111,331
Chanhassen city, MN.............. 25,965
Chapel Hill town, NC ............... 61,912
Chardon city, OH ....................... 5,168
Charles County, MD .............. 161,448
Charlotte County, FL ............. 185,926
Charlottesville city, VA ............ 47,217
Chatfield city, MN ..................... 2,690
Chattanooga city, TN ............ 181,370
Chesterfield County, VA ....... 348,500
Clackamas County, OR ......... 415,084
Clatsop County, OR ................. 39,656
Clayton city, MO ...................... 16,763
Clearwater city, FL ................ 115,975
Cleveland Heights city, OH ..... 44,176
Clive city, IA ............................ 17,246
Clovis city, CA ....................... 112,663
College Park city, MD ............. 32,221
Collegedale city, TN ................ 11,402
Colleyville city, TX ................... 26,766
Collinsville city, IL ................... 24,489
Columbia city, MO ................ 122,659
Commerce City city, CO.......... 55,891
Conshohocken borough, PA..... 8,039
Coolidge city, AZ ..................... 13,016
Coral Gables city, FL ............... 49,937
Coronado city, CA ................... 24,526
Corvallis city, OR ..................... 58,612
Coventry town, CT .................. 12,434
Cupertino city, CA ................... 59,799
Dacono city, CO ........................ 6,167
Dakota County, MN............... 425,271
Dallas city, OR ......................... 16,612
Dallas city, TX .................... 1,338,846
Danvers town, MA .................. 27,549
Danville city, KY ...................... 16,801
Davenport city, IA ................. 102,199
Davidson town, NC ................. 12,920
Daviess County, KY ............... 101,001
Dayton city, OH ..................... 140,444
Decatur city, GA ...................... 24,814
DeLand city, FL ....................... 33,620
Delhi charter township, MI ... 27,817
Denison city, TX ...................... 24,851
Denton city, TX ..................... 139,734
Denver city, CO ..................... 715,878
Des Peres city, MO ................... 8,654
DeSoto city, TX ....................... 53,170
Dothan city, AL ........................ 68,608
Dover city, NH ......................... 31,922
Dublin city, OH ........................ 47,824
Durham city, NC .................... 276,341
Durham County, NC .............. 317,665
Dyer town, IN .......................... 15,933
Eagan city, MN ........................66,377
Eden Prairie city, MN ...............64,481
Edina city, MN .........................52,215
Edmond city, OK ......................93,101
El Cerrito city, CA .....................25,280
El Mirage city, AZ ....................35,702
El Paso de Robles (Paso Robles)
city, CA ............................31,480
Elbert County, CO ....................26,230
Elgin city, IL .......................... 112,062
Elk Grove city, CA ................. 173,370
Englewood city, CO .................34,840
Erie town, CO ...........................27,157
Escambia County, FL ........... 316,691
Escondido city, CA ............... 150,396
Estes Park town, CO .................. 6,504
Farmers Branch city, TX ..........42,659
Farmington Hills city, MI .........80,937
Fate city, TX .............................14,300
Fayetteville city, GA .................17,902
Fayetteville city, NC .............. 211,201
Ferguson township, PA ...........19,540
F
ernandina Beach city, FL .......12,622
Flagstaff city, AZ .....................73,319
Florence town, AZ ...................26,777
Flower Mound town, TX ..........78,854
Fort Collins city, CO .............. 166,069
Franklin city, TN.......................80,675
Frederick town, CO ..................10,414
Fremont city, CA ................... 234,829
Frisco town, CO ......................... 2,928
Fruita city, CO ..........................14,068
Gaithersburg city, MD..............67,878
Gardner city, KS .......................21,936
Georgetown city, TX ................75,470
Gilbert town, AZ .................... 248,349
Glen Ellyn village, IL .................27,741
Glencoe village, IL ..................... 8,836
Glendora city, CA .....................51,087
Golden city, CO ........................20,391
Goodyear city, AZ ....................83,519
Grand Rapids city, MI ........... 199,417
Grand Traverse County, MI .....92,640
Greeley city, CO .................... 107,445
Greer city, SC ...........................32,229
Gulf Breeze city, FL ................... 6,725
Gunnison County, CO ..............17,119
Hamilton city, OH ....................62,162
Hanover County, VA ............. 106,538
Hastings city, MN ....................22,796
Highlands Ranch CDP, CO .. 107,017
Homer Glen village, IL .............24,521
Honolulu County, HI ............. 979,682
Hopkinton town, MA ...............18,030
Horry County, SC .................. 344,186
Huntsville city, TX ....................41,664
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Hutchinson city, MN ............... 13,935
Independence city, IA................ 6,085
Iowa City city, IA ...................... 75,849
Issaquah city, WA ................... 38,707
Jackson city, MO .................... 14,893
Jackson County, MI .............. 158,174
Jerome city, ID ........................ 11,824
Johnson City city, TN .............. 66,934
Johnson County, KS.............. 597,574
Johnston city, IA ..................... 22,077
Jupiter town, FL ...................... 65,139
Kalamazoo city, MI ................. 76,106
Kansas City city, KS .............. 153,014
Kansas City city, MO ............. 491,158
Kerrville city, TX ...................... 23,511
Kingman city, AZ ..................... 30,433
Kingsport city, TN ................... 53,699
La Mesa city, CA ..................... 60,208
La Vista city, NE ...................... 17,081
Laguna Beach city, CA ............ 22,991
Lake Elsinore city, CA ............. 64,201
Lake Forest city, CA ................ 84,666
Lake Havasu City city, AZ ....... 55,463
Lake in the Hills village, IL ...... 28,617
Lake Zurich village, IL ............. 19,912
Lakeville city, MN .................... 65,710
Lakewood city, CO ................ 155,733
Lakewood city, WA.................. 60,564
Lancaster County, SC ............. 95,378
Larkspur city, CA ..................... 12,363
Las Cruces city, NM .............. 102,950
Las Vegas city, NV ................ 644,594
Lawrence city, KS .................... 97,348
Lehi city, UT ............................. 66,980
Lenexa city, KS ........................ 54,804
Lewes city, DE ........................... 3,266
Lincolnwood village, IL ........... 12,338
Lindsborg city, KS ..................... 3,294
Little Elm city, TX .................... 49,792
Littleton city, CO ...................... 46,208
Livermore city, CA ................... 91,763
Longmont city, CO .................. 95,864
Los Alamos County, NM ......... 18,976
Loudoun County, VA ............. 405,312
Louisville city, CO .................... 19,342
Loveland city, CO .................... 81,774
Lynchburg city, VA .................. 80,970
Lynnwood city, WA.................. 38,538
Manassas city, VA .................. 41,038
Mankato city, MN .................... 42,685
Maple Grove city, MN.............. 71,569
Maplewood city, MN ............... 40,684
Marin County, CA .................. 259,441
Marion city, IA ......................... 39,910
Mariposa County, CA .............. 17,319
Marshalltown city, IA .............. 26,957
Maryland Heights city, MO ..... 26,996
Maui County, HI..................... 166,657
McKinney city, TX ................. 191,197
Mecklenburg County, NC ... 1,095,170
Menlo Park city, CA ................. 35,211
Mercer Island city, WA ............ 25,820
Meridian charter township, MI 42,853
Mesquite city, TX .................. 142,429
Middleton city, WI ................... 19,764
Middletown town, RI ............... 15,982
Milford city, DE ........................ 11,463
Milton city, GA ........................ 39,252
Minnetrista city, MN ................. 7,989
Minturn town, CO ...................... 1,149
Missoula County, MT ............ 119,062
Missouri City city, TX .............. 75,348
Moline city, IL .......................... 41,213
Monroe city, MI ....................... 19,543
Montgomery County, MD .. 1,047,661
Moorpark city, CA ................... 36,443
Morristown city, TN ................ 29,887
Morrisville town, NC ............... 27,582
Mount Prospect village, IL ...... 54,165
Mountlake Terrace city, WA ... 21,328
Muscatine city, IA ................... 23,661
Needham town, MA ................ 31,177
Nevada County, CA ................. 99,417
New Braunfels city, TX ........... 84,622
New Brighton city, MN ............ 22,663
New Concord village, OH .......... 2,530
New Orleans city, LA ............ 391,249
Nichols Hills city, OK ................ 3,910
Niles village, IL ........................ 29,198
Noblesville city, IN .................. 64,430
Norfolk city, NE ....................... 24,410
North Bend city, OR .................. 9,708
North Kansas City city, MO ... 4,606
North Mankato city, MN ......... 13,903
North Port city, FL ................... 68,779
Northglenn city, CO ................. 39,201
Novi city, MI ............................ 60,439
O'Fallon city, IL ........................ 29,487
Oak Park village, IL ................. 52,102
Oakdale city, MN..................... 27,925
Oklahoma City city, OK ......... 649,821
Olmsted County, MN ............ 156,446
Oregon City city, OR ................ 37,057
Orland Park village, IL ............. 58,380
Oshkosh city, WI ..................... 66,753
Overland Park city, KS .......... 193,412
Paducah city, KY ..................... 24,947
Palm Coast city, FL ................. 88,222
Palm Springs city, CA ............. 48,390
Palo Alto city, CA .................... 67,973
Panama City Beach city, FL ... 12,747
Papillion city, NE ..................... 24,310
Park City city, UT....................... 8,467
Parker town, CO ...................... 55,460
Pasco city, WA ........................ 74,266
Pasco County, FL .................. 539,885
Pearland city, TX ................... 125,817
Perryville city, MO ..................... 8,500
Philadelphia city, PA .......... 1,581,531
Pinehurst village, NC .............. 16,382
Plano city, TX ........................ 288,870
Plymouth city, MN .................. 78,879
Port St. Lucie city, FL ............ 195,773
Portage city, MI ....................... 49,224
Portland city, TX ..................... 17,807
Powhatan County, VA ............. 29,253
Prairie Village city, KS ............. 22,255
Prior Lake city, MN ................. 26,775
Pueblo city, CO ..................... 111,776
Puyallup city, WA .................... 41,666
Raleigh city, NC ..................... 469,698
Ramsey city, MN ..................... 27,201
Raymore city, MO ................... 21,676
Redlands city, CA .................... 71,680
Re
no city, NV ........................ 250,903
Richfield city, MN ....................36,253
Richland city, WA .....................57,353
Richmond city, CA ................ 110,051
Richmond city, VA ................ 229,233
Richmond Heights city, MO ...... 8,581
Rio Rancho city, NM ................97,976
River Falls city, WI ...................15,870
Riverside city, CA .................. 327,569
Rochester city, MN ............... 117,134
Rochester city, NY ................ 206,357
Rock Hill city, SC .....................74,410
Rockville city, MD ....................68,155
Roeland Park city, KS ................ 6,747
Rohnert Park city, CA ..............42,559
Rosemount city, MN ................24,792
Roseville city, CA .................. 138,860
Round Rock city, TX ............. 128,812
Royal Palm Beach village, FL ..39,615
Sacramento city, CA ............. 503,482
Salem city, OR ...................... 171,806
Sammamish city, WA ..............65,265
San Carlos city, CA ..................29,647
San Diego city, CA .............. 1,414,545
San Jose city, CA ............... 1,029,409
Sangamon County, IL ........... 195,963
Santa Cruz city, CA ..................65,011
Santa Fe County, NM ........... 150,319
Sausalito city, CA ...................... 7,177
Savage city, MN.......................31,758
Schaumburg township, IL .... 129,604
Schaumburg village, IL ............73,392
Scott County, MN ................. 147,201
Scottsdale city, AZ ............... 254,995
Sedona city, AZ .......................10,341
Sevierville city, TN ...................17,185
Shakopee city, MN ..................41,423
Shawnee city, KS .....................65,844
Shorewood village, IL ..............17,303
Shrewsbury town, MA .............37,683
Sioux Falls city, SD ............... 180,927
Skokie village, IL ......................63,300
Snoqualmie city, WA ...............13,550
Snowmass Village town, CO ..... 2,786
Somerset town, MA .................18,160
South Bend city, IN ............... 102,686
South Portland city, ME ...........25,665
Spring Hill city, KS ..................... 6,992
Springville city, UT ...................33,251
St. Augustine city, FL...............15,065
St. Charles city, IL ....................32,612
St. Cloud city, MN ....................68,390
St. Croix County, WI .................89,702
St. Louis County, MN ............ 199,499
St. Lucie County, FL.............. 320,914
Stafford County, VA ............. 150,185
State College borough, PA ......42,100
Steamboat Springs city, CO ....13,048
Sugar Land city, TX .............. 118,563
Sunnyvale city, CA ................ 152,569
Surprise city, AZ ................... 139,007
Suwanee city, GA.....................20,444
Tacoma city, WA .................. 215,766
Takoma Park city, MD .............17,703
Tempe city, AZ ..................... 191,607
Temple city, TX ........................76,590
The Woodlands CDP, TX ...... 114,532
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Thomasville city, NC ............... 26,834
Thousand Oaks city, CA ........ 127,648
Tinley Park village, IL .............. 56,082
Tracy city, CA .......................... 91,462
Tualatin city, OR ...................... 27,601
Tustin city, CA ......................... 80,815
Twin Falls city, ID .................... 49,819
Unalaska city, AK ...................... 4,758
Urbandale city, IA .................... 43,879
Vallejo city, CA ...................... 121,275
Victoria city, MN ........................ 9,787
Vienna town, VA ...................... 16,532
Walnut Creek city, CA ............. 69,836
Warrensburg city, MO ............. 20,313
Washington County, MN....... 259,072
Washington County, RI ......... 126,139
Washoe County, NV .............. 464,182
Washougal city, WA ................ 15,927
Waukesha city, WI .................. 72,419
Waunakee village, WI .............. 13,903
Wellington village, FL .............. 64,990
West Bend city, WI .................. 31,587
West Chester township, OH ... 64,420
West St. Paul city, MN ............ 19,805
Westminster city, CO ............ 114,832
Westminster city, MD ............. 18,649
Wheat Ridge city, CO ...............31,889
White House city, TN ...............12,258
Wichita city, KS ..................... 390,566
Williamsburg city, VA ..............15,034
Wilmington city, NC .............. 122,162
Wilsonville city, OR ..................24,413
Windsor town, CO ....................23,679
Winston-Salem city, NC ........ 245,787
Winter Garden city, FL .............44,888
Woodbury city, MN ..................71,298
Woodinville city, WA ................13,038
Wyoming city, MI ....................... 75,99
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City of Palo Alto Community Survey
January 2023

Report of Results

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Appendix F: Survey Materials
The following pages contain copies of the survey materials sent to randomly selected households within the City of Palo Alto.

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Dear Palo Alto Resident,
Our annual Community Survey is a critical community feedback tool that helps the City Council and City staff understand community perspectives on current services and programs, as well as unmet needs and priorities. You can go online and complete the survey now at:
https://polco.us/xxplaceholder
Please do not share your survey link. This survey is for randomly selected households only. The City will conduct a separate survey that is open to all residents just a few weeks from now.

For additional ways to join the conversation and provide input, go to www.cityofpaloalto.org/engage Sincerely,

Ed Shikada
City Manager

For additional ways to join the conversation and provide input, go to www.cityofpaloalto.org/engage Sincerely,

Ed Shikada
City Manager

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Presorted
First Class Mail
US Postage
PAID
Boulder, CO
Permit NO. 94
250 Hamilton Avenue, 7th Floor
Palo Alto, CA 94301
Presorted
First Class Mail
US Postage
PAID
Boulder, CO
Permit NO. 94
250 Hamilton Avenue, 7th Floor
Palo Alto, CA 94301
ITEM 3
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Dear Palo Alto Resident,
Just a reminder—if you have not yet completed Palo Alto’s 2022 Community Survey, please do so. If you have completed it, thank you. Please do not respond twice.

Our annual Community Survey is a critical community feedback tool that helps the City Council and City staff understand community perspectives on current services and programs, as well as unmet needs and priorities. You can go online and complete the survey now at:
https://polco.us/xxplaceholder
Please do not share your survey link. This survey is for randomly selected households only. The City will conduct a separate survey that is open to all residents just a few weeks from now.

For additional ways to join the conversation and provide input, go to www.cityofpaloalto.org/engage Sincerely,

Ed Shikada
City Manager

Dear Palo Alto Resident,
Just a reminder—if you have not yet completed Palo Alto’s 2022 Community Survey, please do so. If you have completed it, thank you. Please do not respond twice.

For additional ways to join the conversation and provide input, go to www.cityofpaloalto.org/engage Sincerely,

Ed Shikada
City Manager

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Dear Palo Alto Resident,
Our annual Community Survey is a critical community feedback tool that helps the City Council and City staff understand community perspectives on current services and programs, as well as unmet needs and priorities. A paper survey will arrive in a few days, or you can go online and complete the survey now at:
https://polco.us/xxplaceholder
Please do not share your survey link. This survey is for randomly selected households only. The City will conduct a separate survey that is open to all residents just a few weeks from now.

For additional ways to join the conversation and provide input, go to www.cityofpaloalto.org/engage Sincerely,

Ed Shikada
City Manager

Dear Palo Alto Resident,
Our annual Community Survey is a critical community feedback tool that helps the City Council and City staff understand community perspectives on current services and programs, as well as unmet needs and priorities. A paper survey will arrive in a few days, or you can go online and complete the survey now at:
https://polco.us/xxplaceholder
Please do not share your survey link. This survey is for randomly selected households only. The City will conduct a separate survey that is open to all residents just a few weeks from now.

For additional ways to join the conversation and provide input, go to www.cityofpaloalto.org/engage Sincerely,

Ed Shikada
City Manager

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October 2022
Dear Palo Alto Resident:

Please help us shape the future of Palo Alto! You have been selected at random to participate in the 2022 Palo Alto Community Survey. Please take a moment to share your feedback about our community.

The annual Community Survey is a critical community feedback effort that helps the City Council and City staff understand community perspectives on current services and programs, as well as unmet needs and priorities. The survey is one way among many through which we gain insights from residents throughout our community.

Please take a few minutes to fill out the enclosed survey. Your participation in this survey is very important— especially since your household is one of only a small number being surveyed. The survey results are reviewed by the City Council and City staff and community input helps shape the City’s decision-making processes and changes to City services.

A few things to remember:
• Responses are completely anonymous.
• In order to hear from a diverse group of residents, the adult 18 years or older in your household who most recently had a birthday should complete this survey. • You may return the survey by mail in the enclosed postage-paid envelope, or you can complete the survey online at:
https://polco.us/xxplaceholder
If you have any questions about the survey, please call (650) 329-2392.

For additional ways to engage with the City, go to www.cityofpaloalto.org/engage

Thank you for your time and participation!
Sincerely,

Ed Shikada
City Manager
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2022 Community Survey

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Please complete this survey if you are the adult (age 18 or older) in the household who most recently had a birthday (the year of birth does not matter). Your responses are anonymous and will be reported in group form only.

1. Please rate each of the following aspects of quality of life in Palo Alto.

Excellent Good Fair Poor Don’t know
Palo Alto as a place to live ............................................................................ 1 2 3 4 5 Your neighborhood as a place to live ............................................................. 1 2 3 4 5 Palo Alto as a place to raise children.............................................................. 1 2 3 4 5 Palo Alto as a place to work .......................................................................... 1 2 3 4 5 Palo Alto as a place to visit ............................................................................ 1 2 3 4 5 Palo Alto as a place to retire .......................................................................... 1 2 3 4 5 The overall quality of life in Palo Alto ............................................................. 1 2 3 4 5

2. Please rate each of the following characteristics as they relate to Palo Alto as a whole.

Excellent Good Fair Poor Don’t know
Overall “built environment” of Palo Alto (including overall design, buildings, parks and transportation systems) .............................................. 1 2 3 4 5 Overall feeling of safety in Palo Alto .............................................................. 1 2 3 4 5 Overall quality of natural environment in Palo Alto ......................................... 1 2 3 4 5 Overall health and wellness opportunities in Palo Alto .................................... 1 2 3 4 5 Residents’ connection and engagement with their community ....................... 1 2 3 4 5

3. Please indicate how likely or unlikely you are to do each of the following.

Very Somewhat Somewhat Very Don’t
likely likely unlikely unlikely know
Recommend living in Palo Alto to someone who asks .................... 1 2 3 4 5 Remain in Palo Alto for the next five years .................................... 1 2 3 4 5 Recommend Palo Alto’s libraries to friends .................................... 1 2 3 4 5

4. Please rate the job you feel the Palo Alto community does at each of the following.

Excellent Good Fair Poor Don’t know
Making all residents feel welcome ................................................................. 1 2 3 4 5 Attracting people from diverse backgrounds .................................................. 1 2 3 4 5 Valuing/respecting residents from diverse backgrounds ................................. 1 2 3 4 5 Taking care of vulnerable residents (elderly, disabled, homeless, etc.) ........... 1 2 3 4 5

5. Please rate each of the following characteristics as they relate to Palo Alto as a whole.

Excellent Good Fair Poor Don’t know
Overall quality of business and service establishments in Palo Alto ................. 1 2 3 4 5 Variety of business and service establishments in Palo Alto ............................ 1 2 3 4 5 Vibrancy of downtown/commercial area ........................................................ 1 2 3 4 5 Employment opportunities ............................................................................ 1 2 3 4 5 Shopping opportunities ................................................................................. 1 2 3 4 5 Cost of living in Palo Alto ............................................................................... 1 2 3 4 5 Overall image or reputation of Palo Alto ........................................................ 1 2 3 4 5 Traffic flow on major streets ......................................................................... 1 2 3 4 5 Ease of public parking ................................................................................... 1 2 3 4 5 Ease of travel by car in Palo Alto ................................................................... 1 2 3 4 5 Ease of travel by public transportation in Palo Alto ......................................... 1 2 3 4 5 Ease of travel by bicycle in Palo Alto .............................................................. 1 2 3 4 5 Ease of walking in Palo Alto .......................................................................... 1 2 3 4 5 Variety of housing options ............................................................................ 1 2 3 4 5 Availability of affordable quality housing ........................................................ 1 2 3 4 5 Overall quality of new development in Palo Alto ............................................ 1 2 3 4 5 Availability of paths and walking trails ........................................................... 1 2 3 4 5 Fitness opportunities (including exercise classes and paths or trails, etc.) ....... 1 2 3 4 5 Recreational opportunities ............................................................................ 1 2 3 4 5 Availability of affordable quality mental health care ........................................ 1 2 3 4 5 Opportunities to attend cultural/arts/music activities ...................................... 1 2 3 4 5 ITEM 3
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6. Please rate each of the following characteristics as they relate to Palo Alto as a whole.

Excellent Good Fair Poor Don’t know
Availability of affordable quality childcare/preschool ....................................... 1 2 3 4 5 K-12 education ............................................................................................. 1 2 3 4 5 Adult educational opportunities ..................................................................... 1 2 3 4 5 Opportunities to participate in social events and activities .............................. 1 2 3 4 5 Opportunities to participate in community matters ......................................... 1 2 3 4 5 Openness and acceptance of the community toward people
of diverse backgrounds.............................................................................. 1 2 3 4 5 Opportunities to learn about City services through social media websites such as Twitter and Facebook ..................................................... 1 2 3 4 5

7. Please indicate whether or not you have done each of the following in the last 12 months.

No Yes
Used Palo Alto recreation centers or their services ................................................................................... 1 2 Visited a neighborhood park or City park ................................................................................................. 1 2 Used Palo Alto public libraries or their services ......................................................................................... 1 2 Participated in religious or spiritual activities in Palo Alto .......................................................................... 1 2 Attended a City-sponsored event ............................................................................................................ 1 2 Participated in a club .............................................................................................................................. 1 2 Talked to or visited with your immediate neighbors ................................................................................. 1 2 Done a favor for a neighbor .................................................................................................................... 1 2 Used the City’s website to conduct business or pay bills ........................................................................... 1 2 Used the Utilities website to conduct business or pay bills ........................................................................ 1 2 Contacted the City of Palo Alto (in-person, phone, email or web) for help or information .......................... 1 2 Contacted Palo Alto elected officials (in-person, phone, email or web) to express your opinion ................. 1 2 Attended a local public meeting (of local elected officials like City Council or County Commissioners, advisory boards, town halls, HOA, neighborhood watch, etc.) ................................... 1 2 Watched (online or on television) a local public meeting .......................................................................... 1 2 Volunteered your time to some group/activity in Palo Alto ....................................................................... 1 2 Voted in your most recent local election .................................................................................................. 1 2 Used bus, rail, or other public transportation instead of driving ................................................................ 1 2 Carpooled with other adults or children instead of driving alone ............................................................... 1 2 Walked or biked instead of driving .......................................................................................................... 1 2 Observed a code violation or other hazard in Palo Alto (weeds, abandoned buildings, etc.) ...................... 1 2 Household member was a victim of a crime in Palo Alto .......................................................................... 1 2 Reported a crime to the police in Palo Alto .............................................................................................. 1 2 Stocked 14 days’ worth of supplies in case of a major disaster where you have no electricity, water, internet, or telephone service .................................................................................. 1 2

8. Please rate the following categories of Palo Alto government performance.

Excellent Good Fair Poor Don’t know
The value of services for the taxes paid to Palo Alto ...................................... 1 2 3 4 5 The overall direction that Palo Alto is taking .................................................. 1 2 3 4 5 The job Palo Alto government does at welcoming resident involvement ......... 1 2 3 4 5 Overall confidence in Palo Alto government ................................................... 1 2 3 4 5 Generally acting in the best interest of the community ................................... 1 2 3 4 5 Being honest ................................................................................................ 1 2 3 4 5 Being open and transparent to the public ...................................................... 1 2 3 4 5 Informing residents about issues facing the community ................................. 1 2 3 4 5 Treating all residents fairly ............................................................................ 1 2 3 4 5 Treating residents with respect ..................................................................... 1 2 3 4 5

9. Overall, how would you rate the quality of the services provided by each of the following? Excellent Good Fair Poor Don’t know
The City of Palo Alto ..................................................................................... 1 2 3 4 5 The State Government ................................................................................. 1 2 3 4 5 The Federal Government .............................................................................. 1 2 3 4 5

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2022 Community Survey

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10. Please rate the quality of each of the following services in Palo Alto.

Excellent Good Fair Poor Don’t know
Traffic enforcement ............................................................................................ 1 2 3 4 5 Traffic signal timing ............................................................................................ 1 2 3 4 5 Street repair ....................................................................................................... 1 2 3 4 5 Street cleaning ................................................................................................... 1 2 3 4 5 Street tree maintenance ..................................................................................... 1 2 3 4 5 Sidewalk maintenance ........................................................................................ 1 2 3 4 5 Land use, planning, and zoning ........................................................................... 1 2 3 4 5 Code enforcement (weeds, abandoned buildings, etc.) ....................................... 1 2 3 4 5 Preservation of natural areas (open space, farmlands and greenbelts) ................. 1 2 3 4 5 Building and planning application processing services .......................................... 1 2 3 4 5 Affordable high-speed internet access ................................................................. 1 2 3 4 5 Electric utility ...................................................................................................... 1 2 3 4 5 Gas utility ........................................................................................................... 1 2 3 4 5 Utility payment options ....................................................................................... 1 2 3 4 5 Drinking water .................................................................................................... 1 2 3 4 5 Sewer services ................................................................................................... 1 2 3 4 5 Storm water management (storm drainage, dams, levees, etc.) ......................... 1 2 3 4 5 Refuse collection (garbage, recycling, yard waste, and e-waste) .......................... 1 2 3 4 5 Police emergency services .................................................................................. 1 2 3 4 5 Crime prevention ................................................................................................ 1 2 3 4 5 Animal control .................................................................................................... 1 2 3 4 5 Ambulance or emergency medical services .......................................................... 1 2 3 4 5 Fire emergency services...................................................................................... 1 2 3 4 5 Fire prevention and education ............................................................................. 1 2 3 4 5 Palo Alto open space (e.g Foothills, Baylands) ..................................................... 1 2 3 4 5 City parks ........................................................................................................... 1 2 3 4 5 Recreation programs or classes ........................................................................... 1 2 3 4 5 Recreation centers or facilities ............................................................................. 1 2 3 4 5 Public library services (e.g., hold requests, storytimes, teen events, bookclubs) .... 1 2 3 4 5 Library facilities (buildings, computer equipment, accessibility) ............................. 1 2 3 4 5 Variety of library materials (books, e-books, streaming, databases, audiobooks) ... 1 2 3 4 5 Art programs and theater ................................................................................... 1 2 3 4 5 City-sponsored special events ............................................................................. 1 2 3 4 5 City website (cityofpaloalto.org) .......................................................................... 1 2 3 4 5 Public information services (Police/public safety) ................................................. 1 2 3 4 5 Public information services (non-Police/public safety) .......................................... 1 2 3 4 5 Overall customer service by Palo Alto employees
(police, receptionists, planners, etc.) ............................................................... 1 2 3 4 5

11. Please rate the following as they relate to Palo Alto Utilities’ services:

Excellent Good Fair Poor Don’t know
Reliability of utility services ................................................................................ 1 2 3 4 5 Affordability of utility services ............................................................................ 1 2 3 4 5 Community value received from the City owning and operating its own municipal utility services ......................................................................... 1 2 3 4 5 Utilities online customer self-service features ..................................................... 1 2 3 4 5 Providing opportunities for energy and water efficiency at home or business ...... 1 2 3 4 5 Working hard to keep utilities prices competitive ............................................... 1 2 3 4 5 Value of all the services Palo Alto Utilities provides for the price you pay ............ 1 2 3 4 5 Ease of obtaining information or performing a transaction through the City’s website ................................................................................................ 1 2 3 4 5 Value of Palo Alto Utilities’ customer communications ........................................ 1 2 3 4 5 Ease of contacting Utilities department staff ...................................................... 1 2 3 4 5 Speed of response after contacting Utilities department staff ............................. 1 2 3 4 5

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12. Please rate how important, if at all, you think it is for the Palo Alto community to focus on each of the following in the coming two years. Very Somewhat Not at all Essential important important important
Overall “built environment” of Palo Alto (including overall design, buildings, parks and transportation systems) .................................................. 1 2 3 4 Overall economic health of Palo Alto ................................................................. 1 2 3 4 Overall feeling of safety in Palo Alto .................................................................. 1 2 3 4 Overall quality of natural environment in Palo Alto ............................................. 1 2 3 4 Overall health and wellness opportunities in Palo Alto ........................................ 1 2 3 4 Overall opportunities for education, culture and the arts .................................... 1 2 3 4 Residents’ connection and engagement with their community ........................... 1 2 3 4 Reducing community greenhouse gas emissions ............................................... 1 2 3 4 Increasing local solar generation capacity within city boundaries ........................ 1 2 3 4 Increasing electric storage capacity within city boundaries ................................. 1 2 3 4 Faster notification systems (online, mobile or email) for Utilities billing issues, efficiency tips, outage information ............................................. 1 2 3 4 Faster notification systems (online, mobile or email) for public safety issues ....... 1 2 3 4

13. In a typical week, how likely are you to: Very Somewhat Somewhat Very Don’t likely likely unlikely unlikely know
Participate in organized group activities (such as clubs, sports teams, volunteer your time, attend church/temple) ......................... 1 2 3 4 5 Spend quality time with local friends, family, and/or neighbors ........... 1 2 3 4 5

14. What mode of transportation do you use most for your typical daily needs for getting around town?  Driving  Biking  Train  Taxi  Carpooling
 Walking  Bus  Free shuttle  Uber/Lyft or similar rideshare service

15. If you did not have access to a car for your usual daily transportation around town, how convenient (based on time and proximity) would you consider each of the following methods of getting around? Very Somewhat Somewhat Very
convenient convenient inconvenient inconvenient
Walking ............................................................................................. 1 2 3 4 Biking ................................................................................................ 1 2 3 4 Bus ................................................................................................... 1 2 3 4 Train ................................................................................................. 1 2 3 4 Free shuttle ....................................................................................... 1 2 3 4 Taxi................................................................................................... 1 2 3 4 Uber/Lyft or similar rideshare service ................................................. 1 2 3 4 Carpooling ......................................................................................... 1 2 3 4

16. If you plan to purchase a car within the next two years, what is the likelihood of it being one of the following: Very Somewhat Somewhat Very Don’t
likely likely unlikely unlikely know
All-electric ......................................................................................... 1 2 3 4 5 Plug-in hybrid .................................................................................... 1 2 3 4 5 Hydrogen fuel cell .............................................................................. 1 2 3 4 5 Other:_____________________________________________ .......... 1 2 3 4 5

17. Palo Alto is committed to addressing climate change by engaging in strategies that reduce Greenhouse Gas Emissions (GHGs). Space heating is the largest source of GHG in most Palo Alto homes, followed by water heating. What is the likelihood of you… Very Somewhat Somewhat Very Don’t likely likely unlikely unlikely know
Replacing your gas water heater with a heat pump water heater when you are ready to replace the water heater? ............................ 1 2 3 4 5 Replacing your gas furnace with a heat pump HVAC system (that provides heating and cooling) when you are ready to replace the furnace? ................................................................................... 1 2 3 4 5

18. As a resident of Palo Alto, what one change could the City make that would make you happier?

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19. As a resident of Palo Alto, what one thing do you believe the City does well and would want to maintain?

