Agenda packet — Palo Alto City Council, May 1, 2023

CITY COUNCIL
Special Meeting
Monday, May 01, 2023
Council Chambers & Hybrid
5:00 PM
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org
.

VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line.

PowerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted.

TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.

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

1. Proclamation of May 2023 as Affordable Housing Month

2. Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission
CLOSED SESSION (5:10 ‐ 6:40 PM)

3. CLOSED SESSION
Review and Acceptance of Auditor’s Office Cybersecurity Assessment Authority: Govt Code section 54957(a) – Threat to Public Services or Facilities Consultation with: City Auditor Adriane D. McCoy, City Manager Ed Shikada, and Information Technology Director Darren Numoto
STUDY SESSION (6:40 ‐ 8:10 PM)

4. Fiscal Year 2024 Proposed Budget Study Session
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:10 ‐ 8:30 PM)
CONSENT CALENDAR (8:30 ‐ 8:35 PM)

5. Approval of Minutes from April 17, 2023 Meeting

6. SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and New Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0)

7. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022

8. Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1) Program Management, Network Operations, and Technical Support for Fiber‐to‐the‐ Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to Exceed Amount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31, 2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund

9. Approval of Professional Services Contract Amendment Number 3 with Smart Energy Systems, Inc (S18165157) to add $684,023 for a New Total Not‐to‐Exceed Amount of $1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAU Customer Portal.

CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM)
ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM)

10. Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐24

11. PUBLIC HEARING / QUASI‐JUDICIAL. 2147 Yale Street [22PLN‐00374]: Recommendation on Applicant’s Request for a Preliminary Parcel Map with Exceptions to Divide an Existing 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot lots, smaller than the minimum allowed by the Zoning Code. No changes are proposed to the existing residences. Environmental Assessment: Exempt per CEQA 15301. Zoning District: RND (NP) Two Unit Multiple‐Family Residential District, Neighborhood Preservation Overlay.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

12. Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022)

13. Semiannual Update on the Status of Capital Improvement Program Projects OTHER INFORMATION
Standing Committee Meeting
Finance Committee Special Meeting May 5, 2023
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.

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

2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.

3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully.

You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below.

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

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

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

CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA)
It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
1 Special Meeting May 01, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org.

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

1. Proclamation of May 2023 as Affordable Housing Month

2. Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission
CLOSED SESSION (5:10 ‐ 6:40 PM)

4. Fiscal Year 2024 Proposed Budget Study Session
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:10 ‐ 8:30 PM)
CONSENT CALENDAR (8:30 ‐ 8:35 PM)

5. Approval of Minutes from April 17, 2023 Meeting

6. SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and New Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0)

7. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022

CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM)
ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM)

10. Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐24

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

12. Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022)

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

2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.

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

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.

2 Special Meeting May 01, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.

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

1. Proclamation of May 2023 as Affordable Housing Month

2. Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission
CLOSED SESSION (5:10 ‐ 6:40 PM)

4. Fiscal Year 2024 Proposed Budget Study Session
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:10 ‐ 8:30 PM)
CONSENT CALENDAR (8:30 ‐ 8:35 PM)

5. Approval of Minutes from April 17, 2023 Meeting

6. SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and New Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0)

7. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022

CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM)
ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM)

10. Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐24

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

12. Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022)

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

2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.

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

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.

3 Special Meeting May 01, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.

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

1. Proclamation of May 2023 as Affordable Housing Month

2. Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission
CLOSED SESSION (5:10 ‐ 6:40 PM)

4. Fiscal Year 2024 Proposed Budget Study Session
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:10 ‐ 8:30 PM)
CONSENT CALENDAR (8:30 ‐ 8:35 PM)

5. Approval of Minutes from April 17, 2023 Meeting

6. SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and New Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0)

7. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022

CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM)
ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM)

10. Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐24

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

12. Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022)

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

2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.

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

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.

4 Special Meeting May 01, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.

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

1. Proclamation of May 2023 as Affordable Housing Month

2. Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission
CLOSED SESSION (5:10 ‐ 6:40 PM)

4. Fiscal Year 2024 Proposed Budget Study Session
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:10 ‐ 8:30 PM)
CONSENT CALENDAR (8:30 ‐ 8:35 PM)

5. Approval of Minutes from April 17, 2023 Meeting

6. SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and New Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0)

7. Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022

CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM)
ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM)

10. Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐24

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS

ADJOURNMENT
INFORMATION REPORTS

12. Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022)

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

2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.

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

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

When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.

CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.

5 Special Meeting May 01, 2023
Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org
.

City Council
Staff Report
From: City Manager
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: Planning and Development Services
Meeting Date: May 1, 2023
Report #:2303-1144
TITLE
Proclamation of May 2023 as Affordable Housing Month

RECOMMENDATION
City Council proclaim the month of May as Affordable Housing Month in the City of Palo Alto

BACKGROUND
Affordable Housing Month is a national observance in the United States that is typically held in the month of May each year. The event was established to raise awareness about the need for affordable housing and to recognize the important role that affordable housing plays in building strong, sustainable, and inclusive communities.

Affordable Housing Month typically includes a variety of activities and events, such as workshops, rallies, and community outreach efforts. The focus of these events is to raise awareness about the need for affordable housing, educate the public about the benefits of affordable housing, and advocate for policies and programs that support the development of more affordable housing options.

The City, in collaboration with Silicon Valley at Home, is hosting for the first time ever an Affordable Housing Resources Fair on Saturday, May 13 at 1:00 pm in King Plaza (in front of City Hall). The fair is primarily focused on resources for low-income households and provides information about affordable housing in Palo Alto, fair housing, tenant protections, and other housing services. This is an exciting event to celebrate Affordable Housing Month. More info on the event available at: www.cityofpaloalto.org/housingfair.

In addition to the City’s event, there are other events taking place in the Bay Area in May (information at https://siliconvalleyathome.org/events/?category=affordable-housing-month).

ATTACHMENTS
Attachment A: Proclamation
Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
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APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 1
Item 1 Staff Report

Item 1: Staff Report
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______________________________
Lydia Kou
Mayor

AFFORDABLE HOUSING MONTH
WHEREAS, safe and a ffordable housing is a basic human right and yet, each year, thousands of Silicon Valley families and individuals struggle to find an affordable home in this expensive housing market; and WHEREAS, the City has been active in affordable housing development with four affordable housing projects in process that will include much needed very low-income units, housing for persons with developmental disabilities, and teacher housing in which the City has committed financial support for three of the projects.

WHEREAS, the City has also implemented other meaningful housing actions by approving City parking lots to be developed for affordable housing, creating a permanent source of affordable housing funding by dedicating a portion of the business tax revenue for affordable housing, crafting additional renter protections, and continued support of fair housing services; and
WHEREAS, the City, in collaboration with Silicon Valley at Home, is hosting an Affordable Housing Resources Fair on Saturday, May 13 at 1:00 pm in King Plaza (in front of City Hall). More info on the event available at: www.cityofpaloalto.org/housingfair.

WHEREAS, many organizations throughout Silicon Valley are dedicated to providing safe, stable, permanent and affordable housing to all members of the community; these organizations along with local agencies and community members have organized Affordable Housing Month; and NOW, THEREFORE, I, Lydia Kou, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby proclaim the month of May as Affordable Housing Month in the City of Palo Alto, to call upon our community to support affordable housing solutions and to recognize the successful efforts of the City of Palo Alto and its partners who seek to improve access to affordable housing in Palo Alto.

PRESENTED: May 1, 2023
Proclamation

Item 1
Attachment A -
Proclamation 2023
Affordable Housing
Month

Item 1: Staff Report
Pg.
3 Packet Pg. 8 of 259

City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: May 1, 2023
Report #:2304-1322
TITLE
Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission

RECOMMENDATION
That the City Council vote to appoint candidates for the following positions:
•Four (4) vacancies on the Human Relations Commission
oTwo (2) full terms ending 3/31/2026
oTwo (2) new terms ending 3/31/2024 per Ordinance 5583
•Four (4) vacancies on the Parks and Recreation Commission with terms ending 3/31/2026

DISCUSSION
The City Council directed that 5 candidates for the Human Relations Commission and 11 candidates for the Parks and Recreation Commission be scheduled for interviews. The interviews are to be held on April 24, 2023 and the schedule (as of the publication of this packet) will be as listed below. Each candidate is scheduled for 10 minutes.

On April 10, 2023 the City Council approved Ordinance 5583 to expand the Human Relations Commission from five to seven members. The two new seats on the Human Relations Commission created by this ordinance shall initially have shortened one year terms to expire on March 31, 2024. After that, successive terms shall be full three year terms. Applicants appointed to the two new seats cannot start their term until the authorizing ordinance becomes effective on May 11, 2023 but City Council may choose to make the appointment at this time.

Human Relations Commission
5:00 PM Katie Causey Zoom
Item 2
Item 2 Staff Report

Item 2: Staff Report
Pg.
1 Packet Pg. 9 of 259

5:10 PM Miles Goodman In-person
5:20 PM Mary Kate Stimmler In-person
5:30 PM Amy Hsieh In-person
5:40 PM Daryl Savage (Incumbent) In-person
Parks and Recreation Commission
5:50 PM Amanda Brown (Incumbent) In-person
6:00 PM Bing Wei In-person
6:10 PM Nanci Howe In-person
6:20 PM Yudy Deng In-person
6:30 PM Jeff LaMere (Incumbent) In-person
6:40 PM Laura Granka In-person
6:50 PM Star Teachout In-person
7:00 PM Adriana Flores-Ragade Zoom
7:10 PM Shani Kleinhaus (Incumbent) In-person
7:20 PM Sierra Peterson In-person
7:30 PM Joy Oche (Incumbent) In-person

ATTACHMENTS
None
APPROVED BY:

Lesley Milton, City Clerk
Vinhloc Nguyen, Deputy City Clerk
Item 2
Item 2 Staff Report

Item 2: Staff Report
Pg.
2 Packet Pg. 10 of 259

Item No. 4. Page 1 of 1
1 1
8 9

CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: STUDY SESSION
Lead Department: Administrative Services
Meeting Date: May 1, 2023
Report Number: 2212-0518

TITLE
Fiscal Year 2024 Proposed Budget Study Session

RECOMMENDATION
Staff recommends that the City Council receive the FY 2024 Proposed Operating and Capital Budgets and refer discussion to the Finance Committee

EXECUTIVE SUMMARY
This item will present the Fiscal Year (FY) 2024 Proposed Budget and provide for discussion by the City Council regarding the FY 2024 Budget and priorities. Proposed Budget documents are expected to be released by the end of April 2023. Once released, these documents will be linked to this agenda.

Detailed discussions are scheduled to occur with the Finance Committee on May 5th and 9th, with a City Council check-in on May 22nd, and a final wrap-up discussion with the Finance Committee scheduled May 30th. The Budget will return to the City Council in June for final adoption.

APPROVED BY:

Kiely Nose, Administrative Services Director
Item 4
Item 4 Staff Report

Item 4: Staff Report
Pg.
1 Packet Pg. 11 of 259

City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: May 1, 2023
Report #:2304-1321
TITLE
Approval of Minutes from April 17, 2023 Meeting

RECOMMENDATION
That the minutes be reviewed and approved.

ATTACHMENTS
Attachment A: April 17, 2023 Draft Minutes
APPROVED BY:

Lesley Milton
Item 5
Item 5 Staff Report

Item 5: Staff Report
Pg.
1 Packet Pg. 12 of 259

CITY COUNCIL

DRAFT ACTION MINUTES

Page 1 of 6 ends

Special Meeting
April 17, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M.

Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely:

Absent:

Closed Session

1. CONFERENCE WITH CITY ATTORNEY -EXISTING LITIGATION California Court of Appeal, Sixth Appellate District, Case No. H049425 Subject: Hamilton and High LLC, et al., Appellants v. City of Palo Alto, et al., Respondents Authority: Government Code Section 54956.9(d)(1)

2. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Tori Anthony, Molly Stump, and Jennifer Fine) Employee Organization: Service Employees International Union, (SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA), Palo Alto Peace Officers’ Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs’ Association (FCA); Authority: Government Code Section 54957.6 (a) MOTION: Mayor Stone moved, seconded by Council Member Lauing to go into Closed Session.

MOTION PASSED: 7-0
Council went into Closed Session at 5:03 P.M.

Council returned from Closed Session at 7:33 P.M.

Mayor Kou reported that the Council voted on Item 1 to authorize staff to seek review in the California Supreme Court of the Sixth District appeal decision as follows: 6-1, Tanaka no.

Mayor Kou announced no reportable action for Item 2.

Item 5
Attachment A - April 17,
2023 Draft Action
Minutes

Item 5: Staff Report
Pg.
2 Packet Pg. 13 of 259

DRAFT ACTION MINUTES

Page 2 of 6 ends

Sp. City Council Meeting
Draft Action Minutes: 04/17/2023
Study Session

3. Study Session Regarding Proposed Electric, Gas, Water and Wastewater July 2023 Rate Changes
ACTION: None

Agenda Changes, Additions and Deletions

Public Comment

Consent Calendar
Council Member Tanaka registered a no vote on Agenda Item Number 8, 10 ,11, 13.

MOTION: Mayor Kou moved, seconded by Council Member Burt to approve Agenda Item Numbers 4-13, AA1.

MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION PASSED ITEMS 4-7, 9, 12, AA1: 7-0
MOTION PASSED ITEMS 8, 10, 11, 13: 6-1, Tanaka no

4. Approval of Minutes from March 31, 2023 and April 3, 2023 City Council Meetings

5. Finance Committee and the Utilities Advisory Commission Recommend the City Council Approve and Authorize the City Manager or Their D esignee to Execute a Third Phase Agreement With Northern California Power Agency for the Purchase of up to 87,600 Megawatt Hours per Year of Geothermal Energy From Calpine Corporation's Geysers Power Company, LLC Over a Term of up to 12 Years for a Total n ot to Exceed Amount of $76.2 Million; CEQA status: not a project under CEQA Guidelines sections 15378(a) and (b)

6. Stanford University Medical Center (SUMC) Annual Report to Council for Fiscal Year 2021- 2022

7. Approval of Amendment #3 with Professional Account Management LLC, dba Duncan Solutions Contract (C17164727) in the Amount of $80,000 and to Extend the Contract Term to April 28, 2024 for Parking Citation Management; CEQA Status – Not a Project.

Item 5
Attachment A - April 17,
2023 Draft Action
Minutes

Item 5: Staff Report
Pg.
3 Packet Pg. 14 of 259

DRAFT ACTION MINUTES

Page 3 of 6 ends

Sp. City Council Meeting
Draft Action Minutes: 04/17/2023

8. Resolution 10098 to Oppose the Taxpayer Protection and Government Accountability Act (Initiative 21-0042A1)

9. Approve Substantial Amendments to the Community Development Block Grant (CDBG) FY2021-22 and FY2022- 23 Annual Action Plans and the Associated Budget Amendment and Resolution 10099

10. Staff Recommends that Council Approve Bringing the Water and Wastewater Rate Proposals to Council on June 19, 2023, Pending Proposition 218 Notifications, for a Public Hearing to Consider Two Resolutions: 1) Approving the Fiscal Year 2024 W astewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater Collection Utility Rates by Amending Wastewater Collection Rate Schedules S- 1, S-2, S-6 and S-7; 2) Approving the Fiscal Year 2024 Water Utility Financial Plan, Proposed Reserve Transfers, and Increasing Water Rates by Amending Water Rate Schedules W-1, W-2, W- 3, W-4, and W-7; CEQA Status: Not a project under Public Resources Code 15378(b)(5)

11. Adoption of a Memorandum of Agreement with the Palo Alto Police Officers' Association and the Police Management Association; Adopt an Amendment to correct the Fire Chiefs‘ Association salary schedules; and, Adopt revised Management and Professional salary schedules CEQA Status - Not a project

12. Approval of a Funding Agreement with the Santa Clara Valley Water District for Reimbursement Costs Incurred in Support of the Purified Water Project, and a Budget Amendment in the Wastewater Treatment Fund Advanced Water Purification Facility capital project (WQ-19003)

13. Approval of Tenant Work Letter for Lease of 300 Homer Avenue Roth Building between the City of Palo Alto and the Palo Alto Museum; CEQA Status--Not a Project AA1. Adoption of a Resolution 10100 Authorizing the City Manager to Execute Participation Agreements on Behalf of the City of Palo Alto to Enter Into Settlement Agreements Regarding Manufacture and Distribution of Opioid Products with Allergan Finance, LLC and related entities (Allergan), Teva Pharmaceutical Industries Ltd. and related entities (Teva); Walgreens Co.; CVS Health Corporation and CVS Pharmacy, Inc. (CVS), and Walmart, Inc.; Agree to the Terms of the Memorandum of Understanding (MOU) Allocating Settlement Proceeds; and Authorize Entry Into the MOU with the California Attorney General.

City Manager Comments
Ed Shikada, City Manager

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Action Items

14. PUBLIC HEARING: Adoption of a Resolution 10101 Approving the Fiscal Year 2024 Gas Utility Financial Plan, Including Proposed Reserve and General Fund Transfers and Amending the Gas Utility Reserve Management Practices, and Increasing Gas Rates by Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service); CEQA status: exempt/not a project under Public Resources Code section 21080(b)(8)
MOTION: Mayor Kou moved, seconded by Council Member Burt to adopt a resolution (Attachment A):
a) Approving the fiscal year (FY) 2024 Gas Utility Financial Plan (Attachment B); b) Amending the Gas Utility Reserve Management Practices (Attachment C); c) Transferring up to 18% of gas utility gross revenues received during fiscal year 2021 to the general fund in FY 2023;
d) Transferring up to 15.5% of gas utility gross revenues received during fiscal year 2022 to the general fund in FY 2024;
e) Transferring up to $3.82 million from the CIP Reserve to the Operations Reserve in FY 2023; and
f) Increasing gas rates by amending Rate Schedules G -1 (Residential Gas Service), G -2 (Residential Master-Metered and Commercial Gas Service), G -3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service) (Attachment D).

MOTION PASSED: 6-1, Tanaka no

15. PU
BLIC HEARING: Adoption of a Resolution 10102 Approving the Fiscal Year 2024 Electric Utility Financial Plan and Proposed Reserve Transfers, Deactivating Utility Rate Schedule E
-H
RA, and Amending Utility Rate Schedules E -1
, E-2
, E-2-G
, E- 4
, E-4-G
, E-4
TOU, E-7
, E-
7-G
, E
-7
TOU, E
-N
SE, and E
-EEC
; CEQA Status: Not a project under Public Resources Code 15378(b)(5) and exempt under Public Resources Code 15273(a) M
OTION: Council Member Burt moved, seconded by Vice Mayor Stone to adopt a Resolution (Attachment A):
1) Approving the FY 2024 Electric Financial Plan (Attachment B); and 2) Approving the following transfers at the end of FY 2023:

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a. Up to $12 million from the Supply Operations Reserve to the Distribution Operations Reserve; and
b. Up to $4.5 million from the Supply Operations Reserve to the Cap and Trade Program Reserve; and
3) Approving the following transfers in FY 2024:
a. Up to $10 million from the Supply Operations Reserve to the Electric Special Projects (ESP) reserve; and
b. Up to $8 million from the Supply Operations Reserve to the Hydroelectric Stabilization Reserve; and
c. Up to $3 million from the Supply Operations Reserve to the Cap and Trade Program Reserve; and
4) Approving the following rate actions for FY 2024 (Attachment C):
a. Deactivation of the hydroelectric rate adjuster from customer bills effective July 1, 2023;
b. An increase to retail electric rates E-1 (Residential Electric Service), E-2 (Small Non- Residential Electric Service), E -4 (Medi um Non -Residential Electric Service), E -4 TOU (Medium Non -Residential Time of Use Electric Service), E -7 (Large Non - Residential Electric Service), and E -7 TOU (Large Non -Residential Time of Use Electric Service) of 21% effective July 1, 2023;
c. An increase to the Export Electricity Compensation (E -EEC-1) rate to reflect 2022 avoided cost, effective July 1, 2023;
d. An increase to the Net Surplus Electricity Compensation (E -NSE-1) rate to reflect current projections of FY 2023 avoided cost, effective July 1, 2023; and e. An update to the Residential Master -Metered and Small Non -Residential Green Power Electric Service (E-2-G), the Medium Non-Residential Green Power Electric Service (E4-G), and the Large Non -Residential Green Power Electric Service (E-7- G) rate schedules to reflect modified distribution and commodity components, effective July 1, 2023
MOTION PASSED: 6-1, Tanaka no

Council Member Questions, Comments and Announcements
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Adjournment: The meeting was adjourned at 10:18 P.M.

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes a re prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section

2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423 , the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 1, 2023
Report #:2304-1290
TITLE
SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and new Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7-0)

RECOMMENDATION
Staff recommends the City Council adopt the attached Park Improvement Ordinance for Rinconada Park on second reading.

BACKGROUND AND DISCUSSION
On January 13, 2020, the City Council considered an ordinance1 to approve various improvements to Rinconada Park. The Council adopted the ordinance2. The motion as it appears in the final minutes3 is:

MOTION: Vice Mayor DuBois moved, seconded by Council Member Cormack to approve Park Improvement Ordinance 5487 Entitled, “Park Improvement Ordinance of the Council of the City of Palo Alto for Renovations and new Amenities at Rinconada Park as Recommended by the Parks and Recreation Commission. MOTION PASSED: 7-0

ENVIRONMENTAL REVIEW
This ordinance as recommended is categorically exempt from the provisions of the California Environmental Quality Act (“CEQA”) under CEQA regulations 15301 (Existing Facilities) and 15304 (Minor Alterations of Land).

ATTACHMENTS
Attachment A: Ordinance Approving and Adopting a Plan for the Renovation Project at Rinconada Park
1 City Council, January 13, 2020; Agenda Item #2; SR #10576, https://portal.laserfiche.com/Portal/DocView.aspx?id=64942&repo=r-704298fc 2 Park Improvement Ordinance No. 5487; https://portal.laserfiche.com/Portal/DocView.aspx?id=26335&repo=r- 704298fc
3 City Council, January 13, 2020; Final Minutes,
https://portal.laserfiche.com/Portal/DocView.aspx?id=1104&repo=r-704298fc Item 6
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APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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1 ORDINANCE NO. 5487
Ordinance of the Council of the City of Palo Alto Approving and Adopting a Plan for the Renovation Project at Rinconada Park The Council of the City of Palo Alto does ORDAIN as follows:

SECTION 1. Findings. The City Council finds and declares that:
(a) Article VIII of the Charter of the City of Palo Alto and Section 22.08.005 of the Palo Alto Municipal Code require that, before any substantial building, construction, reconstruction or development is commenced or approved, upon or with respect to any land held by the City for park purposes, the Council shall first cause to be prepared and by ordinance approve and adopt a plan therefor.
(b) Rinconada Park (the “Park”) is dedicated to park purposes. (See Palo Alto Municipal Code sections 22.08.210-212.)
(c) The City intends to authorize the construction of pathways, picnic area, playground, restroom, site furnishing, planting, signage and irrigation; as well as renovation of the existing picnic area.
(d) The plan of renovations (the “Project”) shall generally be comprised, as follows:
(1) The removal and replacement of the children’s playground and “tot lot” playground;
(2) The renovation of the existing group picnic area including new paving and site furnishing;
(3) The replacement of existing asphalt pathways with concrete pathways in the west portion of the park;
(4) The addition of a new group picnic area at the rear of the new zoo; (5) The installation of a new restroom building along Hopkins Avenue; (6) The installation of new way finding signage;
(7) The installation of native and habitat gardens;
(8) The installation of a fire pit; and
(9) The installation of a new site furnishing including picnic tables, recycling/composting receptacles, benches, bike racks and drinking fountains.
(e) The Project described above and as otherwise depicted in the attached exhibit, is consistent with park, playground, recreation, and conservation purposes. (f) The Council desires to approve the plan for the Project described above.

SECTION 2. The Council hereby approves the plan for the construction of improvements in the Park described in this Ordinance.

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Attachment A - Ordinance
Approving and Adopting a
Plan for the Renovation
Project at Riconada Park

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2 SECTION 3. The City Council finds that this ordinance falls under the California Environmental Quality Act (CEQA) exemptions found in Title 14 California Code of Regulations Section: 15301 (Existing Facilities), and 15304 (Minor Alterations of Land).

SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Community Services
____________________________
Director of Administrative Services
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Approving and Adopting a
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: May 1, 2023
Report #:2302-1024
TITLE
Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022

RECOMMENDATION
This is an informational report and City Council action is not required.

EXECUTIVE SUMMARY
This report transmits the biannual reporting of the vacancy rates of three or more residential rental units for December 2022. The vacancy rate is 1.16%. When the vacancy rate is less than the 3% threshold, applications to convert residential rental units to ownership units through the subdivision process are not eligible for consideration.

BACKGROUND
Planning staff prepares the Residential Vacancy Rate Determination Report twice a year to meet the requirements of Palo Alto Municipal Code Section 21.40.040, Determination of Vacancy Rate and Surplus. Section 21.40.0401 states the following:
”In April and November of each year, the director of planning and community environment shall determine from the city utility meter records the vacancy rate and the vacancy surplus, if any, within the city limits. New market-priced rental units available to the general public, for which a certificate of use and occupancy has been issued since the last vacancy survey, shall be added on a unit-for-unit basis either to reduce the vacancy deficiency or to increase the vacancy surplus.” All conversions involving a change in the type of ownership of three or more rental units are subject to the provisions of this chapter. Vacancy surplus in this section of the Municipal Code is defined as the number of rental units being offered for rent or lease in excess of the 3% vacancy rate. No application for consideration of a tentative or preliminary parcel map for a subdivision 1 Municipal Code Chapter 21.40: https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-19994 Item 7
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created from a conversion may be filed with the city unless there is a vacancy surplus of 3% or more as of the most recent determination pursuant to Section 21.40.040.

The purpose of this reporting effort is to seek a reasonable balance of rental and ownership housing in the city in a variety of individual choices of tenure, type, price, and location of housing.

It is also to protect the supply of multi-family rental housing stock in the city for low- and moderate-income families, and to reduce and avoid displacement of tenants, particularly seniors and families.

ANALYSIS
Staff prepared this report per the directions provided in Municipal Code Section 21.40.040, using the City of Palo Alto’s utility meter records to access the total number of “active” multi-family apartments and to determine the percentage of “vacant” multi-family apartments.

In November 2020, the City’s Utility Department upgraded its old data recording system which permitted address reconciliation between the Utility accounts database and the City’s GIS address database creating a more accurate analysis. This cross-department effort created a link between the two databases which facilitated a more accurate unit count focused on rental multifamily utility accounts instead of all multifamily accounts. The collaboration successfully identified most Utility accounts associated with 3+ rental units; however, for various reasons, not all accounts could be identified (e.g., the GIS address may not exactly match Utility account addresses on corner lots or address formatting discrepancies between the GIS address and Utility account databases). Staff will continue to research discrepancies on a case-by-case basis to further enhance both datasets.

As part of this reconciliation effort, staff recognized that rental multifamily properties could have different types of utility accounts. There are instances where a property has one utility meter for all rental units or individual unit accounts billed to the property manager or owner regardless of unit occupancy. Additionally, staff found that some 3+ rental housing units’ individual utility accounts have been ‘inactive’ or have not had a utility bill for some time and it is difficult to determine whether the rental unit is vacant or no longer available to rent altogether.

Latest Vacancy Rate
For the December 2022 data reporting cycle, the multifamily rental vacancy number is 1.16% percent. This number is significantly lower than the percentages reported before December 2020 but is about the same as the numbers reported after the system upgrade. Further details can be found in Table 1.

Table 1: Average Annual Rental Vacancy Rates
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Year Estimated
Housing Units2
Utility Accounts
Deemed “Vacant”
Estimated Vacancy Rate
(yearly average)3
2015 7,901 92 1.22%
2016 7,912 118 1.45%
2017 7,928 131 1.58%
2018 7,928 132 1.52%
2019 7,931 141 1.83%
2020 8,057 226 2.8%
2021 8,057 55 1.13%
2022 8,057 56 1.16%

FISCAL/RESOURCE IMPACT
Planning staff prepares this report biannually and there are no resource impacts.

STAKEHOLDER ENGAGEMENT
This is an informational report for the City Council and does not require any stakeholder engagement.

ENVIRONMENTAL REVIEW
This project is exempt from environmental review under Section 15061 of the California Environmental Quality Act Guidelines.

ATTACHMENTS
None.

APPROVED BY:

Jonathan Lait, Planning and Development Services Director 2 The U.S. Census Bureau Decennial Census 2010 data is used as a baseline for the total rental stock data in Palo Alto and changes (addition or demolition) to the total rental dwelling unit stock are tracked by staff biannually using the City of Palo Alto’s land use management system (Accela) to generate the vacancy rate. Staff expected to update the baseline with the release of the 2020 Decennial Census; however, the U.S. Census Bureau decided to discontinue the rental data point and staff will continue to use the original methodology.
3 This percentage is the number of utility accounts deemed “vacant” divided by the utility accounts sample size.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: May 1, 2023
Staff Report: 2303-1215
TITLE
Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1) Program Management, Network Operations, and Technical Support for Fiber-to-the-Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to Exceed Amount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31, 2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund

RECOMMENDATION
Staff recommends that Council:

1. Approve and authorize the City Manager or their designee to execute Amendment No. 4 to Contract C20176363 (Attachment A) with Magellan Advisors, LLC (Magellan), for the continued provision of consulting services for a multi-phased fiber optic network expansion plan, which includes program management of construction of the fiber backbone and phase 1 of Fiber-to-the-Premises (FTTP), network operations and technical support, and electrical make ready engineering in an amount not to exceed $2,473,600;

2. Authorize the City Manager or their designee to negotiate and execute one or more task orders for additional services under the contract with Magellan for related additional, but unforeseen work which may develop during the project, the total of which shall not exceed $247,360, or 10% for a total not to exceed amount of $2,770,960 for all contract phases, including $50,000 in reimbursable travel expenses.

3. Amend the Fiscal Year 2023 Budget Appropriation for the Fiber Optic System Fund (requires 2/3 approval) by:
a. Increasing the budget appropriation for Fiber-to-the-Premises CIP (FO-24000) by $2,770,960; and
b. Decreasing the Fiber Optic Fund Rate Reserve Balance by $2,770,960.

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EXECUTIVE SUMMARY
On December 19, 2022, City Council considered three courses of action for a City-owned FTTP service and directed staff to proceed with the phased build approach. Under this approach, FTTP would be built out in selected areas of the city using $34 million from the Fiber Fund and $13 million from the Electric Fund, and expanded gradually to eliminate the need for debt financing(Staff Report ID # 14800) 1. Building the fiber backbone and last mile infrastructure to provide FTTP broadband internet to the community will be a significant undertaking for the City.

While it is economically prudent to utilize available resources, the City must also strategically invest in external resources for a strong roll-out.

Although the phased build approach to FTTP will decrease the City’s financial risk and increase Council’s control over the velocity of the buildout, the City does not have the in-house staffing to fully deploy the fiber backbone project and first phase of FTTP. These projects will require significant staffing and specialized skill sets over the next several years. Fiber backbone construction includes an estimated 28 miles of underground construction and 10 miles of aerial construction. Phase 1 for FTTP includes an estimated 18 miles of underground construction and 63 miles of aerial construction. In addition to construction, the City will be starting up a new internet service provider (ISP) business. Staff is recommending Magellan’s contract be amended to include professional services for program management, organizational change management, network operations and technical support, and utility pole electric make-ready engineering.

BACKGROUND
On June 1, 2020, Council approved a contract in the amount of $212,511 with Magellan to develop a fiber network design to support Advanced Metering Infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA), and wireless communication for City field staff and other City services (Council Report #11368)2.

On October 5, 2020, Council approved contract amendment No. 1 in the additional amount of $285,065 for a total not to exceed amount of $497,576 with Magellan, for combining the fiber backbone and fiber-to-the-premises of the fiber network expansion plan ( Council Report #11580)3.

On June 21, 2021, Council approved contract amendment No. 2 in the amount of $2,416,755 for a total not to exceed amount of $2,914,331 with Magellan for detailed engineering design, 1 City Council Staff Report 14800 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20221219/20221219pccsm-amendedtime.pdf 2 Council Staff Report 11368 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2020/id-11368-mini-packet.pdf?t=64318.92 3 Council Staff Report 11580 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2020-2/id-11580.pdf?t=59010.48 Item 8
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community engagement, and FTTP business plan and pro forma financial statements ( Council Report #12305)4.

On December 19, 2022, Council approved a phased construction approach of FTTP without debt financing. Under the phased approach, the City will evaluate the feasibility of integrating FTTP expansion into future capital improvement projects such as electric grid modernization, electrification and undergrounding. Staff will report key financial information (e.g., number of subscribers, revenues and expenses) on a regular basis to inform Council of the new FTTP business to evaluate whether the City should continue the phased approach; seek revenue bond financing to accelerate the buildout or pause FTTP expansion (Council Report #14800)5.

ANALYSIS
The City retained Magellan in 2020, through a competitive Request for Proposals (RFP) process.

Since the original contract was awarded, including three previous contract amendments, Magellan has provided the following professional services:

1. Business case and organizational structure for FTTP

2. Engineering design of the fiber backbone and citywide FTTP

3. Citywide utility pole survey to determine conditions of pole and estimate number of pole replacements

4. Financial models: Take rate sensitivity analysis, financing options, pro forma financial statements, and debt service

5. Community outreach, including Internet survey and findings, deposit program Staff recommends amending the contract with Magellan to provide professional consulting and technical services for construction of the fiber backbone build, construction of phase 1 of FTTP, and provisioning of City-owned ISP business. It should be noted the scope of services provided by Magellan and the associated compensation may decrease when the City hires internal Full Time Equivalent (FTE) positions (see Resource Impact section of this report) and/or outsources specific activities. The following is a summary of the fourteen (14) tasks Magellan proposes to perform in the attached Exhibit “A” Scope of Services in the new amendment:

Task 1 – Program Management
Assign a Project Manager to oversee the overall project plan and coordinate day-to-day activities fiber of phase 1 FTTP deployment.,
Task2 - Environmental Analysis
Work with City staff to determine environmental impacts to the project, including a preliminary CEQA review.
4 Council Staff Report 12305 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12305.pdf 5 Council Staff Report 14800 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20221219/20221219pccsm-amendedtime.pdf Item 8
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Task 3 – Bid Ready Construction Drawings
Prepare bid ready construction drawings and bid packages for the fiber backbone and FTTP.

Task 4 - Construction Bid Evaluation
Assist City staff with bid evaluations for the fiber backbone and FTTP.

Task 5 - Permitting
Prepare and manage permit submissions required by the agencies impacted by phase 1 including the City of Palo Alto, Santa Clara County, Caltrans and other agencies.

Task 6 – Engineering Design Updates
Through permitting process and construction, incorporate field changes into the aerial and underground fiber network design.

Task 7 – Final As-Built Documentation
Provide final construction documentation for phase 1 including redlines for equipment, splice and termination records from the City’s construction manager.

Task 8 – Equipment Specifications and Procurement
Develop specifications for network equipment for the competitive bid process.

Task 9 – Testing and Certification Oversight
Manage, test and integrate with outside plant and electronics to ensure that the network meets the speed, reliability and resiliency goals laid out in the plans and specifications.

Task 10 – Operational Processes and Systems
Complete integration of cross-functional network elements including inventory staging, install scheduling, pre-install site survey, actual drop and install, services provisioning, testing, client acceptance and billing.

Task 11 – Organizational Support
Develop a broadband organization, including new hire processes, insource/outsource decisions, management of operational standards, procurement evaluation, and financial and regulatory reporting.

Task 12 – Fiber Drop Installations and Activation Management Manage and schedule fiber drop and customer activations, including home equipment installations and related components to activate customers.

Task 13 – Network Operations and Technical Support
Assist with major outages, develop and conduct maintenance window activities, network planning and upstream provider support. Provide 24/7/365 monitoring and issue management services.

Task 14 – Electrical Make-Ready Engineering
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Provide engineering pole make-ready analysis includes field work, pole modeling, and creation of construction prints. Some of the make-ready engineering and pole replacements costs may be assigned directly to the Electric utility depending on the condition of the pole.

TIMELINE AND COMPENSATION
Schedule of Performance (Exhibit “B”) in Magellan’s Scope of Services estimates that contingent on Council approval of contract amendment No. 4, work could start in June of 2023 and end in December of 2025, for both the backbone build and phase 1 of FTTP.

Compensation (Exhibit “C”) in Magellan’s Scope of Services provides the following amendment provision and compensation schedule for each above-noted task:

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, does not exceed $2,523,600 and the total compensation for Additional Services does not exceed $247,360.

The following is a table summarizing Magellan’s proposed Timeline and Compensation:

Task Start End Total Budget
Task 1: Program Management 6/1/2023 12/31/2025 $ 628,000 Task 2: Environmental Analysis 6/1/2023 9/30/2025 $ 130,000 Task 3: Bid Ready Construction
Drawings and Bid Package for the
Fiber Backbone and FTTP
6/1/2023 7/31/2023 $ 20,300
Task 4: Assist City Staff with
Construction Bid Evaluation for Fiber
Backbone and FTTP
8/1/2023 9/30/2023 $ 30,300
Task 5: Permitting 6/1/2023 6/1/2024 $ 125,000 Task 6: Engineering Design Updates 6/1/2023 3/31/2025 $ 110,000 Task 7: Final As-Built Documentation 10/1/2024 3/31/2025 $ 75,000 Task 8: Equipment Specifications and
Procurement
6/1/2023 9/15/2023 $ 60,000
Task 9: Testing and Certification
Oversight
1/1/2024 8/1/2025 $ 150,000
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Task 10: Operational Processes and
Systems
6/1/2023 3/31/2025 $ 110,000
Task 11: Organizational Support 6/1/2023 10/1/2023 $ 165,000 Task 12: Fiber Drop Installations &
Customer Activation Management
10/1/2024 3/31/2025 $ 150,000
Task 13: Network Operations & Tech
Support
10/1/2024 3/31/2025 $ 495,000
Task 14: Electrical Make Ready
Engineering (300 poles @ $750.00 per
pole)
6/1/2023 3/31/2025 $ 225,000
Subtotal $ 2,473,600
Contingency (10% of Subtotal Budget) $ 247,360 Reimbursable Travel Expenses $ 50,000
Total $ 2,770,960

STAFFING
As the City solidifies staffing plans in parallel with contracted services, the Director of Information Technology will take on the responsibilities of an Assistant Director for Palo Alto Fiber on an interim basis. As part of the development of the FY 2024 budget, staff will be bringing forward a recommendation to add four (4) new FTE positions for the dark fiber expansion and implementation of FTTP. These positions are Assistant Director, Outside Plant Manager, Marketing and Sales Manager and Network Architect/Senior Engineer. These positions will be recruited and filled as needed during the various stages of the project.

FISCAL/RESOURCE IMPACT
Approval of this contract amendment with Magellan requires a FY 2023 budget amendment in the Fiber Fund to increase expenses in the Fiber-to-the-Premise project (FO-24000) by $2,770,960 offset with a commensurate decrease of $2,770,960 to Fiber Fund reserves. Funding for this amendment was initially included in the development of the FY 2024 Capital budget for the 2024-28 CIP. If Council approves this FY 2023 budget amendment, the FY 2024 budget will be updated accordingly.

STAKEHOLDER ENGAGEMENT
The table below provides a snapshot of the public information efforts and community engagement seen between October 2021 to August 3, 2022:

Communications Tool Metrics
- Visits: 12,221Palo Alto Fiber Hub - Neighborhood Pins: 2743 Item 8
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1 9
6 0
- Subscribers: 949Palo Alto FIBERLink Digital Newsletter - Average Open Rate: 75.2% Palo Alto Fiber Blog Series - Views: 2,448
Information Session and recording views - 80 attendees, 105 views Fiber videos - 535 Views
- 3,561 surveys completed Market Survey - 738 deposits received

ENVIRONMENTAL REVIEW
Council action on this item is exempt from CEQA review because it can be seen with certainty that there is no possibility that the additional scope of work covered by this contract amendment may have a significant effect on the environment. CEQA Guidelines section 15061(b)(3).

ATTACHMENTS:

Attachment A: C20176262 Amendment 4
APPROVED BY:

Dean Batchelor, Director Utilities
Dave Yuan, Strategic Business Manager
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Item 8 Staff Report

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AMENDMENT NO. 4 TO CONTRACT NO. C20176363
BETWEEN THE CITY OF PALO ALTO AND MAGELLAN ADVISORS LLC.

This Amendment No. 4 (this “Amendment”) to Contract No. C20176363 (the “Contract” as defined below) is entered into as of April 3, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MAGELLAN ADVISORS LLC., a Florida limited liability company, located at 450 Alton Road 1402, Miami, FL 33139 (“CONSULTANT”).

CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. T he Contract (as defined below) was entered into by and between the Parties hereto for the provision of consulting services for Phase 1 of a multi-phase fiber optic network expansion plan, as detailed therein.

B. T he Parties now wish to amend the Contract in order to extend the contract term by 32 months and to increase the compensation by $2,770,960 from $2,914,331 to $5,685,291 for the construction phase 1 as specified in the revised Exhibit “A” Scope of Services.

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

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

a. Contract. The t erm “Contract” sh all mean C ontract No. C20176363 between CONSULTANT and CITY, dated June 1, 2020, as amended by:

Amendment No.1, dated October 5, 2020
Amendment No.2, dated May 18, 2021
Amendment No.3, dated October 1, 2022

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

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

The term of this Agreement shall be from the date of its full execution through December 31, 2025 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”

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

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SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Five Million One Hundred Seventy-Two Thousand Nine Hundred Nintey-Two Dollars ($5,172,992). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not- to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Five Hundred Twelve Thousand Two Hundred Ninety-Nine Dollars ($512,299) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Five Million Six Hundred Eighty-Five Thousand Two Hundred Ninety-One Dollars ($5,685,291), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8
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under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT
shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.

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

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

b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS.

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

d. Exhibit “C -1” entitled “SCHEDULE OF RATES ”, AMENDED, REPLACES PREVIOUS.

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

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

(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)

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SIGNATURES OF THE PARTIES

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

CITY OF PALO ALTO

_____________________________
City Manager

APPROVED AS TO FORM:

_____________________________
City Attorney or designee

MAGELLAN ADVISORS LLC.

By:______________________________

Name:___________________________

Title:____________________________

By:______________________________

Name:___________________________

Title:____________________________

Attachments:

EXHIBIT “A”: SCOPE OF SERVICES (AMENDED, REPLACES PREVIOUS) EXHIBIT “B”: SCHEDULE OF PERFORMANCE (AMENDED, REPLACES PREVIOUS) EXHIBIT “C”: COMPENSATION (AMENDED, REPLACES PREVIOUS)
EXHIBIT “C-1”: SCHEDULE OF RATES (AMENDED, REPLACES PREVIOUS)

DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 John Honker
President
COO
Courtney Violette
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EXHIBIT “A”

SCOPE OF SERVICES (AMENDED, REPLACES PREVIOUS)
AMENDMENT NO. 4
Task 1: Program Management
Magellan will provide a Project Manager (“PM”) to manage deployment of Phase 1 including the following tasks:
• Manage and coordinate day-to-day activities in the project to support the overall deployment of Phase 1.
• Manage the overall project plan and performance to milestone dates. • Develop and manage a communications plan for all stakeholders in the project. • Develop a construction work plan for the project.
• Work with the Construction Manager and Construction Inspector teams to manage the construction work plan, including tracking to schedule, budget, issue identification and resolution and risk mitigation.
• Provide regular progress reports, and schedule and coordinate all project related calls, and discussions with vendors and contractors.
• Escalate issues as they occur in the project.
• Track the overall project budget to plan and communicate progress and variances. • Refine and revise the project implementation plan to reflect the Outside Plant, Inside Plant and Facilities deployment schedule and all necessary steps for implementation and turn-up of the network.
• Manage change control in the project, including design changes, budget changes, project impact assessment, notifications, field changes, vendor change orders, permit approvals. • Manage vendor invoice submission, review and approvals for construction, equipment and professional services.

Task 2: Environmental Analysis
Magellan will work with City staff to determine environmental impacts to the project, to include:
• Preliminary CEQA review for underground and aerial construction to support the City’s analysis of whether the project may require CEQA clearing, significant findings or a negative declaration.
• Desktop studies of the current project to review construction, restoration and temporary versus permeant impacts as a result of the project.
• Engineering support for alignments, facilities and pole lines, floodplain, transportation and other datasets that may be required to assess environmental impacts • Siting for the fiber hut required in Phase 1 to determine possible locations in the context of minimizing environmental impacts

Task 3: Bid Ready Construction Drawings and Bid Package for the Fiber Backbone & FTTP

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Magellan’s project team will deliver all supporting documents needed to bid out construction of fiber backbone and phase 1 of FTTP. Once the low-level design is complete, all bid documentation requested will be delivered to the City to include construction ready prints, construction details, splice details, as well as all documentation needed to complete the bid package. This shall include a written summary and scope of work, estimated costs to construct, as well as labor estimates, bill of materials, and vendor list

Task 4: Assist City Staff with Construction Bid Evaluation for the Fiber Backbone & FTTP

Magellan will advise the City throughout the construction bid evaluation process for the fiber backbone and FTTP. Upon receipt of all bids, Magellan will prepare a bid evaluation matrix and tabulation. Magellan will work with the City to review all bids and provide guidance to the City on how bids should be evaluated as well as pros and cons of each bid. Magellan will also review all bid responses to identify any bid irregularities that may be encountered in the review process that could impact long -term project costs. Magellan’s support for the City’s Invitation For Bid (IFB) process will include, if d irected by the City, an y of the following: attendance at the pre -bid conference, preparing any necessary addenda, as sisting the City with responses to bidder questions, and attending the bid opening.

Task 5: Permitting
Magellan will prepare and manage permit submissions required by the jurisdictions impacted by Phase 1. This includes:
• Researching, preparing submitting and tracking all permits required by the City of Palo Alto, Santa Clara County, railroads, Caltrans and other agencies. • Preparing pole attachment application packages for use of the City’s existing distribution poles.
• Tracking the progress of all permits through to completion and close out. • Distributing approved permits to the City’s construction contractor. • Revision and resubmittal of permit packages based on responses received from all agencies.

Task 6: Design Engineering Updates
Through the permitting process and construction, routine design updates will be provided by Magellan. These include:
• Incorporation of field changes into the design
• Aerial to underground conversions where required and vice versa • Revision of permit packages based on field changes
• Revision and resubmittal of permit packages based on responses received from agencies.

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• Updates to the splicing and termination plans

Task 7: Final As-Built Documentation
Magellan will prepare final as-built documentation including final construction records for Phase 1, including:
• Update redlines from the City’s construction manager
• Provide equipment, splice, and termination records
• Closed out permit packages
• Final construction accounting and close out
• Punch list checkoffs
• Equipment diagrams
• Equipment configurations
• FMS integration and support
Task 8: Equipment Specifications and Procurement
Development of the equipment procurements to support phase 1, including:
• Development of the specifications for network equipment • Final master budget for equipment
• Procurement documents for core network, access network and customer premises equipment
• Management of the bid process for equipment procurements, including attending pre-bid meetings, answering questions and supporting the evaluation and selection of vendors.

Task 9: Testing and Certification Oversight
Magellan’s team will manage the testing, certification and integration of any outside plant and electronics for Phase 1, work ing with construction and equipment vendors to ensure that the network meets the speed, reliability and resiliency goals laid out in the plans and specifications.

These tasks include:

• End to end testing for new OLTs, ONTs, in-home equipment • Core and edge switch and router testing
• Managing vendor professional service teams
• Coordinating integration and new customer activations • Working with equipment vendors on integration testing with City systems Task 10: Operational Processes and Systems
A critical element for a successful network is a complete integration of cross-functional network elements. Magellan will work toward a seamless integration all the way from order input to finished installs and services turn-up. Cross-functional areas as inventory staging, install scheduling, DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8
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pre-install site survey, actual drop and install, services provisioning, testing, client acceptance and billing are some of the major areas that must be completely integrated and managed on an ongoing basis. Efficient, repeatable and scalable operations policies and procedures are required to support a successful network deployment.

The scope of this task includes:

• Defining work order processes for plant construction, fiber drops, home installations and change orders
• Identifying systems to support work order management, provisioning, inventory and warehousing
• Establishing and documenting policies, procedures and business processes • Recommending accounting system setup for broadband, including chart of accounts and accounting policies
• Identifying, federal and state reporting requirements and providing legal/policy recommendations (i.e. MDU access)

Task 11: Organizational Support
Magellan will work with the City to support the development of the broadband organization, including the new hire process, insourcing/outsourcing decisions and management and operational strategies for the City. This includes:
• Job descriptions for new City staff
• Org chart, management and departmental resources
• Financial management practices
• Pro forms and budgeting
• Reporting
• Insourcing/outsourcing assessment
• Procurement, evaluation and selection of outsourced vendors Task 12: Fiber Drop and Customer Activations
Magellan will work with the City and fiber drop contractor to manage fiber drop installation, home equipment installation and related components to activate customers. This task includes:
• RFP for fiber service drop contractor, including development of the documents, attending pre-bid meetings, evaluating respondents and assisting with final selection. • Fiber drop survey in rights of way and customer premises • Scheduling fiber drop installation contractor
• Scheduling in-home installation and service activation • QA/QC fiber drop installation
• Documenting final as-builts for drop installation
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Task 13: Network Operations and Tech Support
Tier 2 Engineering Support –Escalation support for customers to assist with access equipment and network issues beyond the scope of the tier 1 customer service and tech support.

• Access equipment troubleshooting from the ONT back to the network • Access equipment planning and deployment support
• Troubleshooting initial installations

Tier 3 Engineering Support –Network engineering to assist with major outages, develop and conduct maintenance window activities, network planning and upstream provider support.

• Layer 3 IP Network Engineering Troubleshooting and Support • Layer 3 Routing and Layer 2/3 MPLS Planning and Deployment Support • Carrier-Grade NAT and IPv6/IPv4 Implementation
• Configuration Backup and Management
• BGP Policy and BGP Community Group Planning and Engineering • Upstream Provider Engineering and Troubleshooting Support • Maintenance Window Planning and Execution
• Capacity planning and upgrades

NOC Services –24 x 7 Monitoring and Issue Management Services

• 24 x 7 Monitoring with Outage and Issue Management
• Engagement of Tier 2, Tier 3 and Vendor Resources
• Post-mortem and Reason for Outage Support
• Network traffic monitoring and management

Task 14: Electrical Make Ready Engineering
Make-ready engineering for pole changeouts and electrical work will be completed in advance of any fiber installation. Engineering includes field work, pole modeling, and creation of construction prints. Magellan will enlist resources from ENTRUST Solutions Group, who wholly owns Magellan to complete all electrical make ready work. ENTRUST provides significant electrical engineering services for utilities across California.

Field Work:

When field data is not provided or additional data is needed, ENTRUST’s experienced field crews will visit the locations where make ready design is requested. At each location, ENTRUST will:
• Look for any NESC and (CPUC GO95) clearance violations, review site safety concerns, and identify any other conditions that could impact a new attachment on the pole.

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• All data will be collected using existing field apps. • Measure of all relevant cable sages and pole attachments. • Collect photos of the pole and the surrounding area.
• Collect data for any adjacent poles that may be impacted by the make ready design. • Coordinate with CPAU Electric Engineering for list of poles already marked for replacement.
• Submit, process, and review responses related to joint pole intent forms and coordination with AT&T for all pole replacements.

Pole Modeling:

When new attachments are added it is important to model the pole to identify any potential concerns with structural overloading or clearance violations. O’Calc will be used to create all models. Each model will:
• Determine if additional loading can be handled by existing structure or if remediation is required.
• Confirm sag clearance between proposed and existing cables as well as ground clearance meet code requirements.
• Validate new designs are structurally sound and do not create any code violations.
• Coordinate with CPAU Electric Engineering for additional pole space and loading requirements due to Electrification or for other infrastructure improvements.

Construction Design:

Utilizing the data form the field and structural analysis, ENTRUST will create a construction packet. Deliverables will include
• Overview showing location of poles within scope.
• Staking Sheet, detailing RUS standard to be utilized and any notes for construction.
• Structural report from O’Calc.

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EXHIBIT “B”

SCHEDULE OF PERFORMANCE (AMENDED, REPLACES PREVIOUS)

Task Start End
Task 1: Project Management 6/1/23 12/31/25
Task 2: Environmental Analysis 6/1/23 9/1/23
Task 3: Bid Ready Construction Drawings and Bid Package for the Fiber Backbone and FTTH (Old Tasks 7 and 8)
6/1/23 7/1/23
Task 4: Assist City Staff with Construction Bid Evaluation for Fiber Backbone and FTTH (Old Task 18 and 19)
5/1/23 7/1/23
Task 5: Permitting 4/1/23 3/31/24
Task 6: Engineering Design Updates 4/1/23 3/31/25
Task 7: Final As-Built Documentation 10/1/24 3/31/25
Task 8: Equipment Specifications and Procurement 4/1/23 9/15/23 Task 9: Testing and Certification Oversight 1/1/24 3/31/25 Task 10: Operational Processes and Systems 4/1/23 3/31/25 Task 11: Organizational Support 4/1/23 10/1/23
Task 12: Fiber Drop Installations & Customer Activations 6/1/24 3/31/25 Task 13: Network Operations & Tech Support 1/1/24 3/31/25 Task 14: Electrical Make Ready Engineering 4/1/23 3/31/25

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EXHIBIT “C”

COMPENSATION (AMENDED, REPLACES PREVIOUS)

The CITY agrees to compensat e the CONSULTANT for pr ofessional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the 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 l isted below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $2,523,600 and the total compensation for Additional Services does not exceed $247,360.

Task Start End Billing Type Total Budget
Task 1: Project Management 6/1/2023 12/31/2025 Monthly - Progress $ 628,000
Task 2: Environmental Analysis 6/1/2023 9/30/2025 Hourly $ 130,000 Task 3: Bid Ready Construction Drawings and Bid Package for the Fiber Backbone and FTTH (Old Tasks 7 and 8) 6/1/2023 7/31/2023 On Deliverable $ 20,300
Task 4: Assist City Staff with Construction Bid Evaluation for Fiber Backbone and FTTH (Old Task 18 and 19) 8/1/2023 9/30/2023 On Deliverable $ 30,300
Task 5: Permitting 6/1/2023 6/1/2024 Hourly $ 125,000 Task 6: Engineering Design Updates 6/1/2023 3/31/2025 Monthly - Progress $ 110,000
Task 7: Final As-Built Documentation 10/1/2024 3/31/2025 On Deliverable $ 75,000
Task 8: Equipment Specifications and Procurement 6/1/2023 9/15/2023 Monthly - Progress $ 60,000
Task 9: Testing and Certification Oversight 1/1/2024 8/1/2025 Monthly - Progress $ 150,000
Task 10: Operational Processes and Systems 6/1/2023 3/31/2025 Monthly - Progress $ 110,000
Task 11: Organizational Support 6/1/2023 10/1/2023 Monthly - Progress $ 165,000
Task 12: Fiber Drop Installations & Customer Activation Management 10/1/2024 3/31/2025 Monthly -
Progress $ 150,000
Task 13: Network Operations & Tech Support 10/1/2024 3/31/2025 Monthly - Progress $ 495,000
Task 14: Electrical Make Ready Engineering (300 poles @ $750.00 per pole) 6/1/2023 3/31/2025 Per Pole $ 225,000 Subtotal $ 2,473,600
Contingency (10% of Subtotal Budget) $ 247,360 Reimbursable Expenses $ 50,000
Total $ 2,770,960
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EXHIBIT “C-1”

SCHEDULE OF RATES (AMENDED, REPLACES PREVIOUS)
Hourly Rate for Additional Services
Job Categories Hourly Rate
Project Executive $210.00
Sr. Consultant $210.00

OSP Design Management $210.00
Broadband Designers $210.00
GIS Technicians $210.00
Construction Management $210.00

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

All requests for payment of expenses shall be accompanied by appropriate backup information. All expenses shall be approved in advance by the CITY’s project manager.

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Certificate Of Completion
Envelope Id: C1C2531DA32E4332B538286B8A51F348
Status: Completed
Subject: Complete with DocuSign: C20176363 Amendment #4 final.pdf Source Envelope:

Document Pages: 13
Signatures: 2
Envelope Originator:

Certificate Pages: 2
Initials: 0
Annmarie Romero
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 199.33.32.254
Record Tracking
Status: Original
4/11/2023 10:24:44 AM
Holder: Annmarie Romero
[email protected]
Location: DocuSign
Security Appliance Status: Connected
Pool: StateLocal
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Pool: City of Palo Alto
Location: DocuSign
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John Honker
[email protected]
President
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Signature Adoption: Pre-selected Style
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Signed: 4/11/2023 11:04:59 AM
Electronic Record and Signature Disclosure:

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Courtney Violette
[email protected]
COO
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Signature Adoption: Pre-selected Style
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Tabatha Boatwright
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Utilities Administrative Assistant
City of Palo Alto
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Sent: 4/11/2023 11:10:47 AM
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Item 8
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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: May 1, 2023
Staff Report: 2302-0909

TITLE
Approval of Professional Services Contract Amendment Number 3 with Smart Energy Systems, Inc (S18165157) to add $684,023 for a New Total Not-to-Exceed Amount of $1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAU Customer Portal.

RECOMMENDATION
Staff recommends the City Council approve and authorize the City Manager or their designee, to execute Amendment No. 3 to Contract S18165157 with Smart Energy Systems, LLC (“SEW”) for the existing MyCPAU Utilities customer portal, to extend the license subscription and increase the scope of professional services, adding an additional $684,023 in compensation, over three additional years through March 2026. The new total not-to-exceed amount for the amended contract is $1,030,146 over the eight-year and six-month term.

EXECUTIVE SUMMARY
MyCPAU fully launched in April 2020 and is a convenient and secure way for customers to view and pay their utility bill, display monthly consumption and charges, browse energy efficiency tips, and contact Utilities customer service. MyCPAU has been well received by the Palo Alto community with 78% (24,345) of all utility accounts currently enrolled as of January 2023; 55.5% of all utility bill payments were submitted via the portal for FY 2022, and traffic to the portal averages 656 distinct user logins per day over the past three months. The City of Palo Alto entered into a three-year contract with SEW in October 2017 for a new online customer portal, “MyCPAU.” The contract was first amended in October 2019 which extended the contract to five years and two months (Council Report #10619)1.Amendment No. 2 extended the contract term from December 2022 to March 2023 to allow staff sufficient time to determine the additional scope of services required and finalize the terms. Currently, the proposed Amendment No. 3 would provide funding and additional services for anticipated portal enhancements and 1 Council Staff Report 10619 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2019/id-10619-mini-packet-10.07.2019.pdf Item 9
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functionality, additional user access, professional support services, and extends the contract term three additional years. In addition, the amendment includes the cost of a dedicated test environment and additional vendor support in preparation for the upcoming data integration with Advanced Metering Infrastructure (AMI) vendors in order to present interval meter reading and usage information. Upon completion of Amendment No. 3, in March 2026, staff plans to re- bid these services by submitting a Request For Proposal (RFP).

BACKGROUND
A Request for Proposal (RFP) was submitted in November of 2016 for the “Next Generation Utilities Customer Self-Service Portal.” The City received proposals from seven different service providers. SEW scored the highest score in the evaluation based on costs to the city, quality of the solution proposed (i.e. ability to meet requirements), and ability to provide future services.

The original contract was approved in Oct 2017 for three years. As referenced above, MyCPAU fully launched in April 2020 and is a convenient and secure way for customers to view and pay their utility bill, display monthly consumption and charges, browse energy efficiency tips, and contact Utilities customer service. Key features that customers have requested in legacy portal My Utilities Account (MUA) are now available with MyCPAU including establishing recurring credit card payments and updating mailing addresses. Customers are able to track their tiered consumption and monthly utility expenditures through the interactive usage and graph modules.

MyCPAU automatically fits to any device or screen and includes an enhanced modern look and feel. The portal offers the ability to maintain account information in real-time and includes enhanced security features and improved website analytics for City staff. MyCPAU is also integrated, via Single Sign-On (SSO), to such energy efficiencies service providers as WaterSmart, providing water reporting and benchmarking data, as well as Clean Power Research which provides easy to use solar and electric vehicle (EV) calculators. The integration to these service providers allows one stop access with customers only required to log-in to MyCPAU.

Since MyCPAU launched in April 2020, the number of utilities accounts registered has increased by 28.1% or an increase of 5,345 accounts. This met staff’s strategic goal to increase customer adoption (or portal registrations) by 10% per year. Similarly, there has been an increase of 3,034 accounts (or a 68% increase) in paperless billing enrollments since MyCPAU launched. This also exceeded staff’s strategic goal of 10% per year. Staff will continue to promote paperless billing since it will reduce printing and mailing costs and help the City’s sustainability goals. In addition, online move-outs (stop service) have increased by 53% since the MyCPAU launch which exceeds staff’s strategic goal of increasing the use of the move-out feature by 5% per year. In FY 2022, 1,354 move-outs were performed online out of the total of 3,451 move-outs. This represents 39% of total move-outs initiated through the portal and processed automatically in SAP. This reduces the number of calls into the call center, eliminates transaction processing time, enables staff to respond to other customer inquiries in a timelier manner, as well as provides convenience to customers.

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ANALYSIS
Staff is dedicated to improving the functionality of the MyCPAU customer self-service online portal as part of its goal to make utility information readily available for customers to make informed decisions on their own utility costs, energy savings and climate reduction efforts. In addition, staff is committed to engaging with its residents, businesses, and technology experts to enhance the online portal to deliver more value. The following updates, changes, and enhancement have been completed over the past 18 months:
• WaterSmart Portal (integration) - Provides customers with additional water analytics and benchmarking comparison reports.
• Clean Power Research Calculators (integration) - Provides customers interested in learning more about solar and electric vehicles (EV) with calculator tools. • Added communication banners at the top of several pages in the portal to be used to alert customers of important information such as emergency situations (e.g., wildfires or Covid-19), outage information, fraud alerts, portal instructions, or one-time messages to reduce customer calls into the call center (e.g., call center/phones are down or invoices will be delayed one day).
• Introduced a maximum monthly credit card payment amount per account o reduce credit card merchant fees.
• On-Bill Financing (OBF) - A dedicated page for customers to view their energy home loan information such as balance and monthly payment was introduced in February 2023. This page can be used/viewed for customers participating in the Advanced Heat Pump Water Heater program.

Summary of Proposed Contract Terms
Staff recommends approval of this contract amendment to extend the term of the contract, provide additional administrator and user accounts, provide funding for future enhancements, enable text notification options for portal users, and removes the maximum of sixty-five utility accounts per user (customer). In addition, the amendment will add a critical test environment as well as additional vendor support to support the integration and maintenance of AMI interval data. This will enable customers to view hourly usage in the customer portal. Additional funding was added for future professional services to support ongoing enhancements, IT development, SAP integration, and utility rate structure changes. Future enhancements may include electronic bill inserts, online installment plan registration, enhanced password, and default to paperless bill.

As we continue to expand the functionality and online self-services offered through MyCPAU, such as AMI interval data display, text notifications, and integration to other vendor portals, additional expenditures will be required. The final scope of work within Amendment No. 3 was vetted, negotiated, and prioritized over several months. The amount of $684,023 was the final negotiated price and includes $265,000 of future enhancements and professional services, which Item 9
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are optional, and will be returned to utility reserves if unused. Below is a breakdown of the contract terms, costs and services:

Amendment No. 3 Highlights:
• Extends the subscription and contract with SEW for three years from 2023 to 2026 • Provide the option for customers to receive text notifications for monthly bill and late notices. Currently, only an email option is available. •Adds an additional 5,000 external users and 5 internal admin users •Removes the current 65 utilities account restriction per customer/user •Reserves funding for a separate dedicated User Acceptance Testing (UAT) environment for long term project testing (e.g., AMI)
•Carries over AMI Implementation Fee for interval usage data from original contract •Carries over one additional single sign-on (SSO) integration of future service; single sign- on for EV and PV calculators and Water Smart portal are completed Original Contract Amendment #1 Amendment #2 Amendmend #3 TotalTerm Oct 2017 - Oct 2020 Oct 2020 - Dec 2022Dec 2022 - Mar 2023Apr 2023 - Mar 2026Oct 2017 - Mar 2026Not to Exceed Amount $130,623 $215,500 $0 $684,023 $1,030,146 Item 9
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•Adds a “max support” option for additional dedicated resources and services to resolve complicated issues in a timely manner especially with the upcoming AMI integration as well as the existing integration to the City’s SAP system and third-party systems (e.g., WaterSmart and CPR)
•Create two instructional videos to help guide customers through the more complex processes in the portal (e.g., bill autopay and registration or AMI) •Reserves funding for future enhancements and professional services such as:
•Future AMI features not currently in scope
•Go Paperless program - Opt new registrations into paperless • Address the more challenging areas customers are currently experiencing since the portal’s launch (e.g., top customer issues) for example:
o Add “Bill Inserts” to the left side menu in order for customers to easily locate monthly bill inserts
o Add a status field to the home page (or dashboard) to inform customers if they are enrolled in a monthly autopay payment plan.
o Expand the length of the password field to 30 characters and allow for additional special characters to accommodate the customers use of online password generators
o Change messaging/text on several pages to clarify existing instructions • Ability to set up installment plans in MyCPAU and for these plans to automatically create in SAP
• Additional SSO integrations to energy efficiency vendors or service providers. •Portal version upgrades/updates assistance
• Single sign-on integration to additional energy efficiency vendors or service providers.
• User interface changes to add new programs services online (e.g., On-Bill Financing)

FISCAL/RESOURCE IMPACT
Funding of $254,183 for the first year is available in the FY 2023 Technology Utilities Customer Bill System Improvements CIP budget (TE-10001). Funding for contract years two and three are contingent upon Council appropriation and approval of funds through the annual budget process.

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Authorization of this contract does not represent any change to existing policy.

STAKEHOLDER ENGAGEMENT
The online MyCPAU customer account management system was presented to the UAC on March 6, 2019 ( https://cityofpaloalto.org/civicax/filebank/documents/69599)2. CPAU received input from Utility industry consultants, E Source; survey results from 1,200 CPAU customers; and system requirements from multiple divisions in Utilities including Customer Support, Billing and Utilities Program Services. In addition, Staff provided a detailed update on the key features, improvements, and metrics with MyCPAU to the Utilities Advisory Commission in June 2021 (Staff Report #12179)3. .

ENVIRONMENTAL REVIEW
Council’s approval of this term agreement for subscription licensing and professional services is not a project under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(5) as an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment, thus no environmental review is required.

ATTACHMENTS
Attachment A: S18165157 Amendment 3
APPROVED BY:
2 Utilities Advisory Commission March 6, 2019 Presentation https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2019/03-06-19-meeting/item-2_new-online- customer-portal.pdf
3 Utilities Advisory Commission June 2, 2021 Staff Report 12179 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2021/06-02-2021-special/id-12179-item-3.pdf Description Year 1 Year 2 Year 3 TotalSubscription Fee 63,130$ 63,130$ 63,130$ 189,390$ User and Admin Accounts 8,475$ 8,475$ 8,475$ 25,425$ Text Notification 10,000$ 10,000$ 10,000$ 30,000$ QA Cloud Tenant 3,726$ 14,904$ 3,726$ 22,356$ Enhancements 50,000$ 50,000$ 50,000$ 150,000$ Professional Services 35,000$ 35,000$ 35,000$ 105,000$ Max Support 39,000$ 39,000$ 39,000$ 117,000$ Instruction Videos 14,250$ 14,250$ AMI Implementation 4,602$ 4,602$ Single Sign On 26,000$ 26,000$ Total 254,183$ 220,509$ 209,331$ 684,023$ Item 9
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Dean Batchelor, Director Utilities
Staff: Kevin Enderby, Principal Business Analyst
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AMENDMENT NO. 3 TO CONTRACT NO. S18165157

BETWEEN THE CITY OF PALO ALTO AND

SMART ENERGY SYSTEMS, INC

This Amendment No. 3 (this “Amendment”) to Contract No. S18165157 (the “Contract” as defined below) is entered into as of April 1, 2023 , by and between the CITY OF PALO ALTO, a California chartered municipal corporation ( “CITY”), and SMART ENERGY SYSTEMS, INC., dba SMART ENERGY WATER, a Delaware corporation (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. T he Contract (as defined below) was entered into by and between the Parties hereto for the provision and deployment of a comprehensive customer engagement portal (the SEW Portal) and mobile solutions services for City’s residential, commercial, industrial, and institutional customers utilizing natural gas, electricity, water, sewer, fiber, refuse, and sto rm drainage services, as detailed therein.

B. The Parties now wish to amend the Contract to extend the term to March 31, 2026, and increase total compensation to Contractor by Six Hundred Eighty -Four Thousand Twenty-Three Dollars ($684,023) over a three-year Extension Term to a new total not-to-exceed amount of One Million Thirty Thousand One Hundred Forty -Six Dollars ($1,030,146.) over the Term of the Agreement, as detailed herein.

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

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

a. Contract. The term “Contract” shall mean C ontract No. S18165157 between CONSULTANT and CITY, dated October 17, 2017, as amended by:

Amendment No. 1, dated October 7, 2019
Amendment No. 2, dated October 11, 2022

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

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

“SECTION 2. TERM.”

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The term of this Agreement shall be from the date of its full execution through March 31, 2026, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

“Extension Term” refers to the period commencing April 1, 2023, through March 31, 2026.”

SECTION 3 . Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to add the following:

“SECTION 4. NOT TO EXCEED COMPENSATION”

During the Extension Term, t he compensation to be paid to CONSULTANT for performance of the Supplemental Services shown in Exhibit A-1 as specific to this Third Amendment shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Six Hundred Eighty-Four Thousand Twenty-Three Dollars ($684,023). The hourly schedule of rates, if applicable, is set out in Exhibit C -2, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

The total maximum compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” and Exhibit “A-1”, shall not exceed One Million Thirty Thousand One Hundred Forty-Six Dollars ($1,030,146) over the Term.

a. Exhibit “ A-1” entitled “ SUPPLEMENTAL SCOPE OF SERVICES ”, AMEND ED, REPLACES PREVIOUS.

b. Exhibit “ B” entitled “SCHEDULE OF PERFORMANCE ”, AMENDED, REFLECTS EXTENSION TERM ONLY.

c. Exhibit “C-1” entitled “SCHEDULE OF RATES,” AMENDED, REPLACED PREVIOUS

d. Exhibit “C-2” entitled “COMPENSATION, AMENDMENT 3”, ADDED.

e. Amendment 3 Appendices, ADDED, entitled:
i) “Appendix 1 - Text Messaging Service”
ii) “Appendix 1-A – SEW Notification Services Agreement” iii) “Appendix 1-B –Data Retention Policy”
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iv) “Appendix 2- SCM Non-Production Cloud Tenant”
v) “Appendix 3 – Max Support Plan”
vi) “Appendix 3 -A – Service Request Form”.