Our last questions are about you and your household.

Again, all of your responses to this survey are completely anonymous and will be reported in group form only.

D1. What impact, if any, do you think the economy will have on your family income in the next 6 months? Do you think the impact will be:
 Very positive  Somewhat positive  Neutral  Somewhat negative  Very negative D2. What is your employment status?
 Working full time for pay
 Working part time for pay
 Unemployed, looking for paid work
 Unemployed, not looking for paid work
 Fully retired
 College student, unemployed
D3. Do you work inside the boundaries of Palo Alto?
 Yes, outside the home  No
 Yes, from home
D4. How many years have you lived in Palo Alto?
 Less than 2 years  11-20 years
 2-5 years  More than 20 years
 6-10 years
D5. Which best describes the building you live in?
 One family house detached from any other houses
 Building with two or more homes (duplex,
townhome, apartment or condominium)
 Mobile home
 Other
D6. Do you rent or own your home?
 Rent  Own
D7. About how much is your monthly housing cost
for the place you live (including rent, mortgage
payment, property tax, property insurance and
homeowners’ association (HOA) fees)?
 Less than $500  $5,500 to $5,999
 $500 to $999  $6,000 to $6,499
 $1,000 to $1,499  $6,500 to $6,999
 $1,500 to $1,999  $7,000 to $7,499
 $2,000 to $2,499  $7,500 to $7,999
 $2,499 to $2,999  $8,000 to $8,499
 $3,000 to $3,499  $8,500 to $8,999
 $3,500 to $3,999  $9,000 to $9,499
 $4,000 to $4,499  $9,500 to $9,999
 $4,500 to $4,999  $10,000 or more
 $5,000 to $5,499
D8. Do any children 17 or under live in your
household?
 No  Yes
D9. Are you or any other members of your
household aged 65 or older?
 No  Yes
D10. How much do you anticipate your household’s
total income before taxes will be for the
current year? (Total income from all sources
for all persons living in your household.)
 Less than $25,000  $250,000 to $299,999
 $25,000 to $49,999  $300,000 to $349,999
 $50,000 to $99,999  $350,000 to $399,999
 $100,000 to $149,000  $400,000 to $449,999
 $150,000 to $199,999  $450,000 to $499,999
 $200,000 to $249,999  $500,000 or more
D11. Are you Spanish, Hispanic or Latino?
 No, not Spanish, Hispanic or Latino
 Yes, I consider myself to be Spanish, Hispanic or
Latino
D12. What is your race? (Mark one or more races to
indicate what you consider yourself to be.)
 American Indian or Alaskan Native  White
 Asian, Asian Indian or Pacific Islander  Other
 Black or African American
D13. In which category is your age?
 18-24 years  45-54 years  65-74 years
 25-34 years  55-64 years  75 years or older
 35-44 years
D14. What is your gender?
 Woman
 Man
 Identify in another way  go to D14a
D14a. If you identify in another way, how would you
describe your gender?
 Agender/ I don’t identify  Transgender man
with any gender  Transgender woman
 Genderqueer/gender fluid  Two-spirit
 Non-binary  Not listed, I identify
as:_________________
D15. What is your sexual orientation?
 Heterosexual  Bisexual
 Lesbian  Identify in another way
 Gay  go to D15a
D15a. If you identify in another way, how would you
describe your sexual orientation?
 Asexual  Questioning
 Pansexual  Not listed, I identify as:
 Queer ____________________________
Thank you! Please return the completed survey in the postage-paid envelope to:

National Research Center, Inc., PO Box 549, Belle Mead, NJ 08502 ITEM 3
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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT
Lead Department: Public Works
Meeting Date: January 23, 2023

TITLE
Approval of a General Services Agreement with Linko Technology, Inc. (Contract C23185605) in the Amount of $219,447 Over a Seven-Year Term for Pretreatment Program Software

RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute the attached general services contract with Linko Technology, Inc. in an amount not to exceed $219,447 for a seven-year software subscription to manage the Regional Water Quality Control Plant’s Pretreatment Program data. The contract amount includes $199,497 for basic services and $19,950 for related, additional but unforeseen work that may develop during the contract (additional services).

BACKGROUND
The Regional Water Quality Control Plant (RWQCP) is required to have a Pretreatment Program that controls and monitors industrial discharges to the RWQCP per its National Pollutant Discharge Elimination System (NPDES) Permit and as specified in the federal Pretreatment Regulations (Title 40 of the Code of Federal Regulations, Part 403). The City of Palo Alto Public Works Pretreatment Program permits, inspects, and conducts monitoring (i.e., sampling of discharge) on the industrial waste activities of industries and commercial dischargers located in the East Palo Alto Sanitary District, Los Altos, Los Altos Hills, Palo Alto, and Stanford University.

While Mountain View permits and inspects industrial waste activities in their jurisdiction, the City of Palo Alto Public Works Pretreatment Program conducts monitoring of those facilities. These regulated businesses include, but are not limited to, research and development facilities, metal finishers, photographic processors, dentists, vehicle service facilities, and machine shops. The Pretreatment Program utilizes a software database to effectively manage thousands of data points collected annually on the permitting and monitoring requirements for what is currently 111 facilities.

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the need to update the software and identified the custom-made software as a vulnerability for this highly regulated Program. As such, the Pretreatment Program Management at that time went through a request for proposals (RFP) to find a product that met Program needs while also providing a larger support system for troubleshooting and maintaining data. After extensive review of the proposals and the software capabilities, LinkoCTS (a commercial off-the-shelf software) was confirmed as the best fit and was selected to manage the Pretreatment Program data. The City then entered into Professional Services Agreement No. S19174949 with Linko Technology, Inc. for transition over to the new software and three years of software hosting and support.1
After contracting in 2019, City staff spent over five months on-boarding in order to migrate existing data from the previous database, set up and confirm user accounts, and conduct initial training. After formal on-boarding with Linko Technology, Inc. staff, City Pretreatment Program staff spent an additional year on in-house training and developing Standard Operating Procedures tailored to LinkoCTS to ensure optimal use for City-specific processes. This software has since become an integral part of the Pretreatment Program's effort to manage the large amount of data generated from monitoring events, industrial permits, and various reporting processes to ensure compliance with federal Pretreatment regulations. The current agreement with Linko Technologies, Inc. expired October 28, 2022, and staff is seeking a new agreement with Linko Technology, Inc to continue use of this software and support (Attachment A).

ANALYSIS
Linko Technology, Inc. is the sole developer and producer of this proprietary software. Linko Technology, Inc., is the only organization authorized to provide Linko Software, implementation services, training, or support of the LinkoCTS software. Staff is satisfied with this new software and recommends continuing on this platform. As such, staff did not conduct a solicitation and instead received an exemption from solicitation approval, per Palo Alto Municipal Code 2.30.360 (b)(2), which allows an exemption when “due to circumstances beyond the control of the city, the time necessary to use the competitive solicitation process, procedures and requirements would result in a substantial economic loss to the city or the substantial interference with a required city operation”.

TIMELINE
There are no service impacts anticipated with renewing the LinkoCTS subscription and support service. The Consultant is expected to provide hosting and support of the software for seven 1 Contract No. S19174949 with Linko Technology, Inc, 2019 https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-control-plant/files-for-staff- reports/contract-s19174949-linko-technology.pdf
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years. Work is expected to begin in February 2023 and conclude in February 2030. Software services and troubleshooting support will seamlessly continue with this new agreement.

FISCAL/RESOURCE IMPACT
The Linko Technology, Inc. contract amount is not to exceed $219,447 at the end of the seven- year term, which includes $199,497 for basic services and $19,950 for related, additional but unforeseen work that may develop during the contract. Funding of $20,343 for this agreement is available in the Fiscal Year 2023 Adopted Budget in the Wastewater Treatment Fund. Funding for future years of the contract will be subject to Council appropriation as part of the annual budget process.

POLICY IMPLICATIONS
This project is in conformance with the City of Palo Alto Comprehensive Plan and does not represent any changes to existing City policies.

STAKEHOLDER ENGAGEMENT
Use of the Pretreatment Program software does not involve public meetings or other stakeholder engagement; primary users of the software are City staff.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because the award of a contract for Pretreatment Program software hosting and support services is a continuing administrative or maintenance activity. CEQA Guidelines section 15378(b)(2).

ATTACHMENTS
Attachment A: Linko Technology, Inc. Contract, C23185605 APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
Report #: 2211-0394
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CITY OF PALO ALTO CONTRACT NO. C23185605

GENERAL SERVICES AGREEMENT

THIS AGREEMENT made and entered into on the 23rd day of January, 2023, by and between the CITY OF PALO ALTO, a California c hartered municipal corporation (“CITY”), and LINKO TECHNOLOGY, INC. , a Washington corporation and wholly owned subsidiary of Aquatic Informatics Inc., located at 1999 Broadway, Suite 830, Denver, CO 80202, Telephone Number:
(602) 809-2509 (“CONTRACTOR”). In consideration of their mutual covenants, the parties hereto agree as follows:

1. SERVICES. CONTRACTOR shall provide or furnish the services ( the “Services”) described in the Scope of Services, attached at Exhibit A.

2. EXHIBITS. The following exhibits 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” – Information Privacy Policy
“F” – Cybersecurity Terms & Conditions

CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.

3. TERM.

The term of this Agreement is from March 1, 2023 to February 28, 2030 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 a t 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:

A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total maximum compensation amount of Two Hundred and Nineteen Thousand Four Hundred and Forty Seven dollars ($219,447.00).

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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.

CITY has set aside the sum of Nineteen Thousand Nine Hundred and Fifty dollars ($19,950.00) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR’s proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiate d lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement.

6. COMPENSATION DURING ADDITIONAL TERMS.

CONTRACTOR’S compensation rates for each additional term shall be the same as the original term; OR

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 __ Claims for Public Contract Code Section 9204 Public Works Projects”.

This project is not a 9204 Public Works Project.

8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project Manager is: Isabel Zacharczuk, Dept.: Public Works, Watershed Protection, Telephone: (650) 329- 2585. Invoices shall be submitted based on the Invoice Schedule in Exhibit C: Schedule of Fees. 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.

GENERAL TERMS AND CONDITIONS

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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 “SERVICES,” 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, including 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.

CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors.

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 DocuSign Envelope ID: 784B7CE1-45CA-4E21-B871-71E788908C11 ITEM 4
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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 Agreem ent. 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 shal l be in effect for a period of one year from completion of 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 determ ine 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 from 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.

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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. CONTRACTOR 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 a nd 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 insurance coverages and endorsements to the Risk Manager. CO NTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policie s 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 limitation 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, nation al 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 DocuSign Envelope ID: 784B7CE1-45CA-4E21-B871-71E788908C11 ITEM 4
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agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

Q. WORKERS' COMPENSATION. CONTRACTOR, 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 cert ifies 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. Upon recei pt 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 pay ment the amount of actual 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, ske tches, 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 A greement 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 Agreement, it will not employ any person having such an interest. CONTRACTOR certifies that no CITY officer, 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.

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V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services 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 exhibi ts. 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 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 reduc ing 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 pri nter including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double -sided and printed on a minimum of 30% or greater post -consumer content paper, unless otherwise approved by CITY ’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post - consumer material and printed with vegetable based inks. • Goods purchased by Contractor on behalf of CITY shall be purchased in accordance with CITY’s E nvironmental 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 CONTRCATOR, 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

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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.

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 CONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code section 1776, including:

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.

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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.

If the certified payroll records are not produced to the project manager within the 10- day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR.

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.

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 LINKO TECHNOLOGY, INC.

______________________________ By________________________________________ City Manager Name _____________________________________ Title_______________________________________
Telephone: _______________________________

Approved as to form:

___________________________
City Attorney or Designee

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James Reyes
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EXHIBIT A

SCOPE OF SERVICES

BACKGROUND
The Palo Alto Regional Water Quality Control Plant (RWQCP) regulates wastes discharged to the sanitary sewer from industrial and commercial facilities located within its service area through its Regulatory Compliance Program. Operations within the Industrial Waste Discharge Program involve issuing discharge permits, collecting wastewater samples, and processing period compliance reports from industrial and commercial users.

To manage the data for the Regulatory Compliance Program, the RWQCP requires CONSULTANT services to continue maintaining a hosted database and software solution hereafter referred to as “Pretreatment Information Management System” (PIMS). The new PIMS was contracted in 2019 and went live in 2020 to replace the RWQCP’s previous site-specific PIMS. The hosted service shall include software and/or service implementation, configuration, training, tailoring and testing as follows:

SCOPE OF SERVICES
Task 1.0 Year 1 PIMS Hosting and Software Subscription
CONSULTANT shall host PIMS as an offsite cloud service and shall support no more than 6 concurrent City users. PIMS shall be provided as an annual subscription service that includes software support, maintenance, and updates, in accordance with the terms set forth in Exhibit A-1.

CONSULTANT shall provide hosting and support for the following software modules:
• LinkoCTS
• LabSync 2.0
• Remote Inspector
• Sampling Assistant
• Remote Sampler
• RDP User(s)
• Aquatic Academy User(s)

Task 2.0 Year 2 PIMS Hosting and Software Subscription
CONSULTANT shall host PIMS as an offsite cloud service and shall support no more than 6 concurrent City users. PIMS shall be provided as an annual subscription service that includes software support, maintenance, and updates, in accordance with the terms set forth in Exhibit A-1.

CONSULTANT shall provide hosting and support for the following software modules:
• LinkoExchange
• LinkoCTS
• LabSync 2.0
• Remote Inspector
• Sampling Assistant
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• Remote Sampler
• RDP User(s)
• Aquatic Academy User(s)

Task 3.0 Year 3 PIMS Hosting and Software Subscription Services CONSULTANT shall host PIMS as an offsite cloud service and shall support no more than 6 concurrent City users. PIMS shall be provided as an annual subscription service that includes software support, maintenance, and updates, in accordance with the terms set forth in Exhibit A-1.

CONSULTANT shall provide hosting and support for the following software modules:
• LinkoExchange
• LinkoCTS
• LabSync 2.0
• Remote Inspector
• Sampling Assistant
• Remote Sampler
• RDP User(s)
• Aquatic Academy User(s)

Task 4.0 Year 4 PIMS Hosting and Software Subscription Services CONSULTANT shall host PIMS as an offsite cloud service and shall support no more than 6 concurrent City users. PIMS shall be provided as an annual subscription service that includes software support, maintenance, and updates, in accordance with the terms set forth in Exhibit A-1.

Task 5.0 Year 5 PIMS Hosting and Software Subscription Services CONSULTANT shall host PIMS as an offsite cloud service and shall support no more than 6 concurrent City users. PIMS shall be provided as an annual subscription service that includes software support, maintenance, and updates, in accordance with the terms set forth in Exhibit A-1.

CONSULTANT shall provide hosting and support for the following software modules:
• LinkoExchange
• LinkoCTS
• LabSync 2.0
• Remote Inspector
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• Sampling Assistant
• Remote Sampler
• RDP User(s)
• Aquatic Academy User(s)

Task 6.0 Year 6 PIMS Hosting and Software Subscription Services CONSULTANT shall host PIMS as an offsite cloud service and shall support no more than 6 concurrent City users. PIMS shall be provided as an annual subscription service that includes software support, maintenance, and updates, in accordance with the terms set forth in Exhibit A-1.

Task 7.0 Year 7 PIMS Hosting and Software Subscription Services CONSULTANT shall host PIMS as an offsite cloud service and shall support no more than 6 concurrent City users. PIMS shall be provided as an annual subscription service that includes software support, maintenance, and updates, in accordance with the terms set forth in Exhibit A-1.

SUPPORT AND MAINTENANCE OF SERVICE OFFERINGS
Description of Service Offerings obtained by Subscriber:

Provide software implementation and training for PIMS (the “Service Offerings”). Tasks include the migration of data from the City’s existing database into PIMS. Consultant shall perform customization and or tailoring of the software package to ensure it meets the requirements described in Sections A and B of Exhibit A (Scope of Services) of the Agreement. Consultant shall train City staff on PIMS and provide training materials for Industrial Users on the PIMS electronic document/data submission process.

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A. Support and maintenance is provided with all Service Offerings.

Consultant will maintain the Service Offerings at the latest release making new enhancements and improvements available as part of Consultant's development methodology. In addition to regular maintenance of the Service Offerings, Consultant will support City by answering queries from technically-trained users designated by Subscriber and resolve such queries in manner set out below

1.0 DEFINITIONS
(a) “Case priority 1” means the Service Offering is causing data loss or a system outage with no work around;
(b) “Case priority 2” means the Service Offering doesn’t work as per the Documentation with no work around;
(c) “Case priority 3” means the Service Offering doesn’t work as per the Documentation and a work around exists;
(d) “Case priority 4” means the Service Offering doesn’t work as expected and the desired functionality is not in the Documentation;
(e) “Case priority 5” means the case is an enhancement request; (f) “Documentation” means the instruction manual or help on the Service Offering; (g) “Operating Hours” are 7:30 am – 5:00 pm (Mon – Fri) Pacific Time excluding Province of British Columbia and Canadian statutory holidays via the Vancouver, Canada office, and 9:00 am - 5:00 pm (Mon – Fri) Australian Eastern Time excluding Tasmanian and Australian statutory holidays via the Hobart, Australia office;
(h) “Resolution” means one or more of the following outcomes: a) a mutually acceptable work around, b) a configuration/data change or c) a Service Offering Change; (i) “Service Offering Change” means changes to Service Offering functionality;

2.0 SUPPORT AND MAINTENANCE SERVICES

2.1 Description of Services.

During any Subscription Term and subject to the provisions of this Agreement, Consultant will use commercially reasonable efforts to provide the following Support and Maintenance Services:
(a) Live telephone support with a support representative during Operating Hours; (b) Email support during Operating Hours;
(c) Live Web conferencing with a support representative during Operating Hours where required to understand the support case;
(d) Case tracking through our online case tracking system; and (e) Access to an online Support Portal 24 hours a day, 7 days a week.

2.2 Support Service Level Agreement
Case Priority Initial Response Target Time to Resolution 1 1 business day or sooner 2 business days
2 1 business day 3 business days
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3 1 business day 10 business days
4 1 business day At Consultant’s discretion
5 At Consultant’s discretion At Consultant’s discretion

(a) Initial Response and Target Time to Resolution time periods start once a case is logged in with a Consultant support representative or in Consultant’s Support Portal. (b) Resolution times may exceed the Target Time to Resolution time targets depending on the complexity involved in determining the root cause of the case and the complexity of finding a resolution for it. Should this situation arise for priority 1 or 2 cases, the City will be provided a credit towards their next Annual Subscription Fee calculated as follows:
a. Credit = Annual Subscription Fee X ((Number of business days in excess of Target Time in a given Subscription Term) / (Total Number of business days in the same Subscription Term))
(c) The credit for any Subscription Term cannot exceed the Annual Subscription Fee. (d) Subscription Term Credits can only be used as a rebate toward the purchase of a subsequent Subscription Term and otherwise has no cash value.
(e) Subscription Term Credits are City’s sole remedy if resolution times exceed the Target Time to Resolution.

2.3 Resolution of Service Offering Anomaly.

A Service Offering anomaly will be considered to be resolved when:
(a) The Service Offering is working in substantial accordance with the Documentation when operated on the supported hardware, operating system and peripheral as designated by Consultant; or
(b) Consultant has advised the City of one of the following:
(i) how to correct or bypass the Service Offering anomaly; (ii) that the anomaly falls within an exception to this Agreement.

3.0 EXCEPTIONS

3.1 Support and Maintenance Exclusions
Maintenance and Support Services are not provided for and do not apply to:
(a) Third party software and middleware or services;
(b) When the City is in breach of this Agreement or any other agreement between the Company and the City;
(c) Service Offerings that are improperly implemented;
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(d) Hardware, peripherals (including printers) or software other than the Service Offering; (e) Anomalies in the Service Offering that are not reproducible; or (f) Anomalies, damage or problems in the Service Offering or its operation caused by:
i. an incompatible or non-functioning configuration, operating system or hardware system;
ii. accident, abuse or misapplication for which Consultant is not responsible; iii. malfunction or non-performance of products supplied by third parties; iv. use contrary to its intended purpose or contrary to the Documentation; or v. any other matters beyond Consultant’s control.

3.2 Third Party Vendors.

The City will look solely to the third party vendors of third party software, middleware, hardware or peripheral if there are any anomalies, damage or problems to the Services Offering in or caused by such software, middleware, hardware and/or peripheral.

3.3 Interfaces.

Consultant will not be responsible for any of the City’s integration requirements for the Services Offering resulting from a City’s use of third party vendors who may not integrate with the Services Offering.

3.4 Service Commitment
Consultant will use commercially reasonable efforts to make Service Offerings available with a Monthly Uptime Percentage (defined below) of at least 99.9%, in each case during any calendar month (the “Service Commitment”). In the event Service Offerings do not meet the Service Commitment, City will be eligible to receive a Service Credit as described below.

Definitions

1) “Monthly Uptime Percentage” is calculated by subtracting from 100% the percentage of minutes during the month in which Service Offerings, as applicable, was “Unavailable.” Monthly Uptime Percentage measurements exclude downtime resulting directly or indirectly from any Service Offerings SLA Exclusion (defined below).
2) “Unavailable” means Your Service Offering has no external (to/from internet) connectivity. 3) A “Service Credit” is a dollar credit, calculated as set forth below, that we may credit back to an eligible account.

Service Commitments and Service Credits
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Service Credits are calculated as a percentage of the total monthly-equivalent charges paid by City (excluding one-time payments such as upfront payments made for initial instance setup) for Service Offerings in accordance with the schedule below.

Monthly Uptime Percentage Service Credit %
Less than 99.9% but equal to or greater than 99.0% 10%
Less than 99.0% 30%

Consultant will apply any Service Credits only against future Service Offerings payments otherwise due from City. Service Credits will not entitle you to any refund or other payment from Consultant. A Service Credit will be applicable and issued only if the credit amount for the applicable billing cycle is greater than one dollar ($1 USD). Service Credits may not be transferred or applied to any other billing account. Unless otherwise provided in the Agreement, your sole and exclusive remedy for any unavailability, non-performance, or other failure by us to provide Service Offerings is the receipt of a Service Credit (if eligible) in accordance with the terms of this Schedule.

Credit Request and Payment Procedures
To receive a Service Credit, City must submit a claim by opening a support case with Consultant. To be eligible, the credit request must be received by us no later than calendar 15 days after the unavailability incident occurred and must include:
1) the words “Service Offerings SLA Credit Request” in the subject line; 2) the dates and times of each Unavailability incident that you are claiming; 3) the URL(s) to the affected Service Offerings instance(s); and 4) City request logs that document the errors and corroborate City’s claimed outage (any confidential or sensitive information in these logs should be removed or replaced with asterisks).

If the Monthly Uptime Percentage of such request is confirmed by Consultant and is less than the Service Commitment, then Consultant will issue the Service Credit to City within one month after City’s request is confirmed by us. City’s failure to provide the request and other information as required above will disqualify City from receiving a Service Credit.

Service Offerings SLA Exclusions
The Service Commitment does not apply to any unavailability, suspension or termination of Service Offerings, or any other Service Offerings performance issues: (i) that result from a suspension of City’s Service Offering for reasons set out in the Agreement; (ii) caused by factors outside of consultant’s reasonable control, including any force majeure event or Internet access or related problems beyond the DocuSign Envelope ID: 784B7CE1-45CA-4E21-B871-71E788908C11 ITEM 4
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demarcation point of the infrastructure provider for Service Offerings); (iii) that result from any actions or inactions of City or any third party; (iv) that result from your equipment, software or other technology and/or third party equipment, software or other technology (other than third party equipment within our direct control); (v) that result from failures of individual instances not attributable to Service Offerings Unavailability; (vi) that result from any maintenance as provided for pursuant to the Agreement; (vii) arising from Consultant’s suspension and termination of City’s right to use Service Offerings in accordance with the Agreement; or (viii) arising from downtime related to scheduled maintenance windows (defined below) (collectively, the “Service Offerings SLA Exclusions”). If availability is impacted by factors other than those used in Consultant’s Monthly Uptime Percentage calculation, then Consultant may issue a Service Credit considering such factors at Consultant’s discretion.

Scheduled Maintenance Windows
From time to time, City’s Service Offering instance may require maintenance to upgrade or repair hardware or software that will cause downtime and therefore unavailability to City. We will notify City at least 7 calendar days before such maintenance is required and provide an estimate of the duration required to perform the maintenance. Most maintenance can be performed with less than 2 hours of downtime but some may take longer.

Consultant will work with City to schedule a start time & date for the maintenance (a scheduled maintenance window) that is mutually acceptable to City and Consultant. Once maintenance has started at the agreed time, Consultant will use commercially reasonable efforts to return City’s Service Offerings instance(s) to service within the estimated duration window – but this will not always be possible due to unforeseen complications that may arise.

Scheduled Maintenance Windows are excluded from the Service Offerings SLA.

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EXHIBIT B

SCHEDULE OF PERFORMANCE

CONTRACTOR shall perform the Services according to the following schedule:

Milestones Completed By
Task 1.0 February 29, 2024
Task 2.0 February 28, 2025
Task 3.0 February 28, 2026
Task 4.0 February 28, 2027
Task 5.0 February 29, 2028
Task 6.0 February 28, 2029
Task 7.0 February 28, 2030

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EXHIBIT C

SCHEDULE OF FEES

CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of compensation to be paid to C ONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. 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.

BUDGET SCHEDULE FIXED FEE
Task 1
(PIMS Hosting and Software Support) $20,343
Task 2
(PIMS Hosting and Software Support) $28,852
Task 3
(PIMS Hosting and Software Support) $29,247
Task 4
(PIMS Hosting and Software Support) $29,647
Task 5
(PIMS Hosting and Software Support) $30,054
Task 6
(PIMS Hosting and Software Support) $30,468
Task 7
(PIMS Hosting and Software Support) $30,886
Sub-Total Basic Services $199,497
Reimbursable Expenses $0.00
Additional Services $19,950
Maximum Total Compensation $219,447

INVOICE SCHEDULE

CONSULTANT shall invoice the City as follows:

• 100% of Task 1 by February 1, 2023.
• 100% of Task 2 by February 1, 2024.
• 100% of Task 3 by February 1, 2025.
• 100% of Task 4 by February 1, 2026.
• 100% of Task 5 by February 1, 2027.
• 100% of Task 6 by February 1, 2028.
• 100% of Task 7 by February 1, 2029.

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EXHIBIT D

INSURANCE REQUIREMENTS

CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE

CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

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

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES

YES
WORKER’S COMPENSATION

EMPLOYER’S LIABILITY

STATUTORY

YES

GENERAL LIABILITY, INCLUDING PERSONAL

INJURY, BROAD FORM PROPERTY DAMAGE

BLANKET CONTRACTUAL,

PRODUCTS/COMPLETED OPERATIONS AND FIRE

LEGAL LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$2,000,000

$2,000,000

$2,000,000
$2,000,000

$2,000,000

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

MINIMUM COVER PROFESSIONAL MISCONDUCT

OR LACK OF REQUISITE SKILL FOR THE

PERFORMANCE OF SERVICES DEFINED IN THE

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

FROM UNAUTHORIZED ACCESS TO, USE OF, OR

TAMPERING WITH COMPUTERS OR COMPUTER

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

INTRODUCTION OF ANY FORM OF MALICIOUS

SOFTWARE INCLUDING COMPUTER VIRUSES

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

COMPUTER SYSTEM, NETWORK, OR SIMILAR

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

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

THE POLICY SHALL PROVIDE COVERAGE FOR

BREACH RESPONSE COSTS AS WELL AS

REGULATORY FINES AND PENALTIES AS WELL AS

CREDIT MONITORING EXPENSES WITH LIMITS

SUFFICIENT TO RESPOND TO THESE
OBLIGATIONS.