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

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

(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)

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SIGNATURES OF THE PARTIES

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

CITY OF PALO ALTO

____________________________
City Manager

APPROVED AS TO FORM:

____________________________
City Attorney or designee

SMART ENERGY SYSTEMS, INC., dba

SMART ENERGY WATER

By:______________________________

Name: Harman Sandhu

Title: President

By:______________________________

Name: Sangeeta Kumar

Title: VP Finance

Attachments:

EXHIBIT “A-1” – SUPPLEMENTAL SCOPE OF SERVICES, AMENDED, REPLACES PREVIOUS EXHIBIT “B” – SCHEDULE OF PERFORMANCE, AMENDED, REFLECTS EXTENSION TERM ONLY EXHIBIT “C-1” – SCHEDULE OF RATES, AMENDED, REPLACES PREVIOUS EXHIBIT “C-2” – COMPENSATION, AMENDMENT 3”, ADDED
AMENDMENT 3 APPENDICES, ADDED, ENTITLED:
“Appendix 1 - Text Messaging Service”
“Appendix 1-A – SEW Notification Services Agreement”
“Appendix 1-B –Data Retention Policy”
“Appendix 2- SCM Non-Production Cloud Tenant”
“Appendix 3 – Max Support Plan”
“Appendix 3 -A – Service Request Form”.

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EXHIBIT “A-1”

SUPPLEMENTAL SCOPE OF SERVICES (AMENDED, REPLACES PREVIOUS)

Tasks Pursuant to Amendment 1:

1. Single Sign On Integration
a. CONSULTANT will setup SCM (Smart Customer Mobile) as an Identity Provider for a SAML -based Single Sign On (SSO) integration with CITY 3rd Party Applications, to be identified by CITY.

Specifically, CONSULTANT will
i. Provide CITY with a SAML metadata file for SCM as an Identity Provider ii. Provide CITY with a secure SSO endpoint for the 3rd party vendors to consume
iii. Provide technical support during the SSO setup process iv. Verify that the SSO link can be accessed from SCM
v. SSO will use standard SAML tokenization and bindings as provided in the metadata definition
vi. Verify that the SSO link from the 3 rd party back to SCM results in appropriate behavior on SCM (i.e. mapped to correct account, log out completely if requested, etc.)
b. 3rd Party Applications will satisfy the following requirements:
i. Must support SAML 2.0
ii. Must consume SCM authentication request service for Single Sign-On (SSO)
iii. Must be able to consume the logout service
iv. CONSULTANT will not validate user licensing details for 3-party applications/portals.
c. CONSULTANT will develop custom user experience to enable users to access the 3rd party vendor’s services. The user experience elements include, but are not limited to the following:
i. Dashboard tiles that are displayed to eligible customers. The tiles will have a static image and will link to the 3 rd party vendor service. The tiles will match the look and feel of CITY’s current version of SCM. ii. Navigation “tabs” that are displayed to eligible customers. The tabs will have a label and will link to the 3rd party vendor services. The tabs will match the look a feel of CITY’s current version of SCM. iii. CITY shall provide to CONSULTANT a list of the eligibility designations for each of the 3rd party vendors.

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d. CONSULTANT will facilitate communication preference coordination between SCM and 3rd party vendors.
i. CONSULTANT will develop custom notification types in the existing preference center based on the 3rd party vendor customer communication options.
ii. CONSULTANT will setup transfers of notification preference updates to CITY and 3rd party vendors.
e. CITY Responsibilities
i. CITY will be responsible for coordinating the access to any Client owned and 3rd
party systems required for integration.
ii. CITY agrees to provide integration access with any CITY and 3 rd party vendor systems prior to the completion of Planning and Design. iii. CITY will participate in a detailed planning and design process with CONSULTANT to define user experience, data elements and service aspects.

2. Implement AMI Interval Data requirements
These requirements pertaining to Smart Grid AMI listed in Exhibit G of the original contract will be implemented:

Req ID Requirement - Description Classification
Customer Services
FF25 Ability to integrate weather data for conservation analysis
Desired
FF26 Ability to combine weather, landscape area, rainfall and consumption data to determine when an account may be overwatering Desired
FF28 Ability to have a "live chat" feature when customer have questions/issues while using the customer portal
Desired
Usage/Rates
FF72 Smart Grid – water and gas leak alert setup Desired FF73 Smart Grid – water and gas leak detection Desired
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FF74 Smart Grid – calculate and display calculated usage using meter multiplier, therm factor multiplier, and other calculations Desired
FF75 Smart Grid – calculate and display calculated usage with hourly data with daily allowance pricing considerations Desired
FF76 Smart Grid – display bidirectional, delivered (usage) and received (generation), information
Desired
FF77 Smart Grid – monthly usage/cost charts and data
downloads
Desired
FF78 Smart Grid - availability and presentation of detailed utilities data ( e.g. hourly meter reads)
Mandatory
FF79 Smart Grid - daily usage/cost charts and data
downloads
Desired
FF80 Smart Grid - hourly usage/cost charts Desired
FF81 Smart Grid - mobile support Desired
FF82 Smart Grid - predicted bill & usage alerts Desired FF83 Smart Grid - price plan comparison tool Desired
FF84 Smart Grid – demand response notification and
calculation capabilities
Desired
FF85 Smart Grid – real time pricing display and indicators for time-of-use, demand response and
energy generation
Desired
FF86 Smart Grid - secure real-time access to smart meter data
Mandatory
Interfaces
IN02 The portal must be able to integrate with any CIS or Utility Billing system
Mandatory
IN07 Smart Grid - Meter Data Management Database
and Portal
Mandatory

Tasks Pursuant to Amendment 3:

1. Annual Subscription for Extension Term. The Parties hereby agree that the annual subscription fees for its current subscriptions during the period commencing April 1, 2023, through March 31, 2026 (the “Extension Term”) will be the rates shown in Exhibit C-1.

2. Removal of Utility Account limitation Per User in
Smart Customer Mobile (SCM).
a. Removes the current 65 utilities account restriction per user/Business partner.

3. Increase Number of SCM Users. The Parties hereby agree to increase the authorized number of SCM users by 5,000 from 25,000 to 30,000 during the Extension Term.

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4. Increase Number of Customer Service Portal ( CSP) Admin Accounts. The Parties hereby agree to increase the number of CSP Admin Accounts by 5 from 30 to 35 during the Extension Term.

5. Text Short Message Service (SMS) Notification Services - Refer to Amendment 3 Appendix “1” – Text Messaging Service
a. Implement and provide the option for customers to receive text notifications for SCM billing module related notifications (e.g., new monthly invoice and late notices).

6. Additional Cloud Tenant - Refer to Amendment 3 Appendix “2”- SCM Non-Production Cloud Tenant
a. Implement and provide a stand-alone and dedicated User Acceptance Testing (UAT) environment dedicated to long term project testing (e.g., AMI) as required.

7. Max Support Plan - Refer to Amendment 3 Appendix “3” – Max Support Plan a. Adds a “max support” option for additional dedicated SEW resources and services to resolve complicated SCM and integration issues in a timely manner

8. Instructional Video - Create two instructional videos to help guide customers through the more complex processes in the portal (e.g., bill autopay and registration or AMI)

9. Additional Enhancements: In anticipation of enhancements required post go-live, Consultant shall provide up to $150,000 worth of software enhancements to the City upon the City’s request and approval in writing using the change request process. These enhancements may include, but are not limited to, the following:
a. Add/change/enhance software modules
b. Add/change/enhance features
c. Add/change/enhance reporting
d. Add/change/enhance API integrations or other integration between SCM® and the various City business systems and hosted environments e. Add/change/enhance the City’s SAP environments

10. Additional Professional Services: In anticipation of consultant services required post go-live, Consultant will perform up to $105,000 worth of consulting and support services beyond what is already required in this Agreement. Such services will be upon the City’s request and approval in writing using the change request process.

These services may include, but are not limited to, the following:
a. Assistance with software updates and/or upgrades
b. Functional and technical assistance
c. Functional and technical training
d. Project management
e. Software configuration and development
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EXHIBIT “B”

SCHEDULE OF PERFORMANCE, (AMENDED, REFLECTS EXTENSION TERM ONLY)

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

CONSULTANT shall provide a detailed schedule of work consistent with the schedule. The total duration of system set up, deployment and stabilization will be completed within 180 days from the date of the notice to proceed (NTP). This Scope of Work for the Project will be broken into six milestones. Unless otherwise agreed to upon the parties in writing, each milestone must be completed before any work is conducted on the next milestone.

Tasks Pursuant to Amendment 1

Task

Phas
e
SES Deliverables City Deliverables Completion
Date
1 3rd Party SSO
Integration

• Functioning
Dashboard tiles
and links to each
SSO integration
• Availability of 3rd
Party and City project
managers
• Timely UAT and
approval

180 Days from
Amendment 3
2 AMI Interval Data
(previously Year
5) requirements)

Functioning Usage graph
with interval data (e.g. 15
mins to hourly)
• Availability of 3rd
Party and City project
managers
• Timely UAT and approval
90 Days from
Amendment 3

Tasks Pursuant to Amendment 3

Task

Phas
e
SES Deliverables City Deliverables Completion
Date
1 Annual SCM
Subscription
services extended

Functioning portal with the
My Account, Usage, Billing,
Services, and Notification
modules operational
• Amendment No. 3 approval
At the time of
Amendment
NTP
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2 Removal of Utility
Account
limitation Per
User in SCM

• For those users
with more than 65
accounts, all
accounts visible in
the dashboard
dropdown and
online services are
functioning.
• Availability of 3rd
Party and City project
managers
• Timely UAT and
approval

180 Days from
Amendment
NTP
3 Increase Number
of SCM Users

Portal allows up to 30,000
SCM users
• Amendment No. 3 approval
At the time of
Amendment
NTP
4 Increase Number
of CSP Admin
User Accounts

Portal allows up to 30 CSP
admin users
• Amendment No. 3 approval
At the time of
Amendment
NTP
5 Text Short
Message Service
(SMS) Notification
Services

• Functioning
notification feature
sending text
notifications for the
billing module
• Availability of 3rd
Party and City project
managers
• Timely UAT and approval

180 Days from
Amendment
NTP
6 Additional Cloud
Tenant
• Functioning and
separate User
Acceptance Testing
(UAT) environment
• Availability of 3rd
Party and City project
managers
• Timely UAT and approval

180 Days from
Amendment
NTP
7 Max Support Plan Dedicated resources are
available to resolve issues
per Appendix 2 terms and
conditions.

• Amendment No. 3 approval

At the time of
Amendment
NTP
8 Two (2) Instruction
Videos
Functioning videos available
within the portal • Availability of 3rd
Party and City project
managers
• Timely UAT and approval
90 Days from
Amendment
NTP
9 Additional
Enhancements
Future enhancements
functioning as per the
specifications in the
approved Change Request
(CR) document
• Availability of 3rd
Party and City project
managers
• Timely UAT and approval

Up to 3 years
from
Amendment
NTP
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10 Additional
Professional
Services
Future professional services
functioning as per the
specifications in the
approved Change Request
(CR) document
• Availability of 3rd
Party and City project
managers
• Timely UAT and approval

Up to 3 years
from
Amendment
NTP

City, in its sole discretion, may agree to an extension of time for completion of tasks provided such extension is reflected in writing, in advance, below within 10 days of the date of the notice to proceed (NTP). SES shall have the ability to change dates if such change is reasonable and in the interest of the Project.

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EXHIBIT “C-1”

SCHEDULE OF RATES (AMENDED, REPLACES PREVIOUS)

The table set forth below includes certain hourly rates which may be utilized by SEW in the event it agrees to perform unanticipated work for client in connection with this agreement.

Original Agreement:

1. Original Agreement, Amendment 1-2 Tasks:

Labor Category Hourly Rate

2. Amendment 3 Tasks:

The rates below apply for calendar year 2023 only and shall be subject to change annually thereafter, upon minimum 60 days’ written notice to the City, provided however, that the increase in rates shall not exceed the higher of: (i) the percentage change in the CPI Index, West region as published by the U.S. Bureau of Labor for the trailing 12 (twelve) months or (ii) 3 (three) percent.

Category Hourly Rate
Delivery Director $150
Project Manager $135
Product/Technical Integration Lead $135
Business Analyst $90
QA Lead $90
SAP Technical Lead $135
Training Lead $85
SAP Supplemental Resource $150

Delivery Director $120
Project Manager $110
Product/ Technical Integration Lead $110
Business Analyst $75
QA Lead $75
SAP Technical Lead $110
Training Lead SAP Supplemental Resource $70 -$120
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EXHIBIT “C-2”
COMPENSATION, AMENDMENT 3 (ADDED)

City agrees to compensate Consultant for professional services performed as designated under the Supplemental Scope of Work – Amendment 3 Tasks, and for the software subscription as set forth in the budget schedule below for the Extension Term . 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.

Compensation during the Extension Term shall not exceed a maximum total amount of $684,023.00 dollars , which includes AMI software implementation fees and, an annual subscription fee for year six (6) (April 2023-March 2024), seven (7) (April 2024-March 2025), and eight (8) (April 2025-Mar 2026), text notification, elevated maximum support plan and any Additional Services as authorized by City in accordance with this Agreement:

Summary Table for Years 6, 7, and 8

I. Pricing breakdown for Years 6, 7, and 8

April 1, 2023, through March 31, 2026 (the Amendment No. 3 - “Extension Term”)

Description

1. Single Sign On 3rd Party Integration (3
SSO at $26,000 each)
Amount
$26,000
Due
25% to be paid upon SEW UAT in QAS 50% to
be paid upon City UAT sign off in QAS
25% to paid upon deployment in production

2. AMI Interval Data (previously Year
5) requirements) $4,602 25% to be paid upon SEW UAT in QAS 50% to be paid upon City UAT sign off in QAS
25% to paid upon deployment in production
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3. SCM® Annual User Connections for
Year 6
(25,000 users and 25 admin users)

SCM® Annual User Connections
for Year 7
(25,000 users and 25 admin users)

SCM® Annual User Connections for
Year 8
(25,000 users and 25 admin users)

$71,605

100% to be paid on Effective Date

100% to be paid on anniversary of Effective Date

4. Text Short Message Service (SMS)
Notification Services

Year 6

Year 7

Year 8

$10,000

Fixed Fees
100% to be paid upon effective date
100% to be paid one year after effective date

100% to be paid two years after
effective date

Volume-Based Fees

$0.04 for each message in excess of 50,000 SMS
messages in any year

5. Additional Cloud Tenant $22,356 $1,242 monthly upon implementation of service and as required monthly

6. Max Support Plan

Year 6

Year 7

Year 8

$39,000

100% to be paid upon implementation of service
100% to be paid one year after implementation of
service
100% to be paid two years after implementation of
service

7. Two (2) Instructional Videos $14,250 25% to be paid upon SEW UAT in QAS 50% to be paid upon City UAT sign off in QAS
25% to paid upon deployment in production

8. Additional Enhancements $150,000 Invoiced at actual costs as incurred via Change Request process

9. Additional Professional Services $105,000 Invoiced at actual cost as incurred

10. Additional User Connections and
Admin User.
$5,000 per
allotment; $250
per admin user
At any time during a current subscription term,
Palo Alto may purchase the right to service
additional connections (users) under its SCM
subscription at a rate of $1.00 per connection
(user) per year, purchased in allotments of
5,000 connections (users). Should Palo Alto
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elect to expand its subscription connection
coverage pursuant to the foregoing option
during a then-ongoing subscription term, the
total charged will be suitably prorated over the
said term’s remaining duration. Additional
administrative user access may be similarly
purchased at a rate of $250 per admin user per
year.

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Amendment 3 Appendix “1” –
Text Messaging Service

Supplement to SEW Subscription Order Form

Between Smart Energy Systems, Inc. dba Smart Energy Water 15495 Sand Canyon Avenue, STE 100
Irvine, CA 92618
(“SEW”)

And City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
(“Customer”)

1. Order Form
This Supplement, as issued by SEW, shall constitute an amendment to the existing City of Palo Alto Contract S18165157 dated October 17, 2017, between SEW and Customer (the “Agreement”) and is governed by and incorporates the terms and conditions attached hereto as Appendix A and B.

2. Notification Subscriptions

The table below shows the SEW Notification Services to be added or updated to the Agreement. The fixed annual fees for the services below are invoiced annually upfront. The volume-based fees, if any, shall be invoiced and payable monthly.

TEXT MESSAGING SERVICE
Service Type Price (USD) Description
X Outbound SMS Text Bill Notification $10,000 annually for first 50,000 SMS messages and $0.04 for each message thereafter

Note: SMS Text message speed shall be up to 5 messages/second. Higher speeds require additional fees.

3. Term and Invoicing

The term of this Supplement commences on April 1,2023, and ends March 31, 2026.

Total Fixed Fees for this Supplement
(excluding volume-based fees)
Payment Conditions for Term

$30,000
($10,000 annually)
Total fee due upon signing and invoiced according to the below schedule:

• $10,000 upon signature
• $10,000 upon 1st anniversary of Effective Date
• $10,000 upon 2nd anniversary of Effective Date

4. Acceptance and Authorization

Customer Smart Energy Water
Signature: Signature:

Name: Name: Harman Sandhu
Title: Title: President
Effective Date: Date:

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Amendment 3 Appendix 1-A
SEW Notification Services Agreement

Smart Energy Systems, Inc. dba Smart Energy Water (“Provider” or “SEW”) has developed certain proprietary software applications and services for a Customer, and the Parties have agreed that Provider will make the Services described in the Order Form available to the Customer hereunder. Therefore, in consideration of the mutual covenants, terms, and conditions set forth below and in any relevant exhibits or documents, the adequacy of whic h is hereby acknowledged, the Parties agree as follows

1. Definitions

1.1. “ Monthly Uptime Percentage” shall refer to the difference between 100% and the percentage of time during which the Services are unavailable.

1.2. “ Services” shall refer to notification services for the SCM® Cloud Services platform utilized to establish form(s) of contact between the Customer and end user of the SEW Cloud Services Platform, which include, but are not limited to, SMS text messaging, email, and interactive voice response (IVR) services.

1.3. “ SEW Cloud Services Platform ” shall refer to Customer’s deployment of the SCM® platform, or other applicable software of SEW sold through an authorized reseller.

1.4. “ Term” shall mean the Term set forth in the applicable license agreement, SaaS subscript ion agreement, cloud services agreement, or if not defined in an applicable signed writing, one (1) year from the Effective Date.

2. Scope and General Terms

2.1. SEW shall provide the following Services selected within the Order Form in accordance with the following terms and conditions.

2.2. Customer may use the Services solely to:
a) Use and make the Services available to end users in connection with the use of SEW Cloud Services Platform. b) Use the Services in connection with and as necessary for Customer’s activities pursuant to these terms or the terms set forth in an applicable license agreement, SaaS subscription agreement, or cloud services agreement. c) Allow any affiliates to use the Services, subject to the terms hereunder.

2.3. In relation to the Services provided under this Agreement, Customer agrees that:
a) Customer shall not transfer, resell, lease, license, or otherwise make available the Services or SEW Cloud Services Platform to third parties or offer it on a standalone basis, or make any representation, warranty, or guarantee to any end user or third party on behalf of SEW concerning the Services.
b) SEW shall be entitled to use any Customer data that is necessary to provide the Services. c) Customer’s use of the Services does not violate the terms of this Agreement. d) Customer shall not use the Services or SEW Cloud Services Platform to create, train, or improve (director or indirectly) a substantially similar product or service.
e) Customer shall not reverse engineer, decompile, disassemble, or otherwise create, attempt to create or derive, or permit or assist anyone else to create or derive the source code of any Services or SEW Cloud Services Platform provided in connection with this Agreement.

2.4. SEW shall make the Services available and guarantee a Monthly Uptime Percentage of 99.5%, notwithstanding any unavailability or performance issues of the Services caused by or as a result of the following (collectively, the “Exclusions”):
a) Factors that are outside of SEW’s reasonable control, including, without limitation, any force majeure event, telecommunications provider-related problems or issues, internet access or related problems occurring beyond the point in the network where SEW maintains access and control of the Services.
b) Any actions or inactions of Customer or any third party. c) Any Customer application(s), equipment, software, or other technology, third party equipment, software, etc. not authorized f or use with the Services.
d) Routine or scheduled maintenance for which SEW will provide at least twent y-four (24) hours of advanced notice. e) Problems or issues related to alpha, beta, or not otherwise generally available in SEW features or products.

2.5. Notification Services shall commence at the rates and volumes selected by Customer in the Order Form. a) In the event that Customer exceeds the number of emails per month selected, SEW shall automatically escalate Customer to the next service tier and corresponding rates. Customer shall thereafter be invoiced according to the rates set forth for the escalated tier for the remaining Term for such Order Form.
b) At any time during the Term of the Order Form, Customer can contact SEW to request to be change their service to a lower tier. Such changes to revert to a lower tier and corresponding rates can be made only once during a twelve month period. Customer shall not be entitled to any credits for unused volumes when reverting to a lower service tier after having been escalated to a higher tier as a result of having exceeded notification volume limits.
c) In the event Customer requires a higher notification Volume SLA tier in order to meet increased demand or to ensure timely delivery of the Services for Customer’s end users, Customer shall contact SEW detailing the Email Volume SLA or SMS Volume SLA tier customer wishes to upgrade to.

3. Term

3.1. The Initial Term of this Agreement shall begin on the Effective Date and continue for the Term as stated in the applicable Or der Form.

4. Renewals

4.1. This Agreement shall automatically renew upon the expiration of the Initial Term as stated in the Order Form for one (1) year intervals (“Renewal Term”), unless terminated by Customer by providing written notice to SEW ninety (90) days prior to the expiration of the Term.

For the avoidance of doubt, SEW shall not be required to refund any previously paid fees, regardless of when termination occurs during the Term or Renewal Term.

5. Fees

5.1. Fees for the Services shall be set forth in the Order Form. Customer shall be invoiced for applicable one-time initial setup fees, maintenance and support fees, and monthly service type fees upfront upon signing of this Agreement and annually thereafter if applicable. The usage fees applicable to inbound and outbound SMS messaging or voice call messages that are selected by the Customer shall be invoiced based on monthly intervals. Customer agrees to make all payments to SEW within thirty (30) calendar days after receipt of invoice. Late invoices will incur a late payment fee of 1.5% or the maximum allowable under the law, whichever is less. If Customer’s account is sixty (60) days or DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9
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more overdue, SEW reserves the right with prior written notice to withhold performance of its obligations under this Agreement, without liability, until such payments are paid in full, or to terminate for cause. Fees under this Agreement shall additionally be exclusive of all taxes, levies, or duties imposed by taxing authorities, and Customer shall be responsible for all applicable taxes, levies, or duties hereunder.

6. Warranty and Liability

6.1. DISCLAIMER OF WARRANTY. WITH THE EXCEPTION OF THE SERVICE LEVEL COMMITMENT SET FORTH IN SECTION 2.4, THE SERVICES UNDER THIS AGREEMENT ARE PROVIDED “AS -IS,” EXCLUSIVE OF ANY WARRANTY, INCLUDING, WITHOUT

LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR ANY OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED. SEW DOES NOT WARRANT THAT THE SERVICES ARE OR WILL BE ERROR -FREE OR MEET ALL CUSTOMER REQUIREMENTS. WITHOUT LIMITING THE

FOREGOING, SERVICES MAY BE SUBJECT TO LIMITATIONS OF THE TELECOMMUNICATIONS PROVIDER, HOSTING

ENVIRONMENT, DELAYS, INTERNET SERVICE PROVIDER, THIRD PARTIES, ACTIONS OR INACTIONS OF THE CUSTOMER, AND

OTHER PROBLEMS INHERENT TO THE USE OF MASS- MARKET NOTIFICATION SERVICES AND ELECTRONIC COMMUNICATIONS. SEW IS NOT RESPONSIBLE FOR ANY DELAYS, DELIVERY FAILURES, DELETIONS, LOSS OF DATA, DATA

CORRUPTION, THIRD-PARTY PUBLICATION, OR OTHER DAMAGES RESULTING FROM SUCH PROBLEMS NOT CAUSED BY SEW OR OUTSIDE OF SEW’S REASONABLE CONTROL. TO THE EXTENT SUCH DISCLAIMER CONFLICTS WITH APPLICABLE LAW, THE SCOPE AND DURATION OF ANY APPLICABLE WARRANTY WILL BE THE MINIMUM PERMITTED UNDER SUCH LAW. SEW SHALL

NOT BE LIABILE AND WILL HAVE NO OBLIGATION TO INDEMNIFY CUSTOMER FOR END USER DATA OR ANY OTHER PERSONALLY IDENTIFIABLE INFORMATION SENT TO SEW.

6.2. LIMITATION OF LIABILITY . IN NO EVENT WILL SEW’S AND ITS LICENSORS’ TOTAL AGGREGATE LIABILITY ARISING FROM OR

RELATING TO THIS AGREEMENT EXCEED THE AMOUNT PAID FOR THE NOTIFICATION SERVICES UNDER THIS AGREEMENT DURING THE TWEL VE (12) MONTHS IMMEDIATELY BEFORE SUCH CLAIM AROSE. TO THE MAXIMUM EXTENT PERMITTED BY

APPLICABLE LAW, AND REGARDLESS OF WHETHER ANY REMEDY SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE, IN

NO EVENT WILL SEW OR ITS LICENSORS BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY CONSEQUENTIAL, INDIRECT,

INCIDENTAL, SPECIAL OR SIMILAR DAMAGES, INCLUDING WITHOUT LIMITATION, ANY LOST PROFITS, OPPORTUNITIES, DATA,

OR USE, ARISING OUT OF THE USE OR INABILITY TO USE THE SERVICES, EVEN IF SEW HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR A REMEDY FAILS OF ITS ESSENTIAL PURPOSE.

6.3. Recordings and Communications Monitoring. In the event Customer records or monitors any SMS messages, IVR communications, or other communications using the Services, then Customer represents and warrants that it shall comply with all applicable laws prior to doing so at all times. SEW makes no representations or warranties with respect to recording or monitoring telephone calls/IVR communications, SMS messages, or other communications, and recommends that Customer always secure prior consent to record or monitor communications using the Services. Customer acknowledges that these representations, warranties, and obligations are essential to SEW’s ability to provide the Services, and further agrees to indemnify SEW and its affiliates or providers in the event of any acts or omissions in connection with recording or monitoring IVR communications, SMS messages, or other communications, whether such claims arise under contract, tort, statute, or other legal theory.

7. Additional Terms

7.1. Short Codes. If Customer utilizes a short code with SEW as a part of the Services, Customer:
a) Shall not change the short code use case without first having such new use case approved by SEW or the applicable provider. b) Shall stop sending additional messages to any party that replies by texting “STOP” (or the equivalent) to the short code, except for a single text message confirming that such party has been successfully opted out of the short code. c) Shall follow all applicable rules, regulations, laws, statutes, or guidelines set by state, local, or federal legal authorities, or as imposed by SEW or its affiliates, providers, etc. pertaining to the use of short codes or voice recordings.

7.2. Compliance with Laws . Both Customer and SEW agree to comply with the applicable laws relating to each Party’s respective activities pursuant to this Agreement.

7.3. No Waiver. Our failure to enforce at any time, any provision of this Agreement, or any other applicable policy or signed writing in connection hereto shall not waive our right to do so later. Any waiver must be in writing and signed by both Parties to be legally bindi ng.

7.4. Independent Contractors. The Parties are independent contractors and will so represent themselves in all regards. Neither Party is the agent of the other, and neither may make commitments on the other’s behalf.

7.5. Force Majeure. No delay, failure, or default, other than a failure to pay fees, will constitute a breach of this Agreement to the extent t hat such delay, failure, or default, or any other breach is caused by acts of war, terrorism, earthquakes, other acts of God or of nature, strikes or labor disputes, embargoes, or other causes beyond the performing Party’s reasonable control.

7.6. Assignment & Successors. Customer may not assign this Agreement or any of its rights or obligations hereunder without Provider’s prior written consent. Except to the extent forbidden herein, this Agreement will be binding upon and inure to the benefit of the Parties’ respective successors and assigns. Any attempt to assign, transfer, or delegate the terms under this Agreement shall be null and void.

7.7. Notices. Any notice required or permitted to be given under this Agreement will be given in writing to the receiving Party by personal delivery, certified mail, return receipt requested, overnight delivery recognized by a nationally recognized carrier, or by email upon c onfirmation of receipt. Notices to SEW shall be copied to [email protected] .

7.8. Modification. Modifications to the Services and associated fees thereof may be made from time to time, and any modifications made to the Services, or associated fees, shall be noticed to the Customer thirty (30) days prior to such modifications taking effect.

7.9. Severability. To the extent permitted by law, the Parties waive any provision of law that would render any clause of this Agreement inval id or unenforceable. In the event that a provision herein is held to be invalid or unenforceable, such provision will be interpreted to fulfill its intended purpose to the maximum extent permitted by law, and the remaining provisions of this Agreement will continue in full force and effect.

7.10. Choice of Law & Jurisdiction: This Agreement will be governed by the laws of the State of California, without reference to any conflicts of law principles. The Parties consent to the personal and exclusive jurisdiction of the federal and state courts of Orange County, California.

7.11. Conflicts. Should this Agreement conflict with any other agreements, this Agreement will govern.

7.12. Construction. The Parties agree that the terms of this Agreement result from negotiations between them. This Agreement will not be construed in favor of or against either party by reason of authorship.

7.13. Entire Agreement. This Agreement sets forth the entire agreement of the Parties and supersedes all prior or contemporaneous writings, negotiations, and discussions with respect to its subject matter, with the exception of an applicable license agreement, SaaS subscription agreement, or statement of work. Neither Party has relied upon any such prior or contemporaneous communications except those expressly referenced and named herein.

7.14. Execution in Counterparts . This Agreement may be executed in one or more counterparts. Each counterpart will be an original, but all such counterparts will constitute a single instrument.

7.15. Amendment. This Agreement may only be amended in writing by authorized representatives of each Party.

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Appendix 1-B
Data Retention Policy

1) Data Retention Policy
a) Introduction
i) It shall be the policy of Smart Energy Water to maintain complete and accurate records for the usage, billing, behavior, or any of the specified types of data (“Data”) of Client and its Users, for the duration described for historical reference, contractual or legal requirements, or for any other purposes as set forth in this Data Retention Policy (“Policy”). The types of Data stored and s ubsequent durations for each type, described in the Retention Summary set forth in Section 1(h) below, shall be the recommended and standard retention periods based on legal requirements and practical considerations. In the event that Client wishes to have such Data retained for an extended period, such additional retention periods shall be agreed upon in a separate writing. ii) Data Retention shall include, but is not limited to, paper and electronic records, documentary materials, Customer Data, pers onally identifiable information, billing records, usage information, etc. Such information shall be managed and maintained in a manner that protects the integrity of the Data, while ensuring appropriate access for the durations described above. iii) Upon expiration of the above retention periods, such data shall be destroyed, deleted, returned or otherwise disposed of according to standard industry guidelines and in compliance with legal requirements, EXCEPT for those records pertaining to (1) matters under investigation or those matters that are the subject of any claim or litigation, and (2) matters that are anticipated to be the subj ect of reasonably foreseeable investigation, claim, or litigation. b) Definitions
i) “ Audit Logs” shall refer to recordings of key system events, timestamps, and other records that otherwise maintain evidence of any processes or activities.
ii) “ Billing Data” shall refer to any information regarding the billing information of customers, which may include, but is not limited to, credit card information, security codes, expiration dates, billing addresses, names of customers, etc. iii) “ Billing Summaries” shall refer to any information regarding the costs or charges relating to a customer’s usage of utilities maintained over monthly billing periods.
iv) “ Customer Data” shall refer to any personally identifiable information of a Client’s users, which may include, but is not limited to, name, address, personal Usage information, etc.
v) “ Investigation” shall refer to any business or legal process which requires the retention, examination, or review of any Data. vi) “ Notifications” shall refer to logs of the information events (email, IVR, SMS text messaging) sent by a utility and received by a customer.
vii) “ Outages” shall refer to logs of outage events reported via OMS to the Services, by either the customer, if approved, or the Client. viii) “ Retention” shall refer to storage of Data on either local, cloud-based, or archive storage or servers. ix) “ Usage” shall refer to any customer’s use of a utility as tracked and maintained by the Services. x) “ User Behavior” shall refer to the interaction of Client’s customers on the portal or mobile application, which may include, but is not limited to, log-on periods, active periods, interactions with particular modules, clicks, etc. c) General
i) SEW shall be bound in its obligations regarding the Data it processes and controls. These obligations shall include how long SEW retains Data, and when and how SEW can destroy such Data. These obligations may arise from industry standards, local laws or regulations, or arising out of agreements between the Parties. ii) SEW shall ensure that necessary records, documents, or Data are adequately protected and maintained, and additionally, that such records, documents, or Data are properly disposed of.
iii) SEW shall not use Client or Customer Data except as necessary to provide the Services, or as necessary to comply with the law or binding order of a governmental body.
d) Cloud-Based Storage
i) In maintaining the Data, SEW shall utilize its cloud -based scalable storage solutions which shall allow Client to store and display historical usage data, billing information, payment history, etc. SEW shall utilize industry standard methodologies, which shall ensure business continuity, continuous retention for the periods described, data recovery, and availability for its Users. e) Archiving and Backups
i) SEW shall utilize similar industry standard s olutions for archiving, restoring, and backing up Data. Incremental Data (daily usage, user behavior, notifications, outages) shall be recorded nightly, and full Data backups shall be executed over the weekend. Data shall be retained in both Cloud -based local storage form, as well as Array -based replication form offsite to be utilized as back -ups or archives in the event of system failure of the local Cloud-based storage. ii) SEW shall be notified via email confirmation of backups of Data being saved successfully or such backups failing to be saved. Backups shall be tested periodically by restoring such Data to a staging database to ensure that Data is not corrupted and are in proper usage compliance in its application configuration.
f) Destruction and Purging of Data
i) Data that is personal or confidential in nature shall be disposed of according methodologies agreed upon by and between the parties in a signed writing.
ii) Electronic Data shall be subject to secure electronic deletion. iii) Physical or paper documents shall be shredded using secure consoles through which waste shall be properly screened for dispos al. iv) Specific deletion or destruction processes shall be carried out by an employee of SEW or by an internal or external service pr ovider employed for the purposes of such proper and compliant disposal of Data. v) Data of Users or Clients who have been inactive for a period of twenty-four (24) months shall be deleted. Clients, if such Client or User account(s) are inactive for a period of eighteen (18) months, shall be notified of such inactivity via email. g) Litigation or Investigation
i) In the event that SEW becomes involved in any unforeseen litigation or business event that requires access to Client and Cust omer Data, such Data may need to be archived beyond its active use or as required by law. ii) Documents shall be retained in the event that they are subject to matters under investigation or those that are subject to any claim or litigation, or those matters that are anticipated to be the subject of reasonably foreseeable investigation, claim, or litigation. iii) Prior to the disclosure of any Client and Customer Data, SEW shall first disclose to Client of such requirement, so that Client may inform its users and allow users the opportunity to seek protection from such disclosure. h) Retention Summary
i) SEW, for the purposes of historical reference, contractual or legal requirements, or other requirements as a part of its delivery and maintenance of Services or Software to Client, shall retain the following types of Data for the durations set forth, and pursuant to the terms set forth in this Data Retention Policy.

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Data Type Description Duration
Usage Monthly Read 24 months
Daily Read 12 months
Hourly Read 6 months
15-minute Read 3 months
Billing Data/Summary Overview of Past Bills 24 months
User Behavior User Interactions with Portal 12 months
Notifications Text Message, IVR, Email Logs 6 months
Audit Logs Timestamps, Recordings of Key Events 6 months Bill PDF Storage * Add-on Feature 12 months
Outages History of Reported Outages 12 months
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Amendment 3 Appendix “2”- SCM Non-Production Cloud Tenant Order Form for Smart Energy Water Cloud Services
Between Smart Energy Systems, Inc. dba Smart Energy Water 15495 Sand Canyon Ave., Suite 100
Irvine, CA 92618
(“SEW”)
And City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
(“Customer”)

1. Order Form
This Order Form, as issued by SEW, shall constitute an offer made by SEW to a Customer. When signed and returned to SEW by Customer, it shall become a binding agreement for the SEW Cloud Service(s) or other Services listed in this Order Form and effective on the date signed by Customer. This Order Form is governed by and incorporates the Terms and Conditions attached hereto.

2. SEW Platform Modules and Service(s)
The table below shows the purchased SEW Platform(s) and associated Service(s) thereof, which shall be listed and selected by Customer below and subject to the Terms and Conditions which govern this Purchase Order. In addition to the Terms and Conditions which govern this Purchase Order, Customer shall be restricted in its use to internal, non- production, non-commercial, training and marketing purposes only.

Product Code Product Name
SCM-10-NONPROD Additional Non-production cloud tenant

3. Term and Fees
The initial term of this Order Form shall be for one (1) month commencing on the April 1, 2023. Thereafter, it shall automatically renew for successive one (1)-month periods until such time as it is terminated pursuant to Section 4.2 of the attached terms and conditions.

Description Number of Environments Monthly Fee
(USD)
Payment Terms
SCM Non-Production Cloud
Tenant 1 $1,242
• $1,242 upon signing
• $1,242 on the first of each month
thereafter

4. Acceptance and Authorization
Customer Smart Energy Water
Signature: Signature:

Name: Name:

Title: Title:

Effective Date: Date:

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Dual/Non-Production Environnent Terms & Conditions

Smart Energy Systems, Inc. dba Smart Energy Water (“Provider” or “SEW”), may offer to “Customer”, a right to access and use a duplicate or non- production environment of the cloud- hosted software purchased by Customer, in consideration of the mutual covenants, terms, and conditions set forth below and in any relevant exhibits or documents incorporated to this Agreement, and, if applicable, subject to any License Agreement and Order Form between Customer and any reseller of SEW services, the adequacy of which is hereby acknowledged. SEW and Customer, each a “Party,” and collectively referred to as the “Parties,” agree as follows:

1. Definitions: As used in this Agreement or any document(s) associated herewith:

1.1 “ License Agreement” shall refer to any license agreement, terms and conditions, or other provisions in a signed writing pertaining to software licensed or implemented by SEW, or any of its resellers, for Customer.

1.2 “ Non-Production Environment” shall refer to the non- production environment or cloud tenant of any SEW software, or other software as implemented by SEW for an applicable License Agreement or Order Form.

1.3 “ Order Form” shall refer to an item list or writing authorizing the provision of software by SEW for a License Agreement or SaaS Agreement between SEW and a Customer or any reseller and a Customer, which is attached and incorporated hereunder.

1.4 “ SaaS Agreement” shall refer to a software-as-a-service agreement, terms and conditions, or other provisions in a signed writing pertaining to software provided or implemented by SEW, or any of its resellers.

1.5 “ Term” shall refer to the license term as set forth in the applicable Order Form, or if separate from another Order Form, then as listed in Section 4.1 below.

2. Grant of Rights
Subject to the terms and conditions of this Agreement, SEW hereby grants Customer a non-exclusive, non- transferable, non- assignable, limited right to access and use the Non- Production Environment solely for Customer’s internal, non-production, non- commercial, training or marketing-related evaluation or use of such non- production service in accordance with the applicable Order Form. Except as otherwise provided in an additional writing, SOW, or Order Form, the foregoing access and use right shall be limited to a single tenant instance. All rights not expressly granted to Customer shall be reserved by SEW and its licensors.

3. Limitations on Use and Customer Responsibilities

3.1. Customer shall not disclose to any third party, the results of any evaluation or other use of the Non-Production Environment, performed by or on behalf of Customer, without the prior written authorization of SEW. (e.g. any monitoring of service availability, performance, or functionality, or any other benchmarking). SEW does not guarantee any service availability/uptime of the Non-Production Environment greater than 90.00%.

3.2. Customer shall not: (a) commercially exploit the Non-Production Environment by licensing, sublicensing, selling, reselling, transferring, assigning, or distributing, or otherwise making it available or accessible to any third party in any way; (b) modify or make any derivative works based upon the Non- Production Environment; (c) reverse engineer the Non- Production Environment; or (d) access or use the Non-Production Environment in order to build a product or service that competes with the Non-Production Environment, or production environment or software upon which such Non-Production Environment is based.

3.3. Customer must not access or use the Non-Production Environment to: (a) send spam or otherwise duplicative or unsolicited messages in violation of any applicable laws, statutes, ordinances, etc.; (b) send or store infringing, threatening, obscene, libelous, or otherwise unlawful or tortious material; (c) send or store material containing software viruses, worms, trojan horses, or other harmful computer code, files scripts, agents or programs; (d) interfere with or disrupt the integrity or performance of the Non-Production Environment, or if applicable, the production environment or the data contained therein; or (e) attempt to gain any unauthorized access to the Non-Production Environment, production environment, or their related systems or networks.

3.4. Customer shall be responsible for all activity occurring under the provisioned Non-Production Environment. Customer shall notify SEW immediately upon any suspected or actual unauthorized use or breach of security with respect to the Non- Production Environment and use reasonable efforts to immediately cease any use, distribution, or provision of access to any of Customer’s end users of the Non-Production Environment during such actual or suspected breach or misuse.

3.5. Customer is entitled to one database refresh every three (3) months per additional non-production cloud tenant.

4. Term and Termination

4.1. Term. The term of this Agreement is set forth in the above Order Form.

4.2. Termination. Either Party may terminate this Agreement for cause if the other Party breaches any material term of this Agreement or any Order Document and fails to cure such breach within thirty (30) days after delivery of notice of such breach. In addition, Customer may terminate this Agreement at any time for convenience upon providing written notice of thirty (30) business days of such termination. Such termination shall not impact the fees due to SEW.

5. Confidentiality and Nondisclosure

5.1. Confidentiality. Subject also to the Confidentiality and Nondisclosure terms of any Order Form, “Confidential Information” herein shall refer to the following types of material or content one Party to this Agreement (“Discloser”) discloses to the other (“Recipient”): (a) any information Discloser marks or designates as “Confidential” at the time of disclosure; and (b) any other nonpublic, sensitive information disclosed by Discloser including, but not limited to code, inventions, know-how, business, technical, and financial information, or other information which should reasonably be known by the Recipient to be confidential at the time it is disclosed, due to the nature of the information and the circumstances surrounding such disclosure. Notwithstanding the foregoing, Confidential Information does not include information that: (i) is in Recipient’s possession at the time of disclosure; (ii) is independently developed by Recipient without use of or reference to Confidential Information; (iii) becomes known publicly, before or after disclosure, other than as a result of Recipient’s improper action or inaction; or (iv) is rightfully obtained by Recipient from a third party without breach of any confidentiality obligations.

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5.2. Nondisclosure. Recipient shall not use Confidential Information for any purpose other than to facilitate this Agreement (the “Purpose”). Recipient: (a) shall not disclose Confidential Information to any employee or contractor of Recipient unless such person needs access in order to facilitate the Purpose and executes a nondisclosure agreement with Recipient with terms no less restrictive than those of this Article 6; and (b) shall not disclose Confidential Information to any third party without Discloser’s prior written consent. Notwithstanding the foregoing, Recipient shall protect Confidential Information with the same degree of care it uses to protect its own confidential information, but with no less than reasonable care.

Recipient shall promptly notify Discloser of any misuse or misappropriation of Confidential Information that comes to Recipient’s attention. Notwithstanding the foregoing, Recipient may disclose Confidential Information as required by applicable law or by proper legal or governmental authority. Recipient shall give Discloser prompt notice of any such legal or governmental demand and reasonably cooperate with Discloser in any effort to seek a protective order or otherwise to contest such required disclosure, at Discloser’s expense.

5.3. Injunction. Recipient agrees that breach of this Section would cause Discloser irreparable injury, for which monetary damages would be inadequate, and in addition to any other remedy, Discloser will be entitled to injunct ive relief against such breach or threatened breach, without proving actual damage.

5.4. Termination & Return . With respect to each item of Confidential Information, the obligations of Section 4.2 above (Nondisclosure) will terminate three (3) years from the expiration of this Agreement. Upon such termination, Recipient shall return all copies (excepting one (1) copy archived for purposes of Recipient’s back -up processes) of Confidential Information to Discloser or certify, in writing, the destruction thereof.

5.5. Retention of Rights. This Agreement does not transfer ownership of Confidential Information or grant a license or any other right thereto. Discloser will retain all right, title, and interest in and to all Confidential Information.

6. Intellectual Property Rights and Feedback

6.1. Intellectual Property Rights. SEW retains all right, title, and interest in and to the Non-Production Environment and any associated software of SEW acquired through applicable Order Forms, including but not limited to, the services and any upgrades, as well as any related methodologies, techniques, processes, and instruction developed by SEW and used in the course of performing the Services (collectively “SEW IP”) for Customer under this Agreement and an applicable Statement of Work. Nothing in this Agreement shall be construed to grant Customer any ownership rights, title, or interest in the Provider IP except to the extent of the limited rights specifically set forth in Section 1. Customer recognizes that the Non-Production Environment and its components are protected by copyright and other laws. Customer shall not (and shall not allow or cause any third party to) reverse engineer, disassemble, alter, or otherwise translate the Non- Production Environment, or as applicable, any production environment, or other software, documentation, services or upgrades.

6.2. Feedback. Customer hereby grants SEW a perpetual, irrevocable, unrestricted, worldwide license to use any Feedback (as defined below) Customer communicates to SEW during the Term, without compensation or any obligation to report on such use, and without any other restriction. Such rights shall include, without limitation, the right to exploit Feedback in any way and the right to grant sublicenses. Notwithstanding the provisions of Article 4 (Confidential Information). Feedback will not be considered Customer’s Confidential Information. (“Feedback” refers to any suggestion or idea for modifying any of Provider’s products or services, including all intellectual property rights therein.)

7. Warranty and Liability

7.1. DISCLAIMER OF WARRANTY. THE NON-PRODUCTION ENVIRONMENT IS PROVIDED “AS-IS,” EXCLUSIVE OF ANY

WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY,

SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR ANY OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED. SEW DOES NOT WARRANT THAT THE NON -PRODUCTION

ENVIRONMENT IS OR WILL BE ERROR- FREE, MEET ALL CUSTOMER REQUIREMENTS, OR BE TIMELY OR SECURE, OR MIRROR SERVICE LEVEL AVAILABILITY OF THE PRODUCTION ENVIRONMENT. WITHOUT LIMITING THE FOREGOING, SEW’S NON-PRODUCTION ENVIRONMENT MAY BE SUBJECT TO LIMITATIONS, DELAYS, AND OTHER PROBLEMS INHERENT TO THE USE OF THE INTERNET AND ELECTRONIC COMMUNICATIONS. SEW IS

NOT RESPONSIBLE FOR ANY DELAYS, DELIVERY FAILURES, OR OTHER DAMAGES RESULTING FROM SUCH PROBLEMS NOT CAUSED BY SEW.

7.2. LIMITATION OF LIABILITY . IN NO EVENT WILL SEW’S AND ITS LICENSORS’ TOTAL AGGREGATE LIABILITY

ARISING FROM OR RELATING TO THIS AGREEMENT EXCEED THE AMOUNT PAID FOR THE NON-PRODUCTION ENVIRONMENT UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTHS IMMEDIATELY BEFORE SUCH CLAIM AROSE. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND REGARDLESS OF WHETHER

ANY REMEDY SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE, IN NO E VENT WILL SEW OR ITS

LICENSORS BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL,

SPECIAL OR SIMILAR DAMAGES, INCLUDING WITHOUT LIMITATION, ANY LOST PROFITS, OPPORTUNITIES,

DATA, OR USE, ARISING OUT OF THE USE OR INABILITY TO USE THE NON- PRODUCTION SERVICE, EVEN IF

SEW HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR A REMEDY FAILS OF ITS ESSENTIAL PURPOSE.

8. Fees and Payment Terms

8.1. Fees for the Subscription Services shall be set forth in the attached Order Form and incorporated hereto. Customer shall be invoiced for the first-year fees upon signing of this Agreement and annually thereafter upon the anniversary date of the Effective Date for the remaining term until the fees have been paid in full. Customer agrees to make all payments to SEW within thirty (30) calendar days after receipt of invoice. Late invoices will incur a late payment fee of 1.5% or the maximum allowable under the law, whichever is less. If Customer’s account is sixty (60) days or more overdue, SEW reserves the right with prior written notice to withhold performance of its obligations under this Agreement, without liability, until suc h payments are paid in full, or to terminate for cause. Fees under this Agreement shall additionally be exclusive of all taxes, levies, or duties imposed by taxing authorities, and Customer shall be responsible for all applicable taxes, levies, or duties hereunder based on Customer’s income.

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9. Additional Terms

9.1. Independent Contractors. The Parties are independent contractors and will so represent themselves in all regards.

Neither Party is the agent of the other, and neither may make commitments on the other’s behalf.

9.2. Force Majeure. No delay, failure, or default, other than a failure to pay fees, will constitute a breach of this Agreement to the extent caused by acts of war, terrorism, earthquakes, other acts of God or of nature, strikes or labor disputes, embargoes, or other causes beyond the performing Party’s reasonable control.

9.3. Assignment & Successors . Customer may not assign this Agreement or any rights or obligations hereunder without Provider’s written consent. Except to the extent forbidden herein, this Agreement will be binding upon and inure to the benefit of the parties’ respective successors and assigns.

9.4. Severability. To the extent permitted by law, the Parties waive any provision of law that would render any clause of this Agreement invalid or unenforceable. In the event that a provision herein is held to be invalid or unenforceable, such provision will be interpreted to fulfill its intended purpose to the maximum extent permitted by law, and the remaining provisions of this Agreement will continue in full force and effect.

9.5. Choice of Law & Jurisdiction: This Agreement will be governed by the laws of the State of California, without reference to any conflicts of law principles. The Parties consent to the personal and exclusive jurisdiction of the federal and state courts of Orange County, California.

9.6. Conflicts. Should this Agreement conflict with any other agreements, this Agreement will govern.

9.7. Construction. The Parties agree that the terms of this Agreement result from negotiations between them. This Agreement will not be construed in favor of or against either party by reason of authorship.

9.8. Entire Agreeme nt. This Agreement sets forth the entire agreement of the Parties and supersedes all prior or contemporaneous writings, negotiations, and discussions with respect to its subject matter. Neither Party has relied upon any prior or contemporaneous communications.

9.9. Execution in Counterparts. This Agreement may be executed in one or more counterparts. Each counterpart will be an original, but all such counterparts will constitute a single instrument.

9.10. Modification. This Agreement may be modified from time to time by SEW, with Customer to be provided notice of no less than thirty (30) days prior to such Terms and Conditions taking effect

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Amendment 3 Appendix “3” – Max Support Plan

Subscription Order Form for SEW Max Support Plan

Between Smart Energy Systems Inc. dba Smart Energy Water 15495 Sand Canyon Ave. STE #100
Irvine, CA 92618
(“SEW”)
And City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA
(“Customer”)

1. Order Form
This Order Form, as issued by SEW, shall constitute an offer made by SEW to a Customer. When signed and returned to SEW by Customer, it shall become a binding agreement for the SEW Software or other Services listed in this Order Form and effective on the date signed by Customer. This Order Form is governed by and incorporates the Terms and Conditions attached hereto.

2. Plan Details & Fees
The table below shows the purchased Service(s) fees which shall be listed and selected by Customer below and subject to the Terms and Conditions which govern this Purchase Order.

MAX SUPPORT PLAN (MSP) STANDARD SUPPORT PLAN (SSP)
1 Production Support
a Issue Reporting
Direct Line Reporting to SEW CSM or SEW
TDM
(In addition to SSP options)
Contact SEW Support
b Issue Response Accelerated Standard
c RCA Analysis & Review Monthly RCA & Diagnostics Review with TDM Self-service via SEW Support 2 Enhanced Support
a Named Technical Delivery
Manager (TDM)  Not Included
b Accelerated Incident
Management (“AIM”)  Not Included
c End-to-end Supportability  Not Included
d Product/ Support Specialist
Services
20 Hours per Month Included
Max Rollover Hours: 40
Available at additional cost
e On Call Live Support Not Included
f Support Services Hours Not Included
3 Learning and Enablement
a Monthly Meet-the-Expert
Sessions  Not Included
b Certified Training
Customer Specific Digital Self-Service Content
Library (30 minutes) and
Quarterly 1-hour Webinar credit
Available at additional cost
Annual Fee $39,000 per year Included in License Subscription Fee

Fees as set forth herein shall be invoiced and paid on an annual basis upfront. Company agrees to make all payments to SEW within thirty (30) calendar days after receipt of invoice. Late undisputed invoices will incur a late payment fee of 1.5% or the max imum allowable under the law, whichever is less. Upon a termination for convenience by Company, SEW shall be entitled to payment of all Fees which would be due under the initial Term of this Agreement.

3. Term
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The initial term of the Max Support Services shall commence upon the April 1, 2023, and continue for a period of one (1) year.

4. Acceptance and Authorization
Customer Smart Energy Water
Signature: Signature:

Name: Name: Harman Sandhu
Title: Title: President
Effective Date: Date:

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SEW Max Support Plan Agreement

1. Introduction
This Max Support Plan Agreement, including any exhibits or attachments hereto, is made as of the Effective Date stated in the Order Form, and pertains to the Max Support Plan (“MSP”) as offered by Smart Energy Systems, Inc. dba Smart Energy Water (“SEW”) to the “Customer” or “Company”. In addition to the support services defined in SEW Standard Support & Maintenance, the MSP includes enhanced support and designated hours which are utilized by Company to obtain professional services, which may facilitate or provide enhanced services, product enhancements, customizations, and other related projects.

2. Definitions

2.1. Customer Success Manager: Refers to the individuals which both support and liaise with the Company for any Product or Support needs.

2.2. Edge Systems: Company or Third-party systems that have data integrations setup with SEW Product or Platform for Company’s specific environments.

2.3. End-to-End Supportability (“ETES”) : Refers to support for incidents that occur in integrated business scenarios consisting of SEW Platform, integration services and interfaces including middleware, Company’s network environment, and Company’s source systems.

2.4. Max Support Plan (“MSP”): Refers to the support plan and details listed herein.

2.5. Product / Support Specialist (“PSS”) Services: Refers to as a team consisting of the SEW product expert resources who are enabled to support on various technical matters, advisory or consulting topics.

2.6. Rollover Hours: Refers to unused monthly hours which roll over to the following month for use. Total accumulated Rollover Hours shall not exceed equivalent of three-month service quota hours at any point of time during the Term of this Agreement.

2.7. SEW Platform: Refers to the deployed SEW Product or Cloud Services for Company.

2.8. SEW Product and Cloud Services : Refers to SEW’s enterprise software platforms and other cloud -hosted services offered to its customers.

2.9. Support Services Quota: Refers to the quantity of hours, as stated in the Order Form, available to Company per month under this Max Support Plan to leverage such services associated under this Max Support Plan.

2.10. Technical Delivery Manager (“TDM”): Refers to a resource designated to Company to support in optimizing the delivery or execution of the MSP.

2.11. Term: Refers to the period during which the Max Support Plan subscription shall be active as stated in the Order Form.

Thereafter, unless this Agreement is earlier terminated in accordance with its terms, this Agreement will automatically renew for additional one (1) year terms (each, a “Renewal Term”, and together with the Initial Term, the “Term”), unless either party delivers to the other party written notice of non- renewal at least forty-five (45) days’ prior to the end of the then-current term. SEW shall provide an extension proposal ninety (90) days prior to the end of the term.

2.12. Trusted Custom Code: Custom software adaptors or programs developed by SEW professional services or reviewed and certified thru SEW Release Management process that are installed in the SEW Cloud environment or used in the integration/interfaces connecting SEW Platform with Company’s Edge Systems.

3. Max Support Plan

3.1. Services Scope

3.1.1 SEW Platform Management and Support
Services provided by SEW for the SCM Platform shall include:
• Service Pack/bug fixes, etc.:
o Proactive and regular monitoring for new Software Releases, Software Updates, and/or Service Packs and bug fixes, which may include minor or incremental updates as they become necessary to maintain Proper Functionality of Product, and which may address various updates, enhancements, or changes to the Product.
o Notifying COMPANY of upcoming requirements
o Testing both internally and externally all releases and updates in the Testing Environment to detect any potential or discovered impairments to the Proper user Functionality of the Product prior to implementation into Production
o Development of repair/fixes for any discovered issues o Providing Updates and Implementation Plans to COMPANY utilizing COMPANY Test environments, as timely as possible to ensure continued Proper Functionality o Providing Real-Time support to COMPANY during implementation • Continuing Service upon Release of Security Updates:
o Proactively and regularly monitoring for any new Security Updates, etc. that are required to maintain compliance with security requirements according to state, federal or international regulations, which shall be implemented on the system back-end via proper maintenance of hardware and software necessary to ensure protection of customer data, personally identifiable information, and to maintain functionality upon such releases, etc.
o Notifying COMPANY of upcoming requirements
o Validating Security Updates prior to the third Tuesday of each month to correspond with COMPANY policy of applying security updates as they are provided by Microsoft o Reporting to COMPANY any identified issues, and advise whether or not to implement the Security Update
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o Providing an implementation plan (if implementation is recommended by SEW), which shall include any instructions required for remedy of any issues identified during Security Update validation o Providing Real-Time support to COMPANY during implementation

3.1.2 Mobile Application Management and Support
Services provided by SEW for the Mobile Application shall include:
• Operating System Updates
o Proactively and regularly monitoring for new bug fixes, security updates, enhancements, and support for updated Operating Systems or Platform support as defined above o Proactively detecting and repairing or providing fixes for any potential or discovered impairments to the Proper Functionality of the Mobile Application
o Notifying COMPANY of any upcoming changes
o Testing prior to the launch of any new version of either Apples’ iOS or Google’s Android operating systems, in which SEW shall perform beta testing both internally and externally with a select number of users, as well as testing of run-time, use, and interactions, within an artificial testing environment, to identify any issues, bugs, or defects, which shall be addressed prior to release or launch of the latest versions as described above.
o Providing Updates and Implementation Plans to COMPANY, as timely as possible to ensure continued Proper Functionality
o Providing Real-Time support to COMPANY during implementation • Mobile App Store Functionality Management and Support o Apple iTunes App Store Maintenance, which shall include maintenance of the developer account, XCode development environment, developer certificates, product certificates, and availability of the application in the iTunes App Store. Maintenance of the Application within the Apple iTunes environment shall include internal testing prior to any software Release or Software Update, in which SEW, whether to address the release of a new version of iOS, or to roll out SEW’s own updates to its services, shall conduct testing of all functionality related to the Services within an artificial testing environment over a sufficient period of time with a sufficient number of users, prior to such Software Update or Release.
o Google Play Store Maintenance, which shall include maintenance of the Google Developer Account, Android Studio Repository, and availability of the applications in the Google Play Store. Maintenance of the Application within the Google Play Store environment shall include internal testing prior to any Software Release or Software Update, in which SEW, whether to address the release of a new version of Android, or to roll out SEW’s own updates to its services, shall conduct testing of all functionality related to the Services within an artificial testing environment over a sufficient period of time with a sufficient number of users, prior to such Software Update or Release. o Notifying Company of any upcoming changes and/or issues o SEW shall not release subsequent versions of the mobile app to the public without Company approval.

3.1.3 Incident Support
Services provided by SEW for Reported Incidents shall be governed by the existing SEW Standard Support Terms in place.

3.2. Enhanced Support Services
The MSP enhances the Company experience using SEW Product and Cloud Services through the included Enhanced Support Services and the included Support Services Quota hours. The following Enhanced Support Services are provided as core services within the MSP and have no impact on the Support Services Quota hours consumption.

3.2.1. Accelerated Incident Management (“AIM”) for Critical Incidents Services The TDM provides: (i) incident activity and status monitoring for Critical classified incidents; (ii) trend reporting of Company’s incident situation on all incident priorities of selected systems; (iii) incident management process empowerment session(s); and (iv) periodic remote meetings with Company to review the status of Company incidents.

In addition, SEW will make available a critical situation manager within SEW’s support organization to remotely coordinate and/or assist a Company designated management contact (“Customer Contact”) with Critical classified incidents. Assignment of a critical situation manager will occur within one (1) hour following Company’s request documented in an incident support ticket. The critical situation manager will be available to Company’s Contact and will remain engaged until the earliest of the following: (i) resolution or workaround of the Critical classified incident; (ii) reduction of the incident priority level to a priority level other than Critical classified incidents; or (iii) agreement of the parties to disengage the assigned critical situation manager.

Company will designate at least one (1) and can designate up to three (3) qualified English-speaking contacts (“Company AIM Contact(s)”) and shall provide contact details (in particular, e- mail address and telephone number) by means of which the Company AIM Contact can be contacted.

As preparation for delivery of AIM Services, Company’s AIM Contacts and the assigned TDM will jointly perform one (1) initial remote set-up meeting.

3.2.2. End-to-end Supportability (“ETES”) Services
The ETES service expands the scope of troubleshooting and support services from just the SEW Platform to include the Trusted Custom Code and Edge System integrations/interfaces. Scope of implementation for fixes, enhancements, security updates, software releases, and software updates (service packs), etc. into Company’s non-production and production environments shall be limited to the SEW Platform only. The ETES service does not include any remediation or implementation for non- SEW software or technology products.

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To deliver this service, Company shall provide SEW with administrator access to Company’s development and test environments for purposes of Management and Support of Product. Company will provide SEW with read-only access to Company’s UAT and production environments.

ETES service is limited to Trusted Custom Code or customer specific integrat ion services or interfaces deployed in production environment to connect SEW platform with Company’s Edge Systems.

ETES services include the support for following activities:
• Third Party Vendor support and troubleshooting services • Participate in impact testing for Edge Systems for migration of SEW software service packs and updates • Audit and testing support
• On demand certified administrative support
For Company Trusted Custom Code, SEW provides mission-critical support root-cause analysis and may provide guidance for incident resolution, for Critical incidents related to the Company installations. The scope of this service is limited to identifying possible root causes for the incident and/or failure of Company’s Trusted Custom Code. SEW’s root cause analysis for Trusted Custom Code does not include providing corrections; work arounds; or incident resolution for Third Party technology or Edge Systems regardless of who created Company’s Trusted Custom Code.

3.2.3. Monitor Services
The Monitor services include proactive monitoring of the SCM (Smart Customer Mobile) Customer Web Portal and Mobile Apps including both the technical metrics as well as the customer or user feedback on continuous basis as reported via various channels.

3.2.4. Report Services
The scope of services shall include tracking and reporting of the application status, support tickets, and overall health of the service. With this service the Company shall be able to view monthly, quarterly, and yearly trends. The reports will be shared with the Company month ly. Together with SEW, the Company’s designated personnel will be able to review and improve the customer journey, identify the customer pain points, and understand their behavior.

A root cause analysis may be performed and provided to detail the facts or issues leading up to the submission of an incident and the steps taken to resolve such issues. If a detailed root cause analysis is deemed to be required in accordance with the Standard Support Plan, for Critical and High priority issues, (and for Medium and Low priority issues as agreed by the parties), it shall be provided within fourteen (14) days after incident closure.

Specifically, the activities under this Report Services include:
• Weekly reporting on incident resolution
• Monthly management level status reporting
• Root Cause Analysis review for key issues
• Monthly Support Services Quota report detailing hours consumed and hours remaining inclusive of Rollover Hours

3.3. Support Services Quota
SEW will provide designated Support Services Quota hours and personnel to facilitate or provide enhanced services, product enhancements, customizations, and other related projects to fulfill the requirements of the MSP. The resource time to provide these services shall be charged against the Support Services Quota hours.

The Company shall have Support Services Quota as stated in the Order Form. Such hours for Support Services expended in any given calendar month shall be requested using a Services Request form, attached below as Attachment A which will be reported as hours consumed in the monthly Support Services Quota Services report which will then be reviewed with the Company. For TDM Services, these hours will be reported as consumed in the monthly Support Services Quota Services report which will then be reviewed with the Company.

3.3.1. Software Enhancement Services
Company can request enhancements to the SEW software and SEW shall prioritize such requests. To the extent the enhancements are not planned in the software roadmap, such enhancements will be delivered as a Company Change Request using the Company Change Request template in Appendix A. In- Scope Services include Product Engineering and development, Quality Assurance, Cloud Engineering and other services necessary to deliver agreed upon software enhancement as documented, estimated and agreed upon in Service Request.

3.3.2. Technical Delivery Manager (“TDM”) Services
SEW will provide access to an English speaking named contact within SEW’s support organization between 8:30 am to 5:30 pm local time, Monday through Friday, unless otherwise agreed to in writing by the parties, to support Company in optimizing the proce ssing of Company Change Requests, Product / Support Specialist (“PSS”) Services and incidents as defined in this MSP.

The assignment of the TDM will occur within two (2) weeks of execution of this Agreement.

In-Scope Services:
• Lead requirement and design sessions required to support Software Enhancement Services • Serve as project manager and technical liaison to Company for Software Enhancement Services • Lead troubleshooting and incident management related activities under scope of this agreement. • Provide advice, guidance, and assistance to Company with agreed to focus areas:
o SEW support requirements, Company support processes and use of SEW support tools o Integrated end-to-end application lifecycle management o Integration validation of complex Company solutions
o Operate the SEW solution more efficiently
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o Accelerated innovation for custom built solutions and rapid prototyping o Solution availability management, monitoring and performance o Risk mitigation plan(s) for critical maintenance issues or Incident reduction and/or avoidance • Track Company’s implementation of SEW’s recommendations and action plans resulting from the delivery of Product Specialist Services defined below
• Provide periodic status and risk reporting at Company’s project management level • Manage quality gates for selected focus area projects

3.3.3. Product / Support Specialist (“PSS”) Services
As a part of the MSP, the Company shall have access to SEW Product and support experts, from whom you can request support on various technical matters, advisory or consulting topics. The Company may contact their TDM or Customer Success Manager to request PSS Services under this section using the Service Request Form in Appendix A. Such specialist resources shall be available virtually or at the Company location(s) during Normal Business Hours for the time period or date as requested and approved.

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Amendment 3 Appendix 3-A
Service Request Form
Client Name COMPANY NAME
Change Summary DESCRIPTION OF SERVICES REQUIRED
Software SCM

CR ID JIRA NUMBER
Contract ID LEGAL TO FILL
Change Request Details
Pursuant to the SEW Max Support Plan Agreement executed between Smart Energy Water (“SEW”) and COMPANY NAME (“Company”), Company would like to:
• [ENTER BRIEF OVERVIEW HERE]

Recommended Solution
<ENTER DETAILED SOLUTION AND EFFORT. E.G. ADDING NEW MODULES, ADD REQUESTED FUNCTIONALITY THROUGH SOFTWARE CUSTOMIZATION, ADDITIONAL LICENSES, ETC. >
Type of Change ☐ Additional Modules ☐ Customization ☐ Additional Licenses ☐ Additional Services ☐ System Integration Implementation
Priority ☐ Critical ☐ High ☐ Normal ☐ Low Fees and Payment Terms
Total Hours Hours
Payment Terms
• The compensation for the work effort under this request shall be adjusted against the Support Services Quota hours as stated in the active Max Support Plan. In case the Company has exhausted the hours available in the plan the fees shall be invoiced at an hourly services rate. • Payment will be due net-30 days from receipt of invoice by Company. • Late Payment penalties are applicable in accordance with the terms of the SEW Max Support Plan Agreement.
• This Change Request shall result in the allocation and dedication of resources for the commencement and delivery of the change(s) or solution(s) described above. Therefore, any delay in schedules by Company may adversely affect the timely delivery of this and other Change Requests and incur additional charges.

Acceptance and Authorization
Requested By: Company Accepted By: SEW
Name: Signature:

Title: Name:

Date: Date:

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Certificate Of Completion
Envelope Id: 435B801A317547B6B54CFDB0D207799F
Status: Completed
Subject: Complete with DocuSign: S18165157 Amendment No. 3 final.pdf Source Envelope:

Document Pages: 31
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Envelope Originator:

Certificate Pages: 2
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Annmarie Romero
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 199.33.32.254
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEM
Lead Department: Planning and Development Services
Meeting Date: May 1, 2023
Report #:2302-0980

TITLE
Adoption of the Community Development Block Grant (CDBG) FY 2023-24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023-24

RECOMMENDATION
The Human Relations Commission (HRC) and staff recommend City Council take the following actions:

1. Adopt the draft Fiscal Year 2023-2024 Annual Action Plan (Attachment A) and the associated resolution (Attachment B) allocating Community Development Block Grant (CDBG) funding for Fiscal Year 2023-24;

2. Authorize the City Manager to execute the Fiscal Year 2023-24 CDBG application to fund the Fiscal Year 2023-24 Annual Action Plan and any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; and

3. Authorize staff to submit the Fiscal Year 2023-24 Annual Action Plan (Attachment A) to U.S. Department of Housing and Urban Development (HUD) by the May 15, 2023, deadline.

EXECUTIVE SUMMARY
The City is preparing for its first year of a two-year CDBG funding cycle for FY 2024. On February 9, 2023, the HRC reviewed the eligible programs and recommended the funding allocations for each project as reflected in the draft FY 2024 Annual Action Plan (AAP; Attachment A). Staff requests that Council review the draft FY 2024 AAP and approve the recommended funding allocations identified in the document. Council’s approval of the AAP will be recorded by Resolution (Attachment B).

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The CDBG federal appropriations for FY 2024 were released by the U.S. Department of Housing and Urban Development (HUD) on February 27, 2023. The total amount available for allocation in FY 2024 is $614,242, which includes the City’s entitlement grant ($514,242) and estimated program income ($100,000). These funds have been allocated to fund nine programs and projects as well as the program administration. Please see Table 3 for a summary of the projects and respective allocations.

BACKGROUND
The CDBG program, administered by HUD, provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974. The HUD regulations require all CDBG-funded activities to meet one of the three national objectives:

1. Benefit low-and very-low-income persons;

2. Aid in the prevention or elimination of slums or blight; or

3. Meet other community development needs having urgency or posing a serious and immediate threat to the health or welfare of the community.

For general information on the CDBG program, please visit:
https://www.hudexchange.info/programs/cdbg-entitlement/. Palo Alto’s CDBG program has primarily been focused on meeting the first objective of benefiting low-and very-low-income persons.

Consolidated Plan & Annual Action Plan
HUD requirements include the preparation of a five-year strategic plan of action, referred to as a Consolidated Plan. This plan addresses priority housing and community development needs and sets goals for attaining identified objectives. Currently, Palo Alto’s CDBG program is guided by the 2020-2025 Consolidated Plan1 adopted by Council in 2020. Every year, an AAP is prepared to identify the specific projects to be funded by the CDBG program; these projects must further the implementation of the Consolidated Plan strategies. As Council reviews the proposed projects and recommends funding allocations, consistency with the Consolidated Plan goals is a primary consideration.

FY 2024 Application Review Process
Funding applications for “Public Services, Housing, Economic Development and Public Facilities Rehabilitation” projects were made available on October 21, 2022. A notice of CDBG funding availability was published in the Palo Alto Weekly on October 21, 2022, with completed 1 2020-2025 Consolidated Plan:
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applications due November 29, 2022. A pre-proposal conference was conducted on November 10, 2022 to assist applicants with program regulations and project eligibility questions. For FY 2024, the City received applications from two agencies (Peninsula Healthcare Connection & WeeCare) that have not been previously funded by the City’s CDBG program.