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

SUCH INSURANCE SHALL INCLUDE COVERAGE

FOR LIABILITY ARISING FROM COVERAGE IN AN

AMOUNT SUFFICIENT TO COVER THE FULL

REPLACEMENT VALUE OF DAMAGE TO,

ALTERATION OF, LOSS OF, THEFT,

DISSEMINATION OR DESTRUCTION OF

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

THE CITY OF PALO ALTO THAT WILL BE IN THE

CARE, CUSTODY, OR CONTROL OF VENDOR,

INFORMATION INCLUDING BUT NOT LIMITED

TO, BANK AND CREDIT CARD ACCOUNT

INFORMATION OR PERSONAL INFORMATION,

SUCH AS NAME, ADDRESS, SOCIAL SECURITY

NUMBERS, PROTECTED HEALTH INFORMATION

OR OTHER PERSONAL IDENTIFICATION

INFORMATION, STORED OR TRAMSITTED IN
ELECTRONIC FORM.

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

YES AUTOMOBILE LIABILITY, INCLUDING ALL

OWNED, HIRED, NON-OWNED

BODILY INJURY

EACH PERSON

EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
YES

PROFESSIONAL LIABILITY, INCLUDING, ERRORS

AND OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT PERFORMANCE

ALL DAMAGES $1,000,000

YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE,

SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT

AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ON

LY CONTRACTOR AND ITS
SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY

AND PROFESSIONAL INSURANCE,

NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.

II. CONTRACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL:
https://www.planetbids.com/portal/portal.cfm?CompanyID=25569.

III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,

INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR

CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

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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 CI TY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO.

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EXHIBIT E

INFORMATION PRIVACY POLICY

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EXHIBIT F

CYBERSECURITY TERMS AND CONDITIONS

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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT REPORT
Lead Department: Administrative Services
Meeting Date: January 23, 2023

TITLE
Accept Annual Status Report on Development Impact Fees for Fiscal Year 2022 and Adopt a Resolution Making Statutory Findings for Certain Funds

EXECUTIVE SUMMARY
This report contains information on the City of Palo Alto’s Development Impact Fees for the Fiscal Year (FY) 2021-2022. This report meets the annual reporting requirements in Government Code section 66006.

RECOMMENDATION
Staff recommends that the City Council review and accept the Annual Report on Development Impact Fees for the period ending June 30, 2022 (Attachment A) and adopt the resolution making statutory findings for certain development impact fee funds (Attachment B).

BACKGROUND
State law (Government Code Section 66006) requires that each local agency that imposes development impact fees prepare an annual report providing specific information about those fees. This requirement is part of the law commonly referred to as AB 1600. It codifies the legal requirement that fees on new development must have the proper nexus to any project on which they are imposed. In addition, AB 1600 imposes certain accounting and reporting requirements with respect to the fees collected. The fees, for accounting purposes, must be segregated from the general funds of the City and from other funds or accounts containing fees collected for other improvements. Interest on each development fee fund or account must be credited to that fund or account and used only for the purposes for which the fees were collected.

Government Code Section 66006 contains comprehensive annual reporting requirements for development impact fees. This statute requires that, within 180 days after the close of the fiscal ITEM 5
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year, the agency that collected the fees must make available to the public the following information regarding each fund or account:
 Brief description of the type of fee in the fund.
 Amount of the fee.
 Beginning and ending balance in the fund.
 Amount of fees collected, and interest earned.
Identification of each public improvement on which fees were expended and the amount of the expenditure on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
Identification of an approximate date by which the construction of a public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement. Description of each interfund transfer or loan made from the account or fund, including the public improvement on which the loaned funds will be expended, and in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.
Amount of any refunds made due to inability to expend fees within the required time frame.

This report must also be reviewed by the City Council at a regularly scheduled public meeting not less than 15 days after the information is made available to the public. In addition, notice of the time and place of the meeting shall be mailed at least 15 days prior to the meeting to any interested party who files a written request with the local agency for such a mailed notice. An early packet consisting of Attachment A only was made available to the public and included in the packet for the December 5, 2022, meeting of the City Council.

The law also provides that, for the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make findings with respect to any portion of the fee remaining unexpended, whether committed or uncommitted. The finding must:
Identify the purpose to which the fee is to be put;
Demonstrate a nexus between the fee and the purpose for which it was originally charged; and
Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements along with the approximate dates on which the anticipated funding is expected to be deposited into the fund.

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may be required to refund to property owners a prorated portion of the monies collected for that project and any interest earned on those funds.

ANALYSIS
The City of Palo Alto development fees covered by AB 1600, and documented in Attachment A, include the following:
Stanford Research Park/El Camino Real traffic impact fees (PAMC Ch. 16.45): Fee for new nonresidential development in the Stanford Research Park/El Camino Real Service Commercial zone, to fund capacity improvements at eight intersections. City ceased collecting effective fiscal year 2020.
San Antonio/West Bayshore Area traffic impact fees (PAMC Ch. 16.46): Fee for new nonresidential development in the San Antonio/West Bayshore area to fund capacity improvements at four intersections. City ceased collecting effective fiscal year 2020. Housing impact fees imposed on commercial developments (PAMC Ch. 16.65): Fee on commercial and industrial development to contribute to offset the demand that new jobs create for low income and moderate-income in the City. Parks, Community Centers, and Libraries impact fees (PAMC Ch. 16.58): Fee on new residential and non-residential development to provide community facility funds for parks, community centers, libraries, public safety, and general government. Charleston-Arastradero Corridor pedestrian and bicyclist safety fees (PAMC Ch. 16.60):

Fee on new development and re-development within the Charleston-Arastradero Corridor to provide for pedestrian and bicyclist improvements. Citywide Transportation impact fees (PAMC Ch 16.59): Fee on development in all parts of the City to fund transportation projects and programs to reduce congestion. New Public Safety facilities (PAMH Ch. 16.58): Fee on residential and non-residential development to fund police and fire facilities, including fire apparatus and vehicles. General Government facilities: (PAMH Ch. 16.58) – Fee on residential and non-residential development to fund facilities associated with municipal administration. Residential (Rental) impact fees (PAMC Ch. 16.65) Fee on rental residential developments (including mixed use with rental housing) to offset the demand that new market-rate rental housing creates for low and moderate-income housing in the City.

AB 1600 requires the City to make certain findings with respect to the fees that remain unexpended in the fifth fiscal year following the first deposit into the fund, and every five years thereafter. There are four categories of fees that require statutory findings in FY2021-22. These proposed findings are contained in Attachment B.

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The Community Facilities (Parks Impact Fee) Fund has an unexpended balance of $3,810,535 that was collected in FY 2022 and prior.
The Community Facilities Community Centers Fund has an unexpended balance of $739,193 that was collected in FY 2022 and prior.
The Community Facilities (Library Impact Fee) Fund has an unexpended balance of $931,093 that was collected in FY 2022 and prior.
The Charleston-Arastradero Corridor Fund has an unexpended balance of $34,904 that was collected in FY 2022 and prior.

In addition to development fee funds that are required to be reported under AB 1600, the following funds are reported for information purposes only and are not required to be reported under AB 1600:
Public Art Fund (PAMC Ch. 16.61): Fees imposed on new commercial developments (including mixed use projects), including new construction, remodels, additions and reconstruction that (i) have a floor area of 10,000 sq. ft. or more, and (ii) have a construction value of $200,000, or more, exclusive of costs for architecture, design, engineering, and required studies; and all new residential projects of five or more units to fund public art for private developments.
University Avenue Parking In-Lieu Fund (PAMC Ch. 16.57): Fees collected from non- residential development within the University Avenue Parking Assessment District, in lieu of providing the required number of parking spaces.
Residential housing in-lieu fees (PAMC Ch. 16.65): Fee on residential developments in- lieu of providing required below-market rate units to low- and moderate-income households.
Parkland Dedication (CA Government Code Section 66477-Quimby Act): Fees on parkland dedication imposed on new residential and non-residential development. Water and Wastewater Collection (California Government Code Section 66000): Capacity fees charged to developers that are adding load to the water and sewer systems effective July 1, 2005.

RESOURCE IMPACT
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Staff Report

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These various funds are reviewed annually for any unallocated balances and the nexus of appropriate projects annually as part of the development of the City’s five-year capital improvement plan.

If the council does not make the findings contained in Attachment B, the development fees described therein might be required to be refunded. This would have fiscal impact of $5,515,725.

STAKEHOLDER ENGAGEMENT
This report has been prepared by the Accounting Division in Administrative Services and reviewed by partner departments including the City Attorney’s Office and the Planning and Development Services Department.

ENVIRONMENTAL REVIEW
This is not a project for purposes of the California Environmental Quality Act.

ATTACHMENTS
Attachment A: Development Impact Fees FY 22
Attachment B: Resolution Making Findings Regarding Continuing Need for Unexpended Development Fees
APPROVED BY:

Kiely Nose, Administrative Services Director
ITEM 5
Staff Report

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Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2022
Stanford Research Park/ San Antonio/West
FUND El Camino Fund Bayshore Fund
Purpose and Authority Traffic impact fees imposed on new Traffic impact fees imposed on new for Collection non-residential development in the non-residential development in the Stanford Research Park/El Camino San Antonio/West Bayshore Areas Real CS zone to fund improvements to fund capacity improvements at at eight identified intersections. four identified intersections.

PAMC Ch. 16.45, PAMC Ch. 16.46
Amount of the Fee City ceased collecting effective FY 2020 City ceased collecting effective FY 2020 Fund Balance July 1, 2021 $3,519,739 $434,996
Activity in 2021-22
Revenues
Interest Earnings 33,656 6,877
Unrealized Gain/(Loss) Investments (206,212) (34,466)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues ($172,556) ($27,588)

Expenditures
Inter-Agency Expense (2,200,000) - ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures ($2,200,000) - ----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $1,147,183 $407,408
Reserves
Other Commitments/Appropriations - - ----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - - ----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $1,147,183 $407,408
USE OF FEES: USE OF FEES:

In FY 2020, City ceased collecting the Stanford
Research / El Camino Real CS Zone fee established
in 1989.

In FY 2022, $2.2M expense to fund Sharing
Agreement between the City and the County of
Santa Clara for improvements of Mill Road
intersections at both Hanover Street and El Camino
Real (CMR 13439).

No expenditures have been made for this fund in
Fiscal Year 2022. In FY 2020, City ceased collecting the San Antonio/West Bayshore area fee established in
1986.

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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Commercial Housing
FUND Impact Fee Fund General Government Facilities
Purpose and Authority Fees imposed on commercial and industrial Fees imposed on residential and non-residential
development to fund facilities associated with
municipal administration.
for Collection development to offset the demand that
new jobs create for low and moderate-
income housing in the City.

PAMC Ch.16.65 PAMC Ch. 16.58
Amount of the Fee
Hotel / Retail / Other Non-Residential:
$23.11 per sq. ft.

Office/R&D: $68.50 per sq. ft.

Residential: Single family $1,481 per unit;
Multi-family $1,184 per unit
(ADUs under 750 sq. ft. exempt);
Non-residential: Commercial $826 per 1,000
sq. ft. or fraction thereof;
Industrial $275 per 1,000 sq. ft. or fraction
thereof;
Office/Institutional $1,104 per 1,000 sq. ft. or
fraction thereof.

Fund Balance July 1, 2021 $25,967,219 $57,053
Activity in 2021-22
Revenues
Fees Collected 1,428,224 63,428
Interest Earnings 54,217 1,663
Unrealized Gain/(Loss) Investments (300,408) (10,214)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues 1,182,033 54,877
Expenditures
Salaries and Benefit (34,894) - Liability Insurance (855) - ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures (35,749) - ----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $27,113,503 $111,930

Reserves
Other Commitments/Appropriations - - Reserve for Notes Receivable includes: (23,629,563)
$1,290,000 for 2811 Alma
$4,137,254 for 801 Alma
$7,700,000 for Bueva Vista Mobile Home Park
$10,502,309 Wilton Court - Reserve for Reappropriations (1,167,000) - ----------------------------------------------------------- -------------------------------------------------------------- Total Reserves (24,796,563) - ----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $2,316,940 $111,930
USE OF FEES: USE OF FEES:

Expenditures in Fiscal Year 2022 are $35K
for salaries and benefits. Reserve for
Reappropriaton is for Affordable Housing
Loan Agreement: 3705 El Camino Real
(Wilton Court).

No expenditure of funds have been made from this
Fund in Fiscal Year 2022.

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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Residential & Non-Residential Residential & Non-Residential Community Facilities Community Facilities
FUND Parks Community Centers
Purpose and Authority Fees imposed on new residential and Fees imposed on new residential and for Collection non-residential development approved non-residential development approved after Jan 28, 2002 for Parks. after Jan 28, 2002 for Community Centers.

PAMC Ch. 16.58 PAMC Ch. 16.58

Amount of the Fee Residential: Single family $57,420 per unit. (ADUs under 750 sq ft exempt)
Residential: Single family $4438 unit.
(ADUs under 750 sq ft exempt)
Non-residential: Commercial/Industrial
$16,837 per net new 1,000 sq ft;
Hotel/Motel $2,866 per 1,000 sq ft.

Non-residential: Commercial/industrial $1301
per 1,000 sq ft; Hotel/Motel $222 per 1,000
sq ft.

Fund Balance July 1, 2021 $3,766,481 $751,143
Activity in 2021-22
Revenues
Fees Collected 311,065 51,809
Interest Earnings 57,233 12,321
Unrealized Gain/(Loss) Investments (305,444) (76,080)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues $62,854 ($11,950)
Operating Transfer to Capital Projects Fund (18,800) - ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures ($18,800) - ----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $3,810,535 $739,193
Reserves
Other Commitments/Appropriations - - ----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - - ----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $3,810,535 $739,193
USE OF FEES: USE OF FEES:

Budget transfer in FY 2022 was made to Capital
Project fund for PG-19000-Park Restroom
Installation $13,300 and PG-18001-Dog Park
Installation and Renovation for $5,500.

FUTURE USE OF FEES:

Budgeted as part of FY23-27 CIP: PE-17005
Boulware Park $400k in FY23; PG-18001 Dog Parks
$145k in FY23, $150k in FY24 & FY26; PG-19000
Park Restroom Installation $337k in FY23, $350k in
FY24 & FY26; PE-08001 Rinconada Park
Improvements $400k in FY23; PF-23001 Roth
Building Rehabilitation $350k in FY23.

No expenditure of funds have been made from this
Fund in Fiscal Year 2022.

FUTURE USE OF FEES:

Budgeted as part of FY23-27 CIP: $1.65M shifted from
PE-08001 Rinconada Park Improvements to PF-23001
Roth Building Rehabilitation in FY23.

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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Residential & Non-Residential
Community Facilities Residential Housing
FUND Libraries Impact Fee Fund
Purpose and Authority
for Collection
Fees imposed on new residential and non-
residentual development approved after January
28, 2002 for Libraries.

Fees imposed on all rental residential developments
(including mixed use with rental housing) to offset the demand that the new market-rate rental housing
creates for low income and moderate-income housing
in the City.

PAMC Ch. 16.58 PAMC Ch. 16.65

Amount of the Fee Residential: Single family $2,645 per unit; Multi-family $1,956 per unit
(ADUs under 750 sq ft exempt)
Single and Multi-Family: $22.69 per sq. ft.
apartment (rentals)
Non-residential: Commercial/industrial
$776 per net new 1,000 sq ft.

Hotel/Motel $132 per net new 1,000 sq ft.

Fund Balance July 1, 2021 $971,303 $894,756
Activity in 2021-22
Revenues
Fees Collected 25,718 223,078
Interest Earnings 13,510 15,727
Unrealized Gain/(Loss) Investments (79,438) (75,945) ----------------------------------------------------------- -------------------------------------------------------------- Total Revenues ($40,210) $162,860
Expenditures
----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures - $0 ----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $931,093 $1,057,616
Reserves
Other Commitments/Appropriations - - Reserve for Reappropriations - (600,000) ----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - (600,000) ----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $931,093 $457,616
USE OF FEES: USE OF FEES:

No expenditure of funds have been made from this
Fund in Fiscal Year 2022.

FUTURE USE OF FEES:

Budgeted as part of FY23-27 CIP: LB-21000 Library
Automated Material Handling $540k in FY23; PF-
23001 Roth Building Rehabilitation $300k in FY23.

No expenditures of funds have been made from this
Fund in Fiscal Year 2022. Reserve for
Reappropriations is for Affordable Housing Loan
Agreement: 3705 El Camino Real(Wilton Court).

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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Charleston-Arastradero Corridor
FUND Pedestrian and Bicyclist Safety Citywide Transportation Purpose and Authority Fees collected from new development and Transportation impact fees imposed for Collection re-development within the Charleston- on new development in all parts of the Arastradero Corridor to provide for pedest- City to fund congestion reduction rian and bicyclist safety improvements. projects.

PAMC Ch. 16.60 PAMC Ch. 16.59

Amount of the Fee Residential: $1,480 per residential unit Commercial: $0.43 per sq ft (ADUs
exempt)
$8,572 each; per net new PM peak hour trip
Fund Balance July 1, 2021 $37,124 $2,281,870
Activity in 2021-22
Revenues
Fees Collected - 252,428 Interest Earnings 588 35,431
Unrealized Gain/(Loss) Investments (2,808) (175,459)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues ($2,220) $112,400
Expenditures
Operating Transfer to Capital Projects Fund - (395,000) ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures - ($395,000) ----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $34,904 $1,999,270

Reserves
Other Commitments/Appropriations - - ----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - - ----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $34,904 $1,999,270
USE OF FEES: USE OF FEES:

No expenses were been made from this fund in
Fiscal Year 2022.

Budget transfers of $395K to Capital Project Fund in
Fiscal Year 2022 was made for Traffic Signal and
Intelligent Transporation (PL-05030).

FUTURE USE OF FEES:

Budgeted as part of the FY23-27 CIP: PL-05030 Traffic
Signal and Intelligent Transportation System Upgrades
$395k annually.

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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FUND New Public Safety Facilities
Purpose and Authority Fees imposed on residential and
for Collection non-residential development to fund
police and fire facilities (including fire
apparatus and vehicles)
PAMC Ch. 16.58
Amount of the Fee Residential: Single family $1,175 per unit; Multi-family $940 per unit
Nonresidential: Commercial $657 per
1,000 sq ft. or fraction thereof; Industrial
$220 per 1,000 sq. ft. or fraction thereof;
Office/Institutional $876 per 1,000 sq ft or
fraction thereof.

Fund Balance July 1, 2021 $44,123
Activity in 2021-22
Revenues
Fees Collected 50,371
Interest Earnings 1,302
Unrealized Gain/(Loss) Investments (8,026)
----------------------------------------------------------- Total Revenues $43,647
Expenditures - ----------------------------------------------------------- Total Expenditures - ----------------------------------------------------------- Ending Balance June 30, 2022 $87,770
Reserves
Other Commitments/Appropriations - ----------------------------------------------------------- Total Reserves - ----------------------------------------------------------- Net Funds Available $87,770
USE OF FEES:

No expenditure of funds have been made from this
Fund in Fiscal Year 2022.

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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(INFORMATION ONLY) (INFORMATION ONLY)
Residential Housing
FUND In-Lieu Fund Parkland Dedication
Purpose and Authority for clollection Fees collected from ownership residential developments of three or more units(including
mixed used with ownership in housing) in-lieu of
providing the required below-market rate unit(s) to
low and moderate income households.

Fees on parkland dedication imposed on new
residential and non-residential development.

PAMC Ch. 16.65 Govt Code Sec. 66477 (Quimby Act)
Amount of the Fee
Single family $85.07 per sq. ft. single
family detached; $56.72 per sq. ft. single
family attached. Multi family $56.72 per
sq. ft. condos.

Single Family: $69,483.47 per unit; Multi-
Family: $47,892.56 per unit. This applies
only to residential projects that require a
subdivision or parcel map. Land dedication is
required for subdivisions resulting in more
than 50 parcels. Parkland Dedication Fee -
Land: Single Family: 531 sq. ft. per unit;
Multi-Family: 366 sq. ft. per unit. When
parkland dedication applies, park impact fees
do not apply.

Fund Balance July 1, 2021 $29,738,425 $5,915,748
Activity in 2021-22
Revenues
Fees Collected 138,339 591,289
Property Rental 700
Interest Earnings 122,145 74,277
Unrealized Gain/(Loss) Investments (497,098) (401,919)
----------------------------------------------------------- -------------------------------------------------------------- Total Revenues ($235,914) $263,647
Expenditures - Salaries and Benefits (34,894)
Liability Insurance (855)
Operating Transfer to Capital Projects Fund (2,400,000) ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures ($35,749) ($2,400,000)
----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $29,466,762 $3,779,395
Reserves
Other Commitments/Appropriations - Reserve for Encumbrances (178,090)
Reserve for Reappropriations (3,000,000)
Reserve for Notes Receivable includes: (23,810,893)
$375,000 for 3053 Emerson
$3,504,850 for Tree House Apts.
$747,734 for Sheridan Apts.
$2,285,026 for 801 Alma
$901,201 for Palo Alto Housing Project
$593,952 for 2811-2825 Alma St.
$203,561 for Colorado Park Housing
$149,968 for El Dorado Palace
$6,800,000 for Buena Vista Mobile Home Park
$8,249,601 for Wilton Ct.
----------------------------------------------------------- -------------------------------------------------------------- Total Reserves ($26,988,983) - ----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $2,477,779 $3,779,395
USE OF FEES: USE OF FEES:

This fund is not subject to AB1600 requirements
and is listed only for information purposes.

Expenditures in the Fiscal Year 2022 were $36K for
salaries and benefits. Reserve for Reappropriations
is for Affordable Housing Project: 231 Grant
Avenue Affordable Housing Project.

This fund is not subject to AB1600 requirements and is
listed only for information purposes.

FUTURE USE OF FEES:

Budgeted as part of the FY23-27 CIP:

PE-08001 Rinconada Park Improvements $1.65M in
FY23; PE-18006 Byxbee Park Completion $1.55M in
FY24.

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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(INFORMATION ONLY) (INFORMATION ONLY)
University Avenue Parking
FUND Public Art Fund In-Lieu Fund
Purpose and Authority for collection Fees imposed on new commercial develoments (including mixed use projects), including new
construction, remodels, additions and
reconstruction that (i) have a floor area of 10,000
sq. ft. or more, and (ii) have a construction value of
$200,000, or more, exclusive of costs for
architecture, design, engineering, and required
studies; and all new residential projects of five or
more units to fund public art for private
developments.

Fees collected from non-residential development
within the University Ave. Parking Assessment District
in lieu of providing the required number of parking
spaces.

PAMC Ch. 16.61 PAMC Ch. 16.57
Amount of the Fee 1% of first $120.25 million construction valuation and 0.9% of construction
valuation for valuation in excess of
$120.25 million
$115,404.00 per space
Fund Balance July 1, 2021 $2,009,290 $6,424,611
Activity in 2021-22
Revenues
Fees Collected 144,400
Interest Earnings 32,355 101,582
Unrealized Gain/(Loss) Investments (158,436) (507,159) Operating Transfer from General Fund 170,000 ----------------------------------------------------------- -------------------------------------------------------------- Total Revenues $188,319 ($405,577)
Expenditures
Salaries and benefits (227,003) - Other Contract Services (42,080) - Liability Insurance (2,816) - Operating Transfer to Capital Projects Fund - - ----------------------------------------------------------- -------------------------------------------------------------- Total Expenditures ($271,899) - ----------------------------------------------------------- -------------------------------------------------------------- Ending Balance June 30, 2022 $1,925,710 $6,019,034
Reserves
Other Commitments/Appropriations - - ----------------------------------------------------------- -------------------------------------------------------------- Total Reserves - - ----------------------------------------------------------- -------------------------------------------------------------- Net Funds Available $1,925,710 6,019,034.00 USE OF FEES: USE OF FEES
This fund is not subject to AB1600 requirements
and is listed only for information purposes.

This fund is not subject to AB1600 requirements and is
listed only for information purposes.

No expenditures have been made from this fund in
Fiscal Year 2022.

FUTURE USE OF FEES:
$5.5M programmed in FY 2023 for New Downtown
Parking Garage Project (PE-15007) as part of the
2023-2027 Capital Improvement Plan (CIP).

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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(INFORMATION ONLY)

FUND Water and Wastewater Collection
Purpose and Authority Capacity fees charged to developers that for Collection are adding load to the water and sewer
systems effective July 1, 2005.

California Government Code Sect 66000

Amount of the Fee Water Capacity Fees: 5/8 in., 3/4 in E- Meter. $3,750, 1 in. E-Meter $6,250, 1 1/2
in. E-Meter $18,850, 2 in. E-Meter
$31,250, 4 in. Compound Meter by est.
$125/FU (min. 5,000 FU) , 6 in. Compound
Meter by est. $125/FU (min. 7,000 FU)

Fire Service Capacity Fees: 2 in. $750, 4
in. $8,425, 6 in. $18,250, 8 in. $30,950,
10in. $48,110

Sewer Capacity Charges: 4 in. connection
with 5/8 in Water Meter (WM) $5,250, 4 in
connection. with 1-in WM $10,500, 4 or 6
in. connection with 1-1/2 in WM $31,668, 6
in. connection with 2 in. WM $52,500, 6 in.
and larger connection with 4 in. or larger
WM by est. at $210/FU
Activity in 2021-22
Capacity Fees Collected
Water $123,175
Wastewater Collection $31,500
----------------------------------------------------------- Total Capacity Fees Collected $154,675

USE OF FEES:

The fees are used exclusively for water and sewer
system improvements.

ITEM 5
Attachment A Annual Report on
Development Impact Fees FY22

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*NOT YET APPROVED*
1 261_20221128_ts24

Resolution No. _____
Resolution of the Council of the City of Palo Alto Making Findings Regarding Continuing Need for Unexpended Development Fees

R E C I T A L S

A. Government Code Section 66001(d) requires the City to make certain findings with respect to fees that remain unexpended in the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter; and

B. As authorized under Chapter 16.58 of the P alo Alto Municipal Code, the City has collected a fee known as the “Parks Impact Fee” for the purpose of funding acquisition of land and improvements for neighborhood and district parks; and

C. The sum of $3,810,535 represents the most recent audited total of fees collected pursuant to the Parks Impact Fee that remain unexpended, together with accrued interest thereon (“unexpended Parks Impact Fee Funds”); and

D. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the City has collected a fee known as the “Community Center Impact Fee” for the purpose of funding development and improvements to community centers; and

E. The sum of $ 739,193 represents the most recent audited total of fees collected pursuant to the Community Center Impact Fee that re main unexpended, together with accrued interest thereon (“unexpended Community Center Impact Fee Funds”); and

F. As authorized under Chapter 16.58 of the Palo Alto Municipal Code, the City has collected a fee known as the “Library Impact Fee” for the purpose of funding development and improvements to libraries; and

G. The sum of $ 931,093 represents the most recent audited total of fees collected pursuant to the Library Impact Fee that remain unexpended, together with accrued interest thereon (“the unexpended Library Impact Fee funds”); and

H. As authorized under Chapter 16. 60 of the Palo Alto Municipal Code, the City has collected a fee known as the “ Charleston-Arastradero Corridor Pedestrian a nd Bicyclist Safety Fee ” for the purpose of funding pedestrian and bicyclist safety improvements; and

I. The sum of $ 34,904 represents the most recent audited total of fees collected pursuant to the Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety ITEM 5
Attachment B - Resolution

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*NOT YET APPROVED*
2 261_20221128_ts24

Fee that remain unexpended, together with accrued interest thereon (“unexpended Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Fee funds”).

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

SECTION 1. The Council makes the following findings:

Parks Impact Fee funds

1. The unexpended Parks Impact Fee funds were collected pursuant to Chapter 16. 58 of the Palo Alto Municipal Code, to be used solely for the purpose of funding acquisition of land and improvements for neighborhood and district parks.

2. The City plans to spend the unexpended Parks Impact Fee funds in the amount of $ 3,810,535 in part to complete several park improvements scheduled in the Fiscal Year 2023-2027 Five Year Capital Improvement Plan.

3. The unexpended Parks Impact Fee funds are anticipated to be transferred as provided in the Fiscal Year 20 23-2027 Five Year Capital Improvement Plan. Other sources of funding for these projects include the City’s Capital Improvement Fund, Community Center Impact Fee Fund, Library Development Impact Fee Fund, Stanford University Medical Center Fund, revenue from other agencies or organizations, as specifically detailed in the FY 2023-2027 Five Year Capital Improvement Plan. Additional unexpended Parks Impact Fee funds are anticipated to be used to implement the Parks, Trails, Natural Open Space and Recreation Master Plan (adopted 2017), including to develop the empty 10-acre site adjacent to the Baylands into park uses.

4. The relationship between the fee collected and the purpose for which it is charged is demonstrated in the City of Palo Alto Park, Community Center, and Library Development Impact Fee Justification Study, dated January 15, 2021 and approved by the City Council on April 12, 2021.

Community Center Impact Fee funds

5. The unexpended Community Center Impact Fee funds were collected pursuant to Chapter 16.58 of the Palo Alto Municipal Code, to be used solely for the purpose of funding development and improvements to community centers.

6. The City plans to spend the unexpended Community Center Impact Fee funds in the amount of $739,193 to complete community center improvements scheduled in the Fiscal Year 20 23-2027 Five Year Capital Improvement Pla n; namely the Roth Building Rehabilitation Phase I.

ITEM 5
Attachment B - Resolution

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3 261_20221128_ts24

7. The unexpended Community Center Impact Fee funds are anticipated to be transferred as provided in the Fiscal Year 20 23-2027 Five Year Capital Improvement Plan. Other sources of funding for this project include the City’s Capital Improvement Fund, Parks Impact Fee Fund, Library Development Impact Fee Fund, Stanford University Medical Center Fund, and revenue from other agencies or organizations, as specifically detailed in the FY 2023-2027 Five Year Capital Improvement Plan.

8. The relationship between the fee collected and the purpose for which it is charged is demonstrated in the City of Palo Alto Park, Community Center, and Library Development Impact Fee Justification Study, dated January 15, 2021 and approved by the City Council on April 12, 2021.

Library Impact Fee funds

9. The unexpended Library Impact Fee funds were collected pursuant to Chapter 16.58 of the Palo Alto Municipal Code, to be used solely for the purpos e of funding development and improvements to libraries.

10. The City plans to spend the unexpended Library Impact Fee funds in the amount of $ 931,093 to (1) fund purchase and installation of higher -capacity book processing machines (Automated Materials Handling machines) to facilitate expanded book returns and sorting at additional library branches ; (2) fund the Roth Building Rehabilitation Phase 1 to support library archives; and (3) fund purchase and installation of vending machines to dispense Library volumes to patrons.