For any new applications, the initial step in the review process is the determination that the applications are compliant with HUD’s eligible activities2 and National Objectives. 3 This process involves staff reviewing the application materials and communicating with the applicant as needed to clarify details in the application.

For FY 2024 (year one of funding cycle), the City received nine funding applications in addition to funding a public facilities project. These applications were reviewed on December 23, 2022 by the HRC Selection Committee. The committee made the initial project funding recommendations for eight of the nine applications to the full HRC. At the public hearing on February 9, 2023, HRC made the funding recommendations reflected in the draft AAP for Council consideration. Once adopted, the AAP will be submitted to HUD by the deadline (May 15, 2023) as the last step in the process.

Annual Action Plan (AAP) Citizen Participation
As per HUD’s regulations and the City’s adopted Citizen Participation Plan4, the City must ensure adequate citizen participation in the CDBG funding process. Prior to the submission of the AAP to HUD, the City must hold two public hearings; one hearing, followed by a 30-day circulation and public comment period, followed by one more public hearing. Refer to the Stakeholder Engagement report section below for specific details on required meetings and comment periods.

HRC Review - Recommended Allocation for FY 2024
When the HRC reviewed the allocations on February 9, 2023, the CDBG federal appropriations for FY 2024 was not known. For budgeting purposes, staff estimated the City’s HUD Entitlement Grant for FY 2024 based on an 8% reduction from the previous year’s entitlement grant. The estimated total amount available for allocation in FY 2023-24 is $610,000, which includes the estimated entitlement grant ($510,000) and program income ($100,000). 2 CDBG Matrix Codes:
https://files.hudexchange.info/resources/documents/Matrix-Code-Definitions.pdf 3 CDBG National Objectives:
https://www.hudexchange.info/sites/onecpd/assets/File/CDBG-National-Objectives-Eligible-Activities-Chapter-

3.pdf
4Citizen Participation Plan 2022:
https://www.cityofpaloalto.org/files/assets/public/planning-amp-development-services/cdbg-general- information/plans-and-reports/amended-citizen-participation-plan-2022-approved-by-city-council-9-12-22- final.pdf
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On February 9, 2023, the HRC considered the funding recommendations of the HRC Selection Committee and voted unanimously to recommend Council approve the draft FY 2024 AAP. The HRC discussed the estimated funding allocations based on program budget, availability of additional resources, the federal spending caps, and total available CDBG funds. The HRC inquired about WeeCare, one of the new program applicants in the economic development funding category. A representative of WeeCare described how the company would be using CDBG funds and activity eligibility.

Additionally, since the City’s CDBG grant amount was not known at the time, the HRC recommended a funding contingency plan as follows:
•If more funds are received than estimated, allocate additional funds to the LifeMoves program; and
•If less funds are received than estimated, evenly reduce all programs.

Since the City received $4,242 more than what was estimated for the entitlement grant, staff adjusted the allocation amounts based on funding caps and the HRC’s contingency plan above.

DISCUSSION
This section includes information on the CDBG funds available for allocation and funding categories for FY 2023-24 funding cycle. The final funding recommendations are documented in the AAP that is required to be submitted to HUD.

Funds Available for Allocation for FY 2024
The CDBG federal appropriations for FY 2024 was received on February 27, 2023. The total amount available for allocation in FY 2024 is $614,242, which includes the entitlement grant and estimated program income, as summarized below in Table 1. This amount is $4,242 more than esimated. The recommended allocations continue to address the preservation of affordable housing, housing-insecure individuals and households, strengthen neighborhoods, fair housing, and economic development.

Table 1: FY 2024 CDBG Funding Summary
FY 2023-2024 Entitlement Grant $514,242
Estimated Program Income in FY 2023-24 from Alta Housing generated from loan repayments and rental income in excess of expenses on specific properties acquired or rehabilitate with CDBG funds $100,000
Total Available for Allocations $614,242
CDBG Funding Categories and Funding Applications
The CDBG program has five primary activity areas to allocate funds to: (1) Public Services, (2) Planning and Administration, (3) Economic Development (4) Housing Rehabilitation, and (5) Item 10
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Public Facility Improvements. Federal regulations limit the amount that can be spent on two categories: planning and administration and public services. No more than 20% of the City’s entitlement grant and estimated program income for the following year can be spent on planning and administration. Similarly, there is a maximum spending cap of 15% of the grant allocation and 15% of any program income received during the previous fiscal year on the public services category. The amount available to allocate in each of the activity area is summarized below in Table 2.

Table 2: FY 2024 CDBG Funding Categories and Allocation Amounts Funding Categories Allowed Allocations
Public Services (15% cap) $92,136
Planning and Administration (20% cap) $122,848
Economic Development, Housing Rehabilitation, and Public Improvements and Facilities (un-capped) $399,258
Total Available for Allocation $614,242
“Planning and Administration” Funding Category
As of November 2021, the City has been primarily relying on consultant services to administer the CDBG program. The City is currently in the process of reviewing proposals to secure a new contract for consultant assistance for CDBG program management by July 2023. With the use of consultants, sufficient CDBG budget must be set aside to cover the program administration and, therefore, 100% of the administration funds is recommended to be set aside for this purpose.

Allocations
There are 10 activities recommended for FY 2024 allocations that are summarized below in Table

3. Detailed descriptions of the funding recommendations and agencies are provided in Attachment A.

Table 3: FY 2024 Summary of Applications and Funding Recommendations Agency/Program Name
FY 2023
Funded
Amount
Recommended
FY 2024
Amount
Public Services (15% Cap = $92,136)
Alta Housing – SRO Resident Supportive Care $20,113 $14,000 Catholic Charities of Santa Clara County - Long Term Care Ombudsman Program
$10,000 $10,000
LifeMoves – Case Management at Opportunity Center $23,616 $23,636 Peninsula Healthcare Connection (PHC) - Harm Reduction
Materials
n/a $10,000
Silicon Valley Independent Living Center (SVILC) – Case Management Services
$14,021 $16,500
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Project Sentinel - Fair Housing Services $23,615 $18,000 Subtotal $92,136
Economic Development (No Cap)
WeeCare - Training for Family Child Care Home (FCCH) n/a $114,000 Subtotal $114,000
Housing (No Cap)
Rebuilding Together Peninsula – Home Repair Program $73,135 $73,585 Subtotal $73,585
Public Facilities (No Cap)
City of Palo Alto Sidewalk Repairs Capital Project (PO-89003) n/a* $211,673 Subtotal $211,673
Planning & Administration (20% Cap = $122,848)
City of Palo Alto/CDBG Administation $121,816 $122,848
Subtotal $122,848
GRAND TOTAL $614,242
*This project received $300,000 in FY 2023 via a Substantial Amendment to the FY 2021-2022 action plan (CMR 2302-0991), which reallocated funding from the Ravenswood Family Health Network ADA ramp improvements project.

Downtown Streets Team: Workforce Development Program
The Downtown Streets Team (DST) was one of the nine applications submitted for FY 2024 funding with a request of $278,174.5 The HRC did not recommend funding for this project.

Due to the more recent circumstances regarding DST’s Community Business Development Organization (CBDO) status, DST is not eligible to be funded under the Economic Development uncapped funding category; historically, this was how CDBG funded the program. DST could be eligible for funding under the Public Services category where six other applications were considered. The City recognizes the valuable contribution DST provides to the community, but the HRC did not recommend funding the program this year. The DST funding request exceeded the total amount available to allocate under Public Services and diverted funds away from the other programs, potentially impacting the assistance to several hundred City residents in need.

As the City continues to evaluate the transition of Downtown Streets Team, staff will include funding for this program in the FY 2024 proposed budget for City Council consideration. 5 DST: The project activities included securing paid employment opportunities for unemployed and homeless individuals and building an extensive network of local employers willing to hire Downtown Streets Team workforce development program participants. Goal: assist 44 individuals and 15 businesses.

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POLICY IMPLICATIONS
The projects recommended for funding for the FY 2024 AAP are consistent with the priorities established in the City’s adopted FY 2020-2025 Consolidated Plan.

FISCAL/RESOURCE IMPACT
As per HUD’s regulations, up to 20% of the total CDBG funding can be used for the CDBG program administration. The City relies on the annual grant funding to support the program administration. These funds are needed to pay for consultant services to manage the program.

There are no anticipated impacts to the General Fund budget with the requested action.

TIMELINE
The funding recommendations made by the Council will be incorporated into the FY 2024 AAP.

Subsequently, the adopted FY 2024 AAP will be submitted to HUD by the May 15, 2023 deadline. The consequence of submitting the AAP late to HUD is a delay in City receiving funds for reimbursement to the programs.

STAKEHOLDER ENGAGEMENT
Prior to the submission of the FY 2024 AAP to HUD, the City must hold two public hearings; one hearing, followed by a 30-day circulation and public comment period, followed by one more public hearing.

The HRC meeting on February 9, 2023, served as the first public hearing, the City published a notice of the HRC meeting on January 25, 2023 in the Daily Post; this constituted the required 14-day public review period prior to first public hearing.

After the presentation of the draft FY 2024 AAP to the HRC, the FY 2024 AAP was posted to the City’s webpage for public review and comments for are required 30-day period that began on March 28, 2023 through April 27, 2023; information was also posted on the City’s CDBG webpage and via email blasts to stakeholders. At the time of this report, staff did not receive any public comments on the draft AAP.

The public Council meeting on May 1, 2023 will serve as the second public hearing to review and approve the FY 2024 AAP. The City published a public notice of the Council public hearing on March 27, 2023 advertised in the Daily Post. This advertisement complies with the City’s required 14-day public notice period prior to the second public hearing.

ENVIRONMENTAL REVIEW
For purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), budgeting by itself is not a project. Prior to commitment or release of funds for each of the proposed projects, staff will carry out the required environmental reviews or Item 10
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assessments and certify that the review procedures under CEQA, HUD and NEPA regulations have been satisfied for each project.

ATTACHMENTS
Attachment A: FY 2023-24 Draft Palo Alto Annual Action Plan Attachment B: FY 2023-24 Draft CDBG Resolution
APPROVED BY:

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ANNUAL ACTION PLAN

FISCAL YEAR 2023-2024
DRAFT

ADMINISTERED BY: PLANNING AND DEVELOPMENT SERVICES
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Table of Contents
Executive Summary 3
AP-05 Executive Summary - 91.200(c), 91.220(b) 3
Introduction 3
The Process 6
PR-05 Lead and Responsible Agencies - 91.200(b) 6
AP-10 Consultation - 91.100, 91.110, 91.200(b), 91.300(b), 91.215(l) and 91.315(I) 7 AP-12 Citizen Participation - 91.105, 91.115, 91.200(c) and 91.300(c) 17 Expected Resources 20
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) 20 Annual Goals and Objectives 23
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3) and(e) 23 Goals Summary Information – FY2023-24 23
AP-35 Projects - 91.420, 91.220(d) 25
Introduction 25
AP-38 Project Summary 26
AP-50 Geographic Distribution - 91.420, 91.220(f) 33
AP-75 Barriers to affordable housing -91.420, 91.220(j) 34 AP-85 Other Actions - 91.420, 91.220(k) 36
Program Specific Requirements 39
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) 39 APPENDIX A 40
PUBLIC COMMENTS 40
APPENDIX B 41
PUBLIC HEARING NOTIFICATIONS 41
APPENDIX C 45
CDBG APPLICATION FORMS 45

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Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
Introduction
The City of Palo Alto (City) Fiscal Year (FY) 2023 -24 One Year Action Plan contains the City’s one - year plan to carry out housing and community development activities funded by Federal formula grant funds received from the U.S. Department of Housing and Urban Development (HUD), Community Development Block Grant (CDBG) program. The City operates on a two-year grant funding cycle for CDBG public service grants and a one -year cycle for CDBG capital hous ing rehabilitation and public facilities and improvement projects. This Action Plan covers the fourth of five program years covered by the City’s 2020-2025 Consolidated Plan which was adopted by the Palo Alto City Council on June 15, 2020.

The Department of Planning and Development Services is the lead agency for the Consolidated Plan and submits the Annual Action Plan for the City’s CDBG program. HUD requires entitlement jurisdictions to submit an annual Action Plan to report the distribution of federal entitlement grant funds over the Consolidated Plan’s five-year period identifying how funding allocations help meet the goals covered in the Consolidated Plan.

The CDBG federal appropriations for FY2023-24 were released by HUD on February 27, 2023 and the City received $514,242 for CDBG programming. With the entitlement grant and $100,000 in estimated project income, the total of available for funding projects and programs during FY2023-24 is $614,242.

The City’s Action Plan covers the time period from July 1, 202 3, to June 30, 2024 , (HUD Program Year 2023). The City’s FY 202 3-24 Action Plan reports on the status of needs and outcomes the City expects to achieve in the coming year . All of the activities mentioned in this Action Plan are based on current priorities. By addressing these priorities, the City hopes to meet those objectives stated in the 2020-2025 Consolidated Plan. All the proposed projects and activities are intended to principally benefit residents of the City who have extremely low-, low- and moderate- income, and populations that have special needs, such as the elderly, disabled, and homeless.

Summary of the objectives and outcomes identified in the Plan The City is part of the San Francisco Metropolitan Bay Area, located 35 miles south of San Francisco and 14 miles north of San José. The City is located within the County of Santa Clara, borders San Mateo County, and encompasses an area of approximately 26 square miles, one-third of which consists of open space1.

________________________

1 U.S. Census Bureau: https://www.census.gov/quickfacts/fact/table/paloaltocity According to Quick facts data provided by the U.S. Census Bureau1, the City's total resident population is 66,680, per the Census on July 1, 2022. The City has the most educated residents in the country and is

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one of the most expensive cities to live in. In Silicon Valley, the City is considered a central economic focal point and is home to over 9,483 businesses.

Additionally, according to the 20 22 Point in Time Homeless Census 2, in Palo Alto , there were 299 unsheltered homeless in 2019 and 263 in 2022. The PIT count revealed there were 14 individuals sheltered in 2019 and 11 in 2022. This number represents decrease of 12% from 2019 to 2022.

The Action Plan provides a summary of how the City will utilize its CDBG allocation to meet the needs of the City’s lower-income population. According to the U.S. C ensus data, 6.1% of all residents within the City had incomes below the federal poverty level. As mentioned previously, a total of $614,242 is available for funding projects and programs during FY2023 -24. In FY 202 3-202 4, the City was allocated $514,242 from the federal CDBG program plus an additional $ 100,000 in program income.

Table 1, “Fiscal Year 2023-2024 CDBG Budget” below summarizes the uses of the funds proposed during FY 2023-24.

Table 1: Fiscal Year 2023-2024 CDBG Budget
Applicant Agency Allocation
Public Services
Alta Housing - SRO Resident Supportive Services $14,000 Catholic Charities of Santa Clara County – Long Term Care Ombudsman $10,000 LifeMoves – Case Management at Opportunity Center $23,636 Silicon Valley Independent Living Center – Case Management Services $16,500 Project Sentinel – Fair Housing Services $18,000
Peninsula Healthcare Connection – Harm Reduction Services $10,000 Sub-total $92,136
Planning and Administration
City of Palo Alto Administration $122,848
Public Facilities
ADA curb ramp project $211,673
Economic Development
WeeCare $114,000
Housing
Rebuilding Together Peninsula $73,585

GRAND TOTAL $614,242

Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee (the City) to choose its goals or projects.

2 Santa Clara County Point-in-Time Report on Homelessness: 2022 PIT Report Santa Clara County.pdf (sccgov.org)

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The City is responsible for ensuring compliance with all rules and regulations associated with the CDBG entitlement grant program. The City’s Annual Action Plans and Consolidated Annual Performance and Evaluation Reports (CAPER) have provided many details about the goals, projects, and programs completed by the City. A review of the FY 2021-22 CAPERs reveals:
• LMI elderly were assisted: 262
• Residents that received counseling services: 151
• Homeless individuals received shelter: 56
• Individual that received housing complaint services: 24 • Persons with disabilities receiving assistance: 26
• LMI homeowners receiving home improvements: 6
• Workforce development program assistance: 14 employers and 7 individuals

The City evaluates the performance of subrecipients on a semiannual basis. Subrecip ients are required to submit semiannual progress reports, which include client data, performance objectives, as well as data on outcome measures. Prior to the start of the program year, program objectives are developed collaboratively by the subrecipient and the City, ensuring that they are aligned with the City's overall goals and strategies. The City utilizes the semiannual reports to review progress towards annual goals.

Summary of citizen participation process and consultation process The City solicited input throughout the development of the FY 2023 -24 Annual Action Plan. As required by HUD, the City provides multiple opportunities for public review and comment on the Action Plan and on any substantial amendments to it. Per the City’s adopted Citizen Participation Plan, the City held a 30-day public review comment period for the Action Plan. The City published notifications of upcoming public hearings and the 30-day public review comment period in a local newspaper of general circulation, on the City’s CDBG webpage and via email blasts to stakeholders. The City held two advertised public hearings on February 9, 2023, and May 1, 2023. The Action Plan 30-day public review period occurred from March 28, 2023, through April 27, 2023.

Summary of public comments [To be updated after close of comment period] There were no public comments received during the public review period.

Summary of comments or views not accepted and the reasons for not accepting them [To be updated after close of comment period]
There were no public comments received during the public review period. The City accepts and responds to all comments that are submitted. As mentioned above, no public comments were received regarding the FY2023-24 Action Plan.

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The Process
PR-05 Lead and Responsible Agencies - 91.200(b)
Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Table 2: Responsible Agencies
Agency Role Name Department/Agency
CDBG Administrator Palo Alto City of Palo Alto: Department of Planning and Development
Services

Narrative
The City is the Lead and Responsible Agency for the United States Department of Housing and Urban Development’s (HUD) entitlement programs in Palo Alto. The Department of Planning and Development Services is responsible for administering the City’s CDBG program. The City joined the HOME Consortium in 2015 and receives federal HOME Investment Partnership (HOME) funds through the County.

Entitlement jurisdictions receive entitlement funding (i.e., non-competitive, formula funds) from HUD. HUD requires the City to submit a five-year Consolidated Plan and Annual Action Plan to HUD listing priorities and strategies for the use of its federal funds.

The Consolidated Plan helps local jurisdictions to assess their affordable housing and community development needs and market conditions. As a part of the Consolidated Plan process for 2020-2025, the City collaborated with the County of Santa Clara (County) as the Urban County (representing the cities of Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, and Sarato ga); the cities of Cupertino, Gilroy, Mountain View, Sunnyvale, San José, and Santa Clara; and the Santa Clara County Housing Authority (SCCHA) to identify and prioritize housing and community development needs across the region, and to develop strategies to meet those needs. The FY 2023-24 Annual Action Plan represents the fourth year of CDBG funding of the 2020 -2025 Consolidated Plan.

Consolidated Plan Public Contact Information
Clare Campbell, Manager of Long Range Planning
City of Palo Alto
Department of Planning and Development Services
250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
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AP-10 Consultation - 91.100, 91.110, 91.200(b), 91.300(b), 91.215(l) and 91.315(I) Introduction
The Action Plan is a one-year plan which describes the eligible programs, projects, and activities to be undertaken with funds expected during FY 2023-24 and their relationship to the priority housing, homeless, and community development needs outlined in the 2020-25 Consolidated Plan.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health, and service agencies (91.215(I)).

During Fiscal Year 2023-24, the City will continue to work with non-profit organizations to provide programs and services for low -income households; private industry, including financial and housing development groups, to encourage the development of affordable housing opportunities regionally and within the City; and other local jurisdictions, including the County of Santa Clara, in carrying out and monitoring regional projects in a coordinated and cost-effective manner. The City will provide technical assistance to the public service agencies it funds with CDBG dollars and will continue to attend the Regional CDBG/Housing Coordinators meetings.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless perso ns (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The Santa Clara County Office of Supportive Housing is the administrator of the regional Continuum of Care (CoC).

The City’s Office of Human Services Manager is in contact with the Santa Clara County Office of Supportive Housing and Destination Home regarding issues of homelessness in the community. The Santa Clara County CoC is a group comprising of stakeholders throughout the County, including governmental agencies, homeless service and shelter providers, homeless population, housing advocates, affordable housing developers, and various private parties, including businesses and foundations.

City staff continues to attend regular CDBG/housing coordinator meeting. Members of the CoC meet monthly to plan CoC programs, identify gaps in homeless services, establish funding priorities, and pursue a systematic approach to addressing homelessness.

The CoC is governed by the CoC Board, which takes a systems -change approach to preventing and ending homelessness. This same CoC Board is comprised of the same individuals who serve on the Destination: Home (Destination Home) Leadership Board . Destination Home is a public -private partnership that is committed to collective impact strategies to end chronic homelessness.

Regional efforts of the CoC include the development of The Community Plan to End Homelessness, which identifies strategies to address the needs of people experiencing homelessness in the County, including chronically homeless individuals and families, families with children, veterans, and unaccompanied youth. The plan also addresses the needs of persons at risk of homelessness. The new community plan to end homelessness can be viewed at https://destinationhomesv.org/community-plan.

Also, during the development of the 2020-25 Consolidated Plan, the City consulted both the CoC and County Office of Supportive Housing for their expertise and experience in identifying community needs.

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Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies, and procedures for the administration of HMIS.

The City is not an ESG entitlement jurisdiction and therefore does not receive ESG funds. However, the City does administer federal grant programs that help homeless and low-income families in Santa Clara County. The City also helps fund and conduct the Point in Time (PIT) count, the biennial regional collaborative effort to count and survey people experiencing homelessness. The data from the County of Santa Clara PIT count is used to plan, fund, and implement actions for reducing chronic homelessness and circumstances that bring about homelessness. In 2023 the PIT count was conducted on January 26.

The Santa Clara County Office of Supportive Services takes the role of Homeless Management Information System (HMIS) administration. The County, and its consultant Bitfocus, work jointly to operate and oversee HMIS. Both software and HMIS system administration are now provided by Bitfocus. Funding for HMIS in Santa Clara County comes from HUD, the County of Santa Clara, and the City of San Jose. The County’s HMIS is used by many City service providers across the region to record information and report outcomes.

Describe Agencies, groups, organizations, and others who participated in the Consolidated Planning process and describe the jurisdictions consultations with housing, social service agencies and other entities Table 3: Agencies, Groups, and Organizations Who Participated 1 Agency/Group/Organization Boys and Girls Clubs of Silicon Valley Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Santa Clara focus group
meeting on 11/7/19 as part of the 2020-25
Consolidated Plan process.
2 Agency/Group/Organization Healthier Kids Foundation Santa Clara County Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Santa Clara focus group
meeting on 11/7/19 as part of the 2020-25
Consolidated Plan process

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3 Agency/Group/Organization Community Services Agency
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation
conference call on 11/15/19 as part of the
2020-25 Consolidated Plan process
4 Agency/Group/Organization San Jose Conservation Corps Charter Agency/Group/Organization Type Services-Education
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Gilroy focus group meeting
on 11/18/19 as part of the 2020- 25
Consolidated Plan process
5 Agency/Group/Organization CommUniverCity San Jose
Agency/Group/Organization Type Services-Education
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation
conference call on 11/25/19 and regional forum
meeting in San Jose on 11/20/19 as part of the
2020-25 Consolidated Plan process.
6 Agency/Group/Organization The Health Trust
Agency/Group/Organization Type Services-Persons with Disabilities Services-Persons with HIV/AIDS
Services-Health
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation on
11/21/19 as part of the 2020-25 Consolidated
Plan process
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7 Agency/Group/Organization Rebuilding Together, Silicon Valley Agency/Group/Organization Type Housing
What section of the Plan was addressed by
Consultation?
Strategic plan and needs assessment
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation
conference call on 11/21/19 and San Jose
regional forum on 11/20/19 as part of the
2020-25 Consolidated Plan process
8 Agency/Group/Organization City of Cupertino
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency was contacted for consultation as a
partner in addressing the needs of the County
as part of the 2020-25 Consolidated Plan
process
9 Agency/Group/Organization City of Gilroy
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency was consulted and provided emailed
feedback as part of the 2020-25 Consolidated
Plan process
10 Agency/Group/Organization City of Mountain View
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Palo Alto on 11/7/19 as part of the 2020-25
Consolidated Plan process

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11 Agency/Group/Organization Bill Wilson Center
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Santa Clara focus group
meeting on 11/7/19, community meetings on
11/4/19 at Morgan Hill and 11/20/19 at
Roosevelt as part of the 2020-25 Consolidated
Plan process
12 Agency/Group/Organization Heart of the Valley
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency was consulted through interview
questions. Agency provided emailed feedback
as part of the 2020-25 Consolidated Plan
process
13 Agency/Group/Organization City of San Jose
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency was contacted for consultation as a
partner in addressing the needs of the County
as part of the 2020-25 Consolidated Plan
process
14 Agency/Group/Organization City of Morgan Hill
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Morgan Hill on 11/4/19 as part of the 2020-25
Consolidated Plan process

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15 Agency/Group/Organization City of Sunnyvale
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Palo Alto on 11/7/19 and provided emailed
feedback as part of the 2020-25 Consolidated
Plan process
16 Agency/Group/Organization Servant Partners
Agency/Group/Organization Type Neighborhood Organization Neighborhood Organization
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Attended community meeting on 11/13/19 at
Hillview library as part of the 2020 -25
Consolidated Plan process
17 Agency/Group/Organization Senior Adults Legal Assistance (SALA) Agency/Group/Organization Type Service-Fair Housing
Legal
What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Palo Alto and San Jose public
engagement meeting on 11/17/19 and
11/19/19, regional forum meeting on 11/4/19
at Morgan Hill and 11/7/19 at Palo Alto as part
of the 2020-25 Consolidated Plan process

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18 Agency/Group/Organization HomeFirst
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Morgan Hill on 11/4/19 as part of the 2020-25
Consolidated Plan process
19 Agency/Group/Organization Santa Clara County Office of Supportive Housing
Agency/Group/Organization Type Other government - County Continuum of Care
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Morgan Hill on 11/4/19 and at Palo Alto on
11/7/19 as part of the 2020-25 Consolidated
Plan process
20 Agency/Group/Organization City of Santa Clara
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Morgan Hill on 11/4/19 and provided emailed
feedback as part of the 2020-25 Consolidated
Plan process
21 Agency/Group/Organization Vista Center for the Blind and Visually Impaired Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation on
12/9/19 as part of the 2020 -25 Consolidated
Plan process
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22 Agency/Group/Organization Destination: Home
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation on
11/11/19 as part of the 2020-25 Consolidated
Plan process
23 Agency/Group/Organization Community Solutions
Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended the AFH and ConPlan joint
meeting on 12/11/19 at the Gilroy Council
Chambers as part of the 2020-25 Consolidated
Plan process
24 Agency/Group/Organization St Mary Parish
Agency/Group/Organization Type Neighborhood Organization Neighborhood Organization
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended the AFH and ConPlan joint
meeting on 12/11/19 at the Gilroy Council
Chambers as part of the 2020-25 Consolidated
Plan process
25 Agency/Group/Organization Community and Neighborhood Revitalization Committee - Gilroy
Agency/Group/Organization Type Community Organization
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency co -hosted the AFH and ConPlan joint
meeting on 12/11/18 at the Gilroy Council
Chambers as part of the 2020-25 Consolidated
Plan process

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Identify any Agency Types not consulted and provide rationale for not consulting Not applicable.

Other local/regional/state/federal planning efforts considered when preparing the Plan

Table 4: Other Local / Regional / Federal Planning Efforts Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care Regional Continuum
of Care Council
Identifies housing inventory count to facilitate the
provision of housing services to those experiencing
homelessness.

City of Palo Alto
Housing Element
(2023-2031)
City of Palo Alto Identifies barriers to affordable housing, such as land- use controls, inefficiencies of the development review
process, and strategies to alleviate such barriers.
2019&2020
STD/HIV Annual
Report
Santa Clara County
HIV Planning
Council for
Prevention and
Care
This report provides a summary findings for Santa Clara County HIV surveillance data.

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Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
SCCHA Moving to
Work Annual Plan
Santa Clara County
Housing Authority
Addresses housing authority updates and strategies
pertaining to public housing and vouchers.

Regional Housing
Need Plan for San
Francisco Bay Area
Association of Bay
Area Governments
This plan analyzes the total regional housing need for
the County and all of the Bay Area. This effort aligns
with the Strategic Plan's goal to assist in the creation and preservation of affordable housing.

Community Plan to
End Homelessness in
Santa Clara
Destination: Home The Community Plan to End Homelessness in the County is a five -year plan to guide governmental actors,
nonprofits, and other community members as they
make decisions about funding, programs, priorities and
needs. This effort aligns with the Strategic Plan's goal to support activities to end homelessness
Palo Alto's
Infrastructure:

Catching Up, Keeping
Up, and Moving
Ahead
City of Palo Alto
Infrastructure Blue
Ribbon Plan.

Accessibility
Summary
This plan details recommendations for infrastructure
maintenance and replace, as well as identifies potential sources of funding. This effort aligns with the Strategic Plan's goal to support activities that strengthen
neighborhoods through the provision of community
services and public improvements
City of Palo Alto
Comprehensive Plan
(2030)
City of Palo Alto This plan is the primary tool for guiding future development in Palo Alto. It provides a guide for long- term choices and goals for the City future. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of
community services and public improvements

Narrative
Please see above.

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AP-12 Citizen Participation - 91.105, 91.115, 91.200(c) and 91.300(c) Summary of citizen participation process/Efforts made to broaden citizen participation. Summarize citizen participation process and how it impacted goal-setting

The Planning and Development Services Department is the lead agency for overseeing the development of the Consolidated Plan and Action Plan. Per the City’s adopted Citizen Participation Plan, the City is to allow a 30-day public review and comment period for the Action Plan. The City has published notifications of upcoming public hearings and the 30-day public review comment period in the local newspaper of general circulation, on its CDBG webpage and via email blasts. The City held hold two advertised public hearings on February 9, 2023, and May 1, 2023. The Action Plan 30-day public review period was from March 28, 2023, through April 27, 2023. The City did not receive any public comments to date.

Citizen Participation Outreach
Table 5: Citizen Participation Outreach
Mode of
Outreach
Target of
Outreach
Summary of
response
Summary of
comments
received
Summary of
comments not
accepted/reason
Public Hearing Nontargeted/
broad
community
The Human
Relations
Commission met
on Feb 9, 2023
to discuss:
• FY2023-24
Applications
• Annual allocation
• Draft AAP
There were no public
comments
Refer to the
Engagement
Summary. The HRC
provided comments
over WeeCare
application.

Public Hearing Nontargeted/
broad
community
The City Council
met on May 1,
2023 to discuss:
• FY2023-24
Projects, annual
allocation
• Draft AAP approval

TBD TBD
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Mode of
Outreach Target of Outreach Summary of
response
Summary of
comments
received
Summary of
comments not
accepted/reason
Newspaper Ad Nontargeted/
broad
community
Notice of Human
Relations
Commission Public
Hearing and
Public Comment
Period on the
Draft FY2023-24
AAP and FY2023-24
CDBG Funding
Allocations was
published in the
Daily Post on
January 25, 2023.

Update if comments
received
There were no
public comments
received.

Email Blast Nontargeted/ broad
community
Email blast of HRC
Public Hearing
emailed Feb 3,
2023 to
approximately
65 stakeholders
Update if comments
received
There were not
comments received
from interested
stakeholders
Website Post Nontargeted/ broad
community
Website posting:
https://www.cityof
paloalto.org/CDBG
Update if comments
received

Newspaper Ad Nontargeted/
broad
community
Notice of Public
Hearing and
Public Comment
Period on the
Draft AAP was
published in the
Daily Post on
March 27, 2023
Update if comments
received
TBD
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Email Blast Nontargeted/
broad
community
Notice of City
Council Public
Hearing was
published March
27, 2023)
emailed to
approximately
65 stakeholders
Update if
comments
received
TBD
Website Post Nontargeted/ broad
community
Website posting:
https://www.cityof
paloalto.org/CDBG
Update if comments
received
TBD
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
In FY2023-24, the City will allocate $614,242 to eligible activities that address the needs identified in the Consolidated Plan. It should be noted that while the HUD CDBG allocations are critical, the allocations are not sufficient to overcome barriers and address all needs that low- income individuals and families face in attaining self- sufficiency. The City will continue to leverage additional resources as described below to provide support and services to the populations in need within the community. The following section discusses the anticipated resources available for community development activities during the next remaining years of the City’s 5-Year Consolidated Plan.

Anticipated Resources
Table 6: Expected Resources FY2023-24 – Priority Table
Source of
Funds
Uses of
Funds
Expected Amount Available Year 2024 Narrative
Description Program: CDBG
Annual
Allocation:
$
Program
Income:
$
Prior
Year:
$
Total:
$
Public –
Federal
CDGB
Admin and
Planning/
Economic
Development /
Housing Public
Improvement /
Public Services

$514,242

$100,000

$614,242
This is the 4th year of
the 2020-2025
ConPlan. CDBG funds
will be used for the
preservation of
owner-occupied
homes, ADA street
improvements,
and public
services that
benefit low
income and
special needs
households

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Explain how federal funds will leverage those additional resources (private, state, and local funds), including a description of how matching requirements will be satisfied

Entitlement Funds
Leverage, in the context of the CDBG and HOME Investment Partnerships Program (HOME), means bringing other local, state, and federal financial resources to maximize the reach and impact of the City’s HUD Programs.

HUD, like many other federal agencies, encourages the recipients of federal monies to demonstrate that efforts are being made to strategically leverage additional funds in order to achieve greater results.

The City joined the Santa Clara County's HOME Consortium in 2015 and does not receive federal HOME funds on an entitlement basis from HUD. The HOME Consortia consists of the cities of Cupertino, Gilroy, Palo Alto, and the Urban County. HOME funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. Starting in FY 2015- 16 developers of affordable housing projects were eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto. Applications are directly submitted through the County's request for proposal process for available HOME funds. Certain nonprofit organizations known as Community Housing Development Organizations (CHDOs) may also apply for funding from California Department of Housing and Community Development (HCD) for housing projects located within Palo Alto. The City has only received one HOME grant from 1992 HOME funding for the Barker Hotel project. Proceeds from HOME loan repayments are deposited into a HOME Program Income Fund and used in accordance with the HOME program regulations.

In addition, the County will only fund a project that has the local support of the City. If the City receives HOME dollars from its participation in the HOME consortium, the required 25% matching funds will be provided from the City’s Affordable Housing Fund, which is comprised of t wo sub -funds: the Commercial Housing Fund and the Residential Housing Fund. To date, no projects within the City have been funded through the HOME Consortium.

Moving forward, the City plans to increase outreach to developers in the City to provide additional information on the HOME Consortium and available funding.

Other State and Federal Grant Programs
In addition to the CDBG entitlement dollars, the federal government has several other funding programs for community development and affordable housing activities. These include Section 8 Housing Choice Voucher Program, Section 202, Section 811, the Federal Home Loan Bank Affordable Housing Program (AHP), and others. It should be noted that in most cases, the City would not be the applicant for these funding sources as many of these programs offer assistance to affordable housing developers rather than local jurisdictions.

In September 2022 , multiple State bills were signed , including SB 6 (Middle -Class Housing Act) and AB 2011 to advance housing development progress. These two bills streamline the regulatory process and ensure that workers building homes are being paid a fair wage. The bill helps generate new housing unit s plus genera l thousands of jobs. The California Housing Accelerator provided funding for shovel- ready projects in 2022 whose financing was stalled because of the difficulty in receiving tax credits. The City will continue to track and look for opportunities to leverage State resources for the City.

Local Housing and Community Development Sources. Other local resources that support housing and community development programs include:
• Palo Alto Commercial Housing Fund, provides assistance for the development of below market rate (BMR) housing unit s which are, in part, funded by mitigation fees obtained from commercial and industrial Item 10
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development projects.
• ADA coordinator and city-wide ADA capital improvement listing. • Housing Element Update provides the city with detailed housing priorities and needs. • Rebuilding Together Peninsula assists 5-7 low-to moderate income homeowners with home improvements.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan

The City has no surplus public land.

Discussion
Please see information provided in previous sections.

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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3) and(e) Goals Summary Information – FY2023-24

Table 7: Goals Summary
Goal Name Start End Category Area Needs
Addressed Fund Goal Outcome
Indicator
Affordable
Housing
2020 2025 Affordable
Housing
Citywide Affordabl
e Housing
CDBG:
$73,585
Homeowner
Housing
Rehabilitated: 5
Household Housing
Units
Homelessness 2020 2025 Homeless Citywide Homelessness CDBG:
$23,636
Public service
activities other
than
Low/Moderate
Income Housing
Benefit: 350
Persons Assisted
Strengthen
Neighborhoods
2020 2025 Non-Homeless
Special Needs
Non-Housing
Community
Development
Citywide Community
Services and
Public
Improvement
s
CDBG:
$262,173
Public service
activities other than
Low/Moderate
Income Housing
Benefit: 1,711
Persons Assisted
Fair Housing 2020 2025 Non-Housing
Community
Development
Citywide Fair Housing CDBG:
$18,000
Public service
activities other
than Low/
Moderate Income
Housing Benefit:
177 Persons
Assisted
Economic
Development
2020 2025 Non-Housing
Community
Development
Citywide Economic
Developmen
t
CDBG:
$114,000
Jobs created/
retained: 19 Jobs
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Goal Descriptions

1 Goal Name Affordable Housing
Goal
Description
Assist in the creation and preservation of affordable housing for low-income and special needs households.
2 Goal Name Homelessness
Goal
Description
Support activities to prevent and end homelessness, such as funding affordable housing opportunities, resource centers for homeless individuals, and support for tenants of single-room occupancy units.
3 Goal Name Strengthen Neighborhoods
Goal
Description
Provide community services and public improvements to benefit low-income and special needs households. This includes assisting those with disabilities to transition from unstable housing to permanent housing, supporting residents of long-term care facilities, and supporting individuals experiencing domestic violence.
4 Goal Name Fair Housing
Goal
Description
Promote fair housing choice by funding fair housing organizations to provide fair housing services, such as education, tenant-landlord mediation, and testing. 5 Goal Name Economic Development
Goal
Description
Support economic development activities that promote employment growth and help lower-income people secure and maintain jobs. This includes funding nonprofits working toward developing the skills of low-income and homeless individuals.

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AP-35 Projects - 91.420, 91.220(d)
Introduction
The Consolidated Plan goals below represent high -priority needs for the City of Palo Alto (City) and serve as the basis for the strategic actions the City will use to meet these needs. The goals, listed in no particular order, are:

1. Assist in the creation and preservation of affordable housing for low-income and special needs households.

2. Support activities to end homelessness.

3. Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special-needs households.

4. Promote fair housing choice.

5. Expand economic opportunities for low-income households.

Table 8: Project Information
No. Project Name

1. Catholic Charities of Santa Clara County – Long-Term Care Ombudsman

2. LifeMoves - Opportunity Services Center and Hotel De Zink (HDZ): Case Management

3. Alta Housing - Single Room Occupancy (SRO) Support Services

4. Silicon Valley Independent Living Center- Housing and Emergency Services for Persons with Disabilities

5. Project Sentinel - Fair Housing Services

6. Peninsula Healthcare Connection – Harm Reduction

7. City of Palo Alto - Planning and Administration

8. WeeCare – Assist Daycare Providers

9. Rebuilding Together Peninsula – Safe at Home

10. ADA curb cuts

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City awards CDBG funding to projects and programs that will primarily benefit low -income, homeless, and special-needs households. The City operates on a two-year grant funding cycle for CDBG public service grants and a one -year cycle for CDBG capital housing rehabilitation and public facilities and improvement projects. Projects are only considered for funding within the Consolidated Plan period if they address the goals discussed above.

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AP-38 Project Summary
Project Summary Information

1 Project Name Catholic Charities of Santa Clara County: Long Term Care Ombudsman Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $10,000
Description
Long-Term Care Ombudsman Program. Eligible Activity (Matrix Code):05A. CDBG National Objective: 570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed
activities
The program will provide advocacy and complaint investigation for 50 elderly residents of long-term care facilities in Palo Alto.

Location Description Long-term care and skilled nursing facilities throughout the City.

Planned Activities
Regular contact with Palo Alto Residential Care Facilities to observe and monitor conditions of care.
2 Project Name LifeMoves - Opportunity Services Center and Hotel De Zink (HDZ):

Case Management
Target Area Citywide
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $23,636
Description
Opportunity Services Center Eligible Activity (Matrix Code):03TCDBG National Objective: 570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC
Target Date 6/30/2024
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Estimate the number
and type of families
that will benefit from
the proposed
activities
350 unduplicated individuals (homeless and/or very low-income individuals per year) will receive case management services, including assistance with housing/job searches, referrals and mentoring at the Opportunity Services Center and Hotel De Zink.

Location Description 33 Encina Way, Palo Alto, CA 94301 Planned Activities Case management services will be provided to Opportunity Services Center and Hotel De Zink clients in locating housing and/or employment and be connected to benefits.
3 Project Name Alta Housing
Target Area Residents of Barker Hotel (25 units) and Alma Place (106 units) Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $14,000
Description SRO Resident Support Program. Eligible Activity (Matrix Code):05OCDBG National Objective:570.208(a)(2). CDBG
Citation:570.201(e). Recipient Type: LMC
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed
activities
Case management and support counseling services will be provided to residents of Barker Hotel and Alma Place
Location Description 439 Emerson Street, Palo Alto, CA 94301 735 Alma Street Palo Alto, CA 94301
Planned Activities Alta Housing engages a service coordinator to provide 40 hours of weekly services to provide case management and support counseling services to residents at Alma Place and Barker Hotel to help them maintain housing stability. Activities include financial counseling, health maintenance, information and referral problem-solving, employment assistance, crisis intervention, and case management. Both Alma Place and Barker Hotel are single-room occupancy facilities.

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4 Project Name Silicon Valley Independent Living Center: Housing and Emergency Housing Services.

Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $16,500
Description Housing and Emergency Housing Services. Eligible Activity (Matrix Code):05B. CDBG National Objective:570.208(a)(2). CDBG
Citation:570.201(e). Recipient Type: LMC
Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed
activities
115 unduplicated Palo Alto residents will benefit from one-on-one housing assistance.

Location Description Citywide
Planned Activities Silicon Valley Independent Living Center provides assistance for individuals with disabilities and their families to transition from homelessness, health care facilities, unstable or temporary housing to permanent affordable, accessible, integrated housing with emergency assistance, security deposits, rent, information, and referral, and other basic essentials.
5 Project Name Project Sentinel - Fair Housing Services Target Area Citywide
Goals Supported Fair Housing
Needs Addressed Fair Housing
Funding CDBG: $18,000
Description Fair Housing Services. Eligible Activity (Matrix Code):21D. CDBG National Objective:570.208(a)(2). CDBG Citation: 570.206(c). Recipient Type: LMC
Target Date 6/30/2024
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Estimate the number
and type of families
that will benefit from
the proposed
activities
177 unduplicated individuals will be provided with fair housing services of complaint counseling, investigation, and where appropriate enforcement referral.

Location Description Citywide
Planned Activities Project Sentinel will provide community education and outreach regarding fair housing law and practices, investigation, counseling, and legal referral for victims of housing discrimination, and analyses for City staff and officials regarding fair housing practices. California and federal fair housing laws assure specific protected classes the right to be treated in terms of their individual merits and qualifications in seeking housing. Unfortunately, some people are not aware of the law or their rights.
6 Project Name Peninsula Healthcare Connection
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $10,000
Description PHC will deliver Harm Reduction materials to referral families.

Substance Abuse Services 05F. 570.208(a)(2) 570.483(b)(2) LMC Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed
activities
400 referred households
Location Description City-wide
Planned Activities Harm Reduction materials will be delivered to referral families.

Materials include: substance use treatment recommendations such as rehab center options, AA/NA meeting referrals, harm reduction kits designed for safe needle use and storage, and basic needs resources, such as Narcan. This is in response to the prevalent use of controlled substances and subsequent overdose-related deaths in the City.

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7 Project Name Planning and Administration
Target Area Citywide
Goals Supported Affordable Housing, Homelessness, Strengthen Neighborhoods, Fair Housing, Economic Development
Needs Addressed Affordable Housing, Homelessness, Community Services and Public Improvements, Fair Housing, Economic Development
Funding $122,848
Description Planning and Administration: CDBG Citation: 570.206(a) Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City will provide general administrative support to the CDBG program.

Location Description Citywide
Planned Activities Administer the Administrative costs for the overall management, coordination, and evaluation of the CDBG program, and the project delivery costs associated with bringing projects to completion. 8 Project Name WeeCare
Target Area Citywide
Goals Supported Economic Development
Needs Addressed Economic Development
Funding CDBG: $114,000
Description WeeCare, a microenterprise business, will provide business improvement services to the City’s daycares. Eligible Activity (Matrix Code): 18C.CDBG National Objective: 570.483(b)(2)(iv). CDBG Citation:
570.208(a)(2)(iii). Recipient Type: LMCMC
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
19 daycare businesses will benefit from this project. Plus, new full-time jobs will be created by WeeCare.

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Location Description Citywide
Planned Activities WeeCare intends to work with FCCH providers in Palo Alto who are already on the wait list for the BOOST program. These providers will receive staff training-learning best practices on how to grow and sustain their organization and how to better support LMI families they serve.

Funds are requested will pay for WeeCare staff salaries for training providers on how to use Child Management System (CCMS) software.

CCMS was developed for providers to create work plans, goals, capacity, and revenue empowering them to reach service and operations goals. 9 Project Name Rebuilding Together Peninsula – Safe at Home Target Area Citywide
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding CDBG: $73,585
Description Preserves affordable housing by transforming homes through critical repairs and accessibility modifications at no cost to the service recipient. The majority of the low-income homeowners served will be elderly seniors and/or people with disabilities, who are physically and financially unable to maintain safe living conditions for themselves and their families. 24 CFR 570.202(a)(1) or 42 USC 5305(a)(4) LMH Target Date 6/30/2024
Estimate the number
and type of families
that will benefit from
the proposed
activities
5 LMI households will benefit from home improvements.

Location Description Citywide
Planned Activities Provide home safety repairs, mobility, and accessibility improvements for low-income households in Palo Alto, with the primary consideration being the correction of safety hazards.

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10 Project Name ADA curb cut-City of Palo Alto
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $211,673
Description The City intends to fund a major curb ramp improvement project that will bring an estimated 70 curb ramps up to current ADA accessibility standards. 03K, 24 CFR 570.201(c) or 42 USC 5305(a)(2) LMJFI Target Date 10/30/2024
Estimate the number
and type of families
that will benefit from
the proposed
activities
2,090
Location Description Street intersection locations TBD
Planned Activities Provide safe ADA-accessible curb-cut intersections. The city will bid and award the project competitively.

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AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low -income and minority concentration) where assistance will be directed

The City allocates CDBG funds to benefit low-moderate income (LMI) households and does not have target areas.

Instead, the City focuses its services and capital improvements across the City as a whole.

Geographic Distribution

Table 9: Geographic Distribution
Target Area Percentage of Funds
Citywide 100%

Rationale for the priorities for allocating investments geographically

Not applicable.

Discussion

Please see discussion above.

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AP-75 Barriers to affordable housing -91.420, 91.220(j)

Introduction
The incorporated and unincorporated jurisdictions within the County face barriers to affordable housing that are common throughout the Bay Area. High on the list of market barriers is the lack of developable land, which increases the cost of available lands and increases housing development costs. Local opposition is another common obstacle as many neighbors have strong reactions to infill and affordable housing developments. Their opposition is often based on misconceptions, such as a perceived increase in crime; erosion of property values; increase in parking and traffic congestion; and overwhelmed schools. However, to ensure a healthy economy, the region must focus on strategies and investments that provide housing for much of the region’s workforce – for example, salesclerks, secretaries, waiters, baristas, teachers, and health service workers – whose incomes significantly limit their housing choices.

It should be noted that in a constrained housing supply market, when housing developments produce housing that is relatively affordable, higher -income buyers and renters generally outbi d lower-income households. A home’s final sale or rental price will typically exceed the projected sales or rental costs. Public subsidies are often needed to guarantee affordable homes for low- and moderate-income households.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment

Palo Alto is addressing the barriers to affordable housing through:

• Density Bonus Ordinance: The City recently updated its Density Bonus ordinance which lowered the eligibility requirements to qualify for a higher density bonus percentage up to 80% as well as providing more exceptions to applicable zoning and development standards. One significant update is if a 100% affordable development is located within a half a mile of a major transit stop, the City cannot impose any density limits and entitled to a maximum height increase of three additional stories or 33 feet. • Below Market Rate (BMR) Housing Program: Established in 1974, the City’s BMR requires developers to provide a certain percentage of units as BMR in every approved project of three units or more. The program originally required that for developments on sites of less than five acres, the developer must provide 15 percent of the total housing units as BMR housing units. If the site was larger than five acres, the developer was required to provide 20 percent of the units as BMR housing. The City of Palo Alto has historically used in- lieu fees and development impact fees charged on new, market-rate housing and/or commercial development to finance 100% affordable developments. The City updated its Commercial and Residential Impact Fee Nexus Studies and adopted two ordinances to make changes to its BMR program, and adopted a new fee structure.

The ordinances became effective on June 19, 2017.
• Fair Housing: The City provides funding to Project Sentinel. Project Sentinel provides expertise in fair housing law and tenant-landlord disputes. Services include information, referrals, community outreach, and education.

In addition, Project Sentinel re solves fair housing complaints via investigation, mediation, education and outreach to both property owners and tenants about fair housing policies. • Housing Incentive Program (HIP): Effective May 2, 2019, the HIP was enacted as an alternative to the State Density Bonus law and provides deve lopment incentives including no housing density restrictions, increased Item 10
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floor area ratios and increased lot coverage. The HIP is available to specific areas of the City where higher density development is encouraged.
• Affordable Housing (AH) Combining District: In 2018, the City Council adopted the Affordable Housing Combining District to provide flexible development standards beyond the State Density Bonus Law to allow 100% affordable housing projects located in a commercial zoned area. • Workforce Housing (WH) Combining District: The City Council also adopted in 2018 the Workforce Housing Combining District to encourage the development of housing within half-mile of major fixed rail transit by modifying flexible development standards for the public facilities (PF) zoning district.

Discussion
Please see above.

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AP-85 Other Actions - 91.420, 91.220(k)
Introduction
This section discusses the City’s efforts in addressing the underserved needs, expanding, and preserving affordable housing, reducing lead- based paint hazards, and developing institutional structure for delivering housing and community development activities.

Actions planned to address obstacles to meeting underserved needs The diminishing amount of funds continues to be the most significant obstacle to addressing the needs of underserved populations. To address this, the City supplements its CDBG funding with other resources and funds, such as:
• In FY2020 -21, the City’s Human Service Resource Allocati on Process (HSRAP) provided $549,306 from the General Fund in support of human services. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies. Additionally, from July 2021-2022, approximately $37,000 was provided to nonprofit organizations serving Palo Alto residents with short-term and/or urgent funding to address emergency, critical or emerging human services needs through the Emerging Needs Fund. • The Palo Alto Commercial Housing Fund is funded with mitigation fees provided under Palo Alto’s BMR housing program from developers of commercial and industrial projects and used to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing • The Palo Alto Residential Housing Fund is funded with mitigation fees provided under Palo Alto’s BMR housing program from residential developers and money from other miscellaneous sources, such as proceeds from the sale or lease of City property. The Residential Housing Fund is used to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing. • The City’s Below Market Rate Emergency Fund was authorized in 2002 to provide funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units.
• HOME Program funds are available on an annual competitive basis through the State of California HOME program, and the County’s HOME Consortium.
• The Housing Authority of the County of Santa Clara (HACSC) administers the federal Section 8 program countywide. The program provides rental subsidies and dev elops affordable housing for low-income households, seniors and persons with disabilities living within the County. • In 2022, the City funded Downtown Streets Team to reduce homelessness through a “work first” model.

Downtown Streets Team uses its community connections to provide training and job opportunities to homeless people, specifically in the downtown area.

Actions planned to foster and maintain affordable housing

The City will foster and maintain affordable housing by continuing the following programs and ordinances:
• A Business Tax was approved in late 2022 to fund affordable housing, public safety, homeless services, rail crossing safety, and general city services.
• The Below Market Rate Emergency Fund, which provides funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units. • The Commercial Housing Fund and Residential Housing Fund are used to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing.

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• The Density Bonus Ordinance regulations allow for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing provided.
• The City’s participation in the County's HOME Consortium will allow developers of affordable housing projects to be eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto, including acquisition, construction, and rehabilitation.

Actions planned to reduce lead-based paint hazards

The City’s housing and CDBG staff provides information and referral to property owners, developers, and non - profit organizations rehabilitating older housing about lead -based paint (LBP) hazards. Any house to be rehabilitated with City financial assistance is required to be inspected for the existence of LBP and LBP hazards. The City will provide financial assistance for the abatement of LBP hazards in units rehabilitated with City funding. The City also requires that contractors are trained and certified in an effort to decrease the risk of potential use of LBP in new units. All development and rehabilitation projects must be evaluated according to HUD’s Lead Safe Housing Rule 24 CFR Part 35.

Actions planned to reduce the number of poverty-level families

The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide direct assistance to the homeless and those in danger of becoming homeless. In FY 202 3-2024, these programs will include the following:
• LifeMoves provides basic necessities for persons who are homeless or at risk of becoming homeless. The Opportunity Services Center is a comprehensive, one- stop, multi-service, day drop-in center that provides critical services for homeless Palo Alto residents. Specifically, the facility provides showers, laundry, clothing, snacks, case management, and shelter/housing referral services. • Alta Housing provides counseling and supportive case management services for low-income residents of single- room occupancy facilities to help them maintain housing stability. Activities includ e financial counseling, health maintenance, information and referral, problem solving, employment assistance, crisis intervention, and case management.
• WeeCare provides business services and best management practices for small daycare businesses in the City.

Many of which provide childcare for LMI families.

Actions planned to develop institutional structure

The City is striving to improve intergovernmental and private sector cooperation to synergize efforts and resources and develop new revenues for community service needs and the production of affordable housing. Collaborative efforts include:
• Regular meetings between entitlement jurisdictions at the CDBG Coordinators Meeting and Regional Housing Working Group.
• Joint jurisdiction Request for Proposals and project review committees. • Coordination on project management for projects funded by multiple jurisdictions. • HOME Consortium meetings between member jurisdictions for affordable housing projects.

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Actions planned to enhance coordination between public and private housing and social service agencies

The City benefits from a strong jurisdiction and region -wide network of housing and community development partners, such as the County and the Continuum of Care. To improve intergovernmental and private sector cooperation, the City will continue to participate with other local jurisdictions and developers in sharing information and resources.

In addition to the actions listed above, the City will continue to coordinate with the City’s human services funding efforts to comprehensively address community needs.

Discussion

Please see discussions above.

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Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction
The following provides additional information about the CDBG program income and program requirements.

Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1)

Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table.

The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed

$100,000

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan.

0 3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan

0 5. The amount of income from float-funded activities 0 Total Program Income: $ 100,000

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. 100 %

Discussion
Please see discussion above.

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APPENDIX A

PUBLIC COMMENTS

The City held two advertised public hearings on February 9, 2023, and May 1 , 2023. The Draft FY2023-24 Annual Action Plan was circulated for public comments and review from March 28, 2023, through April 27, 2023. During the 30 days public comment and review period time, no comments were received.

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APPENDIX B

PUBLIC HEARING NOTIFICATIONS

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PLACE HOLDER FOR AD PUBLISHED ON
March 27, 2023 RE: City Council meeting on
May 1, 2023
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APPENDIX C

CDBG APPLICATION FORMS

TO BE COMPLETED AND SIGNED AFTER AAP APPROVAL

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*NOT YET APPROVED*
1 0160102_20230417_AY16
Resolution No. _______
Resolution of the City Council of the City of Palo Alto Approving The Use of Community Development Block Grant Funds for Fiscal Year 2023-2024

A. On May 1, 2020, the Palo Alto City Council approved and adopted a document entitled “Consolidated Plan” which identified and established the Palo Alto housing and non- housing community development needs, objectives and priori ties for the period July 1, 2020, to June 30, 2025.

B. The Fiscal Year 2023-2024 Annual Action Plan, the annual funding update to the Consolidated Plan, was subjected to public review and commentary during the period from March 28, 2023 through April 27, 2023.

C. The potential uses of Community Development Block Grant (CDBG) funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and reflected in the recommendations and comments of the Human Relations Commission Selection Committee, Human Relations Commission, and other interested citizens.

D. Under the CDBG program, t he highest priority is given to activities which will benefit persons with low and moderate incomes.

E. The City Council and the Human Relations Commission have held publicly noticed public hearings on the proposed uses of the CDBG funds for Fiscal Year 2023-2024.

F. CDBG funds allocated to the City for Fiscal Year 2023-2024 are proposed to implement the programs described in this resolution.

NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:

SECTION 1.

The uses of CDBG funds for Fiscal Year 2023-2024 are hereby approved and authorized for the following programs:

Name of Program Amount

1. Alta Housing – SRO Resident Support. Provide in -house case management and counseling services to residents at Barker Hotel and Alma Place.
$14,000

2. Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program. Advocate for the rights of seniors and disabled residents in long term care facilities.
$10,000
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*NOT YET APPROVED*
2 0160102_20230417_AY16

3. LifeMoves – Opportunity Services Center. Provide case management services to Opportunity Services Center and Hotel De Zink clients in locating housing and/or employment and be connected to benefits. $23,636

4. Silicon Valley Independent Living Center – Housing and Emer gency Services. Provide case management services to low-income individuals with disabilities to secure affordable and accessible housing. $16,500

5. Project Sentinel – Fair Housing Services. Provide fair housing services including complaint investigation, counseling, advocacy and community education
$18,000

6. Peninsula Healthcare Connections – deliver Harm Reduction materials to referral families. $10,000

7. ADA curb cut-City of Palo Alto – major curb ramp improvement project that will bring many ramps up to current ADA accessibility standards. $211,673

8. WeeCare - a microenterprise business that will provide Palo Alto childcare business improvement services. $114,000

9. Rebuilding Together Peninsula – Safe at Home. Provision of critical health and safety related home repair needs for low-income Palo Alto homeowners.
$73,585

10. CDBG Program Planning and Administration. $122,848
$614,242

SECTION 2.

The total amount set forth under Section 1 of this resolution represents the proposed allocation of $514,242, in CDBG funds from the United States Department of Housing and Urban Development (HUD) for Fiscal Year 2023-2024, and $100,000, in anticipated program income for Fiscal Year 2023-2024 from Palo Alto Housing Corporation.

SECTION 3. The City staff is hereby authorized to submit the Fiscal Year 20 23-2024 Annual Action Plan, update and appropriate funding to HUD for the Fiscal Year 2023-2024 CDBG funds, and such money shall be spent as set forth in this resolution. The Mayor, City Manager , and any other designated City staff or officials are hereby authorized to execute such application forms and any other necessary documents to secure these funds. The City Manager or designee is authorized to sign all necessary grant agreements with the program providers set forth in Section 1.

SECTION 4
. The funding amounts set forth in Section 1 of this resolution are based on final allocation amounts from the Federal Fiscal Year 202 3-24 HUD appropriations; City Staff is authorized to adjust increasing or decreasing the funding amounts set forth herein as consistent with the adopted Citizen Participation Plan.

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*NOT YET APPROVED*
3 0160102_20230417_AY16
SECTION 5. The City Council hereby finds that the Fiscal Year 2023-2024 CDBG program authorized under Section 1 of this resolution is not a project under the California Environmental Quality Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that may be required, under CEQA and the National Env ironmental Policy Act (NEPA), for each project under the Fiscal Year 2023-2024 CDBG program prior to the release of funds for any such project.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning and
Development Services

____________________________
Director of Administrative Services

CDBG Coordinator
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: May 1, 2023
Report #:2303-1080
TITLE
PUBLIC HEARING / QUASI-JUDICIAL. 2147 Yale Street [22PLN-00374]: Denial of a Request for a Preliminary Parcel Map with Exceptions to Divide an Existing 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot Lots. Environmental Assessment: Exempt Pursuant to CEQA Guidelines 15270 and 15301.

RECOMMENDATION
It is recommended the City Council take the following action(s):

1. Deny the proposed project based on findings in Attachment C.

EXECUTIVE SUMMARY
The applicant requests approval of a preliminary parcel map with exceptions to subdivide one conforming property into two substandard lots. The property is zoned Two-Unit Multi-Family Residential with a Neighborhood Preservation Combining District, or RMD (NP). The existing development was constructed in 2010 with two detached single family homes in accordance with local zoning standards. The zoning regulations for this district permit a two-family development under single ownership. Based on this provision, the site cannot be converted into a condominium subdivision or the individual units sold separately.

The current owners hold the property as a tenancy in common. This means the site is under shared ownership but restrictive agreements delineate which parties have access to each of the homes. Tenancy in common is an atypical ownership structure in Palo Alto but very common in San Francisco and some other jurisdictions.

The applicant reports financing challenges associated with this type of ownership model and therefore seeks approval to split the property with one home on each lot that can be sold independently. Further, the applicant asserts the underlying lot configuration or tract map for this neighborhood created in the year 1891 shows there are two lots for this site and that the City’s approval of the project in 2007 (under address 586 College Avenue) was predicated on an error that the owner seeks to remedy with the subject application. Staff’s review of the administrative record finds the applicant’s reliance on the underlying tract map as justification Item 11
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to support the request is not valid based on the provisions of the state Subdivision Map Act and is not supported by California Supreme Court case law. Moreover, staff does not find any City errors associated with the project approved in 2007.

BACKGROUND
The applicant proposes to subdivide an existing 5,770 square foot lot with two dwelling units into two 2,885 square foot lots with one dwelling unit on each lot. The existing lot is zoned RMD (NP) which is intended to minimize incentives to replace existing single-family dwellings, maintain existing neighborhood character and increase the variety of housing opportunities available within the community. The existing lot and uses conform to the City’s standards for minimum lot size, development standards and permitted uses. The proposed new lots would not comply with the City’s standards for minimum lot width, depth or area. Additionally, the new lot lines would render the existing buildings nonconforming with respect to floor area (due to the smaller lot size) and setbacks (due to the changed distance of the existing structures to new property lines).

It is staff’s understanding that one of the reasons the applicant is requesting this change is to address financial challenges experienced by the owners of the property, specifically transactional and financing. While the underlying zoning for the subject property permits two residential units, these units must remain in common ownership and cannot be sold individually. The ownership structure for the subject property is one that is held in a tenancy in common. A tenancy in common is a legal form of ownership where two or more individuals have an undivided ownership interest in the property. Ownership interests may be transferred or sold without the consent of the other tenant in common. The City has no role in the formation of a tenancy in common and cannot prohibit this ownership structure. The City can and does regulate conversions of three or more rental units on a lot to ownership housing, but that regulatory framework is not relevant in this instance.

Tenancy in common is not an ownership structure typically seen in Palo Alto but it does exist in San Francisco and elsewhere. Given the infrequency of tenancy in common in Palo Alto, the applicant reports there is only one lender willing to provide financing options for this ownership model, which impacts lending costs.

Another reason the applicant requests the change is to address a reported aversion buyers have about taking on a 50% undivided interest in a property with someone unfamiliar to the buyer and associated concerns about liability exposure for the neighboring owner.

The applicant argues that the requested subdivision should be granted because it would be allowed under SB 9 if the property were zoned R-1. This property, however, is zoned RMD (NP) and not subject to state legislation or local implementation of SB 9. The Policy Implications section of the staff report expands upon this idea but for the purposes of the subject application, SB 9 is not relevant to the Council’s decision on this project.

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The applicant also asserts that the subdivision should be allowed due to the existence of an 1891 map showing the property divided into two parcels.

Many of the lots in College Terrace have legal descriptions based on the 1891 map of the neighborhood showing numerous 25x115 parcels. This may contribute to a perception that the 1891 map created legally recognizable lots that are 25 feet wide. However, because the 1891 map predated the first Subdivision Map Act in California, it was not subject to approval by a government entity and does not, by itself, result in legal lots. Under relevant caselaw, lots shown on an antiquated map are only recognized when the lots have been separately conveyed to a purchaser. Most lots in College Terrace have not been conveyed as separate, 25-foot wide lots and very few exist in that configuration today.

College Terrace contains 76 parcels zoned RMD (NP), not including an additional four parcels which currently contain condominiums. Of these 76, only 3 match the 1891 map’s 25 x 115 original dimensions. The majority contain two or more of the lots shown on the 1891 map, and many deviate from the map’s original lot lines entirely.

In the case of 2147-49 Yale, the legal description describes the lot as being comprised of Lots 1 and 2 of Block 48 in the original map. However, there is no evidence that Lot 1 or Lot 2 of Block 48 was ever conveyed as a separate parcel. Without this evidence, the applicant’s argument about pre-existing lots is unfounded and cannot be relied upon to make a decision on the requested preliminary parcel map with exceptions.

The applicant further asserts, based on the two lot argument above, that the City erred in its approval of the project in 2007. Staff has reviewed the administrative record and finds no error in the processing of the prior application. The subject property complies with all applicable development standards and minimum lot size requirements. As this argument is predicated on the unsubstantiated idea that subject property consists of two lots, staff is not able to validate the applicant’s claim the original permit was issued in error.

Planning and Transportation Commission
The subject project was presented to the Planning and Transportation Commission (PTC) on February 22, 2023. Staff recommended denial of the application because the proposed subdivision would result in the creation of two substandard lots and because the required findings for exceptions to minimum lot dimensions cannot be made. The PTC gave a recommendation of denial, in keeping with the staff recommendation. The PTC also gave guidance on modifying the Findings to better represent their views. The proposed findings (Attachment C) have been modified according to the PTC motion. The zoning compliance table (Attachment B) was also modified to correct minor typos.

It is worth noting the PTC had a thorough and thoughtful discussion regarding the subject findings. Commissioners understood and appreciated the challenges associated with the tenancy in common and some considered this a compelling argument when making the Item 11
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required findings. However, as discussed below, the inability to make all required findings requires the project to be denied. The summary discussion of the PTC’s deliberation is available online: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/planning-and-transportation-commission/2023/ptc-2.22.2023-summary- minutes.pdf#page=2.

ANALYSIS
A decision on a preliminary parcel map is subject to required findings. The municipal code requires the legislative body to deny the preliminary parcel map if it makes a finding that the map is inconsistent with the comprehensive plan; is not physically suitable for the type or density of the development; would likely cause substantial environmental damage or serious public health problems; or, conflict with easements.

For the most part, staff and the PTC were able to make all but one of the preliminary parcel map findings. The finding that was not supported related to the suitability of development and a determination that the reduced lot area would render both homes non-compliant with respect to the maximum floor area ratio. By subdividing the one conforming lot into two substandard lots the total lot area dedicated to each home is less which would require a smaller building. The degree of variation, however, is relatively minor, approximately three percent over the standard. In addition to the floor area ratio, the new property line boundaries would result in the existing buildings being non-conforming for setback distances between the home and adjacent property lines.

Because the subdivision proposes to create lots that do not comply with minimum lot area or lot dimensions, additional project findings, or exception findings are required. These findings require the legislative body to deny the project if it fails to make any of the following findings:

1. There are special circumstances or conditions affecting the property;

2. The exception is necessary for the preservation and enjoyment of a substantial property right of the petitioner;

3. The granting of the exception will not be detrimental to the public welfare or injurious to other property in the territory in which the property is located; or

4. The granting of the exception will not violate the requirements, goals, policies, or spirit of the law.

The PTC was not able to make Findings 2 or 4. Specifically, the exception is not required for the preservation and enjoyment of the property as the petitioner retains the same rights and ability to sell their ownership interest in the property with or without the map. Moreover, the granting of the exception would conflict with established, objective zoning standard that regulates floor area and setbacks and rendering the now conforming homes as non-conforming with respect to those development standards.

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Attachment C includes draft findings for the City Council’s consideration. The applicant has also provided information in support of the required findings, which can be found in Attachment G.

Staff and the PTC recommend the City Council deny the applicant’s request for the reasons provided in this report and supporting material. The City Council in its review, however, may, based on revised findings, reach a different conclusion. Staff is concerned that if the project is approved, it could set a precedent for other property owners to form tenancy in common ownership structures and subsequently seek preliminary parcel map exceptions similar to the subject application. If the Council were inclined to support the applicant’s request but cannot support the required findings, the following section provides some alternatives to consider.

POLICY IMPLICATIONS
While staff believe the subject application should be denied based on the City’s current regulatory standard, staff note that it does raise an important policy question regarding the role of the R-2 and RMD zone districts given the state ADU law and SB 9. While these two-family zones are intended to provide increased density over R-1 and a transition between R-1 and multifamily zones, they have arguably been surpassed by single-family zones in development potential as a result of recent state laws. The City Council may wish to consider, as part of a separate agenda item, rezoning of the RMD parcels in College Terrace to R-1, which would permit the applicants to achieve their goal. Alternatively, the Council may consider changing the zoning regulations for the R-2 or RMD districts to enable small lot subdivision and separate ownership similar to the applicant’s request. This policy may encourage redevelopment of these parcels for two-unit condominium or townhouse style development that can serve as starter homes and an opportunity to build equity. A third consideration is to consider up-zoning the R-2 and RMD districts to allow somewhat more density than can be achieved today. Again, any direction the City Council may want to give staff would need to be part of a separate agenda item and balanced with other work plan assignments recently approved the City Council.

STAKEHOLDER ENGAGEMENT
Prior to the PTC meeting, one neighbor has provided written comment expressing that she does not support the subdivision application. Prior correspondence is included in Attachment D.

ENVIRONMENTAL REVIEW
The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is statutorily exempt from CEQA per Guideline 15270 (Projects Which Are Disapproved) and categorically exempt per Guideline 15301 (Existing Facilities).