11. The unexpended Library Impact Fee funds are anticipated to be transferred as provided in the Fiscal Year 2023-2027 Five Year Capital Improvement Plan.

Additional allocations are expected in FY24 and FY25 as the library i s in the process of designing the deployment of AMH machines at its Children’s Library as well as analyzing the use of AMH machines across the rest of the Library system. The balance of funds is expected to be used to install vending machines to dispense Library volumes to patrons.

The other sources of funding for these projects are the City’s Capital Improvement Fund.

12. The relationship between the fee collected and the purpose for which it is charged is demonstrated in the City of Palo Alto Park, Community Center, and Library Development Impact Fee Justification Study, dated January 15, 2021 and approved by the City Council on April 12, 2021.

Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Fee funds

13. The unexpended Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Fee funds were collected pursuant to Chapter 16. 60 of the Palo Alto Municipal Code, to be used solely for the purpose of funding pedestrian and bicyclist safety improvements, as defined in Section 16. of the Palo Alto Municipal Code.

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*NOT YET APPROVED*
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14. The City plans to spend the unexpended Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Fee funds in the amount of $ 34,904 on the Charleston/Arastradero Corridor Project.

15. The unexpended Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Fee funds are anticipated to be transferred in FY23 or FY24. Other funding sources for this project include the Capital Improvement Fund, Stanford University Medical Center Fund, Gas Tax Fund, and grants from the State of California, as detailed in the FY23, FY22, and prior years’ Capital Improvement Budgets.

16. The relationship between the fee collected and the purpose for which it is charged is demonstrated in the City of Palo Alto Charleston-Arastradero Corridor Pedestrian and Bicyclist Safety Impact fee Nexus Study of 2005.

//
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SECTION 2 . The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:

______________________________ ______________________________ City Clerk Mayor

APPROVED AS TO FORM:

________________________________ ______________________________ Assistant City Attorney City Manager

_____________________________
Director of Administrative Services

______________________________
Director of Community Services

______________________________
Director of Libraries

______________________________
Director of Public Works

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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT REPORT
Lead Department: Planning and Development Services
Meeting Date: January 23, 2023

TITLE
Approval of Contract with Downtown Streets Team, Inc. (C23186552) for a Total Not-to-Exceed Amount of $160,477 for Fiscal Year 2023 for Workforce Development Services

RECOMMENDATION
Staff recommends the City Council approve and authorize the City Manager or their designee to execute Contract C23186552 (Attachment A) with Downtown Streets Team, Inc. to provide Workforce Development Services for a term of one year for FY2023 and a total amount not to exceed amount of $160,477.

BACKGROUND
On June 20, 2022, City Council approved allocating $160,477 from the General Fund for workforce development services to be provided by Downtown Streets Team, Inc. (DST).

Historically, DST has been funded through the Department of Housing and Urban Development’s Community Development Block Grant (CDBG) program. During Fiscal Year 2022, staff was notified that DST no longer qualified as a community based development organization due to a change in its board membership and, as a result, was no longer eligible to receive CDBG funding in FY2023. Due to this change of status and to provide continued support to the program in FY2023, staff recommended and City Council approved funding DST from the General Fund.

Staff reported at the time that it would seek opportunities to potentially resolve the issue by applying for an exemption as provided for by the federal department for Housing and Urban Development. This research took several months and recently concluded with a finding that the exemption process was not likely to result in a favorable outcome and therefore will not be pursued. Accordingly, staff will continue to explore other options and return to Council.

More background information is available from the June 20, 2022 staff report.1

1 June 20, 2022 Staff Report: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220620/20220620pccsm-amended-final- final.pdf#page=907.

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ANALYSIS
This action follows through on the Council’s direction to fund DST services from the General Fund; DST has continued to provide services to the City in reliance on this funding. The attached contract authorizes allocating $160,477 from the General Fund for workforce development services to be provided through an agreement with the DST for Fiscal Year 2023.

Downtown Streets Program
The DST program provides homeless and/or extremely low-income individuals with job readiness training and employment opportunities through job search skill instruction, supportive services, and direct employment placements with partnering companies. The objective of this program is to help previously homeless individuals rebuild their self-esteem and confidence through the dignity of work. The primary goal of the program is to transition people from a state of non- worker readiness and unemployment into regular paid employment.

The program provides counseling and training to assist participants develop a plan for self-sustainability by procuring housing or shelter, address physical/mental issues, receive transportation assistance, or providing other services. Training primarily focuses on building successful work habits, job readiness skills, resume writing, and employment search skills. DST will additionally recruit and work with a network of local businesses to identify and increase the number of job opportunities suitable for the targeted population from the private sector.

FISCAL/RESOURCE IMPACT
Funding for this service was approved by City Council through the Fiscal Year 2023 budget adoption. Ongoing funding for this contract and services remains to be determined as staff continued to explore options.

STAKEHOLDER ENGAGEMENT
City and DST staff have been working collaboratively to ensure service delivery continues while exploring options to develop a long term funding strategy solution.

ENVIRONMENTAL REVIEW
The recommended action is CEQA exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility of a significant effect on the environment.

ATTACHMENTS
Attachment A: Downtown Streets Team Contract, C23186552 APPROVED BY:

Jonathan Lait, Planning and Development Services Director ITEM 6
Staff Report

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Report #: 2212-0461
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1 CONTRACT NO. C23186552

BETWEEN THE CITY OF PALO ALTO AND DOWNTOWN STREETS TEAM

This Contract No. C23186552 (“Contract”), dated for convenience on December 13, 2022, by and between the CITY OF PALO ALTO, a California chartered municipal corporation of the State of California (“CITY”), and DOWNTOWN STREETS TEAM, a corporation duly organized and existing under the Nonprofit Corporation Law of the State of California, located at 1671 THE ALAMEDA, SUITE 306, SAN JOSE, CA 95126 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties”.

RECITALS:

A. CITY provides grants to organizations who deliver direct services and desires to obtain outreach services for HOMELESSNESS/OUTREACH in the community (the “Program” or “Services”), as more fully described in Exhibit “A”.

B. CITY desires to engage CONSULTANT in providing the Services based on CONSULTANT’s qualifications and experience in performing the Services.

NOW, THE REFORE, in considera tion of the covenants, terms, conditions, and provisions of this Contract, the Parties agree:

SECTION 1. TERM

1.1 The term of this Contract will commence on July 1, 2022 and will terminate on June 30, 2023, unless this Contract is earlier terminated pursuant to Section 12 of this Contract.

1.2 Upon full execution of this Contract, CONSULTANT will commence work on the initial and subsequent Program tasks in accordance with the time schedule set forth in Exhibit “A”.

1.3 Time is of the essence in the performance of this Contract.

1.4 In the event that the Program is not completed within the time required through any fault of CONSULTANT, CITY’s City Manager will have the option of extending the time schedule for any period of time. This provision will not preclude the recovery of damages for delay caused by CONSULTANT.

SECTION 2. SCOPE OF PROGRAM SERVICES; CHANGES & CORRECTIONS

2.1 CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Contract. The performance of all Services shall be to the reasonable satisfaction of CITY.

2.2 CITY may require substantial changes in the scope or character of the Basic Services, or the Program, either decrea sing or i ncreasing the amount of w ork required of CONSULTANT. In the event that such changes are required, subject to the approval of CITY’s City Council, as may be necessary , CONSULTANT will be entitled to full compensation for all work DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA ITEM 6
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2 performed prior to CONSULTANT’S receipt of the notice of change and further will be entitled to an extension of the time schedule. CITY will not be liable for the cost or payment of any change in work, unless the amount of additional compensation attributable to the change in work is agreed to, in writing, by CITY before CONSULTANT commences the p erformance of any such change in work. Any increase in compensation for changes in the work required by CITY will require a Contract amendment executed by the Parties.

SECTION 3. QUALIFICATIONS, STATUS, AND DUTIES OF CONSULTANT

3.1 CONSULTANT represents and warrants that it has the expertise and professional qualifications to furnish or cause to be furnished the Services. CONSULTANT further represents and warrants that the program director and every individual, including any consultant, charged with the performance of the Services are duly licensed or certified by the State of California (or any other relevant government or professional organization) , to the extent such licensing or c ertification is required by law to perform the Services, and that the Program will be executed by them or under their supervision.

3.2 CONSULTANT co venants and agrees that it will execute or cause to be executed, the Program.

3.3 CONSULTANT wil l assign a single program director to have supervisory responsibility for the performance, progress, and execution of the Program. The program director will represent CONSULTANT during the day-to-day work on the Program. If circumstances or conditions subsequent to the execution of this C ontract cause the s ubstitution of the prog ram director, the CONSULTANT shall notify the program manager of such a change.

3.4 CONSULTANT represents, warrants and agrees that it will:

3.4.1 Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incident to the due and lawful administration of the Program;

3.4.2 Keep itself fully informed of and comply with all Federal, State of California, and local laws, ordinances, regulations, orders, and decrees w hich may affect tho se engaged or employed under this Contract and any materials used in CONSULTANT’s performance of the Services;

3.4.3 At all times observe and comply with, and cause its employees and consultants, if any, who ar e assigned to the perform ance of this Contrac t to observe and comply wi th, the laws, ordinances, regulations, orders and decrees mentioned above; and

3.4.4 Will report immediately to the program manager, in writing, any discrepancy or inconsistency it discovers in the laws, ordinances, regulations, orders, and decrees mentioned above in relation to the deliverables.

3.4.5 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.

3.5 Any deliverables given to, or prepared or assembled by, CONSULTANT or its consultants, if any, under this Contract will become the property of CITY and will not be made DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA ITEM 6
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3 available to any individual or organization by CONSULTANT or its consultants, if any, without the prior written approval of the City Manager.

3.6 CONSULTANT will provide CITY with copies of any documents which are a part of the deliverables upon their completion and acceptance by CITY.

3.7 If CITY requests additional copies of any documents which are a part of the - deliverables, CONSULTANT will p rovide such additional copies or provide press-ready electronic files.

3.8 CONSULTANT will be re sponsible for employing or engaging all persons necessary to execute the Program. All consultants of CONSULTANT will be deemed to be directly controlled and supervised by CONSULTANT, which will be responsible for their performance.

3.9 In the execution of the Program, CONSULTANT and its consultants, if any, will at all times be considered independent contractors and not agents or employees of CITY.

3.10 CONSULTANT will perform or obtain or cause to be performed or obtained any and all of the following Additional Services, not included under the Basic Services, if so authorized, in writing, by CITY:

3.10.1 Providing services as an expert witness in connection with any public hearing or meeting, arbitration proceeding, or proceeding of a court of record;

3.10.2 Incurring travel and subsistence expenses for CONSULTANT and its staff beyond those normally required under the Basic Services;

3.10.3 Performing any other Additional Services that may be agreed upon by the parties subsequent to the execution of this Contract; and

3.10.4 Other Additional Services now or hereafter described in E xhibit “A” to this Contract.

3.11 CONSULTANT shall coordinate its services with other existing organizations providing similar services in order to foster community cooperation and to avoid unnecessary duplication of services.

3.12 CONSULTANT shall seek out and apply for other sources of revenue in support of its oper ation or services from county, state, federal and private sources. Unless deemed inappropriate by the program manager, CITY may support CONSULTANT in its search of grants, funding, or other income by serving a s a sponsoring agenc y, by providing letters of support, or by rendering advice on application for grants.

3.13 CONSULTANT shall include an acknowledgment of CITY funding and support in all appropriate publicity or publications regarding its programs and services using words to the effect that “services are provided in cooperation with the City of Palo Alto” or “through City of Palo Alto funding” as approved by the program manager.

DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA ITEM 6
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4 3.14 Throughout the term of this Contra ct, CONSULTANT shall remain an independent, nonprofit corporation under the laws of California governed solely by a Board of Directors, with up -to-date bylaws. CONSULTANT shall operate by its Bylaws. Any changes in CONSULTANT’s Articles of Incorporation, Bylaws, o r tax -exempt status shall be reported by CONSULTANT immediately to the City’s program manager.

3.15 The Board of Directors of CONSULTANT shall include representation from the broadest possible cross section of the community including: those with expertise and interest in CONSULTANT’s services, repr esentatives from community organizations, and users of CONSULTANT’s services.

3.16 All meetings of the Board of Directors of CONSULTANT shall be open to the public, except meetings, or portions thereof, dealin g with personnel or litig ation matters or other matters required by law to be confidential.

3.17 CONSULTANT shall keep minutes of all regular and special meetings of its Board of Directors.

SECTION 4. DUTIES OF CITY

4.1 The City Manager will represent CITY for all purposes under this Contract. The City’s assigned Program Manager will supervise the perf ormance, progress, and execution of the Program. The Program Manager may conduct site visits of CONSULTANT’s facility(s) during the Contract term.

4.2 In the event CITY should determine from any identifiable source, including but not limited to reports submitted by CONSULTANT under this Contract or any evaluation report from any identifiable source, that there is a condition which requires correction, CITY may for ward to CONSULTANT requests for corrective action. Such requests shall indicate the nature of the issue or issues which are to be reviewed to determin e the need for corrective action and may include a recommendation as to appropriate corrective action. W ithin thirty (30) da ys of C ITY’s request, CONSULTANT shall submit its response, which shall include its views of the problem and proposed action, if any. Upon request of either party, the parties shall mee t to discuss any such request and response within the thirty-day period specified.

SECTION 5. COMPENSATION

5.1 In consideration of the full performance of this Contract, CITY will compensate CONSULTANT in the amount not-to-exceed One Hundred Sixty Thousand Four Hundred Seventy Seven Dollars ($160,477.00) as follows, all subject to the provisions of 17.12 of this Contract:

5.1.1 On the billing form provided by CITY, CONSULTANT shall submit a bill on a monthly basis by the fifteenth (15 th) day of the following month for services provided under this Contract during the prec eding three months. The bill shall s pecify actual expenditures along with verification documentation directly related to this Contract, in accordance with Exhibit “B”. The fees of CONSULTANT’s subconsultants, who have direct contractual relationships with CONSULTANT, must be approved, in advance, by CITY. CITY reserves the right to refuse payment of such fees, if such prior appr oval is not obtained by CONSULTANT. In accordance with Exhibit “A,” Scope of DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA ITEM 6
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5 Program Activities, the semi-annual report shall specify the CONSULTANT’s measurement plan for evaluating the degree that the program goals and objectives have been met.

5.1.2 The full payment of charges for extra work or changes, or both, in the execution of the Program will be made, provided such request for payment is initiated by CONSULTANT and authorized, in writing, by CITY’s Program Manager. Payment will be made within thirty (30) days of submission by CONSULTANT of a statement of itemized costs covering such work or changes, or both. Pr ior to c ommencing such extra work or changes, or both, the parties will agree u pon an estimated maximum cost for such extra work or changes. CONSULTANT will not be paid for extra work or changes, including, without limitation, any design work or change order preparation, which is made necessary on account of CONSULTANT’s errors, omissions, or oversights.

5.1.3 Direct personnel expense of employees assigned to the execution of the Program by CONSULTANT will include only the work and other documents pertaining to the Program, and in services rendered during the Program to the extent such services are expressly contemplated under this Contract. Included in the cost of direct perso nnel expense of these employees are salaries and mandatory and customary benefits such as statutory employee benefits, insurance, sick leave, holidays and vacations, pensions and similar benefits.

5.2 The schedule of payments will be made as follows:

5.2.1 Payment of the Basic Services will be made in quarterly progress payments in proportion to the quantum of services performed, or in accordance with any other schedule of payment mutually agreed upon by the P arties, as set forth in Exhibit “B”, or wit hin thirty (30) days of submission. If CONSULTANT requests greater than 25% of contracted funding in one quarter, pre- approval from CITY must be obtained along with verification documents. Final payment will be made by CITY after CONSULTANT has submitted all deliverables, including, without limitation, reports which have been approved by the CITY’s Program Manager.

5.2.2 No deductions will be made from CONSULTANT’s compensation on account of penalties, liquidated damages, or other sums withheld by CITY from payments to general contractors.

SECTION 6. PROGRAM RECORDS

6.1 Upon reasonable notice, CONSULTANT shall grant CITY’s program manager access to all CO NSULTANT records, data, statements, and reports, which per tain to this Program.

CONSULTANT shall secure all necessary client and/or personnel release of information forms to allow the program manager and others specificall y designated, in writing by the program manager to be afforded such access. Access to cli nical records will be coordinated with th e client, the client’s representative and the CONSULTANT upon reasonable reque st from the progr am manager.

CONSULTANT is not required to provide information, the disclosure of which is expressly prohibited by California or Federal laws.

SECTION 7. ACCOUNTING, AUDITS, OWNERSHIP OF RECORDS

7.1 CONSULTANT shall appoint a fiscal a gent who shall be responsible for the financial and accounting activities of CON SULTANT, including the receipt and disbursement of CONSULTANT funds.

DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA ITEM 6
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6 7.2. CONSULTANT shall appoi nt from its Board a treasurer who shall review Financial Statements of CONSULTANT on a regular basis.

7.3 Records of the direct personnel expenses and expenses incurred in connection with the performance of Basic S ervices and Additional Services pertaining to the Program will be prepared, maintained, and retained by CONSULTANT in a ccordance with ge nerally accepted accounting principles and will be made available to CITY for auditing purposes at mutually convenient times during the term of this Contract and for three (3) years following the expiration or earlier termination of this Contract.

7.4 CONSULTANT shall provide for inde pendent audit of its fiscal year transactions, records, and financial reports at least every two (2) years. The certified public accountant shall submit the report to both parties. The cost of this audit shall be borne by CONSULTANT.

7.5 The originals of the deliverables prepared by o r under the direction of CONSULTANT in the performance of this Contract will become the property of CITY irrespective of whether the Program is completed upon CITY’s payment of the am ounts required to be paid to CONSULTANT. These originals will be delivered to CITY without additional compensation. CITY will have the right to utilize any final and incomplete drawings, estimates, specifications, and any other documents prepared hereunder by CONSULTANT, but CONSULTANT disclaims any responsibility or liability for any alterations or modifications of such documents.

SECTION 8. INDEMNITY

8.1 To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Contract, regardless of whether or not it is caused in part by an Indemnified Party.

SECTION 9. WAIVERS

9.1 No waiver of a condition or nonperformance of an obligation under this Contract is effective unless it is in writing in accordance with Section 17.6 of this Contract. No delay or failure to require performance of any provision of this Contract shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to t he specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

9.2 No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Contract.

SECTION 10. INSURANCE

10.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Contract, the insurance coverage described in Exhibit C, entitled DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA ITEM 6
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7 “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

10.2. All insurance coverage required h ereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of Califor nia. Any and all contractors of CONSULTANT retained to perform Services under this Contract will obtain and maintain, in full force and effect during the term of this Contract, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

10.3. Certificates evidencing such i nsurance shall be filed with CITY concurrently with the execution of this Contract . The certificates will be subject to the approval of C ITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materiall y reduced in coverage or limit s, by t he insurer except after fili ng with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than th irty (30) days’ notice to CONSULTANT, C ONSULTANT shall provide the Purchas ing Manager written notice of the cancellation or modif ication within two (2) business days of the CONSULT ANT’s receipt of such notice. CONSULTANT shall be responsible for e nsuring that current certificates evidencing th e insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Contract.

10.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Contract. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Contract, including such damage, injury, or loss arising after the Contract is terminated or the term has expired.

SECTION 11. WORKERS’ COMPENSATION

11.1 CONSULTANT, by executing this Contract, certifie s that it is aware of the provisions of the Labor Code of the State of Cal ifornia 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 pr ovisions, as applicable, before commencing the performance of the Program.

SECTION 12. TERMINATION OR SUSPENSION OF CONTRACT OR PROGRAM

12.1 The City Manager may suspend the execution of the Program, in whol e or in part, or terminate this Contract, with or without cause, by giving thirty (30) days prior written notice thereof to CONSULTANT, o r immediately after submission to CITY by CONSULTANT of any completed item of Basic Services. Upon receipt of such not ice, CONSULTANT will immediately discontinue its performance under this Contract.

12.2 CONSULTANT may terminate this Contract or suspend its execution of the Program by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY or in the event CITY indefinitely withholds or withdraws its request for the initiation or continuation of Basic Services or the execution of the Program.

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8 12.3 Upon such suspension or termination by CITY, CON SULTANT will be compensated for the Basic Services and Additional Services performed and deliverables received and approved prior to receipt of written notice from CITY of such suspension or abandonment, together with authorized additional and reimbursable expenses then due. If the Program is resumed after it has been suspended for more than 180 days, any change in CONSULTANT’s compensation will be subject to renegotiation and, if necessary, approval of CITY’s City Council. If this Contract is suspended or terminated on account of a default by CONSUL TANT, CITY will be obligated to c ompensate CONSULTANT only for that portion of CONSULTANT’s services which are of direct and immediate benefit to CITY, as such determination may be made by the City Manager in the reasonable exercise of his discretion.

12.4 In the event of termination of this Contract or suspension of work on the Program by CITY where CONSULTANT is not in default, CONSUL TANT will receive compensation as follows:

12.4.1 For approved items of services, CONSULTANT will be compensated for each item of service fully performed in the amounts authorized under this Contract.

12.4.2 For approved items of services on which a notice to proceed is issued by CITY, but which are not fully performed, CONSULTANT will be compensated for each item of service in an amount which bears the same ratio to the total fee otherwise payable for the performance of the service as the quantum of service actually rendered bears to the services necessary for the full performance of that item of service.

12.4.3 The total compensation payable under the preceding paragraphs of this Section will not exceed the payment specified under Section 5 for the respective items of service to be furnished by CONSULTANT.

12.5 Upon such suspension or termination, CONSULTANT will deliver to the City Manager immediately any and all copies of the deliverables, whether or not c ompleted, prepared by CONSULTANT or its consultants, if any, or given to CONSULTANT or its consultants, if any, in connection with this Contract. Such materials will become the property of CITY.

12.6 The failure of CITY to agree with CONSULTANT’s inde pendent findings, conclusions, or recommendations, if the same are called for under this Contract, on the basis of differences in matters of judgment, will not be construed as a failure on the part of CONSULTANT to fulfill its obligations under this Contract.

SECTION 13. ASSIGNMENT

13.1 This Contract is for the services of CONSULTANT, therefore, CONSULTANT will not assign, transfer, convey, or otherwise dispose of this Contract or any right, title or interest in or to the same or any part thereof without the prior written consent of CITY. A consent to one assignment will not be deemed to be a consent to any subsequent assignment. Any assignment made without the approval of CITY will be void and, at the option of the City Manager, this Contract may be terminated.

This Contract will not be assignable by operation of law.

SECTION 14. NOTICES
DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA ITEM 6
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9 14.1 All notices hereunder will be given, in writing, and mailed, postage prepaid, by certified mail, addressed as follows:

To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303

Copy to: Planning Development Services Department
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301

To CONSULTANT: Downtown Streets Team
1671 The Alameda Suite, 306
San Jose, CA 95126

SECTION 15. CONFLICT OF INTEREST

15.1 In accepting this Contract, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.

15.2 CONSULTANT further covenants that, in the performance of this Contract, it will not employ contractors or persons having such an interest mentioned above. CONSULTANT certifies that no one who has or will have any fin ancial interest under this Contract is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California.

SECTION 16. NONDISCRIMINATION

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

CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof and agrees to meet all r equirements of Section 2.30.510 pertaining to nondiscrimination in employment.

16.2 CONSULTANT agrees t hat each contract for services from independent providers fulfilling obligations under this Contract will contain a provision substantially as follows:

Independent provider will provide DOWNTOWN STREETS TEAM with a certificate stating that Independent provider is currently in compliance with all Federal and State of California laws covering nondiscrimination in employment; and that it will not discriminate in the employment of any person under thi s contract because of the age, race, skin color, national origin, a ncestry, religion, DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA ITEM 6
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10 disability, sexual orientation, gender or gender identity , housing status, marital status, familial status, weight, height or gender of such person.

16.3 If CONSULTANT is found in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions of Federal law or executive order in the performance of this Contract, it will be in default of this Contract. Thereupon, CITY will have the power to cancel or suspend this Contract, in whole or in part, or to deduct the sum of twenty- five dollars ($25) for each person for each calendar day during which s uch person was subjected to discrimination, as damages for breach of contract, or both. Only a finding of the State of Califor nia Fair Employment Practices Commission or the equivalent federal agency or officer will constitute evidence of a breach of this Contract.

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

SECTION 17. MISCELLANEOUS PROVISIONS

17.1 (Reserved).

17.2 (Reserved).

17.3 This Contract will be governed by California law, without regard to its conflict of law provisions.

17.4 In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state Superior Court for the County of Santa Clara or in the Un ited States District Court for the Northern District of California.

17.5 The prevailing party in any action brought to enforce the terms of this Contract or arising out of this Contract may recover its reasonable costs and attorneys’ fees expended in connection with that action.

17.6 This document represents the entire and integrated Contract between the parties and supersedes all prior negotia tions, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties.

17.7 All provisions of this Contract, whether covenants or conditions, will be deemed to be both covenants and conditions.

17.8 The covenants, terms, conditions and provisions of this Contract will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants, as the case may be, of the parties.

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11 17.9 If a court of competent jurisdiction finds or rules that any provision of this Contract or any amendment thereto is void or unenforceable, the unaffected provisions of this Contract and any amendments thereto will remain in full force and effect.

17.10 All exhibits referred to in this Contract and any addenda, appendices, attachments, and schedules which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Contract and will be deemed to be a part of this Contract.

17.11 This Contract may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one and the same instrument.

17.12 This Contract is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Contract 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 Contract are no longer available. This Section 17.12 will take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract.

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12 CONTRACT NO. C23186552 SIGNATURE PAGE

IN WITNESS W HEREOF, the parties hereto have by their duly authorized representatives executed this Contract on the date first above written.

CITY OF PALO ALTO:

______________________________
City Manager
Date:

APPROVED AS TO FORM:

______________________________
Deputy City Attorney

DOWNTOWN STREETS TEAM:

By: __________________________
Name:

Title:

Date:

By: __________________________
Name:

Title:

Date:

Attachments:

EXHIBIT “A”: SCOPE OF SERVICES
EXHIBIT “B”: SCHEDULE OF PERFORMANCE
EXHIBIT “C”: COMPENSATION
EXHIBIT “D”: INSURANCE REQUIREMENTS
DocuSign Envelope ID: 8158E9A3-3C51-450C-8D59-F804F8DEE8BA 12/13/2022
Chief Program Officer
Chris Richardson
Interim CEO
12/14/2022
Jim Rettew
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13 EXHIBIT “A”

SCOPE OF SERVICES

CONSULTANT will provide homeless and/or extremely low‐income individuals with job readiness training and employment opportunities through job search skill instruction, supportive services, and direct employment placements with partnering companies. The objective of this program is to help previously homeless individuals rebuild their self‐esteem and confidence through the dignity of work. The primary goal of the program is to transition people from a state of non‐ worker readiness and unemployment into regular paid employment.

The program will provide counseling and training to assist participants develop a plan for self‐sustainability by procuring housing or shelter, address physical/mental issues, receive transportation assistance, or providing other services. Training will primarily focus on building successful work habits, job readiness skills, resume writing, and employment search skills.

Downtown Streets Team will additionally recruit and work with a network of local businesses to identify and increase the number of job opportunities suitable for the targeted population from the private sector.

CONSULTANT will create economic opportunities and 14 unduplicated homeless individuals will receive gainfully employment allowing them increased access to economic opportunities.

CONSULTANT will provide tangible local employment opportunities for motivated, previously homeless, or at‐risk of homeless individuals who have completed the CONSULTANT’s Employment Development Course though the following objectives:

Objective # 1: Attain paid employment opportunities for unemployed and homeless individuals in the Workforce Development Program.

Outcome: Previously homeless and unemployed persons will find paid employment.

Numbers served: 14 unduplicated individuals will be placed in jobs through job training/employment readiness classes and outreach to local employers.

Objective # 2: Build extensive network of local employers willing to hire DST program participants.

Outcome: Local employers willing to hire or open/expedite interview process to a DST program participant.

Number served: 14 local employers will be recruited to create/hold positions or expedite the hiring process for DST program participants in Fiscal Year 2022-2023

Objective # 3: Develop job search skills and job readiness training classes to prepare participants for employment.

Outcome: Employers retain new employees beyond three months.

Number served: 75% of employers retain new employees beyond three months.

CONSULTANT shall provide semi-annual activity reports relating to this Scope of Services for the periods ending December 31, 2022, and June 30, 2023, within fifteen (15) days after these dates.

Each report shall cover the preceding six (6) month period, and other such information as the CITY may request. The final report shall focus on the preceding (6) months, but also shall provide information on contract services for the entire year. Each report shall be prepared in the form agreed upon by the CITY and CONSULTANT. Income, as well as race and ethnicity, information will be gathered and reported on the program participants.

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14 EXHIBIT “B”

SCHEDULE OF PERFORMANCE

CONSULTANT shall perform the Services so as to complete each milestone within timeframe as specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement.

Deliverables Schedule
Exhibit “A” – Scope of Services Daily/Ongoing through June 30, 2023

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15 EXHIBIT “C”

COMPENSATION

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

CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below.

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

The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.

BUDGET SCHEDULE:

Description Total Not to Exceed
Exhibit “A” – Scope of Services $160,477.00
Sub-total Basic Services $160,477.00
Reimbursable Expenses $0.00
Total Basic Consultant Services & Reimbursable Expenses $160,477.00

REIMBURSABLE EXPENSES

The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: $0.00

ADDITIONAL SERVICES

The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement.

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16 EXHIBIT “D”

INSURANCE REQUIREMENTS

CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM

OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:

REQUIRED

TYPE OF COVERAGE

REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES WORKER’S COMPENSATION
YES EMPLOYER’S LIABILITY

STATUTORY

YES GENERAL LIABILITY,

INCLUDING PERSONAL

INJURY, BROAD FORM

PROPERTY DAMAGE

BLANKET CONTRACTUAL,

AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY DAMAGE
COMBINED.
$1,000,000

$1,000,000

$1,000,000
$1,000,000

$1,000,000

YES AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED,

HIRED, NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH

OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000
$1,000,000

$1,000,000

YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST

AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM

OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.

II. CONTRACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.

III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS

AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE

POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST

ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

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17 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 CONTRACTOR 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 CONTRACTOR SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

Vendors are required to file their evidence of insurance and any other related notices with the City of Palo Alto.

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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT REPORT
Lead Department: Community Services
Meeting Date: January 23, 2023

TITLE
Parks and Recreation Commission Recommendation to Adopt an Ordinance Amending PAMC Section 22.04.220 to Regulate Electric Bicycles and Electric Coasting Devices in Parks and Open Spaces

RECOMMENDATION
The Parks and Recreation Commission (PRC) recommends that the City Council adopt an amendment to PAMC 22.04.220 to regulate electric bicycles and electric coasting devices 1 in City parks and open spaces (Attachment A).