ATTACHMENTS
Attachment A: 2147 Yale Location Map
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Attachment B: Zoning Comparison Table
Attachment C: Denial Findings
Attachment D: BEP0121 College Terrace County Recorded Map Attachment E: Project Plans
Attachment F: Neighbor Comments
Attachment G: Applicant‘s Memo
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 11
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137-01-125
137-01-104
137-01-102
137-01-103
137-01-034
137-01-035137-01-146
137-01-147
137 01 152
137-01-007
137-01-049
137-01-031
137-01-042
137-01-039
137-01-043
137-01-044
137-01-048
137-01-047
137-01-046
137-01-045
137-01-134
137-01-133
137-36-001
137-36-002
137-36-003
137-36-004
137-36-005
137-36-006
137-36-007
137-01-065
137-36-008
137-01-036
137-01-101
137-01-037
137-01-038

COLLEGE AVENUESTREET

STAUNTON COURTOXFORD AVENUE
560
560
552
552
550
550
2172
2172
57 599
227
0 2
2251
17 4
211
0 2130
213
0 560
570
2135
2139
580
580
2170
2170
2145
214
5 2111
211
1 589
589
587
587
575
575
2130
213
0 2166
2152
2152-
2166
615
615
642
640
638
636
634
634- 642
664
664
668
668
2175
217
5 2179
217
9 2145
2145-
2153
2153
2211
1 657
657- 665
2264
659
666
2177
2147
2149
2151
2253
2255
2147
2147
564
564- 572
643
643
645
645
2260
226
0 226
2 2100
82 580
2095
95 212
3 2178
217
8 2172
217
2 2166
216
6 2160
216
0 2150
215
0 2140
214
0 2139
213
9 2133
213
3 572
570
2164
2162
2160
2158
2156
2154
2137
2149
2149
545
545
555
555
PC-5069
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Assessment Parcel Palo Alto
Assessment Parcel Palo Alto
Assessment Parcel Outside Palo Alto
abc Road Centerline Small Text (TC)
Curb Face (RF)
Pavement Edge (RF)
abc Address Label (AP)
Current Features
abc Zone District Labels
Zone Districts
0' 46'
Attachment A:

Location Map
2147 Yale

CITY OF PALO ALTO
I
N
C

O R P O R A
T
E
D

CAL I FORN IA
P a l o A l t o
T h e C i t y o f
A
P
R
I L 1 6 1
8 9
4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto efoley2, 2023-01-05 13:11:04
(\\cc-maps\Encompass\Admin\Personal\Planning.mdb)
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ATTACHMENT B

ZONING COMPARISON TABLE
2147-2149 Yale Street, 22PLN-00374
Table 1: COMPARISON WITH CHAPTER 18.12 (RMD DISTRICT)
Regulation Required/Allowable Existing Proposed Parcel 1 (2147 Yale)
Proposed Parcel 2
(2149 Yale)
Minimum/Maximum
Site Area
5,000-9,999 sf 5,770 sf Non-conforming:
2,885 sf
Non-conforming:
2,885 sf
Minimum/Maximum
Site Width (1)
6 6 50 feet 50.15 feet wide
along College Ave.

57.53 feet wide along
Yale St.

50.15 feet wide along
College Ave.

Minimum/Maximum
Site Depth
FD 100 feet 115.03 feet wide
along Yale St.

Non-conforming:

50.15 feet deep
Non-conforming:

57.50 feet long along
Yale St.

Residential Density Two-Family use,
under one
ownership*
Two units One unit One unit
Front Setback 20 feet 20 feet 20 feet Non-conforming:
16 feet
Interior Side Setback 6 feet 6 feet 6 feet Non-conforming:

3.6 feet right side
20 feet left side
Street Side Setback 16 feet 16 feet 16 feet N/A
Rear Setback 20 feet 20 feet Non-conforming:

3.2 feet
Non-conforming:
6 feet
Maximum Lot
Coverage
40%
2,308 sf
33%
1,891 sf

32.77%
945.45 sf

32.77%
945.45 sf
Maximum Floor Area 50% plus 200 sf for
purposes of
providing one
required covered
parking space (two-
family use only, not
applicable to single
family)
3,085 sf
3,075 sf Non-conforming:

53.29%
1,537.5 sf
Buildable:
50%
1,442.5 sf
Non-conforming:

53.29%
1,537.5 sf
Buildable:
50%
1,442.5 sf
Maximum Height 35 Two stories Non-conforming:
two stories
Allowable: one story
Non-conforming: two
stories
Allowable: one story
* Note SB 9 does not apply in the RMD zoning district
Table 2: CONFORMANCE WITH SECTION 18.10.060 and CHAPTER 18.52 (Off-Street Parking) for Two-Family RMD Use
Type Required Existing Proposed 2147 Yale Proposed 2149 Yale Item 11
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Vehicle Parking
Two Family
3 spaces total, of
which at least two
must be covered
3 spaces total: 2
covered spaces (1
assigned to each
unit), plus 1
uncovered shared
space

N/A N/A
Vehicle Parking
Single Family
Two spaces per unit,
one of which must
be covered
N/A Non-conforming:
1 covered space only
Non-conforming:
1 covered space only
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1 ATTACHMENT C

FINDINGS FOR APPROVAL
2147 Yale Street
22PLN-00374

Preliminary Parcel Map Findings
A legislative body of a city shall deny approval of a Preliminary Parcel Map with Exceptions, if it makes any of the following findings (CGC Section 66474):

1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451:

The site does not lie within a specific plan area and is consistent with the provisions of the Comprehensive Plan as noted below.

2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans:

Staff is not able to identify any Comprehensive Plan policies or Programs directly relevant to the subject application. The existing structures and uses are consistent with the Comprehensive Plan and are not proposed to change. Therefore, staff recommends finding that on balance, the project is consistent with the policies in the Comprehensive Plan.

3. That the site is not physically suitable for the type of development:

No change to the existing development is proposed, however by re -orienting the pro perty lines, the existing building setbacks become non- conforming. The rea r setback for the proposed 2147 Yale property would be 3.2 ft where 20 ft is usually required. For the proposed 2149 Yale property, the front setback would be 16 ft where 20 ft is usually required, the side setback would be 3.6 ft where 6 is required, and the rear would be 6ft where 20 ft is required.

The existing lightwells would become non -conforming as well. Additionally both proposed lots would exceed allowable FAR by approximately 3%. The two created lots would not meet the minimum lot size requirement of 5,000 sf and would be considered substandard. As a result of these non-conformities, the proposed lots are not physically suitable for the houses in comparison to the existing lot.

4. That the site is not physically suitable for the proposed density of development:

The subdivision application for the site will not change the existing residential density of two units.

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2 5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat:

The minor subdivision will not cause environmental damage or injure fish, wildlife, or their habitat. The project site has been fully urbanized and developed and is centrally located within the College Terrace neighborhood. There is no recognized sensitive wildlife or habitat in the project vicinity.

6. That the design of the subdivision or type of improvements is likely to cause serious public health problems:

The creation of two individual parcels will not cause serious public health problems, as it does not substantially affect the existing conditions and overall function of the property as a site for single-family residences.

7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of c ompetent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision.

It may be possible to retain the existing un covered parking space by requiring an access easement between the two properties, however this is not currently part of the proposal.

SECTION 5. Exception Findings.

A legislative body of a city shall deny approval of a Preliminary Parcel Map with Exceptions, if it fails to make any of the following findings (PAMC 21.32.020):

1. There are special circumstances or conditions affecting the property.

The existing property is a typical size for the RMD (NP) zoning district, and contains the allowed use of two-family use under one ownership. While the tenancy-in-common is not the most typical ownership arrangement, it is a private matter outside of the scope of the Zoning Code and does not constitute a special circumstance.

The special circumstance in this case is that the houses already exist, so the setbacks are Item 11
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3 unable to be changed compared to a subdivision application for new construction.

2. The exception is necessary for the preservation and enjoyment of a substantial property right of the petitioner.

No property rights are affected by the current arrangement, as either or both sellers may sell their share of the property. Therefore, no property rights are preserved or recovered by subdividing.

3. The granting of the exception will not be detrimental to the public welfare or injurious to other property in the territory in which the property is situated.

The use of the property would not be changing, and therefore will not be detrimental to the public welfare or injurious to other properties in the area.

4. The granting of the exception will not violate the requirements, goals, policies, or spirit of the law.

Granting this exception would create violations of the Zoning Code for required setbacks and FAR, and render the existing units non-conforming. Furthermore, the permitted use of two-family use under one ownership was developed to allow and encourage this type of development. Allowing the requested exception would violate the spirit of the law by setting a precedent for other RMD-zoned properties with this land use and/or tenancy-in- common arrangement, as well as potentially discouraging similar projects from being built in the future.

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Terrace County Recorded Map

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Attachment E
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Commissioners for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Directions to review Project plans online:

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “2147 Yale” and click the address link

3. On this project specific webpage you will find a link to the project plans and other important information
Direct Link to Project Webpage:
https://www.cityofpaloalto.org/News-Articles/Planning-and-Development-Services/2147-Yale- Street
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1 Foley, Emily
From: Pria Graves <[email protected]>
Sent: Friday, December 2, 2022 2:57 PM
To: Foley, Emily
Subject: Application 22PLN-00374, 2147 Yale Street
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Dear Emily ‐

I am writing to urge you to deny approval of this request to divide the existing parcel with two Single‐Family Residences into two lots.

This request is totally inconsistent with the RMD(NP) zoning which explicitly states:
" The RMD two‐unit multiple‐family residence district is intended to allow a second dwelling unit under the same ownership as the initial dwelling unit on appropriate sites in areas designated for multiple‐family use by the Palo Alto Comprehensive Plan.”

When these two homes were built in 2010, it was made very clear that the entire lot (parcel 137‐01‐038) was to remain under one owner. There was never any provision for subsequent subdivision.

One of the benefits of the RMD zoning is that it allows certain exceptions without requiring the applicant to obtain a variance. The original application included a minimum lot size exception and minimum depth exception and I believe that the setback at the rear of the current structures is also slightly less than required. Since the project took advantage of these exceptions, it is absurd that the owners now wish to ignore the RMD zoning requirements that allowed the homes to be built!

This subdivision also may be the beginning of a slippery slope for the City. If this property, explicitly required to remain under one owner, can be subdivided, what will the City’s answer be when the owners of homes with ADUs apply to subdivide their lots so they can sell the ADU? As I say, a slippery slope.

As the long‐time owner of a home in this zoning district, I really do not wish to see the zoning requirements eroded. It is unfair to those who choose to comply with the intent of the zoning and wish to retain our moderately dense housing area.

Regards,

Pria Graves
2130 Yale Street

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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: May 1 2023
Report #:2303-1183
TITLE
Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022)

DISCUSSION
This report transmits information regarding the City of Palo Alto’s sales tax receipts for the fourth quarter (October to December) of 2022.

There are two attachments to this report that provide further and more detailed levels of information:

1. City of Palo Alto Sales Tax Digest Summary 2022 Q4 (Attachment A)

2. California Legislative Update for Local Taxes (Attachment B) The City’s sales tax cash receipts of $9.6 million for the fourth quarter (October to December 2022) is $594,000 (6.6%) higher than the same quarter of the prior year (see Attachment A, Historical Analysis by Calendar Quarter). This increase includes late payment anomalies related to the state sales tax extension program. When adjusted for nonperiod related payments, the overall economic quarter over quarter sales tax activity (Q4 2021 to Q4 2022) in Palo Alto increased by 7.2%. This is likely due to higher prices of goods and services as a result of inflation and a combination of recovery and other factors (consumers, businesses, and organizations getting back to pre-pandemic trends along with non- pandemic related business performance changes). Generally, the pace of the City’s recovery from the pandemic has lagged compared to other regions. Growth for the state and Northern California reflects inflationary growth while the growth reported for the City reflects both inflationary grown and lagged recovery.

For the year ending in the fourth quarter of 2022, cash receipts (including county pools) for the City increased by 13.4% from the prior year. In comparison, statewide increased by 8.1% and Northern California increased by 7.4%.

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After adjustments for non-period related payments, the overall economic sales tax activity in Palo Alto for the year increased by 14.8%, while it increased 2.5% for the state and decreased

5.9% in Northern California. Both the state and Northern California did not see as significant sales tax decline compared to the City and overall recovered ahead of the City. The City’s economic sales tax loss bottomed out at a 25.9% decline (calendar 2021 Q1), while the state and Northern California experienced 17.4% and 18.8% declines, respectively, during the same quarter.

The fourth quarter includes $1.8 million of sales tax receipts from the county pool. The City’ s share of the county pool for this quarter is 6.2%, up from 5.9% in the fourth quarter of 2021.

County pools are primarily from online purchases from out-of-state companies, remote sellers who ship merchandise to California/ County destinations, and private vehicle sales that are not directly allocated to a jurisdiction. County pools are allocated to local jurisdictions based on each jurisdiction’ s share of total sales taxes.

ATTACHMENTS
Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022 Q4 Attachment B - California Legislative Update for Local Taxes APPROVED BY:

Kiely Nose, Assistant City Manager
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City of Palo Alto
Sales Tax Digest Summary
Collections through February 2023
Sales October through December 2022 (2022Q4)

www.avenuinsights.com (800) 800-8181 Page 1
California Overview
For the year ending in fourth quarter of 2022, cash receipts increased 8.1% statewide, 7.4% in Northern California. However, when adjusted for non-period related payments, the overall economic sales tax activity for the year ending in fourth quarter of 2022 increased by 2.5% statewide, and down 5.9% in Northern California.

City of Palo Alto
For the year ending in the fourth quarter of 2022, sales tax cash receipts for the city increased by 13.4% from the prior year. However, when adjusted for non-period related payments, the overall economic sales tax activity in Palo Alto for the year ending in fourth quarter of 2022 increased by 14.8%.

On a quarterly basis, sales tax cash receipts increased by 6.6% from Quarter 4 of 2021 to Quarter 4 of 2022. However, this increase includes late payment anomalies related to a state sales tax extension program. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. When ad justed for non-period related payments, the overall economic quarter over quarter sales tax activity (Q4 2021 to Q4 2022) in Palo Alto increased by 7.2%.

A large, one -time audit decision of -$612,000 negatively impacted the city’s cash receipts this quarter.

Without the correction, sales tax cash receipts would have increased by approximately 12.4% from Quarter 2 of 2021 to Quarter 2 of 2022. Approximately 3.8% of that adjusted 12.4% Q2 of 2022 over Q2 of 2021 increase might be attributed to inflation , based on increases in the Consumer Price Index, (CPI - U). Very little of Palo Alto’s adjusted 12.4% increase might be attributed to increased economic activity, based on changes in US Real GDP. Roughly 1.7% is attributable to a decrease in payments from p rior periods, due to Palo Alto taxpayers getting caught up with payments. The remaining roughly 6.9% is a combination of recovery and other factors (consumers, businesses and organizations getting back to Pre- Pandemic trends along with non -pandemic related business performance changes). Note that some of these factors are based on broad based data and thus, these growth factors should be treated as rough guidelines for economic activity changes this quarter.

Regional Overview
The first chart on page two shows adjusted economic benchmark year amounts, which means that it shows a full calendar year from the fourth quarter of 2021 through fourth quarter of 2022 compared to fourth quarter of 2020 through fourth quarter of 2021 (benchmark years are rolling annual comparisons through the current quarter). The decrease is different between the state and Palo Alto because the sales tax from businesses in Palo Alto were more impacted than those statewide.

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Summary, 2022Q4

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City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 2 % of Total / % Change Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast General Retail 27.4 / 12.2 27.8 / -0.7 23.4 / -18.7 27.9 / 1.9 36.3 / -1.8 26.2 / 2.4 32.7 / 14.9 25.5 / -23.4 Food Products 16.8 / 31.1 20.0 / 4.9 20.5 / -12.9 15.9 / 9.4 14.2 / 4.6 22.3 / 9.5 17.2 / 13.9 17.6 / -7.7 Transportation 19.5 / -2.5 24.9 / 6.2 21.4 / -15.8 27.5 / 5.6 23.2 / 6.1 25.8 / 10.5 25.8 / 24.6 30.4 / -6.2 Business to Business 32.7 / 27.1 16.2 / 1.7 22.5 / -14.4 14.4 / 12.4 15.2 / 10.9 15.9 / 4.2 10.7 / 25.0 10.8 / -1.2 Misc/Other 3.6 / -14.2 11.1 / -0.6 12.2 / -17.1 14.3 / 6.2 11.2 / 3.2 9.7 / 0.2 13.7 / 19.4 15.7 / -11.6 Total 100.0 / 14.8 100.0 / 2.5 100.0 / -15.8 100.0 / 6.1 100.0 / 3.2 100.0 / 6.0 100.0 / 18.7 100.0 / -11.9 Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast Largest Segment Leasing Restaurants Restaurants Auto Sales - New
Miscellaneous
Retail Restaurants Miscellaneous
Retail Service Stations
% of Total / % Change 20.7 / 24.6 14.1 / 8.4 14.6 / -8.4 11.2 / 1.2 13.4 / 0.5 16.2 / 13.6 16.0 / 24.9 12.1 / 13.5 2nd Largest Segment Auto Sales -
New
Auto Sales -
New
Auto Sales -
New Restaurants Department
Stores
Auto Sales -
New Restaurants Auto Sales -
New
% of Total / % Change 15.2 / -8.5 11.6 / 1.4 10.2 / -22.8 10.8 / 11.4 11.1 / 2.2 13.1 / 8.7 10.5 / 16.6 11.1 / -18.3 3rd Largest Segment Restaurants Miscellaneous
Retail
Department
Stores
Miscellaneous
Retail Restaurants Department
Stores
Auto Sales -
New Restaurants
% of Total / % Change 15.0 / 33.5 9.1 / 4.3 8.0 / -8.1 10.5 / 2.4 9.3 / 5.0 8.1 / 3.0 10.4 / 9.7 11.1 / -6.6 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 4th Quarter 2022 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 4th Quarter 2022 $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Quarterly Benchmark Year
Regional Overview Chart (Economic)
BENCHMARK YEAR 2022Q4 COMPARED TO BENCHMARK YEAR 2021Q4

Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)

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Summary, 2022Q4

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City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 3 Anderson Honda Macy's Department Store Stanford Health Care Apple Stores Magnussen's Toyota of Palo Alto Tesla
Arco AM/PM Mini Marts Neiman Marcus Tesla Lease Trust
Audi Palo Alto Nordstrom Department Store Tiffany & Company Bloomingdale's Richemont Union 76 Service Stations
Hengehold Trucks Rivian Automotive Valero Service Stations Hermes Shell Service Stations Varian Medical Systems
HP Enterprise Services Shreve & Co. Volvo Cars Palo Alto Louis Vuitton
Auto Sales - New

15.2%
Restaurants

15.0%
Office Equipment

7.0%
Apparel Stores

6.6%
Department Stores

6.3%
All Other

49.9%
Net Pools & Adjustments

20.5%

Net Cash Receipts for Benchmark Year fourth Quarter 2022: $34,043,639

*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2022Q4 BMY is sum of 2022 Q4, 2022 Q3, 2022 Q2, 2022 Q1)

TOP 25 SALES/USE TAX CONTRIBUTORS

The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended fourth quarter of 2022. The Top 25 Sales/Use Tax contributors generate

61.4% of Palo Alto’s total sales and use tax revenue.

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$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Benchmark Year 2022Q4 Benchmark Year 2021Q4
Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic)

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Economic Category % 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 Business To Business 26.8% 2,571,178 2,194,817 2,095,020 2,031,199 2,136,501 1,689,561 1,559,814 1,700,725 1,937,072 1,909,078 1,851,601 Miscellaneous/Other 15.8% 1,517,005 1,597,816 1,724,861 1,701,538 1,687,189 1,812,731 1,743,358 1,558,859 1,777,635 1,480,228 997,005 General Retail 24.0% 2,305,038 1,802,777 1,920,316 1,639,417 2,282,253 1,687,461 1,740,666 1,153,240 1,608,823 1,143,497 660,300 Food Products 13.1% 1,260,287 1,230,824 1,227,240 1,018,577 1,083,309 999,729 912,939 635,705 674,469 651,271 439,540 Subtotal Economic (Local Business) 79.8% 7,653,508 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529 5,997,999 5,184,075 3,948,447 Net Pools & Adjustments 20.2% 1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 1,877,921 Total Cash Receipts 100.0% 9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 Economic Segment % 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 Miscellaneous/Other 46.8% 4,490,992 4,087,158 4,008,008 3,949,786 3,969,954 3,752,178 3,570,610 3,406,995 3,982,753 3,567,251 3,181,367 Restaurants 11.6% 1,114,637 1,102,248 1,093,944 902,707 947,771 884,911 799,544 540,244 557,662 546,924 342,533 Miscellaneous Retail 5.7% 545,797 381,616 479,710 432,956 679,381 412,016 514,516 338,032 489,417 329,678 108,953 Apparel Stores 5.6% 538,573 435,730 495,508 392,724 540,782 406,274 398,447 264,318 365,627 265,136 72,307 Department Stores 5.6% 533,032 423,601 454,349 367,144 525,295 388,703 384,763 237,522 315,453 186,316 29,842 Service Stations 2.2% 215,640 233,387 250,715 191,755 190,610 181,460 157,268 116,258 111,242 108,840 70,063 Food Markets 1.2% 116,810 99,811 104,253 91,634 108,203 90,773 89,773 74,397 89,739 81,580 77,803 Business Services 1.0% 98,027 62,683 80,950 62,025 227,256 73,169 41,858 70,763 86,107 98,350 65,579 Subtotal Economic (Local Business) 79.8% 7,653,508 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529 5,997,999 5,184,075 3,948,447 Net Pools & Adjustments 20.2% 1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 1,877,921 Total Cash Receipts 100.0% 9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368

Historical Analysis by Calendar Quarter

The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash recei pts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustm ents” amount.

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Economic Category % 2022Q4 2021Q4 2020Q4 2019Q4 2018Q4 2017Q4 2016Q4 2015Q4 2014Q4 2013Q4 Business To Business 27.2% 9,260,981 7,286,150 7,841,120 8,527,467 6,310,094 5,765,938 5,070,150 4,816,050 4,229,960 4,345,099 Miscellaneous/Other 19.1% 6,512,441 6,818,252 5,644,912 7,306,496 7,675,702 6,512,996 6,341,684 5,870,766 5,238,824 8,554,047 General Retail 22.7% 7,711,363 6,865,025 4,443,550 7,705,885 8,252,239 8,101,232 8,405,122 8,004,603 8,043,904 7,971,020 Food Products 14.0% 4,764,903 3,635,859 2,786,896 4,918,067 4,834,276 4,678,134 4,623,448 4,477,229 4,203,235 3,851,007 Subtotal Economic (Local Business) 83.0% 28,249,687 24,605,286 20,716,478 28,457,915 27,072,311 25,058,300 24,440,405 23,168,648 21,715,924 24,721,173 Net Pools & Adjustments 17.0% 5,793,952 5,424,527 4,640,947 6,403,208 6,376,669 4,919,736 4,008,398 3,910,626 3,986,209 3,940,092 Total 100.0% 34,043,639 30,029,814 25,357,425 34,861,122 33,448,980 29,978,035 28,448,802 27,079,275 25,702,133 28,661,265

Economic Segment % 2022Q4 2021Q4 2020Q4 2019Q4 2018Q4 2017Q4 2016Q4 2015Q4 2014Q4 2013Q4 Miscellaneous/Other 49.6% 16,874,802 14,915,305 14,173,249 16,823,007 15,194,506 13,632,458 12,398,186 11,601,638 10,535,865 13,987,602 Restaurants 12.5% 4,241,753 3,176,670 2,339,624 4,353,618 4,241,632 4,068,940 4,022,319 3,891,360 3,664,315 3,323,442 Miscellaneous Retail 5.5% 1,875,473 1,945,372 1,208,603 1,611,157 1,675,512 1,682,474 2,314,810 1,630,195 1,546,933 1,434,238 Apparel Stores 5.5% 1,871,251 1,609,800 1,004,225 1,912,604 1,979,846 1,741,347 1,660,190 1,657,179 1,660,838 1,630,187 Department Stores 5.2% 1,778,127 1,536,282 777,559 1,795,157 1,980,754 2,066,909 2,143,430 2,366,679 2,364,448 2,449,696 Service Stations 2.6% 891,841 645,596 436,436 700,712 697,083 613,070 551,153 644,027 768,488 760,187 Business Services 0.9% 303,932 413,141 419,690 817,559 834,069 748,497 843,203 872,811 707,311 674,668 Food Markets 1.2% 412,508 363,121 357,092 444,100 468,909 504,604 507,114 504,759 467,726 461,152 Subtotal Economic (Local Business) 83.0% 28,249,687 24,605,286 20,716,478 28,457,915 27,072,311 25,058,300 24,440,405 23,168,648 21,715,924 24,721,173 Net Pools & Adjustments 17.0% 5,793,952 5,424,527 4,640,947 6,403,208 6,376,669 4,919,736 4,008,398 3,910,626 3,986,209 3,940,092 Total 100.0% 34,043,639 30,029,814 25,357,425 34,861,122 33,448,980 29,978,035 28,448,802 27,079,275 25,702,133 28,661,265

Historical Analysis by Calendar BMY from 2013Q4 to 2022Q4

The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters (2022Q4 BMY is sum of 2022 Q4, 2022 Q3, 2022 Q2, 2022 Q1).

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General Retail
Food Products
Transportation
Business to Business
Misc/Other
2022/4 Total
2021/4 Total
% Chg
Largest Gain
Second Largest
Gain
Largest Decline
Second Largest
Decline
Campbell 1.1% 11.8% -1.5% 64.4% 6.8% 3,023,861 2,648,352 14.2% Light Industry Restaurants Miscellaneous Retail Auto Sales - Used Cupertino -11.8% 12.4% 25.4% -44.0% -40.1% 10,068,546 16,805,343 -40.1% Restaurants Service Stations Office Equipment I.T. Infrastructure Gilroy 0.1% 4.3% 7.1% -9.7% -10.9% 4,649,553 4,628,454 0.5% Auto Sales - New Department Stores I.T. Infrastructure Misc. Vehicle Sales Los Altos -27.7% 2.8% 9.3% 3.9% -9.4% 636,393 667,611 -4.7% Restaurants Service Stations Recreation Products Light Industry Los Gatos 9.6% 23.5% -7.0% -6.1% 11.8% 1,632,289 1,490,491 9.5% Restaurants Furniture/Appliance Auto Sales - New Miscellaneous Retail Milpitas -5.1% 17.7% 38.6% 32.9% -9.4% 6,595,785 5,625,844 17.2% Office Equipment Auto Sales - New Miscellaneous Retail Light Industry Morgan Hill 2.6% -18.2% 8.5% -15.3% -18.5% 2,639,438 2,737,611 -3.6% Service Stations Auto Sales - New Food Markets Light Industry Mountain View -15.6% 17.8% 23.0% -17.4% -1.3% 5,272,210 5,340,713 -1.3% Restaurants Auto Sales - New Business Services Miscellaneous Retail Palo Alto 0.9% 16.1% -8.9% 24.2% -26.8% 7,848,525 7,323,799 7.2% Office Equipment Leasing Miscellaneous Retail Auto Sales - New San Jose -1.1% 12.3% 13.5% 33.6% -1.5% 60,148,190 55,065,184 9.2% Office Equipment Auto Sales - New Miscellaneous Retail Apparel Stores Santa Clara -3.2% 19.9% 26.4% -1.7% 5.0% 13,004,559 12,383,669 5.0% Auto Sales - New Restaurants I.T. Infrastructure Miscellaneous Retail County of Santa Clara 2.7% -10.5% -3.7% 6.8% 9.8% 1,202,620 1,197,213 0.5% Heavy Industry Bldg.Matls-Whsle Food Processing Eqp Auto Parts/Repair Saratoga -26.5% -0.5% 6.4% 84.9% -25.5% 295,840 298,131 -0.8% Business Services Light Industry Miscellaneous Retail Food Processing Eqp Sunnyvale 23.5% 15.1% 13.2% 11.3% 38.0% 8,013,428 6,859,535 16.8% Department Stores Office Equipment Heavy Industry Miscellaneous Retail Quarterly Analysis by Sales Tax Category: Change from 2021Q4 to 2022Q4 (Economic)

Unlike the chart on page one which showed a ‘benchmark year’ through fourth quarter of 2022, the chart above shows a comparison of one quarter only – fourth quarter of 2022 to fourth quarter of 2021. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments.

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California Avenue % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL FOOD PRODUCTS 22.4% 61,334 50,093 49.8% 44.8%
GENERAL RETAIL -15.9% 20,238 24,072 16.4% 21.5%
ALL OTHER 10.9% 41,697 37,611 33.8% 33.6%
TOTAL 10.3% 123,269 111,776 100.0% 100.0%
El Camino Real and Midtown % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL FOOD PRODUCTS 10.5% 161,847 146,412 46.2% 42.2%
GENERAL RETAIL 2.1% 39,138 38,329 11.2% 11.1%
ALL OTHER -7.7% 149,465 161,886 42.6% 46.7%
TOTAL 1.1% 350,450 346,627 100.0% 100.0%
Greater Downtown % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL FOOD PRODUCTS 16.6% 485,755 416,570 52.6% 49.6%
GENERAL RETAIL 37.1% 383,255 279,601 41.5% 33.3%
BUSINESS TO BUSINESS -70.6% 35,094 119,500 3.8% 14.2%
CONSTRUCTION -14.9% 10,165 11,943 1.1% 1.4%
MISCELLANEOUS -43.5% 4,889 8,655 0.5% 1.0%
TRANSPORTATION 24.0% 3,750 3,023 0.4% 0.4%
TOTAL 10.0% 922,907 839,292 100.0% 100.0%
Stanford Shopping Center % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL GENERAL RETAIL -19.9% 1,150,892 1,437,359 74.4% 75.9%
FOOD PRODUCTS 4.7% 148,678 142,044 9.6% 7.5%
ALL OTHER -21.3% 246,968 313,637 16.0% 16.6%
TOTAL -18.3% 1,546,539 1,893,040 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2021Q4 to 2022Q4 (Economic)

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www.avenuinsights.com (800) 800-8181 Page 9 Town And Country Shopping Center % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL FOOD PRODUCTS 12.6% 105,285 93,523 56.9% 54.4%
GENERAL RETAIL 2.4% 72,674 70,974 39.3% 41.3%
ALL OTHER -5.5% 7,110 7,524 3.8% 4.4%
TOTAL 7.6% 185,069 172,021 100.0% 100.0%
All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL BUSINESS TO BUSINESS 25.6% 2,539,070 2,022,323 39.0% 32.9% GENERAL RETAIL -9.8% 1,730,113 1,917,420 26.5% 31.2%
TRANSPORTATION -6.2% 1,129,540 1,204,573 17.3% 19.6%
FOOD PRODUCTS 15.7% 1,039,984 898,543 16.0% 14.6%
MISCELLANEOUS -24.4% 47,882 63,370 0.7% 1.0%
CONSTRUCTION -15.2% 30,176 35,605 0.5% 0.6%
TOTAL 6.1% 6,516,763 6,141,834 100.0% 100.0%
All Geo Area Totals Comparison 22Q4 & 21Q4 % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL Balance of Jurisdiction 21.9% 3,388,529 2,779,078 52.0% 45.2% Stanford Shopping Center -18.3% 1,546,539 1,893,040 23.7% 30.8% Greater Downtown 10.0% 922,907 839,292 14.2% 13.7%
El Camino Real and Midtown 1.1% 350,450 346,627 5.4% 5.6% Town And Country Shopping Center 7.6% 185,069 172,021 2.8% 2.8% California Avenue 10.3% 123,269 111,776 1.9% 1.8%
TOTAL 6.1% 6,516,763 6,141,834 100.0% 100.0%
Palo Alto citywide QE 22Q4 & 21Q4 % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL BUSINESS TO BUSINESS 24.2% 2,756,562 2,219,376 35.1% 30.3% GENERAL RETAIL 0.9% 2,305,038 2,283,693 29.4% 31.2%
TRANSPORTATION -8.9% 1,307,454 1,435,594 16.7% 19.6%
FOOD PRODUCTS 16.1% 1,260,287 1,085,805 16.1% 14.8%
MISCELLANEOUS -29.2% 183,393 259,116 2.3% 3.5%
CONSTRUCTION -11.0% 35,791 40,215 0.5% 0.5%
TOTAL 7.2% 7,848,525 7,323,799 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2021Q4 to 2022Q4 (Economic) Cont.

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FOOD PRODUCTS,

22.4% CHANGE, $61,334 ,

49.8% TOTAL
GENERAL RETAIL, -15.9% CHANGE,
$20,238 , 16.4% TOTAL

ALL OTHER,

10.9% CHANGE, $41,697 ,

33.8% TOTAL
California Avenue 2022Q4 SALES TAX AMOUNTS
FOOD PRODUCTS, $50,093 ,

44.8% TOTAL

GENERAL RETAIL,
$24,072 , 21.5% TOTAL
ALL OTHER, $37,611 ,

33.6% TOTAL
California Avenue 2021Q4 SALES TAX AMOUNTS

FOOD PRODUCTS,

10.5% CHANGE, $161,847 ,

46.2% TOTAL
GENERAL RETAIL, 2.1% CHANGE,
$39,138 , 11.2%TOTAL

ALL OTHER,
-7.7% CHANGE,
$149,465 ,

42.6% TOTAL
El Camino Real and Midtown 2022Q4 SALES TAX AMOUNTS
FOOD PRODUCTS, $146,412 ,

42.2% TOTAL

GENERAL RETAIL,
$38,329, 11.1% TOTAL
ALL OTHER, $161,886

46.7% TOTAL
El Camino Real and Midtown 2021Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts

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FOOD PRODUCTS,

16.6% CHANGE, $485,755 ,

52.6% TOTAL

GENERAL RETAIL,

37.1% CHANGE,
$383,255 ,

41.5% TOTAL

BUSINESS TO BUSINESS,
-70.6% CHANGE, $35,094 ,

3.8% TOTAL

CONSTRUCTION,
-14.9 CHANGE, $10,165 ,

1.1% TOTAL
MISCELLANEOUS, -43.5% CHANGE,
$4,889 , 0.5% TOTAL TRANSPORTATION,

24.0% CHANGE, $3,750 ,

0.4% TOTAL
Greater Downtown 2022Q4 SALES TAX AMOUNTS

FOOD PRODUCTS,
$416,570 , 49.6% TOTAL

GENERAL RETAIL,
$279,601 , 33.3% TOTAL

BUSINESS TO BUSINESS,
$119,500 , 14.2% TOTAL
CONSTRUCTION, $11,943 ,

1.4% TOTAL

MISCELLANEOUS,
$8,655 , 1.0% TOTAL TRANSPORTATION, $3,023 ,

0.4% TOTAL
Greater Downtown 2021Q4 SALES TAX AMOUNTS

GENERAL RETAIL
$1,437,359 ,

75.9% TOTAL
FOOD PRODUCTS, $142,044 ,

7.5% TOTAL
ALL OTHER, $313,637 ,

16.6% TOTAL
Stanford Shopping Center 2021Q4 SALES TAX AMOUNTS

GENERAL RETAIL,
-19.9% CHANGE, $1,150,892 ,

74.4% TOTAL

FOOD PRODUCTS,

4.7% CHANGE,
$148,678 , 9.6% TOTAL
ALL OTHER, -21.3% CHANGE,
$246,968 , 16.0% TOTAL
Stanford Shopping Center 2022Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Areas Pie Charts

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FOOD PRODUCTS,

12.6% CHANGE, $105,285 ,

56.9% TOTAL

GENERAL RETAIL,

2.4% CHANGE, $72,674 ,

39.3% TOTAL
ALL OTHER, -5.5% CHANGE, $7,110 , 3.8% TOTAL
T own And Country Shopping Center 2022Q4 SALES TAX AMOUNTS

FOOD PRODUCTS,
$93,523 ,

54.4% TOTAL
GENERAL RETAIL, $70,974 ,

41.3% TOTAL
ALL OTHER, $7,524 , 4.4% TOTAL
T own And Country Shopping Center2021Q4 SALES TAX AMOUNTS

BUSINESS TO BUSINESS,

25.6% CHANGE,
$2,539,070 ,

39.0% TOTAL

GENERAL RETAIL,
-9.8% CHANGE, $1,730,113,

26.5% TOTAL

TRANSPORTATION,
-6.2% CHANGE,
$1,129,540,

17.3% TOTAL

FOOD PRODUCTS,

15.7% CHANGE, $1,039,984 ,

16.0% TOTAL
MISCELLANEOUS, -24.4% CHANGE,
$47,882 , 0.7% TOTAL CONSTRUCTION,
-15.2% CHANGE, $30,176 ,

0.5% TOTAL
All Other Geos combined with Balance of Jurisdiction 2022Q4

SALES TAX AMOUNTS

BUSINESS TO BUSINESS,
$2,022,323 ,

32.9% TOTAL
GENERAL RETAIL, $1,917,420,

31.2% TOTAL

TRANSPORTATION,
$1,204,573,

19.6% TOTAL

FOOD PRODUCTS,
$898,543 , 14.6% TOTAL

MISCELLANEOUS,
$63,370 , 1.0% TOTAL

CONSTRUCTION,
$35,605 , 0.6% TOTAL
All Other Geos combined with Balance of Jurisdiction 2021Q4

SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts

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www.avenuinsights.com (800) 800-8181 Page 13 Balance of Jurisdiction,

21.9% CHANGE,
$3,388,529 ,

52.0% TOTAL
Stanford Shopping Center,
-18.3% CHANGE, $1,546,539 ,

23.7% TOTAL
Greater Downtown,

10.0% CHANGE, $922,907 ,

14.2% TOTAL
El Camino Real and Midtown,

1.1% CHANGE, $350,450 ,

5.4% TOTAL
Town And Country Shopping Center,

7.6% CHANGE, $185,069 , 2.8% TOTAL California Avenue, 10.3% CHANGE, $123,269 , 1.9% TOTAL
All Geo Area Totals 2022Q4 SALES TAX AMOUNTS
Balance of Jurisdiction,
$2,779,078 , 45.2% TOTAL
Stanford Shopping Center,
$1,893,040 , 30.8% TOTAL
Greater Downtown,
$839,292 ,

13.7% TOTAL
El Camino Real and Midtown,
$346,627 , 5.6% TOTAL
Town And Country Shopping Center,
$172,021 , 2.8% TOTAL
California Avenue,
$111,776 , 1.8% TOTAL
All Geo Area Totals 2021Q4 SALES TAX AMOUNTS

BUSINESS TO BUSINESS,

24.2% CHANGE, $2,756,562 ,

35.1% TOTAL

GENERAL RETAIL,

0.9% CHANGE, $2,305,038 ,

29.4% TOTAL

TRANSPORTATION,
-8.9% CHANGE,
$1,307,454 ,

16.7% TOTAL

FOOD PRODUCTS,

16.1% CHANGE, $1,260,287 ,

16.1% TOTAL
MISCELLANEOUS, -29.2% CHANGE,
$183,393 , 2.3% TOTAL

CONSTRUCTION,
-11.0% CHANGE,
$35,791 , 0.5% TOTAL
Palo Alto citywide 2022Q4 SALES TAX AMOUNTS

BUSINESS TO BUSINESS,
$2,219,376 , 30.3% TOTAL

GENERAL RETAIL,
$2,283,693 ,

31.2% TOTAL

TRANSPORTATION,
$1,435,594 ,

19.6% TOTAL
FOOD PRODUCTS, $1,085,805 ,

14.8% TOTAL

MISCELLANEOUS,
$259,116 , 3.5% TOTAL
CONSTRUCTION, $40,215 ,

0.5% TOTAL
Palo Alto citywide 2021Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts

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California Legislative
Update March 1, 2023
This edition of our policy update provides information on legislation introduced for 2023 primarily related to local taxes. We hope that this update is helpful, and we will provide additional updates in the future regarding other legislation of interest. Please reach out to us with any questions.