EXECUTIVE SUMMARY
On January 1, 2023 1, new legislation, AB 1909, changed the default rule to allow the use of all classes of e-bikes (including class 3) on all trails unless prohibited by local ordinance. In response to this change in state law, the PRC voted unanimously to recommend that City Council 1) amend PAMC 22.04.220 to regulate all classes of electric bicycles and electric coasting devices in City parks and open spaces (Attachment A) and 2) that the City Manager adopt the updated Parks and Open Space Regulation R1-18 and R1-37 to regulate electric bicycles and electric coasting devices (Attachment B).

The ordinance update clarifies that the park regulations provide rules on where e-bike and electric coasting devices are allowed in Open Space and Parks. The regulations are consistent with the following policy:
1 Until the end of 2022, state law prohibited the use of class 3 electric bicycles (e-bikes) on trails (including hiking, recreational, equestrian, and bike trails). Class 3 e-bikes are the fastest category of e-bike and capable of electric assist up to 28 miles per hour. Cities could opt-out of this restriction by adopting an ordinance, but the City of Palo Alto followed the default state law prohibition.

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Open Space Policy
•All e-bikes (class 1, 2, and 3) are allowed on paved roads and trails and are prohibited elsewhere including on unpaved roads and trails.
•Other electric powered mobility devices are allowed on paved roads and trails at the Baylands Nature Preserve and are prohibited in other open space preserves (Pearson- Arastradero Preserve, Foothills Nature Preserve, and Esther Clark Park).

Parks Policy
•All e-bikes (class 1, 2, and 3) are allowed on paved and unpaved trails in parks, and are prohibited elsewhere (turf, sports courts, playgrounds, landscaped areas, etc.) in parks. •Other electric powered mobility devices are allowed on paved and unpaved trails in parks, and are prohibited elsewhere (turf, sports courts, playgrounds, landscaped areas, etc.) in parks.

BACKGROUND
California State E-Bike Description and Policy
Section 312.5 of the California Vehicle Code (CVC) defines an e-bike as having fully operable pedals and an electric motor of less than 750 watts. It also defines three categories of e-bikes based on the power of their electrical assistance and whether the e-bike can move without pedaling:
•A “class 1 electric bicycle,” or “low-speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour. •A “class 2 electric bicycle,” or “low-speed throttle-assisted electric bicycle,” is a bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour. •A “class 3 electric bicycle,” or “speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour and equipped with a speedometer.

Note: The only difference between class 1 and class 2 is that with a class 2, the electric motor can be used exclusively to power the bicycle using a throttle (pedaling is not required).

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Until the end of 2022, CVC section 21207.5 (b) prohibited the use of class 3 e-bikes on recreational trails and paths unless the public agency with jurisdiction chose to permit them, and provided that a public agency may prohibit class 1 and 2 e-bikes on trails within the agency’s jurisdiction. Class 1 and 2 e-bikes are currently allowed on City of Palo Alto open space and park trails except for Foothills Nature Preserve, where bikes are not allowed on trails. On January 1, 2023, new legislation, AB 1909, removed the prohibition of class 3 e-bikes on trails and paths unless prohibited by local ordinance.

Regional Policies
Locally, there is mixed support for e-bike use, with varying restrictions. Many restrictions have not been updated since the CVC updated the definition of e-bikes and are based on now- outdated laws and definitions of motorized vehicles or devices. The Midpeninsula Regional Open Space District is one local agency that has done a significant amount of work reviewing and updating its e-bike policy. On November 20, 2019, the MROSD Board of Directors directed the General Manager to evaluate potential electric bicycle (e-bike) access in MROSD preserves.

Part of the MROSD analysis included various surveys and studies related to a one-year pilot program of class 1 and class 2 e-bike use on paved, multi-use trails within Rancho San Antonio and Ravenswood Preserve and intercept surveys on Santa Clara County Parks unpaved, multi-use trails where e-bikes are currently allowed. Additionally, H. T. Harvey and Associates (an environmental consulting company) completed an e-bike noise study, focused on potential impacts to birds and bats, and the MROSD Science Advisory Panel (SAP) conducted a literature review of the impacts and benefits of e-bikes. The PRC Electric Conveyances Policy Ad Hoc Committee (Ad Hoc) and staff found the MROSD’s analysis (Staff Report/Study) informative.

On June 29, 2022, the MROSD Board voted 4-2 to:
•Allow class 1 and class 2 e-bike access on limited improved trails at Ravenswood Preserve
•Allow class 1 and class 2 e-bike access on limited improved trails where bikes are currently allowed at Rancho San Antonio Preserve
•Affirm the prohibition of e-bikes on MROSD trails except for specifically designated trails noted above
Note: E-bikes are allowed on ~1.6 miles of paved asphalt trails at Ravenswood Preserve, and less than 5 miles of select, primarily paved trails at Rancho San Antonio Preserve with asphalt. E-bikes are prohibited on all MROSD trails at the 26 open space preserves under its jurisdiction, except for those noted at Ravenswood Preserve and Rancho San Antonio Preserve.

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City of Palo Alto Policy
Class 1 and 2 e-bikes are currently allowed on open space and park trails except for Foothills Nature Preserve, where bikes are not allowed on trails. Class 3 e-bikes were prohibited under the state’s default prohibition under CVC 21207.5, but are now allowed as of January 1, 2023 due to the change to state law. As permitted by the updated state law, adopting this ordinance will allow the City to regulate all classes of e-bikes on trails within City parks and open spaces.

ANALYSIS
Starting in April 2022, the PRC Ad Hoc met numerous times to discuss and prepare a draft Open Space and Parks Electric Bicycle and Electric Conveyances Policy (Policy). The Ad Hoc identified several important factors to consider while developing the Policy:
•Environmental and ecological impacts
•Safety
•Public access
•Equity
•Recreation
•Enforceability
•Clarity and simplicity
•Compatibility with regional policies
•Public demand and opposition
•Bicycle transportation corridors
Stakeholder Input
On September 22, 2022, staff and the Ad Hoc met with Transportation staff to discuss and collect their feedback on the draft Policy. On October 3, 2022, staff and the Ad Hoc met with the Chair and Vice Chair of the Palo Alto Pedestrian and Bicycle Advisory Committee (PABAC) to collect their feedback on the draft Policy.

On October 25, 2022, the PRC reviewed the draft Policy (Staff Report). There was general support for the draft Policy. One issue that the PRC discussed was the PABAC Chair and Vice Chair’s recommendation that e-bikes be allowed on the unpaved trails at the Baylands Nature Preserve.

Three commissioners noted that they would support allowing Class 1 e-bikes on the unpaved trails at the Baylands.

On November 1, 2022, PABAC reviewed the draft Policy and passed the following motion (15:0:1):

PABAC does not approve the draft E-bike guidelines for Palo Alto’s Open Spaces and Parks presented to us for review on Nov. 1. We (PABAC) recognize that e-bikes are becoming more ITEM 7
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popular and there is a need to create some guidelines. We (PABAC) urge the PRC to wait until the completion of the BPTP Update before submitting their recommendations to Council.

The Bicycle Pedestrian Transportation Plan (BPTP) Update is scheduled to begin in early 2023 and take between 18 to 24 months to complete. PABAC formed a subcommittee to work on e-bikes.

On November 10, 2022, staff and the Ad Hoc met with Transportation staff to collect additional feedback on the draft Policy. Transportation staff explained that the 2020 Safe Routes to School Elementary Parent Survey e-Bike Data shows approximately 10% e-bike ownership, and 2022 Safe Routes to School Middle/High School Travel Tally Student e-Bike Data reveals approximately

0.5% e-bike ownership. Transportation staff recommend basing bicycle restrictions on Open Space and Park trails on speed and not class, due to the challenges of discerning a bike based on its class type. They also stressed the importance of allowing e-bike commutes on park trails to support students using e-bikes to get to school and meeting the City’s sustainability goals. The Ad Hoc incorporated this feedback into an updated draft Policy.

On November 22, 2022, the Ad Hoc met with the PABAC Subcommittee and Chair. There was general support for the updated draft Policy. One area of disagreement is that the PABAC members argue that e-bikes should be allowed on unpaved trails at the Baylands Nature Preserve. The Ad Hoc argued that local access and regional transportation corridors are supported at the Baylands with e-bike access on paved trails from the Friendship Bridge to Shoreline Park ( Baylands Nature Preserve Trail Map), and that limiting e-bikes to paved Open Space trails allows for local access to the Baylands, prioritizes ecological preservation, and is consistent with the policy of neighboring agencies, particularly MROSD. The Ad Hoc and the PABAC Subcommittee agreed to continue to meet to discuss e-bikes.

Parks and Recreation Commission Recommended Policy Update In recommending an e-bike policy, the PRC seeks to balance competing priorities, including transportation corridors, community recreation, enjoyment of nature, habitat and wildlife protection, safety, and enforceability. Local access and regional transportation corridors are supported at the Baylands with e-bike access on paved trails from the Friendship Bridge to Shoreline Park. Limiting e-bikes to paved Open Space trails allows for local access to the Baylands, prioritizes ecological preservation, and is consistent with the policy of neighboring agencies, particularly MROSD. The PRC recommends improving e-bike policy communication and education to support this policy recommendation. This should include improved and increased signage (speed limit, trail rules and etiquette) and website enhancements.

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The PRC supports a common policy for all e-bikes, without differentiating between e-bike classes.

This recommendation change is based in part on further consultation with Transportation staff, advocating an e-bike usage policy promoting safe speed behavior, rather one based on e-bike classification. Distinguishing between different classes of e-bikes is difficult, if not impossible. A common policy for all e-bikes provides simplicity for pedestrians and cyclists to understand, encourages community compliance and support. The common policy also simplifies staff’s ability to explain and enforce e-bike usage regulations.

The PRC and staff recognize e-bike and other electric conveyance usage is evolving. Continued monitoring of impacts, learning from the experiences of neighboring agencies, and feedback from City resources and community outreach will help inform future updates to the Policy. Agencies and City resources will include MROSD, PABAC, and the City/School Transportation Committee, and the BPTP Update (once it is completed). In consideration of the recent clarification about class 1 and 2 e-bikes being allowed on Palo Alto trails and the pending State legislation that will also allow class 3 e-bikes on Palo Alto trails, the Ad Hoc and staff believe a more immediate action is needed.

On November 22, 2022, PRC voted unanimously (7:0) to recommend that City Council adopt an update to ordinance 22.04.220 to regulate the use of electric bicycles and electric coasting devices (Attachment A), and that the City Manager adopt the updated Parks and Open Space Regulation R1-18 and R1-37 to regulate electric bicycles and electric coasting devices in specific areas (Attachment B) (Staff Report).

The Parks and Open Space Regulations are consistent with the following Policy:

Open Space Policy
•All e-bikes (class 1,2, and 3) are allowed on paved roads and trails and are prohibited elsewhere including on unpaved roads and trails.
•All e-bikes (class 1,2, and 3) are allowed for city staff in open space and parks for maintenance and enforcement purposes, consistent with P.A.M.C. 22.04.150(f). •Other electric powered mobility devices are allowed on paved roads and trails at the Baylands Nature Preserve and are prohibited in other open space preserves (Pearson- Arastradero Preserve, Foothills Nature Preserve, and Esther Clark Park).

Parks Policy
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•All e-bikes (class 1, 2, and 3) are allowed on paved and unpaved trails in parks, and are prohibited elsewhere (turf, sports courts, playgrounds, landscaped areas, etc.) in parks. •Other electric powered mobility devices are allowed on paved and unpaved trails in parks, and are prohibited elsewhere (turf, sports courts, playgrounds, landscaped areas, etc.) in parks.

Open Space and Parks Policy
•R1-20. TRAIL USE SPEED LIMIT will apply to e-bikes and other electric powered mobility devices.
•The maximum speed for all trail uses is 15 miles per hour, unless a lesser maximum speed is posted, and no person shall exceed the maximum speed on any trail; however, no person shall operate a bicycle, e-bike, or other electric powered mobility device, or ride a horse or other such animal at a speed greater than is reasonable, prudent, or safe.

Bicyclists, e-bike and other electric powered mobility device users, and equestrians are required to slow to 5 miles per hour when passing others or approaching blind turns. •When not in use, e-bikes and other electric powered mobility devices:
oShould be parked in designated parking areas when available. oMay not be left unattended on trails, vegetation, landscaped areas, or vehicle parking areas.
oAre not allowed to interfere with access or use of any open space and park trail, turf, playground, sports court, facility, or amenity (park bench, picnic table, etc.).

Note: these same guidelines apply to regular bikes.
•The Americans with Disabilities Act (ADA) overlays all city policies and is specific to each individual person who may need an adjustment of city policy or regulation. People may contact Community Services Department staff to make an ADA access request pertaining to this policy.

FISCAL/RESOURCE IMPACT
If City Council adopts the recommendation in this staff report, staff will purchase and install new signs (speed limit, trail rules and etiquette). The approximate cost for the signs will be $10,000.

The FY 2023 Adopted Capital Budget Project Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities (PG-06003) has sufficient funding to purchase and install the signs in the current fiscal year, with no additional budgetary action required.

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STAKEHOLDER ENGAGEMENT
The following community meetings and hearings were held to obtain public input on the proposed policy:
•April 2022 to November 2022—numerous meetings with PRC Ad Hoc Committee and staff
•October 25, 2022--Parks and Recreation Commission meeting •November 1, 2022-- PABAC meeting
•November 22, 2022-- Ad Hoc and PABAC Subcommittee meeting •November 22, 2022-- Parks and Recreation Commission meeting

ENVIRONMENTAL REVIEW
This ordinance is categorically exempt from CEQA under CEQA regulation 15301 (existing facilities).

ATTACHMENTS
Attachment A: Amendment to PAMC 22.04.220 to regulate electric bicycles and electric coasting devices in City parks and open spaces
Attachment B: Amendment to Open Space and Parks Regulations APPROVED BY:

Kristen O'Kane, Community Services Director
Report #: 2301-0723
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*NOT YET APPROVED*
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Ordinance No. ___
Ordinance of the Council of the City of Palo Alto Amending Section 22.04.220 (Bicycles and animals) of the Palo Alto Municipal Code to Prohibit the Use of Electric Bicycles in the City’s Parks Except as Permitted by Regulation.

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

SECTION 1
. Findings and declarations.

A. California Vehicle Code section 21207.5 prohibits the use of motorized bicycles and Class 3 electric bicycles “on a bicycle path or trail, bikeway, bicycle lane established pursuant to Section 21207, equestrian trail, or hiking or recreational trail, unless it is within or adjacent to a roadway or unless the local authority or the governing body of a public agency having jurisdiction over the path or trail permits, by ordinance, that operation.”
B. In 2022, the State of California approved AB 1909, which amended California Vehicle Code section 21207.5 to allow the use of Class 3 electric bicycles in the areas listed above unless an agency adopts an ordinance prohibiting such use. This amendment will be effective January 1, 2023.

C. The City Council now desires to adopt this ordinance to ensure the City can retai n its authority to prohibit the use of electric bicycles in certain park and open space areas as permitted by AB 1909 and California Vehicle Code section 21207.5 as amended.

SECTION 2
. Section 22.04.220 ( Bicycles and animals ) of Chapter 22.04 (Parks and Recreation Building Use and Regulations) of Title 22 (Parks) is hereby amended as follows (new text in underline, deleted text in strikethrough):

22.04.220 Bicycles and animals.
(a) No person shall operate, drive or ride a bicycle, e lectric bicycle (e-bike), unicycle, skateboard, roller skates, scooter, jogging stroller or other coasting device (including electric coasting devices), horse or any other animal in a park or open space lands except on established paths or walkways, unless as expressly permitted to do so pursuant to park regulations. (b) Persons riding horses shall properly dispose of horse manure dropped from the animal they are riding by removing it to the side of the levee, trail or road.

(c) No person shall operate or use a skateboard, roller skates, scooter, jogging stroller or other coasting device in open space lands except on the Renzel Trail and other paved off- road multi- use trails.

SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconsti tutional 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 ITEM 7
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Bicycles and coasting devices in
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*NOT YET APPROVED*
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regard to whether any portion of the O rdinance would be subsequently declared invalid or unconstitutional.

SECTION 4. The Council finds that this project is categorically exempt from the provisions of the California Environmental Quality Act (“CEQA”) under sections 15301 (Existing Facilities).

SECTION 5. 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 Community Services

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Attachment A - Amendment to
PAMC 22.04.220 Regulate Electric
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1 City of Palo Alto

PARK AND OPEN SPACE REGULATIONS
(Last Updated December 2022)

Contents

R1-1. DEFINITIONS................................................................................................................... 2 R1-2. APPLICABILITY ............................................................................................................... 2 R1-3. CLOSURE OF FACILITIES - AUTHORITY ....................................................................... 2 R1-4. CONTENTS OF PERMIT APPLICATION; SUBMISSION ................................................. 3 R1-5. ACTION ON PERMIT APPLICATION ............................................................................... 3 R1-6. FOOTHILLS PARK – RESERVATIONS AND VEHICLE ENTRY ...................................... 4 R1-7. PERMIT – EXHIBITION .................................................................................................... 5 R1-8. HOURS OF PARK CLOSURE .......................................................................................... 5 R1-9. HAZARDOUS GAMES OR ACTIVITIES ........................................................................... 5 R1-9A. USE OF METAL DETECTORS IN PARKS .................................................................... 6 R1-10. PICNIC SITE USAGE ..................................................................................................... 6 R1-10A. LYTTON, COGSWELL AND KING PLAZA................................................................... 6 R1-10B. LYTTON PLAZA NOISE REGULATION ....................................................................... 7 R1-11. RACQUET COURT (TENNIS AND PICKLEBALL) USAGE ............................................ 7 R1-12. ATHLETIC FIELD USE ................................................................................................... 8 R1-13. PEERS PARK AND JOHNSON PARK VOLLEYBALL USE ............................................ 8 R1-14. SKATEBOARD FACILITY .............................................................................................. 9 R1-15. GOLF COURSE ............................................................................................................. 9 R1-16. SWIMMING .................................................................................................................... 9 R1-17. BOAT USE ....................................................................................................................11 R1-18. BICYCLES, SKATEBOARDS AND ROLLER SKATES ..................................................12 R1-19. HUMAN FLIGHT ...........................................................................................................13 R1-20. TRAIL USE SPEED LIMITS ..........................................................................................13 R1-20A. USE OF DESIGNATED TRAILS, PATHS AND RECREATIONAL LAWN AREAS IN OPEN SPACE LANDS ..............................................................................................................13 R1-21. COMMERCIAL ACTIVITIES AND SOLICITATION ........................................................13 R1-21A. COMMERCIAL PHOTOGRAPHY AND FILMING .......................................................13 R1-22. RESTROOMS ...............................................................................................................14 R1-23. UNAUTHORIZED USE OF KEYS OR LOCKS ..............................................................14 R1-24. WATER POLLUTION ....................................................................................................15 R1-25. HARMFUL SUBSTANCES ............................................................................................ 15 R1-26. LITTERING ...................................................................................................................15 R1-27. DISPOSAL OF EFFLUENT ...........................................................................................15 ITEM 7
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2 R1-28. SMOKING .....................................................................................................................15 R1-29. FIREWORKS.................................................................................................................15 R1-30. ANIMALS ......................................................................................................................15 R1-31. NUISANCE DOGS ........................................................................................................16 R1-32. DOG EXERCISE AREA ................................................................................................17 R1-33. UNAUTHORIZED CONSTRUCTION ACTIVITIES ........................................................17 R1-34. USE OF UTILITIES .......................................................................................................17 R1-35. GATHERING WOOD IN OPEN SPACE AREAS ...........................................................17 R1-36. PARKING RESTRICTIONS ...........................................................................................17 R1-37. OPERATION OF MOTOR VEHICLES ...........................................................................18 R1-37A. VEHICLE WEIGHT LIMIT ON BAYLANDS ROADS AND PARKING LOTS ................18 R1-38. VIOLATION – PENALTY ...............................................................................................18 R1-39. PLAYGROUNDS ...........................................................................................................19 R1-40. COMMUNITY GARDENS ..............................................................................................19

R1-1. DEFINITIONS
The following words and phrases, whenever used in these regulations, shall be construed as defined in these regulations.

A. " City" means the City of Palo Alto.

B. "department" means the Community Services Department of the City.

C. "facility" or "park facility" means any body of water, land, campsite, garden, trail, levee, recreation area, building, structure, system, equipment, machinery or other appurtenance owned, managed, controlled or operated by the Community Services Department.

D. “director” means the Director of Community Services of the City.

R1-2. APPLICABILITY
The provisions of these regulations apply to all facilities under the jurisdiction of the Community Services Department.

R1-3. CLOSURE OF FACILITIES - AUTHORITY
The director shall have the authority to close any park facility or portion thereof and require the exit of all persons therein when he or she determines that conditions exist in said facility or portion thereof which presents a hazard to the facility or t o public safety.

No person shall use, enter or remain in any facility, Park or Open Space which has been posted as being closed under this authority.

A. The Open Space, Parks and Golf Division Manager shall have the authority to close Open Space trails which have been designated as “seasonal trails” when weather conditions predispose the trail or surrounding habitat to damage or erosion. Such trail closures will be posted on park bulletin boards and at the affected trail junctions.

B. The Open Space, Parks and Golf Division Manager shall have the authority to temporarily close Open Space trails or facilities when the damage of flora or fauna are threatened by humans or their pets. Such facility closures will ITEM 7
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3 be posted on park bulletin boards and at affected trail junctions or facilities.

R1-4. CONTENTS OF PERMIT APPLICATION; SUBMISSION
Whenever a permit is required by provision in these regulations, an application shall be filed with the director stating:

A. The name of each applicant, sponsoring organization and the person(s) who is in charge of or responsible for the proposed activity;
B. The address and telephone numbers of each person and/or entity named in subsection (A);
C. The name of the Park, Open Space land, building, field or tennis courts requested for the activity, specifically identifying the location of the activity within the park or room within the building;
D. The date and starting time of the proposed activity, together with the anticipated arrival time of guests; The finish time of the proposed activity, including cleanup; E. The number of persons expected to attend the activity; F. Additional City facilities requested, such as personnel, tables, chairs, etc; G. The nature of the proposed activity or activities, including equipment and vehicles to be brought into the Park or Open Space lands; nature and duration of the use of such equipment; nature and duration of the use of any amplified sound; whether fees or donations for service will be solicited or collected; and whether alcohol will be served.

H. Proof of Palo Alto residency may be required for the permit application.

I. The necessity for street closure in order to hold an event.

J. The permit application shall be filed with the director by no later than seven (7) days prior to the date of the special event.

R1-5. ACTION ON PERMIT APPLICATION
The director shall issue a permit within five (5) business days after submission of a completed application if:

A. The proposed activity or use of the facility will not unreasonably interfere with or detract from the general public enjoyment of the facility; B. A facility with the required occupancy load capacity is available; C. All conditions, including, where applicable, the payment of fees, approval of the Director of Community Services and insurance coverage, security deposits and/or requirements are met;
D. The proposed activity or use will not entail unusual, extraordinary or burdensome expense or security operation by the department;
E. If the proposed special event will have more than twenty-five (25) individuals in attendance, involve road closures, traffic control, or the need for inter- departmental review (for example, for a “fun run” or a “live music” event), an additional City-wide special event application from the Police Department may be required for the event. City-wide special event permit applications are not generally required for standard picnic reservations. Completed City-wide special event permit applications may be filed as early as one year before the event but must be received no later than 30 days before the actual event date, and no later than 90 days before the actual date of the event if the event requires a street closure.

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4 F. The facilities desired have not been reserved for other use; G. Special conditions requested in applications are reasonable and feasible.

H. The proposed activity will not negatively impact habitat, wildlife, or vegetation in the Park or Open Space area.

I. Residency requirements, if any, have been satisfied.

R1-6. FOOTHILLS PARK – RESERVATIONS AND VEHICLE ENTRY
A. Resident Reservation Preference. The Towle Campground, Oak Grove Group Picnic Area, and the Interpretive Center meeting room at Foothills Park shall have Resident Reservation Preference in making reservations. No other facility existing as of December 2020 shall have Resident Reservation Preference.

Resident Reservation Preference shall be one that permits residents to have access to reservations for no longer than the first 25% of the time period during which reservations for the subject facility may be made. Thus, if the facility in question is made available for reservation by residents for 4 weeks’ time prior to the date of the reservation, the facility must be made available for reservation by non-residents for at least 3 weeks’ time before the date of reservation. (Note: This rule is governed by the 2020 settlement agreement regarding Foothills Park).

B. Vehicle Entry Fee. All motor vehicles entering Foothills Park shall be subject to a vehicle entry fee within the limits set by the Municipal Fee Schedule and according to the fees set below. Violators shall be subject to administrative citation for failure to comply with park regulations per PAMC 22.04.030. This regulation does not apply to City councilmembers, staff, contractors, or volunteers while conducting official City business/operations in Foothills Park.

Foothills Nature Preserve Vehicle Entry Fee
Foothills Nature Preserve – daily entry for
vehicles that have up to 9 person
capacity
• $6 per vehicle per day;
• Free for City-designated preserve
volunteers, and vehicles with a valid
disabled person parking placard or
license plate.

Free on the following days:
• First Saturday in December
• Third Monday in January (MLK Day)
• First Tuesday in March
• Last Wednesday in April
• Third Thursday in June
• First Friday in October
Foothills Nature Preserve – daily entry for
vehicles that have 10-24 person capacity
$30 per vehicle per day
Foothills Nature Preserve – daily entry for
vehicles that have 25 person or more
capacity
$60 per vehicle per day
(Only available in conjunction with group
permit)
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5 Foothills Nature Preserve – annual pass
for motor vehicles
(Annual pass allows entry for a motor
vehicle with a capacity of up to 9 persons)
• $65 per year for non-residents;
• $50 per year for Palo Alto residents
and City of PA employees;
• 25% discount for seniors (65+);
• 50% discount for students aged 16-24
(student must be present when
entering)
• Free for active military, veterans,
permanent disability, and low-income
visitors
Foothills Nature Preserve – daily entry for
vehicles in conjunction with a City-
permitted student field trip
Free
Foothills Nature Preserve – library free
pass program
Free regular vehicle (up to 9 person
capacity) entry with pass. Passes
available at Palo Alto libraries, subject to
conditions on pass.

Foothills Nature Preserve – fourth grade
annual pass program
Free. Valid for one year, beginning in
August of the year the student begins 4th
grade and ending the following August

31. Pass allows entry of one regular
vehicle (up to 9 person capacity) when 4
th
grader is present.

R1-7. PERMIT – EXHIBITION
No person shall fail to produce and exhibit a permit he or she claims to have upon request of any department employee, contracted park ranger or any public or peace officer who desires to inspect the permit for the purpose of enforcing compliance with any regulations of this chapter.

R1-8. HOURS OF PARK CLOSURE
For purposes of enforcement of the Park and Open Space closure restrictions promulgated in Chapter 22.04 of the Palo Alto Municipal Code, the terms “sunset” and “sunrise” are defined with reference to a table of times that is determined annually and posted at Open Space facilities. Closure times specified in Chapter 22.04 as implemented by this regulation shall be posted prominently at each Park or Open Space facility and shall be posted on the City’s web site.

R1-9. HAZARDOUS GAMES OR ACTIVITIES
The playing of games and/or activities involving propelled or thrown objects which are sharp or heavy (such as stones, shot puts, arrows or javelins) are prohibited except when a permit is issued by the director in areas compatible for such use. Except in designated areas of Mitchell Park where inflatable structures can be used by City staff or designated contractors as part of a City -sponsored program, inflatable structures, miniature trains designed or used for passengers, pony rides, and dunking tank attractions are prohibited in Parks or Open Space areas.

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6 R1-9A. USE OF METAL DETECTORS IN PARKS
Metal detectors for the purpose of scavenging can only be used within park facilities in such a fashion where turf or landscaped areas are not disturbed, cut or dug into.

R1-10. PICNIC SITE USAGE
Group picnic site reservations at Mitchell Park Arbor, East Meadow, Pine Grove and Redwood areas; and Rinconada Park Sequoia area are available to Palo Alto residents only. No more than 60 individuals shall occupy a group picnic site at Mitchell Park Arbor, East Meadow and Redwood areas; 100 individuals at the Pine Grove picnic area; 75 individuals at Rinconada Park Sequoia picnic area; or 150 individuals at Foothills Park Oak Grove. No more than 15 individuals shall occupy any table in an individual picnic site at Mitchell Park and Rinconada Park. With the exception of the two table/one barbecue at individual picnic sites of Mitchell Park, each group of participants shall not occupy more than one individual site.

R1-10A. LYTTON, COGSWELL AND KING PLAZA
A. Use of tables: For permitted events and activities, no more than four six -foot tables are permitted at one time at Cogswell Plaza; no m ore than ten six -foot tables are permitted at Lytton Plaza; and no more than twenty six-foot tables are permitted at King Plaza. Tables shall not be arranged in a configuration longer than twelve-foot wide span and there must be a minimum of three- feet between sets.

B. The City shall be compensated the full cost of replacement of any chair, tables or other furnishings damaged by the event or special use.

C. Special event organizers must cover existing trash receptacles and provide their own waste stations (compost/recycle/trash) that they will then be responsible for removing after the event.

D. Damage deposits may be required for any special event or use at the discretion of City staff.

E. No tables, tents or other structures shall be set up closer than ten (10) feet from the nearest structure.

F. Shade canopies may be authorized in a permit so long as the shade structure measures ten-foot by ten-foot, or less. Canopies shall be weighted or anchored to prevent blowing over.

G. Stage platforms shall be no higher than twenty -four inches tall and ten- feet by twelve-feet in maximum area.

H. As per the Chapter 22.04 of the Palo Alto Municipal Code, no alcoholic beverages may be served or consumed at these plaza parks.

I. No barricades or cordoning off areas of the plaza.

J. No jump/bounce houses are permitted on plaza.

K. Special event organizers must supply a layout of all items to be placed within plaza and be approved by City staff before the event.

L. As per Palo Alto Municipal Code Section 22.04.160, no commercial solicitation or business transactions other than those associated with and supportive of City programs or City-sponsored activities for which a permit has been issued by the director is permitted in parks or plazas.

M. As per Palo Alto Municipal Code section 22.04.300, open flames, incl uding candles, are not allowed without a permit from the Director in these Plazas.

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7 R1-10B. LYTTON PLAZA NOISE REGULATION
A. A permit under Palo Alto Municipal Code Section 22.04.040 is not required of any person in order to engage in the playing of an amplified musical instrument at Lytton Plaza, which otherwise meets the requirements of sections 9.10.050 and

22.04.180 and subject to the following: the playing of an amplified musical instrument occurs on a first-come, first-served basis during the following days and times of day: (a) Monday through Thursday, 5:00 PM to 10:00 PM; (b) Friday, 5:00 PM to 11:00 PM; (c) Saturday, noon to 11:00 PM; and Sunday, noon to 10:00 PM. The term “first-come, first-served” means the first person or group of persons to commence playing an amplified musical instrument at Lytton Plaza shall be entitled to play to the exclusion of all others for a period not exceeding three (3) consecutive hours.

B. A City-wide special event permit application is required of any person seeking to engage in the playing of an amplified musical instrument at Lytton Plaza outside of the days and times of day specified in paragraph A above. No unpermitted amplified musical instrument may be played during the period of time for which a person holds a permit to play an amplified musical instrument.

C. Paragraph A notwithstanding, a person may file a City-wide special event permit application to play an amplified musical instrument within the time period specified in R1-4. If a City-wide special event permit is issued, the permit holder’s right to play any musical instrument at Lytton Plaza will take precedence over any person claiming the right to play under the first-come, first-served basis condition set forth in paragraph A of this Rule.

D. The director will post or caused to be posted to the department’s web site the days and times of days for which reservations to play musical instruments have been secured.

E. The preceding paragraphs notwithstanding, the playing of any acoustic musical instrument at Lytton Plaza is permitted during posted park use hour or, if no hours are posted, during the regular park use hours.

F. A City-wide special event permit application shall be filed whenever a group of more than twenty-five (25) persons attends the playing of any musical instrument or musical instruments regardless of whether any instrument is amplified or acoustic.

G. The noise ordinances set forth in Palo Alto Municipal Code chapters 9.10 and

22.04 shall apply to all persons playing amplified and acoustic musical instruments at Lytton Plaza.

R1-11. RACQUET COURT (TENNIS AND PICKLEBALL) USAGE
Any person or group using a City racquet court shall do so according to the following rules:

A. No person shall operate, drive or ride a bicycle, unicycle, roller skates, roller blades, skateboard or other coasting device on City-owned tennis courts.

B. No person shall provide or offer lessons for compensation on City -owned tennis courts except as part of a City-sponsored program, class or camps.

C. City-owned racquet courts may be reserved for City programs and tournament play only.

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8 play on and their playing position.

E. No individual person can occupy a court by him or herself if other persons are waiting to play.

F. Unleashed dogs are not permitted within courts.

G. No person shall play a sport other than tennis or pickleball on City-owned courts unless expressly allowed via permit issued by the Community Services Department.

H. Mitchell Park racquet courts 6 and 7 are dual -use courts with designated pickleball and tennis times. Pickleball has priority from 8:00 AM to 2:30 PM seven days a week. Tennis has priority from 3:00 PM to 10:00 PM seven days a week.

If courts are not in use, anyone can use the court but must vacate the space if the priority sport arrives and needs the space.

R1-12. ATHLETIC FIELD USE
Any person or group using a City athletic field shall do so according to the following rules:

A. No activity other than softball (or Little League baseball) is permitted at El Camino Park softball field unless expressly allowed by permit.

B. No activity other than baseball is permitted at Baylands Athletic Center Baseball Field unless expressly allowed by permit.

C. No activity other than softball is permitted at Baylands Athletic Center Softball Field unless expressly allowed by permit.

D. No person shall use an athletic field which is posted (on-site, on-line, or by voice message) as being closed, whether the closure is for excess rainfall or for field maintenance or other reason.

E. Field markings applied to athletic fields shall be allowed by permit only and must follow City of Palo Alto Open Space, Parks and Golf Division guidelines.

F. Soccer goals must be anchored at all times when located on the playing fields.

When goals are not being utilized for play, they must be secured off the playing fields in a manner which will not permit t ipping or any hazardous condition that might cause injury to any person. When a field is being utilized for multiple purposes, goals that interfere with the intended use of the field shall be provided by the user groups that require the use of a soccer goal. These goals must be assembled and disassembled before and after each event. The storage of these goals can be coordinated with the Recreation Division. Any goal left on site will be removed and stored until a removal/storage fee of $75.00 is paid.

R1-13. PEERS PARK AND JOHNSON PARK VOLLEYBALL USE
Any person or group playing volleyball or related game at Peers or Johnson Parks shall do so according to the following rules:

A. Drop-in volleyball or related game play is permitted only in the posted area at Johnson Park or on the north end of Peers Park.

B. The volleyball area may be reserved for volleyball play, by permit, only on the first Saturday and first Thursday of each month. The director may make additional weekend days available for reservation during the months of June, July and August.

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9 R1-14. SKATEBOARD FACILITY
The Skateboard Facility, located in John Lucas Greer Park, is for skateboard use only.

Use of roller blades, scooters, bicycles, or any other equipment other than skateboards is prohibited. Any person using or playing upon the skateboard facility shall do so according to the following rules:

A. Each person skateboarding in the Skateboard Facility must wear a helmet, elbow pads and knee pads.

B. Use of roller blades, scooters, bicycles, or any other equipment, other than skateboards is prohibited.

C. No more than seven persons shall skate in the bowl at any given time.

D. No person shall do a body flip while riding a skateboard.

E. No person shall ride a skateboard facing entirely backwards.

F. Two or more persons may not ride on the same skateboard.

G. No person shall ride a skateboard on their knees.

H. No person shall cause a skateboard to shoot out away from their feet or body.

I. No persons shall skateboard in tandem within three (3) feet in front or behind another rider.

J. No glass containers are allowed in the facility.

K. No skateboarding is allowed when the facility is wet or while it is raining.

L. Trash receptacles are to be used to dispose of waste or any other unwanted items.

No person shall use, remain in or enter the Skateboard Facility outside of regular park hours between 10:30 PM and sunrise (PAMC 22.04.320) . No person shall enter or remain in the Skateboard Facility when that facility is posted as being closed, whether such closure is because of excess moisture or hazard or for any other reason.

R1-15. GOLF COURSE
Any person or group using or playing upon the golf course shall do so according to the following rules:

A. No person shall use the golf course, or any portion thereof, without first having obtained a receipt or other written authorization in due form so to do.

B. No golf player shall cut in on, or double back over, any portion of the course, or to play upon the course without a receipt duly issued for the round being played.

C. No golf player shall refuse to or fail to show such golf receipt or other written authorization to any employee connected with the municipal golf course, when requested to do so.

D. No person shall willfully or maliciously injure any turf on the golf course or in any way destroy or injure property thereon or remove property or equipment from the golf course.

E. Privately owned power golf carts are not allowed to be used on the municipal golf course.

R1-16. SWIMMING
No person shall swim, bathe or wade in any w ater or waterways within any park facility when such activity is prohibited and so posted by the director. No person shall use, remain in or enter the Rinconada Pool facility between the hours listed as follows:

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10 PM – 6:00 AM.

Rules for the safe use of the Rinconada Swimming complex:

A. Children 7 years of age and younger must be directly supervised by a chaperone 16 years of age or older. Chaperones must wear a swimsuit, accompany the child in the water and be within arm’s length at all times. Children may not be left unattended in the facility at any time.

B. All swimmers must wear swimsuits. Clothing including undergarments is not permitted. Clean overshirts are permitted for modesty or sun protection as long as they are worn over swimsuits. Infants and toddlers who are not yet toilet trained must wear swim diapers.

C. Flotation devices including water wings, padded swimsuits and inner tubes are not permitted except US Coast Guard approved lifejackets.

D. Flippers, snorkel masks, and hard balls are not permitted.

E. All persons entering the facil ity must pay, including those not intending to swim, except children 2 years of age and younger.

F. Patrons must pay again to re-enter the facility after leaving.

G. Walk at all times on the pool deck.

H. Bicycles, rollerblades, scooters, and skateboards are not permitted on the pool deck.

I. Dogs, cats and other animals are not permitted on the pool deck (does not apply to service animals as defined by state and federal law).

J. Fighting, roughhousing, chicken fighting, screaming, profane language, and pretending to drown is not permitted in the facility.

K. Patrons are not permitted to sit on guard chairs, lane lines, starting blocks or railings.

L. Barbecues, alcohol and glass/breakable containers are not permitted in the facility.

M. Food and drinks must be consumed at picnic tables, on grass and farther than 10 feet from poolside.

N. Heed instructions from Lifeguards and overhead announcements at all times.

O. Aquatics staff reserves the right to ask anyone who violates these rules to leave the facility.

P. To maintain a safe environment, pool rules are subject to change at any time.

Lap Pool:

A. Swimmers must be able to swim competently for at least one lap to enter the deep end and/or use the diving boards. Lifeguards have sole discretion. Please ask for a swim test.

B. Lap swimm ers using lap lanes during recreation swim may use flippers, kickboards and snorkels as needed. Flippers, kickboards and snorkels are not permitted outside of the lap swim lanes. Non-lap swimmers are not permitted to swim across lap lanes.

Diving boards:

A. One person on the board and ladder at a time.

B. Wait to dive until area is clear.

C. Walk or perform a proper diving approach. Do not run on the diving board.

D. Bounce only once and jump/dive off the end of the board facing forward.

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11 E. Divers may not jump to anyone in the pool and must swim to the wall unassisted.

After diving, swim out toward the closest ladder. Do not swim under, between or in front of the diving boards.

Wading Pool:

A. Swimmers must be able to reach the foot pedals to use the “Aquaducks.” Pedaling with hands is not permitted.

B. Swimmers may not sit on or otherwise block the water pressure of the fountains.

Slide:

A. Swimmers must be no taller than the slide to use it.

B. One person is permitted on the slide and ladder at a time. Form line on the ground.

C. Do not stand, jump or push other swimmers off the top of the slide.

D. Swimmers must go down slide sitting, feet first.

R1-17. BOAT USE
The dock at Foothills Park and the sailing platform at the Baylands Nature Preserve is intended for the hand launching of canoes, kayaks, small inflatable boats and boats less than sixteen feet in length. The launching of any larger vessel is prohibited. While hand carts may be used to carry boats from the parking lot to the dock or sailing platform, hand carts or other personal equipment may not be used on the docks or left unattended in the immediate vicinity of the dock or sailing platform. Items left unattended will be impounded by a park ranger or police officer.

A. Sail boards, sail craft and motorized boats are prohibited on Boronda Lake in Foothills Park.

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12 R1-18. BICYCLES, SKATEBOARDS AND ROLLER SKATES

A. Bicycles and coasting devices are permitted or prohibited as follows:

Conventional
bicycle
(non-motorized
or electric)
Class 1, 2, and 3
electric bicycle
Non-electric coasting devices
(incl. skateboards, roller skates/
blades, scooters)
Electric powered
coasting devices
Open Space
Preserves
(Baylands,
Esther Clark,
Foothills,
Pearson-
Arastradero)
Permitted in
designated
areas within
Pearson-
Arastradero
Preserve, Esther
Clark Park, and
Baylands Nature
Preserve;
prohibited
elsewhere.

Permitted on
paved trails;
prohibited
elsewhere
(including
unpaved trails)
Permitted on paved, multi-use
bike paths; prohibited elsewhere.

Permitted on
paved roads and
trails at Baylands
Nature Preserve;
prohibited
elsewhere.

Parks Permitted on
paved and
unpaved trails;
prohibited
elsewhere
(including courts,
playgrounds,
landscaped
areas).

Permitted on
paved and
unpaved trails;
prohibited
elsewhere
(including courts,
playgrounds,
landscaped
areas).

Permitted on paved and unpaved
trails; prohibited elsewhere
(including courts, playgrounds,
landscaped areas).

Permitted on
paved and
unpaved trails;
prohibited
elsewhere
(including courts,
playgrounds,
landscaped
areas).

Definitions:
“Electric powered coasting devices” means skateboards, scooters, one-wheels, hoverboards, Segways, and other similar devices that are powered or power-assisted by an electric motor. This does not include electric wheelchairs.
“Conventional coasting devices” means skateboards, scooters, and other similar devices that are not powered or power-assisted by an electric motor. This does not include wheelchairs. “Electric bicycle” means any of three classes of electric bicycles, as defined by the California Vehicle Code:
• A “class 1 electric bicycle,” or “low-speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour.
• A “class 2 electric bicycle,” or “low-speed throttle-assisted electric bicycle,” is a bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour.
• A “class 3 electric bicycle,” or “speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour, and equipped with a speedometer.

"Trail” means any established public way within city open space nature preserves and parks which appear on current city maps, city open space nature preserve maps, planning documents, trail guides and/or those trails marked with city directional signs. Trails include, but are not limited to fire roads, service roads, paths, pathways and levees.

“Paved” means any designated road or trail composed of asphalt or concrete, as designated on current city open space preserve maps.

“Unpaved” means designated road or trail composed of base rock, gravel, decomposed granite, or dirt, as designated on current city open space preserve maps.

Note: Palo Alto open space trail maps illustrate paved and unpaved trails. Examples: Arastradero Creek Trail and Wildhorse Road (Foothills Nature Preserve) are considered unpaved.

A. Bicycles are prohibited on unpaved trails of Foothills Park. Skateboards, roller skates or blades, scooters, and other coasting devices are prohibited in Foothills ITEM 7
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13 Park.

B. Bicycles are prohibited on unpaved trails of Open Space parks and preserves, unless designated for bike access within the Pearson-Arastradero and Baylands Preserves. Skateboards, roller skates or blades, or other coasting devices are prohibited in Open Space parks and preserves, except on paved, multi-use bike paths.

C. Helmets: No person shall operate a bicycle or similar device on Parks or Open Space preserves without wearing an A.N.S.I. or Snell-approved bicycle helmet for head protection. No parent or guardian shall allow any child under the age of 18 to ride a bicycle without a helmet.

D. Unsafe operation: No person shall operate a bicycle in a reckless or negligent manner so as to endanger public property, or the life, limb, or property of any person or animal. No person shall ride in or upon a portion of a bicycle not intended for passengers. No person shall operate a bicycle while wearing earphones that interfere with hearing ambient noise.

E. No person shall leave a bicycle, scooter or skateboard in any place or position where other persons may trip over or be injured by it.

R1-19. HUMAN FLIGHT
No person shall hang-glide, parachute, parasail or engage in any human flight on, over, or into park or Open Space, except by written permit in designated areas.

R1-20. TRAIL USE SPEED LIMITS
The maximum speed for all trail uses is 15 miles per hour, unless a lesser maximum speed is posted, and no person shall exceed the maximum speed on any trail; however, no person shall operate a bicycle, or ride a horse or other such animal at a speed greater than is reasonable, prudent, or safe. Bicyclists and equestrians are required to slow to 5 miles per hour when passing others or approaching blind turns.

R1-20A. USE OF DESIGNATED TRAILS, PATHS AND RECREATIONAL LAWN

AREAS IN OPEN SPACE LANDS
No person other than authorized City staff or other persons specifically authorized by City staff shall walk, run or tread in any Open Space lands except on designated trails, paths, recreational lawn areas or roads, unless expressly permitted to do so pursuant to park regulations or a special use permit. “Designated trails” is defined as those trails which appear on current City of Palo Alto park maps, planning documents, trail guides and/or those trails marked with City directional signs.

R1-21. COMMERCIAL ACTIVITIES AND SOLICITATION
Commercial activities are prohibited in Park s and Open Space lands unless they are associated with and supportive of City programs or City-sponsored activities for which a permit has been issued by the D irector. Persons soliciting for donations or engaging in commercial activities approved by the Director shall comply with all applicable laws, including those requirements for permits issued under Title 4 of the Palo Alto Municipal Code as applicable.

R1-21A. COMMERCIAL PHOTOGRAPHY AND FILMING
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14 except pursuant to a permit authorizing such activity or except for those activities associated with and supportive of City programs or City -sponsored events. For the purpose of this section, “photograph or film for commercial purposes” means the recording, on any medium, of still or motion images that involves the use of professional models or commercial articles filmed or photographed for the purpose of commercial advertising, or the use professional casts, settings, or crews in any motion picture, television, or similar production. This section shall not apply to the commercial operation of cameras as part of the bona fide reporting of news, or for small photo or film events, consisting of a single photographer or videographer with a total group size of no more than 24 persons (permit is required for exclusive use of any area of park land), as long as all other rules and regulations are followed.

A. Applications shall be submitted not less than ten (10) working days before the proposed use.

B. No sound amplification equipment, which will disturb the peace, may be used in connection with any photo shoot, except when used by City employees or safety officers for purposes of crowd control.

C. No permit shall be granted for any event between the hours of 8:00 PM and 9:00 AM without the prior approval of the Director.

D. No permit shall be granted when the closure would result in hampering prompt access to an area or location by emergency vehicles.

E. Wherever appropriate, the City will require the applicant to provide and erect barricades according to City specifications for public safety. The person or persons making the application shall be responsible for placing and dismantling all barricades. All barricades shall be removed within one- half (1/2) hour of the ending time of the event. Barricades shall also be immediately removed upon request of any authorized officer or employee of the City. In some situations, the Permittee may be required by the City to provide traffic control and a qualified flag person if City streets or parking lots are involved.

R1-22. RESTROOMS
Male persons shall not enter any restroom or washroom set apart for femal es, and female persons shall not enter any restroom or washroom set apart for males; except, this shall not apply to persons with special needs or their accompanying attendants or children under the age of six years old who are accompanied by a person who is of the sex designated for that facility and who has reason to be responsible for such person.

R1-23. UNAUTHORIZED USE OF KEYS OR LOCKS
No person other than one acting under the direction of the Director shall duplicate or cause to be duplicated a key used by the department for a padlock or door lock of any type or description, nor shall any person divulge the combination of any lock so equipped to any unauthorized person. No person, other than the one acting under the direction of the director, shall use a key to access any Park and/or Open Space facilities. The director may issue keys to user groups. Said user groups must use the keys for permitted activity only and return issued keys to the City upon completion of the activity. No person shall place a lock upon any gate or fence in any Park or Open Space area without prior permission from the Director.

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15 R1-24. WATER POLLUTION
While within the boundaries of any park facility, no person shall throw, discharge or otherwise place or cause to be placed in the waters of any fountain, pond, lake, stream, bay or other body of water or in any tributary, stream or drain flowing into such waters any substance, matter or thing, liquid or solid, including but without limitation to, particles or objects made of paper, metal, glass, garbage, rubbish, rubber, fuel, plant material, food matter, fiber and plastics.

R1-25. HARMFUL SUBSTANCES
No person shall possess, place, or apply any substance harmful to any person, property, wildlife, or vegetation on Park or Open Space lands.

R1-26. LITTERING
No person within any City Park, Open Space lands, and City operated community garden shall leave any garbage, trash, cans, bottles, papers or other refuse elsewhere than in the receptacles provided therefor. Disposing of garbage, trash, cans, bottles, papers or other refuse not generated within City Park or Open Space lands is prohibited. PAMC

22.04.230.

R1-27. DISPOSAL OF EFFLUENT
No person shall deposit waste water, sewage or effluent from sinks, portable toilets, or other fixtures upon or into the ground or water.

R1-28. SMOKING
No person sh all smoke any substance in any public places or any area that is within twenty feet of bleachers, backstops, or play structures or any area designated as a playground, nature trail or nature area or in or on any park facility where smoking is posted as bei ng prohibited. Pursuant to Palo Alto Municipal Ordinance 9.14.010 (i), public places are defined as: "Public places" means enclosed areas within publicly and privately-owned buildings, structures, facilities, or complexes that are open to, used by, or accessible to the general public. Public places include, but are not limited to, stores, banks, eating establishments, bars, hotels, motels, depots and transit terminals, theaters and auditoriums, enclosed sports arenas, convention centers, museums, galleries, polling places, hospitals and other health care facilities of any kind (including clinics, dental, chiropractic, or physical therapy facilities), automotive service centers, general business offices, nonprofit entity offices and libraries. Public places f urther include, but are not limited to, hallways, restrooms, stairways, escalators, elevators, lobbies, reception areas, wait ing rooms, indoor service lines, checkout stations, counters and other pay stations, classrooms, meeting or conference rooms, lectu re rooms, buses, or other enclosed places that are open to, used by, or accessible to the general public.

R1-29. FIREWORKS
No person shall possess, give, sell, discharge, set off, or cause to be discharged, on or into any portion of Park or Open Space lands any firecrackers, missiles, rockets, fireworks, or explosives.

R1-30. ANIMALS
No person other than public or peace officers, rangers, city naturalists, animal control officers in the discharge of their duties shall:

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16 A. Hunt, molest, harm, provide a noxi ous substance to, frighten, kill, trap, chase, tease, shoot or throw missiles at any animal within the boundaries of any park facility, nor remove nor have in his possession the young, eggs or nest of any such creature;
B. Abandon any animal, dead or alive, within any park facility; C. Remove any animal not his own from within any park facility; exception is made to the foregoing in that proper season, fish may by fished and removed from areas designated for fishing by licensed persons, in accordance with the California Fish and Game Code and other related laws, and boarded horses may be removed from a park facility, upon proper notification to the department; D. Bring into or maintain in or upon any park facility any dog, cat or other animal unless such animal at all times is kept on a leash (extended no further than six (6) feet while in Open Space lands) and under full control of its owner or custodian; provided, however, the Director may designate areas and times within which persons may exercise, show, demonstrate or train unleashed animals under full control or their owners or custodians. No person shall allow a dog, cat, or domesticated animal, even if leashed, to disturb, chase, molest, injure, or take any kind of native wildlife, whether living or dead, or remove, destroy, or in any manner disturb the natural habitat of any animal on Park s or Open Space land.

PAMC 22.04.155
E. Permit cattle, sheep, goats, pigs, or other animals owned by him/her or in his/her possession to graze within the boundaries of any park facility without express approval of the director;
F. No person shall keep or raise cattle, horses , sheep, or other livestock on Park or Open Space land, unless pursuant to a lease, license, or other entitlement of use granted by the City of Palo Alto.

G. Ride or lead a horse, pony, mule, burro or other animal onto or over any park facility, other than at times and upon roads or trails designated for riding of animals; except with approval of the Director.

H. No person owning or having custody or control of any dog shall permit such dog to defecate on any public street, sidewalk, park or parkway without immediately removing the resulting excrement at the time of occurrence. The excrement so removed shall not be disposed of on any property listed in this chapter except in public refuse receptacles. Persons using service animals are exempt from this section.

I. No person owning or harboring any dog or other animal shall allow or permit such dog or animal to swim, bathe or wade in any water or waterways within any park facility when such activity is prohibited and so posted by the Director.

R1-31. NUISANCE DOGS
No person shall allow or have on Park or Open Space land a dog that is threatening or a nuisance to people, other animals, or property. This includes, but is not limited to growling, barking, bearing of teeth, or challenging in any manner, people, animals, or property. PAMC 6.20.040 Care should be taken with leashed pets in playgrounds to ensure that their presence does not impact children’s use and they should be removed upon request from other playground users.

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17 R1-32. DOG EXERCISE AREA
A. Dogs may be allowed off leash only within the designated dog exercise areas in Hoover Park, Greer Park, Mitchell Park, and Peers Park.

B. Dogs must be licensed, vaccinated, and wearing a collar with ID and license tag.

C. Dogs must be leashed until safely inside the dog park and returned to a leash prior to exiting.

D. Dog owners must remain in the fenced area and monitor and manage their dogs at all times.

E. Dogs behaving aggressively must be removed from the dog park immediately.

F. Dog waste must be picked up.

G. Children accompanying dog owners must be closely supervised.

H. No more than three dogs per person.

I. No food or alcohol.

J. The small dog section is for dogs 25lb and less. The mixed size dog section is for both large and small dogs. (Applicable at dog parks with this option.) K. Dog Park Hours are 7:00 AM to 9:00 PM.

L. The City of Palo Alto assumes no liability for the users of this area. Use these facilities at your own risk.

R1-33. UNAUTHORIZED CONSTRUCTION ACTIVITIES
No person shall deposit any earth, sand, rock, stone or other substance within any park facility, nor shall he/ she dig or remove any such material from within any park facility, nor shall he/she erect or attempt to erect any building, wharf or structure of any kind by driving or setting up posts or piles, nor i n any manner appropriate or encumber any portion of the real property owned by, operated, controlled or managed by the department without a permit from the director.

R1-34. USE OF UTILITIES
A. Electrical, phone, data communication, and cable receptacles in Parks and Open Space may only be used or accessed for private use within the terms of a special use permit granted by the Community Services Department.

B. Gas fixtures, water faucet spigots and irrigation water outlets that require a key or opening device in Parks and Open Space may only be used or accessed for private use within the terms of a special use permit granted by the Community Services Department.

C. Sanitary sewers or storm drains in Parks or Open Space areas may not be used for the clean-out of personal septic systems under any circumstances.

R1-35. GATHERING WOOD IN OPEN SPACE AREAS
Gathering wood from or possessing wood that has been gathered from Open Space areas is not permitted.

R1-36. PARKING RESTRICTIONS
No person shall park a motor vehicle, except an authorized emergency vehicle, or when in compliance with the directions of a peace officer, ranger, or City employee, in any of the following places:

A. In areas where prohibited by "NO PARKING" or “FIRE LANE - DO NOT BLOCK” signs.

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18 B. On any fire trail.

C. On any equestrian or hiking trail.

D. In such a place or manner as would block or obstruct any gate, entrance, or exit.

E. In such a place or manner as to take up more than one marked parking space in any authorized parking area.

F. In such a place or manner as to block or obstruct the free flow of traffic.

G. Within 15 feet of a fire hydrant.

H. Adjacent to any curb painted red.

I. In any Park or Open Space land after sunset except pursuant to a written permit.

J. In areas signed for permit parking on Park or Open Space land without a written permit.

K. In any other place on Park or Open Space land not designated by the City as an authorized area.

The gravel parking lot at the Towle Campground at Foothills Park may only be used for parking by persons with camping reservations. There is a limit of 2 vehicles for the eight person campsites and 4 vehicles for sixteen- person campsites. The parking area is restricted to passenger vehicles and small trucks. Recreational vehicles, trailers or other self-contained vehicles (regardless of size, weight or number of axles) are not allowed in the Towle Campground parking lot or beyond the gate at the edge of Orchard Glen Picnic Area. Recreation vehicles or other self -contained vehicles may not be parked in Foothills Park over -night. Non- camping guests should park in the available day -use parking lots.

R1-37. OPERATION OF MOTOR VEHICLES
No person shall operate, propel, or leave standing any motor vehicle on Park or Open Space land, except:

A. Emergency vehicles operated within the scope of official use.

B. Upon roads, trails, or paths, which may from time to time be set aside and posted by the City for the use of specifically designated vehicles.

C. Upon roads and parking areas open to the public during regular open hours.

D. Motor vehicle includes, but is not limited to, any vehicle as defined by section 415 and/or 670 of the California Vehicle Code, motorcycles, off -road vehicles, "dirt bikes", and similar vehicles.

This section shall apply to all motorized bicycles, carts, scooters, hoverb oards, skateboards, and electric personal assistive mobility devices (Segway or similar device) except those devices used by disabled persons.

R1-37A. VEHICLE WEIGHT LIMIT ON BAYLANDS ROADS AND PARKING LOTS No person shall operate or park any vehicle in excess of 6,000 pounds weight on any roads or within any parking lot of the City -owned Baylands or John Fletcher Byxbee Recreational Areas.

R1-38. VIOLATION – PENALTY
A. The Director shall have authority to revoke a permit upon a finding of violation by the permittee or persons acting under the permit of any regulation contained in this chapter or upon a finding of violation of other City ordinance or law of this state in the exercise of the permit.

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19 any person acting in violation of regulations contained in this chapter.

R1-39. PLAYGROUNDS
No person shall use personal exercise equipment, including dumbbells and exercise straps, at any playground if it inhibits children from using the playground, or if the exercise equipment negatively impacts the playground surfacing or equipment.

R1-40. COMMUNITY GARDENS
The City of Palo Alto provides, subject to availability and a license agreement, space for Palo Alto residents to enjoy organic gardening. All persons visiting the Community Gardens must comply with the following rules:

A. No dogs are allowed within the fenced area of any garden location except service dogs. PAMC 6.16.100
B. No smoking inside the Community Garden area or on pathways around the garden. PAMC 9.14.050
C. Garden visitors must stay on designated paths, and refrain from picking any produce or flowers subject to PAMC 22.04.270.

D. Wood chips at the garden are supplied only for the plot renters at the Community Garden for use within the Community Garden and shall not be removed by unauthorized persons.

E. Compost bins are for Community Gardeners use only subject to PAMC 5.20.030.

The Director may promulgate guidelines for the registration and use of the community gardens that do not conflict with these rules.

APPROVED:

City Manager Date:

Director, Community Services

Adopted by City Council June 24, 2002; Revised June 28, 2004; Revised January 24, 2005. Revised February 3, 2006. Revised April 14, 2008. Revised March 14, 2011.

Revised November 19, 2012 Revised May 20, 2013, Revised March 5, 2018, Revised February 2, 2021. Revised June 2022.

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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT REPORT
Lead Department: Administrative Services
Meeting Date: January 23, 2023

TITLE
Acceptance of the Macias Gini & O’Connell Audit of the City of Palo Alto’s Financial Statements as of June 30, 2022 and the Management Letter; Approval of the FY 2022 Annual Comprehensive Financial Report (ACFR); and Amendments to the FY 2022 Budget in Various Funds, as Recommended by the Finance Committee

RECOMMENDATION
Finance Committee and Staff recommend that the City Council:

1. Accept the City of Palo Alto’s audited financial statements for the fiscal year ended June 30, 2022, and the accompanying reports provided by Macias Gini & O’Connell (“MGO”) LLP (Office of the City Auditor Report) Attachment I. Reports include:
a. Report to the City Council (the “Management Letter”), b. Cable TV Franchise, Independent Auditor’s Report and Statements of Franchise Revenues and Expenses for the years ended December 31, 2021, and 2020, c. Palo Alto Public Improvement Corporation (a component unit of the City of Palo Alto) Annual Financial Report for the year ended June 30, 2022, d. Regional Water Quality Control Plant, Independent Auditor’s Report and Financial Statements for the year ended June 30, 2022,
e. Independent Accountant’s Report on Applying Agreed-Upon Procedures related to the Article XIII-B Appropriations (GANN) Limit for the year ended June 30, 2022.

2. Approve the Fiscal Year (FY) 2022 Annual Comprehensive Financial Report (ACFR), included in CMR 14632 1(Attachment B, packet page 53). An electronic copy is available on the City’s website2.
1 11/29/2022 Finance Committee Staff Report, Approval of the FY 2022 ACFR and YE Budget Amendments, pg. 53 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20221129/20221129pfcsm-linked.pdf#page53 2 City of Palo Alto FY 2022 Annual Comprehensive Financial Report https://www.cityofpaloalto.org/files/assets/public/administrative-services/financial-reporting/comprehensive- annual-financial-reports-cafr/current-2011-cafrs/2022-acfr-final/city-of-palo-alto-acfr-fy2022-final-secured-2.pdf ITEM 8
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3. Amend the Fiscal Year 2022 Budget Appropriation Ordinance for various funds as identified in CMR #14632 3 Recommended Amendments to the City Manager’s FY 2022 Budget (Attachment B packet pages 73-82); Attachment B – Exhibit 1 and various capital projects as identified in Attachment B – Exhibit 2. (Effective on first reading; five votes required.)
Hard copies of linked reports within this recommendation are available upon request.

EXECUTIVE SUMMARY
Every year, the fiscal year is closed out and the City Council publishes the City’s financial report (PAMC 2.28.200). At its November 29, 2022, meeting, the Finance Committee unanimously approved closing of the 2022 fiscal year (Attachment III).

MGO issued a clean opinion on each audit report. The Appropriations Limit (or “Gann Limit”) Agreed-Upon Procedures Report noted a finding regarding the calculation of the Gann Limit. The incorrect adjustment factor was used in the calculation; staff corrected the calculation and noted that the City’s actual revenue did not exceed the corrected GANN Limit. These reports transmitted the City’s FY 2022 financials through the Annual Comprehensive Financial Report (ACFR) for the year ending June 30, 2022. The City also received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for its FY 2021 ACFR.

In addition to the ACFR and audit reports, the report includes recommended budget adjustment actions to close the fiscal year. These actions adjust the budget to appropriate funds to align the budget with actual operating and capital activity, as well as adjust transfers between funds.

BACKGROUND
At the November 29, 2022, Finance Committee meeting, the Committee reviewed two staff reports: one transmitted by the City Auditor’s Office and one by the City Manager’s Office via the Administrative Services Department, and unanimously approved both reports for City Council consideration:
311/29/2022 Finance Committee Staff Report, Approval of the FY 2022 ACFR and YE Budget Amendments, pg. 73-82 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20221129/20221129pfcsm-linked.pdf#page73 ITEM 8
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•Office of the City Auditor: Discussion and Recommendation to the City Council to Accept the Macias Gini & O’Connell’s (MGO) Audit of the City of Palo Alto’s Financial Statements as of June 30, 2022. CMR #149844 packet pages 4-52.
•Administrative Services Department: Recommendation to Approve the Fiscal Year (FY) 2022 Annual Comprehensive Financial Report (ACFR) and Approve FY 2022 Budget Amendments in Various Funds. CMR #14632 packet pages 53-83.

In addition to these reports, the Finance Committee reviewed recommended budget adjustment actions to close the fiscal year (Attachment II, Attachment B). The Finance Committee discussed the status of the General Fund and the Budget Stabilization Reserve (BSR) balance. Compared to estimates used in the development of the FY 2023 Adopted Budget, the General Fund ended with a net $14.2 million BSR balance surplus above the Council target level of 18.5% of budgeted expenses. The BSR balance is $72.8 million, a $23.7 million or 48.3% increase compared to FY 2021. Please refer to the General Fund discussion in the Finance Committee staff report 5 for information regarding the primary drivers for these General Fund results.

The FY 2023 Adopted Operating Budget projected a $54.7 million BSR balance as of June 30, 2022, compared to the actual balance of $72.8 million. The BSR balance increase was driven by revenue trending higher than estimated in the City’s major tax categories and program expense, coupled with lower expenses across all departments (primarily staff costs due to vacancy). Much of this variance was forecasted and discussed as a core component of the FY 2023 Adopted Budget and two-year budget balancing strategy. Table 4 in the Finance Committee report 6 outlines the already approved uses of the BSR in FY 2023 and includes FY 2023 recommended adjustments to the BSR balance to be considered by the City Council during mid-year budget review scheduled in February 2023. Including the recommended adjustments to the BSR balance, the current projected BSR balance is $45.8 million.

ANALYSIS
Government-wide
As outlined in the staff report to the Finance Committee, at the close of FY 2022, the City’s total Net Position is $1.27 billion, an increase of $40.6 million or 3.2% over the prior fiscal year. The 4 11/29/2022 Discussion & Recommendation to the City Council to Accept MGO’s audit of the City’s FY 2022 Financial Statements. https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/finance-committee/2022/20221129/20221129pfcsm-linked.pdf#page4 5 Finance Committee, November 29, 2022, Agenda Item #2, packet page 54 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20221129/20221129pfcsm-linked.pdf#page=54 6 Finance Committee, November 29, 2022, Agenda Item #2, packet page 63 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/finance- committee/2022/20221129/20221129pfcsm-linked.pdf#page=63 ITEM 8
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total increase of $40.6 million consists of $51.0 million from governmental activities partially offset by a decrease of $10.4 million from business-type activities.

The largest portion of the City’s net position ($1.175 billion or 92.4%) is its net investment in capital assets such as land, buildings, infrastructure, vehicles, and intangible assets – right to use leased assets less any related outstanding debt that was used to acquire these assets. The restricted portion of the City’s net position ($76.2 million or 6.0%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $20.0 million, across all funds, representing 1.6% of the City’s net position, is unrestricted and may be used to meet the City’s ongoing obligations to its citizens and creditors.

General Fund
General Fund ended with a $72.8 million Budget Stabilization Reserve (BSR), a $23.7 million, or

48.3 percent, increase when compared to FY 2021. This increase is driven mainly by both actuals higher than budgeted revenues and actuals lower than budgeted expenditures (detailed in Attachment II packet page 72). Much of this variance was forecasted, discussed, and a core component of the FY 2023 Adopted Budget and two-year budget balancing strategy. The Council recognized these higher than budgeted estimate and used these funds to bridge the transition as the City and community emerged from the pandemic while ensuring stability for the organization. The chart below outlines the already approved uses of the BSR in FY 2023. These adjustments, totaling $13.0 million, results in a BSR balance of $59.8 million; approximately

24.2% of the FY 2022 Adopted expenses of $247.4 million. This level is approximately $14.2 million above the target level of 18.5% ($45.6 million).

Table 1: Year-End Budget Stabilization Reserve (BSR) Summary (in millions) General Fund BSR Balance, June 30, 2022 $72,835

Uses of the FY 2022 Surplus
FY 2023 Approved Adjustments to the BSR Balance
FY 2023 Adopted Budget ($9,072)
FY 2023 Services Reinvestment ($3,700)
Downtown Streets Team (CMR 14526) ($167)
Reappropriations (CMR 14728) ($100)
Subtotal: Approved Adjustments to the BSR Balance ($13,039)

Subtotal: BSR Balance, After Approved Adjustments $59,796

FY 2023 RECOMMENDED Adjustments to the BSR Balance
(to be considered in FY 2023 Mid-Year Budget)

Reserve for Economic Uncertainty ($5,000)
Transfer to Section 115 Pension Trust Fund ($5,000)
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Table 1: Year-End Budget Stabilization Reserve (BSR) Summary (in millions) Transfer to Infrastructure Reserve (IR) in the Capital Improvement Fund ($4,000) Subtotal: RECOMMENDED Adjustments to the BSR Balance ($14,000)

Current Projected FY 2022 BSR Level, (June 30, 2023) $45,796 Micro and macro-economic conditions are adjusting daily, with rising inflation, changes in jobs, and recessionary trends creating significant uncertainty. As the State of California Legislative Analyst Office (LAO) wrote in their annual Fiscal Outlooks for California “Economic Conditions Weigh on Revenues, [the] booming economy has led to high inflation…efforts to tame inflation are slowing the economy…inflation pressures remain, raising risk of recession…fiscal outlooks revenues balance competing risks7.” Therefore, the recommended adjustments outlined in Table 1 are in line with the City Manager’s authority for transfer of excess BSR, adjusted for a recommendation to reserve funds to safeguard the stability the City has strived to achieve in the recent year by re-establishing an economic uncertainty reserve. Staff anticipates returning to Council in February 2023 with the FY 2023 Mid-Year Review and recommendations in alignment with the allocation below for the appropriation of BSR funds above the 18.5% level. Staff recommends a transfer to the Infrastructure Reserve as inflationary costs are impacting capital project needs including anticipated significant price increases in the Automated Parking Guidance Project, as well as a need to provide safety improvements to critical assets such as the artificial turf playing fields.

Business Type Activities (Enterprise Funds & Internal Service Funds) As of June 30, 2022, the City’s Enterprise Funds reported a total net position of $796.8 million, a decrease of $10.4 million or 1.3% from the prior year. All funds showed positive balances: Net Investment in Capital Assets ($670.8 million), Restricted for Debt Service ($3.3 million), and Unrestricted ($122.7 million).

Details that were presented at the November 29, 2022, meeting are included in Attachments I and II.

FISCAL/RESOURCE IMPACT
The actions recommended in CMR 14632 (Attachment II), Attachment B, both Exhibits 1 and 2, recommend adjustments to the FY 2022 appropriated level of funds to align budgeted levels with year-end activities. Overall, these transactions ensure all funds remain in a positive financial picture.

7 The 2023-24 Budget California’s Fiscal Outlook, California Legislative Analyst’s Office (LAO), November 16, 2022 https://lao.ca.gov/Publications/Report/4646
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STAKEHOLDER ENGAGEMENT
This report has been prepared by the Administrative Service Department Accounting division and coordinated with the Office of the City Auditor and the Office of Management and Budget.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the acceptance of the audited financial reports for the fiscal year ending June 30, 2022 , approval of the ACFR for Fiscal Year 2022, and the amendment to the Fiscal Year 2022 Budget Appropriation Ordinance are fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

ATTACHMENTS
Attachment I: Discussion and Recommendation to the City Council of the MGO's Audit of the City of Palo Alto’s FY 2022 Financial Statements
Attachment II: Staff Report #14632, Approval of FY2022 ACFR & Budget Amendments Attachment III: Action Minutes, Finance Committee 11/29/2022 APPROVED BY:

Kiely Nose, Assistant City Manager
Report #: 2301-0715
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City of Palo Alto (ID # 14984)
Finance Committee Staff Report

Meeting Date: 11/29/2022 Report Type:

City of Palo Alto Page 1

Title: Discussion and Recommendation to the City Council Accept the Macias Gini & O’Connell’s (MGO) Audit of the City of Palo Alto’s Financial Statements as of June 30, 2022
From: City Manager
Lead Department: City Auditor

Recommendation
The City Auditor recommends that the Finance Committee review and forward to the City Council for approval the City of Palo Alto’s audited financial statements for the fiscal year ended June 30, 2022 and the accompanying reports provided by Macias Gini & O’Connell LLP.

Discussion
The City Charter requires that the City Council, through the City Auditor, engage an independent public accounting firm to conduct the annual financial audit. The selected firm reports the results of the audit, in writing, to the City Council. Ma cias Gini & O’Connell LLP, a certified public accounting firm, conducted the audits of the City’s financial statements for the fiscal year ended June 30, 2022.

The City Auditor is providing copies of the following financial statements and reports as prepared by MGO:

• Auditor’s Report to the City Council (the “Management Letter”) – Attachment A • Cable TV Franchise, Independent Auditor’s Report and Statements of Franchise Revenues and Expenses for t he Years Ended December 31, 2021 and 2020 – Attachment B
• Palo Alto Public Improvement Corporation Annual Financial Report for the Year Ended June 30, 2022 – Attachment C
• Regional Water Quality Control Plant Independent Auditor’s Report and Financial Statements for the Year Ended June 30, 2022 – Attachment D • Independent Accountant’s Report on Applying Agreed -Upon Procedures Related to the Article XIII -B Appropriations Limit for the Year Ended June 30, 2022 – Attachment E

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City of Palo Alto Page 2

Note that the final audit report, the Single Audit, will be completed and presented at a subsequent meeting.

The Annual Comprehensive Financial Report (ACFR), a separate item on this agenda, includes the following Independent Auditor’s report:
• Independent Auditor’s Reports on the Financial Statements (pgs. 1-3)

Macias Gini & O’Connell LLP i ssued a clean opinion on each audit report and reported no findings within the Agreed-Upon Procedures report.

The City Auditor would like to express appreciation to Macias Gini & O’Connell LLC Administrative Services Department staff for their hard work and cooperation during the audit.

Attachments:
• Schedule A - Auditor's Report to the City Council
• Schedule B - Cable TV Franchise Auditor's Report
• Schedule C - Public Improvement Corporation Annual Financial Report • Schedule D - Regional Water Quality Control Plant Auditor's Report • Schedule E - GANN Limit Agreed Upon Procedures Report 1 Packet Pg. 5
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Attachment: Schedule A - Auditor's Report to the City Council (14984 : MGO Audit of the Financial Statements as of June 30, 2022) ITEM 8
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Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Government Auditing Standards
deficiency in internal control
material weakness
Reasonably possible
Probable

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Attachment: Schedule A - Auditor's Report to the City Council (14984 : MGO Audit of the Financial Statements as of June 30, 2022) ITEM 8
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Accounting for Interest
Cost Incurred before the End of a Construction Period Omnibus 2020 Replacement of Interbank Offered Rates Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation

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Plans – an Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No 32 Omnibus 2022
Fair value of investments
Estimated allowance for losses on notes and loans receivable Depreciation estimates for capital assets, including depreciation methods and useful lives assigned to depreciable assets
Landfill post-closure liability.

Net pension and Other Postemployment Benefits (OPEB) liabilities, contributions, expenses, and other related balances.

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Claims loss reserve.

Discount rate used for the calculation of lease liability and lease receivable

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Required Supplementary Information
Supplementary Information and Other Sections

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Other Information
Leases

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Attachment: Schedule B - Cable TV Franchise Auditor's Report (14984 : MGO Audit of the Financial Statements as of June 30, 2022) ITEM 8
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Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Opinion
Basis for Opinion
Emphasis of a Matter
Management’s Responsibilities for the Financial Statements

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2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Opinions
Basis for Opinions
Responsibilities of Management for the Financial Statements

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Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments.

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Government-wide Statements:

Fund Financial Statements:

Debt Service Fund

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Restricted Net Position
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www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
Agreed-upon Procedures Applied to the Appropriations Limit Prescribed by Article XIII-B of the California Constitution

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Attachment: Schedule E - GANN Limit Agreed Upon Procedures Report (14984 : MGO Audit of the Financial Statements as of June 30, 2022) ITEM 8
Attachment A - Recommendation
to to Accept MGO's Audit of CPA
ACFR FY 2022

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City of Palo Alto (ID # 14632)
Finance Committee Staff Report

Meeting Date: 11/29/2022 Report Type: Action Items

City of Palo Alto Page 1

Title: Approval of the FY 2022 Annual Comprehensive Financial Report (ACFR) and Year-End Budget Amendments in Various Funds
From: City Manager
Lead Department: Administrative Services

RECOMMENDATION
Staff recommends that the Finance Committee forward to the City Council for its approval:

1. The City’s Fiscal Year (FY) 2022 Annual Comprehensive Financial Report (ACFR); and

2. Amend the FY 2022 Budget Appropriation Ordinance for various funds as identified in the attached Recommended Amendments to the City Manager’s FY 202 2 Budget (Operating Budget: Attachment B – Exhibit 1; Capital Budget: Attachment B – Exhibit 2).

EXECUTIVE SUMMARY
The City’s fiscal year ended on June 30, 2022 , financial records closed, and financial reports summarizing the fiscal year were prepared. The reports, along with the City’s financial data, were audited by Macias Gini & O’Connell LLP (MGO), Certified Public Accountants, a firm hired by the City Auditor. MGO issued an unmodified (clean) audit opinion on the financial position of the City’s activities and , together with the City’s financial statements and other information , comprises the City’s Annual Comprehensive Financial Report (ACFR) . The full report can be found in Attachment C.

In addition to the ACFR, this report includes recommended budget adjustment actions to close the fiscal year. These technical actions reallocate and realign the budget to appropriate funds in alignment with actual operating and capital expenditures and revenue collected as well as adjust transfers between funds.

Financial Highlights for FY 2022
Government-wide
At the close of FY 2022, the City’s total Net Position is $1.27 billion, an increase of $ 40.6 million or 3. 2% over the prior fiscal year. The Statement of Net Position (p. 31 of the ACFR) repo rts Governmental Activities Net Position (the City’s basic services which are generally funded by taxes, and by specific program revenues such as fees and grants) at $ 474.1 million, a $5 1.0 2 Packet Pg. 53
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million increase from the prior year, and Business -Type Activities Net Position (the City’s enterprise activities which are funded in whole or in part by fees charged to external parties) at $796.8 million, a $10.4 million decrease. Various factors contributed to these changes, including accounting adjustments required by the Governmental Accounting Standards Board (GASB).

General Fund
The General Fund ended with a net Budget Stabilization Reserve (BSR) surplus of $14.2 million, compared to estimates used in the development of the FY 2023 Adopted Budget and the Council’s target reserve level of 18.5% of budgeted expenses. Overall, a total $100.1 million fund balance of both restricted and unrestricted balances is $24.4 million higher than the prior year balance of $75.6 million . The BSR is $72.8 million, a $23.7 millio n or 48.3% increase from FY 2021. Th is increase is driven by both higher than budgeted revenues and lower than budgeted expenditures . Much of this variance was forecasted, discussed, and a core component of the FY 2023 Adopted Budget and two -year budget ba lancing strategy to ensure continued stability for the organization and community through uncertain times. Once the BSR is adjusted for Council approved uses to balance the FY 2023 Adopted Budget 1 and other needs through the first quarter of FY 2023, the C ity’s actual $59.8 million BSR balance is above the Council’s 18.5% target ($45.6 million) for FY 2023 by $14.2 million.

Major tax revenues such as sales tax, property tax, transient occupancy tax, utility user tax, and documentary transfer tax were hig her than budgeted while expense savings were realized across many of the departments (detailed in Attachment A). Although all the major taxes are higher than the Adjusted Budget, the pandemic continues to impact the City’s revenue with sales tax, transient occupancy tax, and utility user tax, remaining lower compared to pre - pandemic revenues.

Business Type Activities (Enterprise Funds & Internal Service Funds) As of June 30, 2022, the City’s Enterprise Funds reported a total net position of $796.8 million, a decrease of $ 10.4 million or 1. 3% from the prior year. All funds showed positive balances : Net Investment in Capital Assets ($670.8 million), Restricted for Debt Service ($3.3 million), and Unrestricted ($122.7 million).

Internal Service Funds ended th e fiscal year with $86.0 million net position balance. All funds showed positive balances except the Printing and Mailing and Workers Compensation Insurance Program Funds. The Printing and Mailing Fund reported a $0.2 million negative balance due to the pe nsion liability per GASB 68 and Other Post -Employment Benefits (OPEB) liability per GASB 75. Workers Compensation Insurance Program Fund showed a $0.6 million negative balance due to unrealized market losses on investments . Once adjusted for these noncash transactions, both funds remain with a positive fund balance.

1 City Council June 30, 2022, Agenda Item #28; CMR #14352; https://www.cityofpaloalto.org/files/assets/public/agendas -minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220620/20220620pccsm-amended-final-final.pdf#page=557 2 Packet Pg. 54
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BACKGROUND
The City’s fiscal year ends on June 30, at which time its financial records are closed for the year and financial reports are prepared. The reports, along with the City’s financial data, are audited by Macias Gini & O’Connell LLP (MGO), Certified Public Accountants, a firm hired by the City Auditor. MGO issues an audit opinion on the financial position of the City’s activities and , together with the City’s financial statements and ot her information , comprises the City’s Annual Comprehensive Financial Report (ACFR) that can be found in Attachment C.

Attachment B outlines technical recommended amendments to the FY 2022 Budget. These recommended actions close the fiscal year by realloc ating and realigning budget to appropriate funds for actual operating and capital expenditures and revenue collected as well as adjust transfers between funds. The General Fund Summary found in Attachment A, provides detailed information of revenue and exp enditures by department. The Discussion section of this staff report includes Results by Fund which discusses position of fund balances, major revenue sources, and expense highlights.

The ACFR includes government -wide statements and fund level financial s tatements that provide a snapshot of fund balances and activity for the year. An overview of financial results, information on how to navigate the ACFR document, and highlights of key fiscal issues affecting the City can be found in the Management’s Discussion and Analysis (MD&A) section (ACFR p. 5).

The MD&A also provides a discussion and analysis of the City’s current fiscal health and includes financial statements and analysis compared to the prior year, along with capital asset and debt administration data.

Throughout this report, pronouncements released by GASB are referred to by issuance number.

For example, GASB Pronouncement No. 68 is referenced in this report as GASB 68. A full list of pronouncements can be found on GASB’s website.

DISCUSSION & ANALYSIS
There are two methods of displaying the City’s financials that are included in the FY 2022 ACFR, 1) Government Wide Statements and 2) Fund Financial Statements. The discussion below is organized by these two r eporting standards and the results contained within. To assist in the terminology below is a brief overview of these; each of these displays of the City’s financial statements are governed by Generally Accepted Accounting Principles (GAAP) as modified regularly by the Governmental Accounting Standards Board (GASB). Neither of these views are the same as the City’s annual budget ; however, Fund Financial Statements is most closely aligned.

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Government Wide Financial Statements Fund Financial Statements • Governmental Activities – City’s basic
services generally funded by taxes,
and/or by specific program revenues
such as fees and grants (full accrual) +
includes portion of internal service funds
• Business Type Activities – City’s
enterprise activities which are funded in
whole or in part by fees charged to
external parties (full accrual) + includes
portion of internal service funds
• Governmental Funds – similar to
“governmental activities” EXCEPT on a
modified accrual basis of accounting +
excludes internal service funds.
• Proprietary Funds – same as “business
type activities” EXCEPT includes internal
service funds. Includes what we refer to
as “enterprise funds” (full accrual)

Government-wide Statements
Statement of Net Position
The Statement of Net Positi on presents information of all the City’s assets plus deferred outflows of resources, and liabilities plus deferred inflows of resources, with the reported net position.

The City’s net position was $1.2 71 billion on June 30, 2022, compared to a balance of $1.230 billion on June 30, 2021. The total increase of $ 40.6 million, or 3.2%, consists of $51.0 million from governmental activities partially offset by a decrease of $10.4 million from business -type activities.

The largest portion of the City’s net p osition ($1.175 billion or 92.4%) is its net investment in capital assets such as land, buildings, infrastructure, vehicles, and intangible assets – right to use leased assets less any related outstanding debt that was used to acquire these assets. The restricted portion of the City’s net position ($76.2 million or 6.0%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $ 20.0 million, across all funds, representing 1.6% of the City’s net position, is unrestricted and may be used to meet the City’s ongoing obligations to its citizens and creditors.

The unrestricted net position for the governmental activities portion is negative mainly due to the recognition of the net pension liabilities require d by GASB Statement No. 68 and net OPEB liabilities required by GASB Statement No. 75. The $ 102.7 million deficits for governmental activities include the $286.6 million impact of net pension liabilities and its related deferred outflows of resources (GASB 68) and $78.3 million impact of net OPEB liabilities and its related deferred outflows of resources and deferred inflows of resources (GASB 75). Excluding these impacts, the Governmental Activities’ unrestricted net position is $262.2 million.

The net po sition of both governmental and business type activities reduced by $50.6 million due to unrealized market losses on the City’s investment. Actual investment earnings on the City’s portfolio are $9.0 million ; however, the net interest earnings reported in the financial 2 Packet Pg. 56
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statement have a negative balance of $41.6 million due to accounting for unrealized losses on the City’s investments. Per GASB 31, public agencies are required to report the change in the valuation of City’s portfolio, and due to the rising i nterest rates, the portfolio’s fixed income securities have a “paper” loss as of June 30. The City ’s long-standing practice is to hold investments to maturity and due to this practice, there will likely be no actual losses incurred on these investments.

TABLE 1

STATEMENT OF NET POSITION
As of June 30, 2022
(in millions)
2022 2021 2022 2021 2022 2021
Cash and investments 400.7$ 443.4$ 241.3$ 285.6$ 642.0$ 729.0$ Other assets 82.4 76.6 50.7 47.7 133.1 124.3
Capital assets 674.2 602.0 735.2 693.2 1,409.4 1,295.2
Deferred outflows 59.2 60.8 24.7 21.1 83.9 81.9
Total assets and deferred outflows 1,216.5 1,182.8 1,051.9 1,047.6 2,268.4 2,230.4 Net pension and OPEB liabilities 316.5 438.2 109.5 159.7 426.0 597.9 Long-term debt 210.2 217.5 64.3 68.9 274.5 286.4
Other liabilities 102.9 87.6 33.1 23.8 136.0 111.4
Deferred inflows 112.8 16.3 48.2 6.4 161.0 22.7
Total Liabilities 742.4 759.6 255.1 258.8 997.5 1,018.4 Net Position
Net investment in capital assets 503.9 480.6 670.8 642.0 1,174.7 1,122.6 Restricted 72.9 80.3 3.3 3.4 76.2 83.7
Unrestricted (102.7) (137.7) 122.7 161.8 20.0 24.1
Total Net Position 474.1$ 423.2$ 796.8$ 807.2$ 1,270.9$ 1,230.4$

Governmental Business-type Government-wide
Activities Activities Totals

Statement of Activities
The major sources of the City’s revenues are Program Revenues and General Revenues.

Program Revenues consist of charges for services (both governmental and business type activities) as well as operating and capital grants and contributions. General Revenues include property tax, sales tax, utility user tax, transient occupancy tax, documentary transfer tax, other taxes and miscellaneous revenue.

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Revenues for the City in FY 2022 we re $565.4 million, an increase of $11.7 million or 2.1 % above FY 2021, due to a $21.6 million increases in Governmental Activities partially offset by a $9.9 million decrease from Business Activities. Governmental Activities increased $21.6 million due to program and general revenues. The increases in program revenues are due to resumption and increase of in -person classes, paramedic revenues, ARPA funding totaling $8.2 million, and $25.7 million donation from Friends of the J unior Museum & Zoo (J MZ). The increases in general revenues are from major taxes partially offset by decreases in investment earnings from the negative impact of fair market value adjustments. Business Activities revenue decreased $9.9 million mainly due to decreases in Water Fund reven ues resulting from conservation efforts in response to the drought . This was partially offset by an increase in Gas Fund revenues driven by a 3 % rate increase and portion of the commodity price increases is passed through to customers. Another factor drivi ng the decrease of the revenue is the decrease of investment earnings resulting from negative fair market value adjustments.

Expenses for the City in FY 2022 were $ 524.8 million, a decrease of $24.1 million or 4.4% below FY 2021, due to a $45.6 million decrease from Governmental Activities that is partially offset by a $21.6 million increase from Business-type expenses.

The decrease in Governmental Activities expenses is mainly due to the decrease in pension and OPEB related adjustments for GASB 68 and GASB 75, primarily due to higher actual than expected interest earnings of City’s pension and OPEB plan.

Administrative Services expenses decreased $ 8.0 million, primarily due to the $12.6 million set aside established in FY 2021 for Green v. City of Pa lo Alto. Additional expenses of $4.9 million were set aside in 2022 to settle the case. The City has a total claim payable of $17.5 million for the Green case on its governmental activities’ financial statements

Public Works expenses, which decreased $21.5 million mainly due to review and reclassification of construction in progress balances and determined that certain expenses, specifically various repairs and maintenance of streets, sidewalks, facilities, and parks, should not have been capitalized per Generally Accepted Accounting Principles (GAAP). The expense to correct these construction progress balances was recorded as part Public Works functional expenses in FY 2021. These actions are consistent with recent staff review, affirmed by an audit compl eted by BakerTilly (the City Auditor), to more accurately account for capitalized assets.

The increase of Business Type Activities is driven by several cost categories and resulted in higher costs compared to prior year, including energy purchase cost, op erations and maintenance in Electric Fund, and commodity purchases in Gas Fund. These increases were partially offset by the decrease in pension and OPEB related adjustments for GASB 68 and GASB 75, primarily due to higher actual than expected interest ear nings of City’s pension and OPEB plan.
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TABLE 2

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Capital Assets
The City’s capital assets for its governmental and business -type activities as of June 30, 2022 amounts to $1.409 billion (net of accumulated depreciation), which is a $98.9 million or 7.5 % increase over FY 2021. The increase was primarily due to various projects such as the Charleston Arastradero Corridor, Public Safety Building, Highway 101 Bicycle and Pedestrian Bridge, Water Main Replacement, Smart Grid Technology Installation, Electric S ystem Improvements, and Primary Sedimentation Tank Rehabilitation. In addition, due to the $29.2 renovated Junior Museum and Zoo (JMZ) of which $25.7 million was a donation from the Friends of JMZ

City implemented GASB 87 – Leases which resulted in an i ncrease of Intangible Asset – right to use leased assets amounting to $9.1 million, net of amortization.

TABLE 3
Capital Assets
2022 2021 (Decrease)
Governmental activites
Land and improvements 82.1$ 82.1$ -$
Street trees 15.0 14.8 0.2
Construction in progress 121.9 143.4 (21.5) Building and improvements 350.6 272.1 78.5 Intangible assets 3.8 3.8 -
Equipment 82.9 80.3 2.6
Roadway network 359.1 335.3 23.8
Recreation and open space network 37.0 35.2 1.8 Less accumulated depreciation (385.2) (365.0) (20.2) Intangible assets-right to use leased assets 9.8 - 9.8 Less accumulated amortization (2.8) - (2.8) Total Governmental Activities 674.2 602.0 72.2$ Business-Type Activities
Land 5.0$ 5$ -$
Construction in progress 136.9 129.0 7.9 Buildings and improvements 80.5 74.5 6.0 Infrastructure 0.6 0.6 -
Transmission, distribution and treatment systems 948.9 914.8 34.1 Less accumulated depreciation (438.8) (415.4) (23.4) Intangible assets-right to use leased assets 2.9 - 2.9 Less accumulated amortization (0.8) - (0.8) Total Business-Type Activities 735.2$ 708.5$ 26.7$ Total Capital Assets 1,409.4$ 1,310.5$ 98.9$

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Liabilities
As of June 30, 2022, the City’s liabilities totaled $831.6 million, which is a $164.1 m illion or

16.5% decrease below FY 2021. The decrease was due City’s Net Pension Liabilities and Net Other Post-Employment Benefit (OPEB) Liabilities decreasing by $171.9 million, driven primarily due to investment earnings that increased the OPEB Plan’s Net Position, scheduled debt service payments, and refinancing activities. The decrease was partially offset by an increase of lease liabilities amounting to $10.0 million due to GASB 87 – Leases implementation.

Fund Financial Statements

General Fund
General Fund Reserves
The General Fund ended with a net Budget Stabilization Reserve (BSR) surplus of $14.2 million, when compared to estimates used in the development of the FY 2023 Adopted Budget and the Councils target reserve level of 18.5% of budgeted exp enses. Overall, at the end of the current fiscal year, the General Fund’s fund balance was $100.1 million of both restricted and unrestricted balances . This fund balance is comprised of several reserves: the Budget Stabilization Reserve (BSR or City’s gene ral reserve), reappropriations, notes and loans, inventory, prepaid items, and other general government special purpose reserves (this includes reserves for encumbrances and donations). In FY 2022, $1.7 million was set aside for the Reserve for Excess Educational Revenue Augmentation Fund (ERAF) for the at -risk amount related to the lawsuit filed in November 2021 by the California School Boards of Association and its Education Legal Alliance against the Controller of the State of California for over the calculation methodology of the Excess ERAF.

As described in the BSR reserve policy approved by the Council, the reserve is to remain 15 -20% of the General Fund operating budget, with a target goal of 18.5 %. Any reserve balance in excess of the 18.5 % target may be transferred to the Infrastructure Reserve (IR) in the Capital Improvement Fund, and/or the City's Section 115 Pension Trust, as outlined in the Pension Funding Policy at the discretion of the City Manager.

The FY 2023 Adopted Operating Budget pro jected a $54.7 million BSR balance as of June 30, 2022, compared to the actual balance of $72.8 million (this is a component of the General Fund, fund balance noted above). The BSR is above projected levels due to higher major taxes and program revenues, and lower expenses due to higher vacancy savings and lower expenses across departments for internal costs to run the City such as utilities, printing and mailing, and vehicle maintenance.

Much of this variance was forecasted, discussed, and a core component of the FY 2023 Adopted Budget and two -year budget balancing strategy. The Council recognized these higher than budgeted estimate and used these funds to bridge the transition as the City and community emerged from the pandemic while ensuring stabilit y for the organization. The chart below outlines the already approved uses of the BSR in FY 2023. These adjustments, totaling $ 13.0 2 Packet Pg. 61
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million, results in a BSR balance of $ 59.8 million; approximately 24.2% of the FY 2022 Adopted expenses of $2 47.4 million. This level is approximately $ 14.2 million above the target level of

18.5% ($45.6 million). Micro and macro -economic conditions are adjusting daily, with rising inflation, changes in jobs, and recessionary trends creating significant uncertainty. As the St ate of California Legislative Analyst Office (LAO) wrote in their annual Fiscal Outlooks for California “Economic Conditions Weigh on Revenues, [the] booming economy has led to high inflation…efforts to tame inflation are slowing the economy…inflation pres sures remain, raising risk of recession…fiscal outlooks revenues balance competing risks. 2” Therefore, below are recommended adjustments in line with the City Manager’s authority for transfer of excess BSR, adjusted for a recommendation to reserve funds to safeguard the stability the City has strived to achieve in the recent year by re -establishing an economic uncertainty reserve. Staff anticipates returning to Council in February 2023 with the FY 2023 Mid -Year Review and recommendations in alignment with t he allocation below for the appropriation of BSR funds above the 18.5 % level. Staff do recommend a transfer to the Infrastructure Reserve as inflationary costs are impacting capital project needs including anticipated significant price increases in the Aut omated Parking Guidance Project, as well as a need to provide safety improvements to critical assets such as the artificial turf playing fields.

2 The 2023-24 Budget California’s Fiscal Outlook, California Legislative Analyst’s Office (LAO), November 16, 2022, https://lao.ca.gov/Publications/Report/4646
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TABLE 4
Year-End Budget Stabilization Reserve (BSR) Summary
(in millions)
General Fund BSR Balance, June 30, 2022 $72,835

Uses of the FY 2022 Surplus

FY 2023 Approved Adjustments to the BSR Balance
FY 2023 Adopted Budget ($9,072)
FY 2023 Services Reinvestment ($3,700)
Downtown Streets Team (CMR 14526) ($167)
Reappropriations (CMR 14728) ($100)
Subtotal: Approved Adjustments to the BSR Balance ($13,039)

Subtotal: BSR Balance, After Approved Adjustments $59,796

FY 2023 RECOMMENDED Adjustments to the BSR Balance
(to be considered in FY 2023 Mid-Year Budget)

Reserve for Economic Uncertainty ($5,000)
Transfer to Section 115 Pension Trust Fund ($5,000)
Transfer to Infrastructure Reserve (IR) in the Capital Improvement Fund ($4,000) Subtotal: RECOMMENDED Adjustments to the BSR Balance ($14,000)

Current Projected FY 2022 BSR Level, (June 30, 2023) $45,796

General Fund Revenues
General Fund revenues for FY 2022 were $190.4 million, which is $23.6 million or 14.1 % higher than the prior year. Year -over-year changes in each of the major tax revenue categories are summarized in t he following table. The majority of these higher than budgeted revenues were forecasted and discussed as part of the FY 2023 Adopted Budget, in May 2022, staff and the Finance Committee discussed use of a projected $14 million excess revenues to develop a two- year budget strategy and begin reinvestments.

TABLE 5
General Fund Major Tax Revenues
(in millions)
Category FY 2022 FY 2021
% Change
Increase (Decrease)
Property tax $ 59,353 $ 56,572 4.9%
Sales tax 32,705 29,127 12.3%
Utility user tax 15,599 14,642 6.5%
Transient occupancy tax 16,946 5,179 227.2%
Documentary transfer tax 11,990 10,627 12.8%

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Property tax revenue increased $2.8 million or 4.9 % due to property assessed value growth that was driven by the change of ownership, and an increase of $1.1 million in the Excess Educational Revenue Augmentation Fund (ERAF) distribution.

Sales tax receipts were $3.6 million or 12.3 % higher than the prior year. The increase is due to the strong performance of apparel and department stores, furniture/appl iance, and food products categories which include restaurants, and transportation such as new auto sales. The City’s revenue base also benefits from many high -end goods and dining options at regional destinations, such as Stanford Shopping Center.

Utility user tax revenues are $1.0 million or 6.5%, higher compared to prior year. The economic recovery resulted in increased business activity and workers returning to the office/business site resulting an increased use of services subject to UUT.

Transient occupancy tax (TOT) ended the year $11.8 million or 227 % higher than prior year.

The increase is exceptionally high because this is compared to a time when there was a high - level of health, safety and travel restrictions however remains lower than the pr e-pandemic levels. In FY 2022, the average occupancy rate was 63.5 %, a 57.4 % increase and the average room rate was $194.89, a 68.6 % increase over the prior year. The entire 15.5% TOT rate from new hotels, plus 3.5 % from all other hotels, has been allocat ed to the Infrastructure Plan pursuant to City Council direction. This results in additional TOT for the Infrastructure plan of $2.2 million. These additional funds, coupled with the recommended excess BSR funds will assist in ensuring capital projects may continue as planned, adjusting for the rising costs due to the current inflationary economic conditions. The following is a comparative breakdown of the allocation of transient occupancy tax receipts:

TABLE 6
Allocation of Transient Occupancy Tax
FY 2022 FY 2021
% Change
Increase (Decrease)
General Fund $ 8,828 $ 2,796 215.7 %

Infrastructure Plan
New hotels – 12% 4,292 1,214 253.5 %
All hotels – 3.5% 3,826 1,169 227.3 %
Subtotal Infrastructure 8,118 2,383 240.7 %

Total TOT Receipts $ 16,946 $ 5,179 227.2 %

Documentary transfer tax increased $1.4 million or 12.8 % compared to prior year due to nine large commercial property transactions that occurred in FY2022. The number of transactions was comparable to the prior year This revenue source is volatile since it is highly dependent on sales volume and property values and the mix of commercial and residential sales. 2 Packet Pg. 64
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Charges for services increased $4.2 million or 16.7 % compared to prior year mainly due to resumption of program an d classes and offered both virtually and in -person with the lifting of many State and County Public Health restrictions.

Other revenues decreased $2.8 million or 56.0 % compared to prior year, due to decrease of investment earnings, mainly from unrealized market losses on investments, partially offset by the American Rescue Plan Act distribution of $8.2 million recognized as revenue in FY 2022.

The following is a chart which depicts the relative contribution of each tax category over the past seven years (2016 through 2022), as well as the current budgeted year (2022).

CHART 1
General Fund Tax Revenues
Actual Fiscal Years 2016 – 2022
Budget Fiscal Year 2022
($ in thousands)

General Fund Expenditures
General Fund expenditures for FY 2022, including encumbrances and reappropriations, totaled $209.5; an increase of 14.0 % from the prior year, primarily due to the increase in salary and benefit costs, and indirect charges. The increase in salaries and benefits are due to overtime, specifically police and fire, paid leave, and pension. The indirect charges were higher in the 2 Packet Pg. 65
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current year primarily due to liability insurance charges, vehicle equipment maintenance service and information technology (IT) support. The increase in liability i nsurance charges is based on actuarial analysis of the City’s liabilities costs over the past few years and provides an 85 percent confidence level. Another factor driving the increase was due to reappropriations of $12.4 million claims for a class action lawsuit.

The Adopted Budget of $194.4 million was increased to the Final Adjusted Budget amount of $215.1 million, primarily due to increased funding from prior year encumbered and reappropriated balances and increases for several departments throughout the year also occurred based on City Council direction per recommendations contained in City Manager Reports. The following is a chart which compares actual departmental costs, including encumbrances and reappropriations, excluding Cubberley lease over the past seven years and budgeted costs for FY 2023.

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CHART 2
General Fund Departments
Actual Expenditures Fiscal Years 2016– 2022 (including reappropriations and encumbrances) Budgeted Expenditures Fiscal Year 2023
($ in thousands)
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 220,000 FY 2023 Budget
FY 2022 Actual
FY 2021 Actual
FY 2020 Actual
FY 2019 Actual
FY 2018 Actual
FY 2017 Actual
FY 2016 Actual
FY 2023
Budget
FY 2022
Actual
FY 2021
Actual
FY 2020
Actual
FY 2019
Actual
FY 2018
Actual
FY 2017
Actual
FY 2016
Actual
Public Safety 89,724 83,339 77,795 83,616 77,592 75,975 72,815 65,005 Community Services 32,866 31,712 27,769 31,489 30,201 28,395 26,573 25,262 Admin Depts 41,302 39,762 26,165 28,169 29,304 23,538 22,157 22,059 Public Works 20,134 19,448 18,553 18,932 17,928 18,908 17,475 15,084 Planning and Development Services 22,615 21,231 18,782 21,098 22,606 23,006 22,400 21,784 Office Of Transportation 1,718 1,648 2,010 2,360
Library 10,211 8,904 8,636 10,092 9,491 9,357 9,266 8,217

The Development Services Department was combined with the Planning and Community Environment in FY 2020 and renamed to the Planning and Development Services Department.

The Office of Transportation Department, which previously was a division of the Plannin g and Community Environment Department was established in FY 2020.

Capital Projects Fund
The Capital Projects Fund ended the year with a fund balance of $117. 9 million, comprised of the following:

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TABLE 7
Capital Projects Fund – Fund Balance
Fund Balance Component
Amount
($ in millions)
Restricted for Library projects $ 251
Reserved for Roth Building rehabilitation 5,184
Reserved for Cubberley expenditures 5,720
Restricted for Public Safety Building 48,216
Assigned for all other Capital projects 58,567

Total Capital Projects Fund Balance $ 117,938

Restricted for Library projects $0.3 million is the portion of fund balance dedicated to the remaining Mitchell Park Library expenditures which, if considered bond expenses will b e paid for with cash from bond proceeds. Non-bondable expenditures such as salaries and benefits are funded from the Infrastructure Reserve (ending fund balance in the Capital Projects Fund) , as established at the time of the bond issuance. The Mitchell Pa rk L ibrary project is already completed but the roof defects need to be fixed using this reserve.

Restricted for Public Safety Building $48.2 million represents the remaining bond funding dedicated to the construction of the public safety building. This project is currently under construction with estimated completion in Fall 2023.

Assigned for all other Capital projects $58.6 million represents the amount of unspent funds associated with Adopted Capital projects and other noted items. Outside funding s ources such as grants, donations and future debt issues are not factored into this component of the fund balance until they are received.

Enterprise Funds
The City’s Enterprise Funds reported a total Net Position of $ 790.7 million, a $1 2.6 million, or

1.6% decrease from the prior year. The table below summarizes the overall change in Net Position for each Enterprise Fund. Compared to FY 2021, the Change in Net Position for Enterprise funds decreased $34.8 million driven primarily by the Electric Fund, Wate r, Fiber Optics and Gas Funds – details of these funds are summarized following this table.

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TABLE 8

ENTERPRISE FUNDS
Change in Net Position for the Year Ended June 30
(in millions)
Increase/
Fund Name 2022 2021 (Decrease)
Water 0.7$ 6.6$ (5.9)$
Electric (24.2) (4.8) (19.4)
Fiber Optics (1.2) 1.5 (2.7)
Gas (0.6) 3.5 (4.1)
Wastewater Collection 1.2 0.7 0.5
Wastewater Treatment 1.4 3.1 (1.7)
Refuse (0.2) 1.9 (2.1)
Storm Drainage 2.6 3.0 (0.4)
Airport 7.7 6.7 1.0
Total Change in Net Position (12.6)$ 22.2$ (34.8)$

Overall, Changes in Net Position decreased $34.8 million for Enterprise Funds, mainly due to accounting adjustment s that resulted in over $21.5 million net unrealized market loss. In addition, the Water Fund experienced lower revenue due to residential conservation efforts.

The Electric Fund also reported negative net change from the prior year due to increases in purchases of ele ctricity which were primarily driven by higher than historical forward energy prices (future delivery), increased resource adequacy costs (capacity supply and demand) , and lower hydroelectric supply. The Gas Fund showed a $4.1 million negative change due t o higher commodity prices partially offset by a 3% rate increase and increased revenue from a portion of the commodity price increases being passed directly to customers. The Airport Fund reported a $1.0 million positive net change due to federal grants re ceived for the Apron Reconstruction project.

The table below details the Change in Unrestricted Net Position in the Enterprise Funds.

Enterprise Fund Rate Stabilization, Operations and other reserve balances are shown in detail in the ACFR (p. 96). Overal l, except for the Wastewater Treatment Fund and the Airport Fund, each Enterprise Funds maintained a positive unrestricted net position balance as of June 30, 2022. Adjustments for the Pension Reserve (as required by GASB 68) and OPEB Reserve (as required by GASB 75) total $130.2 million and unrealized market losses on investments total $21.5 million (as required by GASB 31) for all Enterprise Funds and reduce each fund’s unrestricted net position.

The Wastewater Treatment Fund reflects a $14.8 million Un restricted Reserve deficit and is mainly driven by $ $26.1 million in Pension Reserves and OPEB Reserves adjustments.

The Airport Fund reports a $3.0 million Unrestricted Reserve deficit which is attributed to the 2 Packet Pg. 69
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$1.1 million Pension Reserve and OPEB Re serve adjustments. Second, the fund deficit in the Airport Fund is also a result of cumulative fund deficits over the life of the fund as fiscal operations at the airport stabilize and capital projects near completion. The $7.7 million change in net positi on of Airport Fund in current year is $0.6 million from operations and $7.1 million grants received in current year.

TABLE 8
Increase/
Fund Name 2022 2021 (Decrease)
Water 27.8$ 33.0$ (5.2)$
Electic 46.5 74.5 (28.0)
Fiber Optics 32.1 34.5 (2.4)
Gas 6.4 11.6 (5.2)
Wastewater Collection 2.1 0.7 1.4
Wastewater Treatment (14.8) (10.8) (4.0)
Refuse 13.9 14.1 (0.2)
Storm Drainage 5.5 4.0 1.5
Aiport (3.0) (3.7) 0.7

Total Changes in Reserves (Unrestricted) 116.5$ 157.9$ (41.4)$ Enterprise Funds
Changes in Unrestricted (Deficit) Net Position
(In Million)

RESOURCE IMPACT
Recommended actions in the report will align the FY 2022 appropriations with final fin ancial activities as outlined in Attachment B . Overall, the City ended the FY 2022 in a positive net position.

STAKEHOLDER ENGAGEMENT
The review and writing of this report was coordinated among various divisions within the Administrative Services Departm ent, along with Departments who assisted in staff’s analysis.

The actions recommended in this report were discussed and communicated to the impacted departments.

ENVIRONEMENTAL REVIEW
This is not a project for purposes of the California Environmental Quality Act. .

Attachments:
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• Attachment A: General Fund Summary (Budget and Actuals) • Attachment B: Recommended FY 2022 Year-End Budget Actions • Attachment C: FY2022 Annual Comprehensive Financial Report 2 Packet Pg. 71
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Department Adjustment Adjustment
GENERAL FUND (102)
City Attorney's
Office
Contract Services
This action reallocates funding as a result of higher than anticipated contract services expenses in FY 2022.

These higher expenditures are primarily due to special projects including the Roth Building rehabilitation, wireless ordinance update, employee investigations, and capital project construction contract claims. ‐$                             103,000$
City Auditor's
Office
Salaries & Benefits and Contract Services
This action reallocates funding as a result of salary and benefit expenses in FY 2022 that were unbudgeted as well as higher than anticipated contract services expenses related to FY 2021 audits that were paid during FY 2022.
‐$                             25,000$
Community
Services
Departmental Expense Savings
This action reallocates departmental cost savings within the General Fund in order to offset departments with higher than anticipated expenses in FY 2022. The Community Services Department realized a net savings, primarily in salaries and benefits, as a result of a large number of vacancies as well as savings from lower than anticipated utility charges.
‐$                             (253,000)$
Fire Charges for Services and Revenue from Other Agencies/Salaries & Benefits This action reallocates funding as a result of higher than anticipated salary and benefit expenses and recognizes and appropriates higher than anticipated paramedic services revenue and revenue from the State of California.

The higher expenditures, specifically in overtime costs, are primarily due to an above average amounts of vacancies, employee leave, and employee turnover (voluntary and retirement) as maintaining minimum staffing levels requires the use of overtime for backfill. The higher expenditures are partially offset by increased paramedic transport services revenue as well as additional revenue from the State of California as reimbursements for participating in Strike Teams and other statewide fire services. 600,000$                    725,000$
Non‐
Departmental
Transient Occupancy Tax Revenue/Transfer to Capital Improvement Fund This action increases the transfer to the Capital Improvement Fund as it relates to Transient Occupancy Tax (TOT) revenues earmarked for city‐wide infrastructure improvements due to higher than anticipated TOT collections in FY 2022.
2,219,000$                 2,219,000$
GENERAL FUND (102) SUBTOTAL 2,819,000$                 2,819,000$ CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1

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Department Adjustment Adjustment
CAPITAL IMPROVEMENT FUNDS
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
‐$                   419,000$
Capital Transfer from General Fund
This action increases the transfer from the General Fund related to TOT revenue Council earmarked to use for city‐wide infrastructure improvements due to actual revenue collected being higher than budgeted in FY 2022.
2,219,000$        ‐ $
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                   1,800,000$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL 2,219,000$        2,219,000$ CUBBERLEY PROPERTY INFRASTRUCTURE FUND (472)
Public Works Revenue from Other Agencies/Salaries and Benefits This action appropriates funding for increased costs related to facilities maintenance work at the Cubberley Property and recognizes and appropriates increased revenue from the Palo Alto United School District (PAUSD) to reimburse the City for their share of the costs as outlined in the Cubberley lease agreement between the City and PAUSD. 22,000$             22,000$
CUBBERLEY PROPERTY INFRASTRUCTURE FUND (472) SUBTOTAL 22,000$             22,000$ CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1

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Department Adjustment Adjustment
ENTERPRISE FUNDS
ELECTRIC FUND (513 & 523)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
‐$                   145,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                   (145,000)$
ELECTRIC FUND (513 & 523) SUBTOTAL ‐$                   ‐ $ FIBER OPTICS FUND (533)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
‐$                   18,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                   (18,000)$
FIBER OPTICS FUND (533) SUBTOTAL ‐$                   ‐ $ GAS FUND (514 & 524)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
‐$                   4,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                   (4,000)$
GAS FUND (514 & 524) SUBTOTAL ‐$                   ‐ $
REFUSE FUND (525)
Public Works Refuse Collection, Hauling, and Disposal
As described in CMR 14275, at the end of each fiscal year staff estimates the expenses needed for the next contract year for GreenWaste of Palo Alto (GWPA) and conducts a technical clean‐ up of expenses to ensure that any excess carryforward amount from the contract encumbrance is returned to the fund balance. An error occurred in FY 2021 and too much was returned to the fund balance, leaving insufficient funds for the contract in FY 2022. CMR 14275 approved a $0.9 million budget adjustment but this $1.4 million technical correction augments the adjustment made in CMR 14275 to fully align the budget with the total expenses for services provided by GWPA in FY 2022.
‐$                   1,443,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                   (1,443,000)$
REFUSE FUND (525) SUBTOTAL ‐$                   ‐ $
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1

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Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1
STORMWATER MANGEMENT FUND (528)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
‐$                   5,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                   (5,000)$
STORMWATER MANGEMENT FUND (528) SUBTOTAL ‐$                   ‐ $ WASTEWATER COLLECTION FUND (527)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
‐$                   90,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                   (90,000)$
WASTEWATER COLLECTION FUND (527) SUBTOTAL ‐$                   ‐ $ WATER FUND (522)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
‐$                   145,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                   (145,000)$
WATER FUND (522) SUBTOTAL ‐$                   ‐ $

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Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in Attachment B, Exhibit 2.
140,000$            140,000$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL 140,000$            140,000$ WORKERS' COMPENSATION FUND (688)
Human
Resources
Claims Costs/Reimbursements
This net‐neutral action increases the estimate for workers' compensation claims by $115,000, from $5.9 million to $6.0 million, due to higher than anticipated claims costs in FY 2022. This amount is fully offset by additional revenue for excess insurance reimbursements received during the period.
115,000$            115,000$
WORKERS' COMPENSATION FUND (688) SUBTOTAL 115,000$            115,000$ CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1

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Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
PUBLIC ART FUND (207)
Community
Services
Contract Services
This action increases the appropriation for contract services in the Public Art Fund to align with the costs associated with the City's CodeArt Festival.
‐$                    48,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                    (48,000)$
PUBLIC ART FUND (207) SUBTOTAL ‐$                   ‐ $ CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1

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Department Adjustment Adjustment
DEBT SERVICE & AGENCY TRUST FUNDS
2021 PUBLIC SAFETY BUILDING COP FUND (363)
Administrative
Services
Debt Service Payment
This action appropriates funding to cover the capitalized interest payment for the Certificates of Participation to fund the New Public Safety Building capital project (PE‐15001). These funds were set aside as part of bond sale in this Fund in order to make this payment; however, they were not appropriated as part of the FY 2022 Budget.
‐$                     3,133,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                     (3,133,000)$
2021 PUBLIC SAFETY BUILDING COP FUND (363) SUBTOTAL ‐$                     ‐ $ LIBRARY PROJECTS FUND (370)
Administrative
Services
Bond Proceeds/Debt Service Payment
This action recognizes and appropriates bond proceed revenue from refinancing of Library General Obligation (GO) Bonds (CMR 13438). This action also appropriates funding to pay off the previous GO Bond amount. The refinancing occurred in June 2022, so this action is needed to true up the budget with the actual amounts for the bond sales. 41,197,000$      44,071,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                     (2,874,000)$
LIBRARY PROJECTS FUND (370) SUBTOTAL 41,197,000$      44,071,000$ UNIVERSITY AVENUE PARKING ASSESSMENT AGENCY FUND (775)
Administrative
Services
Contract Services
This action increases the appropriation for Contract Services within the fund to align budget levels with actual expenditures in FY 2022.
‐$                     2,000$
Fund Balance Adjustment to Fund Balance
This action adjusts the fund balance to offset adjustments recommended in this report. ‐$                     (2,000)$
UNIVERSITY AVENUE PARKING ASSESSMENT AGENCY FUND (775) SUBTOTAL ‐$                     ‐ $ CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET Revenues Expenses
ATTACHMENT B, EXHIBIT 1

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Project
Number Title Revenue Expense Comments
PE‐19002 Animal Shelter Renovation $ 74,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

FD‐21000 Automated External Defibrillators $ (50,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐18006 Byxbee Park Completion $ (500,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF‐14004 Cal Avenue Parking District Parking
Improvements
$ 1,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG‐14002 Cameron Park Improvements $ 16,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

AS‐10000 Capital Improvement Fund Administration $ (1,040,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐13011 Charleston/Arastradero Corridor Project $ 205,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐20001 City Bridge Improvements $ (19,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐09003 City Facility Parking Lot Maintenance $ (61,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐17010 Civic Center Electrical Upgrade & EV
Charger Installation
$ 6,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐18016 Civic Center Fire Life Safety Upgrades $ 34,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐15020 Civic Center Waterproofing and Repairs $ 114,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG‐18001 Dog Park Installation $ 36,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PL‐14000 El Camino/Churchill Enhanced Bikeway $ (518,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

FD‐14002 Fire Ringdown System Replacement $ 14,000 Increase to project due to higher than anticipated contract service expenditures to
close out the project.

PE‐15003 Fire Station No. 3 Replacement $ 87,000 Increase to project due to higher than anticipated contract service expenditures to
close out the project.

PE‐18002 High and Bryant Street Garages
Waterproofing and Repairs
$ 6,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐11011 Highway 101 Pedestrian/Bicycle Overpass
Project
$ 524,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures ($315k). Increase to project due to
higher than anticipated contract service
expenditures to close out the project ($209k)
CAPITAL IMPROVEMENT FUND
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 CAPITAL IMPROVEMENT PROGRAM

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Project
Number Title Revenue Expense Comments
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 CAPITAL IMPROVEMENT PROGRAM LB‐21000 Library Automated Materials Handling $ (50,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PF‐17000 Municipal Service Center A, B, & C Roof
Replacement
$ 80,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐18000 New California Avenue Area Parking
Garage
$ 34,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

OS‐00001 Open Space Trails & Amenities $ 135,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

OS‐09001 Off ‐Road Pathway Resurfacing and Repair $ (16,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG‐09002 Park and Open Space Emergency Repairs $ 37,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG‐19000 Park Restroom Installation $ (71,000) Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PG‐14000 Ramos Park Improvements $ 29,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐08001 Rinconada Park Improvements $ 236,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures ($127k). Increase to project with
corresponding reduction in FY23 due to project
expenses for construction oversight
anticipated in FY23 being completed in FY22
($109k). FY23 reduction action approved by
Council on 10/24/22 in CMR 14728.

PO‐89003 Sidewalk Repairs $ 533,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐86070 Street Maintenance $ 518,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

PE‐21004 University Avenue Streetscape Update $ 25,000 Adjustment to allocate Salaries and Benefits across capital projects based on actual
expenditures.

Total $ ‐ $ 419,000 EL‐06001 115 kV Electric Intertie $ 28,000 Increase to project due to higher than anticipated expenditures.

EL‐19001 Colorado Power Station $ (730,000) Decrease to project due to lower than anticipated expenditures to offset overspent
projects.

EL‐89028 Electric Customer Connections $ 1,100,000 Increase to project due to higher than anticipated expenditures, with a $650k
reduction in EL‐17007, and a $450k reduction in
EL‐17002, both of which had some project
savings.

EL‐17007 Facility Relocation for Caltrain $ (650,000) Decrease to project due to lower than anticipated expenditures to offset overspent
projects.

EL‐11014 Smart Grid Technology Installation $ 18,000 Increase to project due to higher than anticipated expenditures.

ELECTRIC FUND

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Project
Number Title Revenue Expense Comments
ATTACHMENT B, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 CAPITAL IMPROVEMENT PROGRAM EL‐17002 Substation Breakers $ (450,000) Decrease to project due to lower than anticipated expenditures to offset overspent
projects.

EL‐89044 Substation Facility Improvements $ 99,000 Increase to project due to higher than anticipated expenditures.

EL‐16003 Substation Security $ 1,100,000 Increase to project due to higher than anticipated expenditures with a $730k
reduction in EL‐19001, and a $370k reduction in
EL‐19004, both of which had some project
savings.

EL‐19004 Wood Pole $ (370,000) Decrease to project due to lower than anticipated expenditures to offset overspent
projects.

Total $ ‐ $ 145,000 FO‐16000 Fiber Optics Network ‐ System Rebuild $ 18,000 Increase to project due to higher than anticipated expenditures.

Total $ ‐ $ 18,000 GS‐11002 Gas System Improvements $ 4,000 Increase to project due to higher than anticipated expenditures.

Total $ ‐ $ 4,000 SD‐22000 East Bayshore Road & East Meadow Drive
Storm Drain System Upgrade
$ 5,000 Increase to project due to higher than anticipated expenditures.

Total $ ‐ $ 5,000 VR‐22000 Scheduled Vehicle and Equipment
Replacement ‐ Fiscal Year 2022
$ 140,000 $ 140,000 Adjustment to align project budget with mid‐ year amendments to the operating budget for
the purchase of a tractor ($100K) and a code
enforcement vehicle ($40K).

Total $ 140,000 $ 140,000
WC‐99013 Sewer Manhole Rehab/Replacement $ 85,000 Increase to project due to higher than anticipated expenditures.

WC‐80020 Sewer System, Customer Connections $ 5,000 Increase to project due to higher than anticipated expenditures.

Total $ ‐ $ 90,000 WS‐80013 Water System Customer Connections $ 145,000 Increase to project due to higher than anticipated expenditures.

Total $ ‐ $ 145,000 TOTAL CIP ADJUSTMENTS $ ‐ $ 718,000 GAS FUND
STORMWATER MANAGEMENT FUND
WATER FUND
WASTEWATER COLLECTION FUND
FIBER FUND
VEHICLE FUND

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Fiscal Year 2022 Annual Comprehensive Financial Report
This document may be viewed at the City’s website:

Financial Reporting – City of Palo Alto, CA
https://www.cityofpaloalto.org/files/assets/public/administrative-services/financial- reporting/comprehensive-annual-financial-reports-cafr/current-2011-cafrs/2022-acfr-final/ city-of-palo-alto-acfr-fy2022-final.pdf

ATTACHMENT C

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FINANCE COMMITTEE

ACTION MINUTES

Page 1 of 2 ends

Palo Alto City CouncilJanuary 23, 2023

Palo Alto City Council
January 23, 2023