Government Relations Contact
[email protected] / 559.288.7296

2023 Legislation
Friday, February 17 marked the deadline for bill
introductions in 2023. Legislators, in particular new
legislators, introduced a windfall of bills, surpassing introduction numbers for the last ten years. In total, 2,632 bills were introduced – 1,751 in the Assembly, 881 in the Senate, and six special session bills. About 40% of the legislation introduced are spot bills – placeholders that will be amended with substantive language prior to being
referred to policy committees.

In the Senate, amendments are must be drafted by
legislative counsel and submitted to the Senate Rules
Committee on or by March 22 at 3:00 p.m. In the
Assembly, amendments must be provided to legislative
counsel on or by February 27 at 5:00 p.m. This is to say that a flood of substantive amendments is anticipated the third week in March, which will further define policy
discussions this year.

Sales and Use Taxes
AB 52 (Grayson) Sales and Use Tax Law:
manufacturing equipment: research and
development. Would express the intent of the legislature to expand the sales and use tax exemption for
manufacturing and research and development equipment
to preserve California’s status as a hub of innovation and technology and to encourage greater investment in
California. Avenu is watching this measure closely, as it is a

version of AB 1930 vetoed by the governor last year and could be detrimental to municipal finances.

Status: Not yet referred to policy committee
Cal Cities Position: Watch
AB 314 (Patterson, Jim) Sales and Use Tax:
exemptions: trucks for use in interstate or out-of-state commerce. Extends the sales and use tax exemption from
2024 to 2029 for a truck, trailer, or semitrailer over 6000 pounds that is purchased to use in a different state. It also requires the buyer to give an affidavit stating that the vehicle will only be used outside of the state and that it will leave the state within a certain time period. States that local government agency revenue losses resulting from the bill will not be reimbursed.

Status: Referred to the Assembly Committee on Revenue
and Taxation
Cal Cities Position: Watch
AB 543 (Gipson) Sales and Use Tax Law: exemptions:
petroleum products: water common carriers. Removes
the January 1, 2024 sunset date for the sales and use tax exemption on the sale of fuel and petroleum products sold to a water common carrier for immediate shipment outside California for consumption in the conduct of its business as a common carrier after the first out-of-state destination.

States that local government agency revenue losses
resulting from the bill will not be reimbursed.

Status: Referred to the Assembly Committee on Revenue & Taxation
Cal Cities Position: Watch
AB 1203 (Bains) Sales and use taxes: exemptions:
breast pumps and related supplies. Would, on or after
January 1, 2024, and before January 1, 2029, exempt the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, breast pumps, breast pump collection and storage supplies, breast pump kits, and breast pads. States that local government agency Item 12
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revenue losses resulting from the bill will not be
reimbursed.

Status: Not yet referred to policy committee
Cal Cities Position: Watch
AB 1249 (Ta) Sales and use taxes: exemption: tax
holiday: school supplies. Would, on and after January 1, 2024, and before January 1, 2029, exempt from sales and use taxes the gross receipts from the sale of, and the
storage, use, or other consumption of, qualified school supplies, for the two-day period beginning at 12:01 a.m. on the third Saturday of July of each year and ending at 11:59 p.m. on the following day. States that local government agency revenue losses resulting from the bill will not be reimbursed.

Status: Not yet referred to policy committee
Cal Cities Position: Watch
SB 96 (Portantino) Sales and Use Tax Law: live
events: historic event venues. Would state the intent of the legislature to enact legislation expanding the state sales and use tax exemption to transactions during live events at California historic event venues for reinvestment in
historic preservation activities.

Status: Not yet referred to policy committee
Cal Cities Position: Watch

Motor Vehicle Taxes
AB 16 (Dixon) Motor Vehicle Fuel Tax Law:
adjustment suspension. Would authorize the
governor to suspend an adjustment to the motor
vehicle fuel tax scheduled on or after July 1, 2024,
upon determining that increasing the rate would
impose an undue burden on low-income and middle-
class families. The California Department of Tax and
Fee Administration adjusts the tax annually based on
a percentage amount equal to the increase in the
California Consumer Price Index.

Status: Not yet referred to policy committee
Cal Cities Position: Watch
AB 53 (Fong, Vince) Motor Vehicle Fuel Tax
Law: suspension of tax. Would suspend the tax on
motor vehicle fuels for one year, would require that
all savings realized by a person other than an end
consumer be passed on to the end consumer, and
would make the violation of this requirement an
unfair business practice in violation of unfair
competition laws.

Status: Not yet referred to policy committee
Cal Cities Position: Watch
SB 5 (Nguyen) Motor Vehicle Fuel Tax Law:
limitation on adjustment. Would limit the annual
adjustment to motor vehicle fuel taxes to a maximum
of 2% for rate adjustments made on or after July 1,
2023.

Status: Referred to the Senate Committee on
Governance & Finance
Cal Cities Position: Watch

Property Taxes
AB 84 (Ward) Property tax: welfare exemption:
affordable housing. Pursuant to the state constitution, affordable rental housing owned by a nonprofit entity is considered a “charitable” use and exempt from basic
property taxes. AB 84 allows nonprofit affordable rental housing to access the existing welfare property tax
exemption from the date the property is restricted for
affordable housing.

Status: Referred to the Assembly Committees on Housing
& Community Development and Revenue & Taxation
Cal Cities Position: Watch
SB 726 (Archuleta) Property taxation: exemption:
disabled veteran homeowners. Would allow veterans
who are 100% disabled, their spouses, and unmarried
surviving spouses an exemption from taxation on their
property that does not exceed $863,790, provided certain conditions are met between January 1, 2024 and January 1, 2034.

Status: Not yet referred to policy committee
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Cal Cities Position: Watch

Miscellaneous
AB 41 (Holden) Telecommunications: The Digital
Equity in Video Franchising Act of 2023. Revises
existing law pertaining to cable operators and state video franchising including:
• Expanding the definition of video service to include
video programming provided as part of, and via, a
service that enables users to access content,
information, email, or other services offered over the
public internet;
• Providing that the act does not authorize the
California Public Utilities Commission to regulate the
rates of video services;
• Revising the revenues excluded from the definition of “gross revenue” for purposes of calculating the
franchise fee for a local jurisdiction; and
• Expanding the prohibition on certain cable operators
or video service providers from discriminating against, or denying access to service to, any group of potential residential subscribers.

Status: Referred to the Assembly Committee on
Communications & Conveyance
Cal Cities Position: Support
AB 534 (McCarty) Local agencies: airports: customer
facility charges. Existing law authorizes airports to
require rental companies to collect a customer facility charge or an alternative customer facility charge under specified circumstances for purposes that include
financing, designing, and constructing or operating airport vehicle rental facilities and common-use transportation systems. Current law, beginning January 1, 2024, provides that the authorization for an airport to impose a customer facility charge becomes inoperative when the bonds used for financing are paid, except as specified. This bill would delete the provision ending the authorization described above.

Status: Referred to the Assembly Committee on Privacy & Consumer Protection
Cal Cities Position: Watch
AB 537 (Berman) Short-term lodging: advertising:
rates. Would prohibit a place of short-term lodging, from advertising or offering a room rate that does not include all taxes and fees required to book or reserve the short-term lodging. The bill would make a knowing violation of those provisions subject to a specified civil penalty not to exceed $10,000 and would authorize an action to enforce those
provisions to be brought by a city attorney, district
attorney, or the Attorney General.

Status: Referred to the Assembly Committees on Business & Professions and Judiciary
Cal Cities Position: Watch
SB 532 (Wiener) Ballot measures: local taxes. Current
law requires that the ballots used when voting upon a
measure proposed by a local governing body or submitted to the voters as an initiative or referendum measure, have printed on them a true and impartial statement describing the purpose of the measure. If the proposed measure
imposes a tax or raises the rate of a tax, current law
requires the ballot to include in the statement of the
measure the amount of money to be raised annually and
the rate and duration of the tax to be levied. This bill would exempt from this requirement a measure that
imposes or increases a tax with more than one rate or
authorizes the issuance of bonds.

Status: Referred to the Senate Committees on Governance & Finance and Elections & Constitutional Amendments
Cal Cities Position: Watch
SB 676 (Allen) Responsible Pool Disinfection and
Water Conservation Act: local tax authorization.

Would authorize a county to levy a tax by ordinance,
approved by a 50% vote of the electors, at a rate of no more than $0.30 per tablet, on the sale within its
jurisdiction of trichlor tablets.

Status: Not yet referred to policy committee
Cal Cities Position: Watch
SB 721 (Becker) Special taxes: vacant land.

May be acted upon on or after March 19.

The California Constitution generally conditions the
imposition of a special tax by a city, county, or special district upon the approval of 2/3 of the voters of the city, county, or special district voting on that tax. Under current law, a charter city, pursuant to its constitutional authority Item 12
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over municipal affairs, may levy local taxes to raise
revenues for local purposes, subject to restrictions
imposed by that city’s charter or preemption in matters of statewide concern. Current law also authorizes the
legislative body of any city to levy any tax which may be levied by any charter city, subject to the voters’ approval pursuant to the California Constitution. Current law
specifies procedural requirements for the legislative body of a city, county, or district to propose to the voters an ordinance or resolution to adopt a special tax. This bill would specify that, as used in those procedural
requirements, a special tax includes a tax, levied by any city, including a charter city, county, or district on vacant sites included in the inventory on land suitable and
available for residential development pursuant to the
housing element of a county’s or a city’s long-term general plan, that meets the constitutional requirements.

Status: Not yet referred to policy committee
Cal Cities Position: Watch
SB 798 (Glazer) Elections: local bond measures: tax
rate statement. Current law requires local governments, when submitting a measure for voter approval for the
issuance of bonds that will be secured by an ad valorem tax, to provide voters a statement that includes estimates of the tax rates required to fund the bonds. Under current law, the estimated tax rate is expressed as the rate per $100 of assessed valuation on all property to be taxed to fund the bonds. This bill would instead require that the
estimated tax rate in the statement be expressed as the rate per $100,000 of assessed valuation on all property to be taxed to fund the bonds.

Status: Not yet referred to policy committee
Cal Cities Position: Watch

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CITY COUNCIL

STAFF REPORT
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Public Works
Meeting Date: May 1, 2023
Report #: 2302-0932
TITLE
Semiannual Update on the Status of Capital Improvement Program Projects

RECOMMENDATION
This report is provided for information only and requires no Council action.

EXECUTIVE SUMMARY
The City Council and Palo Alto community can be proud of the City’s capital improvement program (CIP). The CIP represents major investments in infrastructure functionality and sustainability, funded largely through the 2014 Council Infrastructure Plan as well as utility rates and various other sources. The 2023-2027 five-year CIP totaled $821.9 million for 190 projects as reviewed by the Council in its adoption of the FY 2023 Capital Budget. Since July 2016, the City of Palo Alto has completed 91 individual community-serving projects totaling over $295 million in improvements.

The CIP also represents a major effort for much of the City workforce. The following table summarizes the status of all projects for the six-month period of July to December 2022.

Active Projects
Project Type
One-Time Recurring
Construction
Phase
(excludes
Recurring)
Completed
Buildings & Facilities 18 10 6 2
Parks & Open Space 12 9 - 1
Streets & Sidewalks 3 8 - -
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Traffic & Transportation 10 5 2 -
Airport 5 - 2 -
Electric Fund 16 9 4 -
Fiber Optics Fund 1 2 - -
Gas Fund 2 4 1 1
Stormwater Management Fund 4 2 - -
Water Fund 5 7 2 -
Wastewater Collection Fund 2 4 1 -
Wastewater Treatment Fund 8 1 2 -
Totals 86 61 20 4

BACKGROUND
This report provides Council with an update on the status of capital improvement program (CIP) projects and does not include Internal Service Funds Capital Projects (Information Technology and Vehicle). Prior to 2016, year-end and mid-year financial reports included very simple status updates on CIP projects. In contrast, this semiannual report provides more detailed and useful information for the Council and public regarding general fund and enterprise fund projects that appear on Council agendas and will be visible throughout the community.

ANALYSIS
Project Update Organization
The City of Palo Alto has a robust capital improvement program, and many individual projects are in progress at any given time. The 2023-2027 five-year CIP totaled $821.9 million for 190 projects as reviewed by the Council as part of the Adoption of the FY 2023 Capital Budget. The attached CIP project tables are intended to provide Council with a quick overview of each project, including budgetary information, the anticipated completion date, a brief description of the project scope, the status of the project, and upcoming activities including Council actions.

Also included in the report is a list of all completed projects since the introduction of the Infrastructure Management System.

Major/Significant Projects Summary
The 2014 Council Infrastructure Plan is a major focus of staff’s capital improvement program efforts. The following table details the Total Project Budget and Total Actual Expenses through Item 13
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the first half of Fiscal Year 2023 for the Infrastructure Plan projects.

Significant milestones have been achieved on the Infrastructure Plan projects since June 2020, even though construction delays occurred due to the COVID-19 pandemic.

Council
Infrastructure Plan
Projects
CIP
Number Update Total Project
Budget
Total Actual
Expenses*
New Public Safety
Building PE-15001 Construction is underway with
completion expected in fall 2023. $118,037,804 $89,622,125 Bicycle and
Pedestrian
Transportation
Implementation
Plan
PL-04010
Project on hold pending recent project
evaluation and review of future project
scoping.
$15,276,377 $9,526,878
New Downtown
Parking Garage PE-15007
Council directed staff to look at the
feasibility of partnering with a private
entity to develop new parking using
downtown in-lieu parking fees in
conjunction with housing or other uses,
including the use of City surface lots or
privately held parcels. A Request for
Information was issued in December
2022 and staff is currently reviewing
proposals.
$7,188,899 $1,440,311
New California
Avenue Area
Parking Garage
PE-18000 Completed $50,179,952 $49,376,203
Charleston
Arastradero
Corridor Project
PE-13011
Phase 1 & 2 improvements are
complete. Phase 3 construction is
underway with completion expected
fall 2023.
$20,788,951 $19,199,414
Fire Station 3
Replacement PE-15003 Completed $10,588,654 $10,588,654
Highway 101
Pedestrian/Bicycle
Overpass Project
PE-11011 Completed $23,718,769 $23,718,769
Fire Station 4
Replacement PE-18004
Schematic design has been completed
and an Architectural Review Board
study session and community meeting
were held in February and March 2023,
respectively.
$10,167,779 $506,385
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*Expenses as of April 17, 2023
The last phase of the Charleston/Arastradero Corridor project and the Public Safety Building project are expected to be completed fall 2023.. Current Infrastructure Plan project schedules can be found at https://www.infrastructure.cityofpaloalto.org/

Key considerations for the information presented in the project update tables include:
· Project status information is current as of December 2022 · The individual project tables align with the Capital Improvement Fund categories in the Fiscal Year 2023-2027 capital budget: Buildings and Facilities, Parks and Open Space, Streets and Sidewalks, and Traffic and Transportation. Enterprise Fund projects follow the order of their respective Fund in the capital budget
· Department Technology Upgrades and Improvements projects and Cubberley Property Infrastructure Fund projects are included in the Buildings and Facilities table · Additional project information is available in the Fiscal Year 2023-2027 capital budget · Each project table is divided into a section for one-time projects and a section for recurring projects that have ongoing annual funding
· Budgetary figures include staff oversight costs for projects to which staff costs have been allocated
· The table of completed projects, provides a summary of all CIP projects completed since the Biannual CIP updates to council began in 2016. The data is sorted from most recent to oldest Completed Projects
Projects completed in the first half of Fiscal Year 2023, since the last update in June 2022, from July 2022 to December 2022 include the following:

Capital Improvement Fund (general fund)
· Automated External Defibrillator Replacement (FD-21000) · Magical Bridge Playground Rubber and Synthetic Turf Resurfacing (PE-21003) · Municipal Service Center A, B and C Roof Replacement (PF-17000) Byxbee Park
Completion PE-18006
On hold pending completion of
Baylands Comprehensive Conservation
Plan.
$3,699,189 $368,192
Downtown Parking
Guidance System PL-15002
A design/build contract was approved
by Council in August 2021 but could not
be bonded by the Contractor. A new
design/build RFP was issued in June
2022 and a new contract will be brought
to Council for approval in May.
$2,815,468 $327,738
Total Project Budget and Total Actual Expenses $262,461,842 $204,674,669 Item 13
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Gas Fund:
· Gas Main Replacement Project 23 (GS-13001)
These completed projects do not include the significant amount of annual work completed under ongoing recurring projects, such as streets and sidewalks repairs, parking lot maintenance, roofing replacements, and regular maintenance of Utilities assets.

Below are some photos of completed projects:

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One-Time Projects Under Construction or underway
Projects that are currently underway include the following:

Capital Improvement Fund (general fund):
· Charleston-Arastradero Corridor Project (PE-13011)
· City Facilities Assessment and Record Plan Management System (PE-20002) · Civic Center Fire Life Safety Upgrades (PE-18016)
· Civic Center Waterproofing Study and Repairs (PE-15020) · JMZ Renovation (AC-18001)
· New Public Safety Building (PE-15001)
· Parking Management and System Implementation (PL-16002) · Water, Gas, Wastewater Office Remodel (PE-19001)
Airport Fund
· Airport Apron Reconstruction (AP-16000)
· Airport Layout Plan (AP-21000)
Electric Fund
· Inter Substation Line Protection Relay (EL-17005)
· Rebuild Underground District 24 (EL-10006)
· Smart Grid Technology Installation (EL-11014)
· Substation Physical Security (EL-16003)
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Gas Fund
· Gas Main Replacement Project 24 (GS-14003)
Wastewater Collection Fund
· Wastewater Collection System Rehabilitation Augmentation Project 30 (WC-17001)

Wastewater Treatment Fund
· Plant Master Plan (WQ-10001)
· Primary Sedimentation Tank Rehabilitation (WQ-14003)

Water Fund
· Water Main Replacement Project 28 (WS-14001)
· Water Tank Seismic System Upgrades (WS-09000)

As described above for completed projects, the list of projects under construction does not include work currently being conducted under recurring CIP projects.

Below are some photos of projects under construction:

New Public Safety Building (PE-15001)
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Public Safety Building Update
The Public Safety Building project made significant progress in the first half of Fiscal Year 2023.

The concrete structure is completed. Interior mechanical, electrical, plumbing and fire protection systems are being installed and exterior cladding and window installation are in progress. As of December 2022, construction is 70% complete and 60% of the project’s construction contingency has been used. Staff continues to coordinate with the City Auditor, Baker Tilly, on the Public Safety Building Construction Audit by providing project documents on a monthly basis. Staff started work on procurement packages for Furniture, Fixtures, and Equipment (FF&E) and will be coming to Council for contract approvals starting this spring.

Additionally, a cross-departmental staff team is meeting monthly to review and coordinate construction of the Public Safety Building and other projects in the California Avenue area, with a goal of communicating and mitigating the impacts.

Boulware Park Improvements Update
The Boulware Park Improvements project is of particular community interest as it will both improve the existing park and incorporate the Birch Street property acquired by the City in Fiscal Year 2019 into the park. Design of the project is complete. It is expected to go out to bid in spring 2023, with construction beginning in summer 2023.

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Capital Improvements of Note Implemented by Other Agencies El Camino Real:

El Camino Real (State Highway 82) is maintained by Caltrans. Pavement Condition Index scores for El Camino Real are significantly lower than the average for Palo Alto streets. Staff has been communicating with Caltrans about the upcoming plans to repave El Camino Real from the Mountain View to Menlo Park borders. Currently, this work is planned to start in fall 2023.

Caltrain Electrification:

The majority of construction for Caltrain Electrification in Palo Alto has been completed, including the installation of all of the foundations, poles, and wires for the project within the City. Testing of the infrastructure, vehicular crossings, and the new electric trains in the Palo Alto area is scheduled to begin in April 2023. Construction and testing of the Paralleling Station near Page Mill Road is scheduled to be complete in spring 2023. The Caltrain Electrification Project is scheduled to be complete in fall 2024.

To finish critical Electrification construction and testing in time to begin passenger service in 2024, Caltrain will be suspending rail service in select areas on weekends throughout the year starting February 11, 2023. The first shutdowns will be between San Francisco and Millbrae for four weekends in February and March. Riders should avoid Caltrain on these weekends and seek alternative transportation if they are planning to travel.

FISCAL/RESOURCE IMPACT
Funding for the projects discussed in this report is provided in the Fiscal Year 2023 Adopted Capital Budget and 2023-2027 Five-Year CIP.

STAKEHOLDER ENGAGEMENT
Stakeholder engagement is conducted separately for each project.

ATTACHMENTS
Attachment A: Semi Annual CIP Updates
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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ATTACHMENT A DECEMBER 2022
Semiannual Update on the Status of Capital Improvement Program Projects Capital Improvement Fund CIP Projects
 Buildings and Facilities Projects
 Parks and Open Space Projects
 Streets and Sidewalks Projects
 Traffic and Transportation Projects
Enterprise Fund CIP Projects
 Airport Projects
 Electric Projects
 Fiber Optics Projects
 Gas Projects
 Stormwater Management Projects
 Wastewater Collection Projects
 Wastewater Treatment Projects
 Water Projects
List of Completed Projects
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Buildings and Facilities Projects Status as of December 2022 One‐Time Projects
Animal Shelter
Renovation
(PE‐19002)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,916,383 $4,041,156 Public Works Design Summer 2023
Project Status: This project installs interim facility improvements to the Animal Shelter that accompany the agreement for operation of the shelter by Pets in Need approved by City Council in November 2018. The medical area upgrades and the modular office building are complete. The new kennel addition has been submitted for building permit. Project was placed on hold following receipt of Pets‐In‐Need's letter providing one‐year notification of termination of the agreement between Pets‐In‐Need and the City. Public Works and Community Service Department staff are reviewing the project as negotiations continue on a new agreement.

Automated External Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Defibrillator
Replacement
(FD‐21000)
$167,019 $237,500 Fire Department Completed Summer 2022 Project Status: This project replaces the entire complement of Automated External Defibrillators (AEDs) throughout City facilities and emergency response vehicles, which currently totals 93 AEDs. The RFP process was completed in fall 2021 and the contract is currently underway. The new AEDs have been purchased and were deployed in summer 2022.

City Facilities
Assessment and
Record Plan
Management
System
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $344,687 Public Works Construction Summer 2023
Project Status: The Kitchell Report in 2008 summarized the last City‐wide facility condition assessment. A new facility condition assessment is warranted per the City’s APWA reaccreditation requirements. All City facilities will be assessed to bring current the “catch‐up” and “keep up” costs. In addition, an electrification assessment will be included to help the City reach its sustainability goals for 2030. Staff is evaluating if the current asset management system can be utilized to meet the needs of an Electronic Records Management System. Council awarded the contract in April 2022. The Facility Condition and Electrification assessment started with pilot projects at the (PE‐20002)
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Buildings and Facilities Projects Status as of December 2022 Municipal Service Center and the Cubberley Community Center Complex. The remainder of all city facilities assessments are currently underway and are expected to be completed in summer 2023.

City Hall Space
Planning
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $8,960 $667,600 Public Works Pre‐Design Fall 2024
(PE‐19000) Project Status: This project involves space planning to determine future workgroup space needs and programming for the City Hall office building focused primarily on the areas that will be vacated once the new Public Safety Building is complete and occupied. The project will include preliminary design of the space following the initial feasibility phase. A Request for Proposals (RFP) is being drafted and is expected to be released in spring 2023.

Civic Center Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Electrical Upgrade
& EV Charger
Installation
$464,772 $1,347,615 Public Works Design Spring 2025
Project Status: This project installed EV chargers in existing downtown garages and will replace the aging Civic Center electrical switchgear and motor control centers. Five new dual head EV chargers were installed in the Civic Center garage. Two new dual head EV chargers were installed in the Bryant Street garage. Six new dual head EV chargers were installed at the Webster Street garage. EV charger construction was completed in December 2021.

A contract was awarded in June 2021 for the design of the Civic Center switchgear replacement and is currently at the 50 percent design stage. Lead times on switch gear are now taking 12 months, so the project completion date has been extended.
(PE‐17010)
Civic Center Fire
Life Safety
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $290,975 $680,837 Public Works Construction Spring 2023 Upgrades
(PE‐18016)
Project Status: This project will assess, update, and replace the Civic Center fire alarm system. The fire life safety system is approaching the end of its useful life. The fire alarm panel and associated equipment need an upgrade to meet current code requirements. The award of a design‐build contract was approved by Council in June 2021 Buildings and Facilities Projects – Page 2 of 10
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Buildings and Facilities Projects Status as of December 2022 and design was delayed due to staffing shortages at the design‐build firm. Construction started in December and is expected to be complete by May 2023.

Civic Center Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Waterproofing
Study and Repairs
(PE‐15020)
$378,974 $746,148 Public Works Construction Summer 2024 Project Status: This project includes a condition assessment of the Civic Center plaza deck structural system. In late 2016, RDH Building Science, Inc. determined that the expansion joint on the plaza could be repaired. The scope expanded to include replacing the waterproof coatings on the inside of the plaza perimeter planter boxes.

Construction on the waterproofing joint started in May 2022 and was completed in December 2022. Staff will start procurement for a design contract in spring 2023 to focus the repair on the perimeter planter boxes.

Extrication Tool
Replacement
(FD‐22000)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $298,200 Fire Department Procurement Winter 2023
Project Status: This project provides funding for the replacement of all extrication tools for the Fire Department.

Extrication tools, also known as "Jaws of Life", are used to rescue victims of car accidents and other emergencies where the victims are trapped in confined spaces. Some equipment has been purchased in summer 2022, and staff is working with the Purchasing Department to complete orders for all additional equipment. It is expected to be in use by winter 2023.

Fire Station 4
Replacement
(PE‐18004)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $506,385 $10,167,779 Public Works Design Fall 2025
Project Status: This project provides funding to replace Fire Station #4 at the corner of Middlefield Road and East Meadow Drive. Consultant contract for design was approved by Council in spring 2022. Schematic design is complete, and the Consultant has submitted for preliminary architectural review. Consultant will then proceed with design development through early 2023. The new Fire Station design will obtain a minimum of LEED Silver certification.

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Buildings and Facilities Projects Status as of December 2022 JMZ Renovation
(AC‐18001)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,487,230 $4,862,975 Community Services Construction Spring 2024 Project Status: This project provided for the relocation of the Junior Museum and Zoo to Cubberley for two years while a new JMZ was being built, tenant improvements to the Cubberley Auditorium and then removal of tenant improvements post‐construction. Construction of the new Junior Museum and Zoo was completed and opened to the public on November 12, 2021. Staff are working with purchasing to complete orders for final equipment and contracts for some limited improvements, acquiring collections, and completing exhibits planned to open in 2024. An additional federal grant associated with this CIP funds a portion of the exhibition, California Dinosaur Garden, which will open in fall 2023 with grant activities completed in spring 2024.

Library Automated Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Material Handling $123,085 $1,053,917 Library Design Winter 2023 LB‐21000 Project Status: This project is to provide the design and construction of three new Automated Material Handling (AMH) Systems for the College Terrace, Children’s, and Downtown Libraries. AMH systems efficiently sort returned library materials based on the Radio Frequency Identification Devices (RFID) on the materials. Project design is complete. Children’s Library is to be constructed first.

Municipal Service
Center A, B, & C
Roof Replacement
(PF‐17000)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,766,928 $2,013,475 Public Works Completed Fall 2022
Project Status: This project will replace the existing MSC roofs. The existing asphalt and gravel roofs have reached the end of their useful life and need to be replaced. The new roofs will meet current cool roofing codes to optimize energy efficiency. Construction was completed in November 2022.

Municipal Service
Center Lighting,
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,006,106 $8,099,991 Public Works Design Fall 2024
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Buildings and Facilities Projects Status as of December 2022 Mechanical, and
Electrical
Improvements
(PF‐16006)
Project Status: This project replaces original mechanical, electrical, and lighting systems installed in 1966. It also includes design and construction for office renovations for the Zero Waste group. Design is in progress with the contract that was awarded on June 20, 2022. Lead times on switch gear are now taking 12 months, so the project completion date has been extended.

New Downtown
Parking Garage
(PE‐15007)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,440,311 $7,188,899 Public Works Design Spring 2024
Project Status: This project was intended to provide a new parking structure in the University Avenue commercial area at existing Parking Lot D at the corner of Hamilton Avenue and Waverley Street. As part of the FY 2021 budget strategy, all Capital Improvement Fund funding has been removed and only the downtown parking in‐lieu fee funding remains for this project. In December 2021, Council directed staff to look at the feasibility of partnering with a private entity to develop new parking using downtown in‐lieu parking fees in conjunction with housing or other uses, including the use of City surface lots or privately held parcels. A Request for Information was released in early 2023 for proposals for downtown new parking, house and other uses.

New Public Safety
Building
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $89,622,125 $ 118,037,804 Public Works Construction Fall 2023 (PE‐15001) Project Status: This project will provide a new, modern Public Safety Building (PSB) that will meet essential services standards and the current and future needs of the public safety departments. The PSB and new garage in the California Avenue business district are now an integrated project and both are part of the 2014 Council Infrastructure Plan. Construction on the PSB started in March 2021 and will continue through fall 2023. The concrete structure is completed. Interior mechanical, electrical, plumbing, and fire protection systems are being installed. Exterior cladding and window installation is in progress. The utility yard structures framing is nearly complete.

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Buildings and Facilities Projects Status as of December 2022 Performing Arts
Venues Seat
Replacement
(AC‐18000)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $115,892 $1,170,599 Community Services Design Summer 2023 Project Status: This project will replace all the seats in the Community and Children’s Theatres. Staff hired a consultant to design the seat replacements and ADA upgrades for the Children’s Theater’s portion of the project.

Additional funding was added for FY 2023 to handle the Community Theater portion. The Children’s Theater seats replacement was completed in November 2022. A design contract for the Community Theater seat replacement project is being drafted.

Roth Building
Rehabilitation
Phase 1
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $11,000,000 Public Works Design Summer 2024
Project Status: This project provides funding for Phase 1 of the rehabilitation and build‐out of the Roth Building facility. Phase I will make the building suitable for occupancy, also known as a “warm shell.” Phase II of the rehabilitation includes the interior build‐out of the museum and exhibits, readying the facility to welcome visitors, and will be fully funded by the Palo Alto Museum (PAM). (PF‐23001)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $475,829 $1,234,354 Public Works Construction Spring 2023 Buildings and Facilities Projects – Page 6 of 10
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Buildings and Facilities Projects Status as of December 2022 Water, Gas, Project Status: This project incorporates renovations to the Utilities Water Gas Wastewater (WGW) office space Wastewater Office at the Municipal Service Center (MSC). The current space no longer meets the operational needs of the Remodel
(PE‐19001)
department. This project reconfigures the space in a more efficient design for department operations and to replace aging furniture and finishes. The new work area will include a small reception area, a renovated kitchen and printer area, additional offices and cubicles, upgrades to the HVAC system, lighting improvements and fire life safety systems upgrade. A construction contract was awarded in September 2022 and is currently on schedule to be completed in the spring of 2023.

Recurring Projects
Americans With
Disabilities Act
Compliance
Prior Year Actuals Current Year Budget
$77,218 $1,666,100
Implementing Department Project Phase Project Completion Public Works N/A Recurring
Project Status: This project provides accessibility upgrades to City facilities and equipment. It includes continued funding for improvements such as path of travel, restrooms, drinking fountains, and counters. An updated ADA Transition Plan was adopted by Council in June 2021. Staff set up Sharepoint for internal access to the ADA Transition Plan in order to track and document the City’s progress. Staff is waiting to solicit for new software that will allow staff to identify and log new barriers, track grievances from the public, and update the ADA Transition Plan Report.
(PF‐93009)
Building Systems
Improvements
(PF‐01003)
Prior Year Actuals Current Year Budget
$284,898 $1,165,800
Project Status: This project provides electrical, mechanical, plumbing, structural, and security upgrades for City facilities. This CIP was partially defunded because of COVID budget cuts. The new cooling tower media replacement originally scheduled for winter 2020 has been delayed until FY 2024. Design drawings for the UCC generator project are complete. The tennis and pickle ball courts lighting and controls upgrade project were completed in March Implementing Department Project Phase Project Completion Public Works N/A Recurring
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Buildings and Facilities Projects Status as of December 2022 2022. Contractor for re‐plastering the Rinconada Lap Pool and Children’s Pool has been selected. Construction is scheduled to start in March 2023. Design for Fire Station 8 emergency generator installation is complete and a new air‐cooled chiller for the Utilities Control Center was installed.

City Facility
Parking Lot
Maintenance
(PE‐09003)
Prior Year Actuals Current Year Budget
$55,168 $247,400
Project Status: This project maintains parking lots and walkways at City facilities. No work was planned for FY Implementing Department Project Phase Project Completion Public Works N/A Recurring
2023.

Cubberley Repairs Prior Years Actuals Current Year Budget Implementing Department Project Phase Project Completion Public Works N/A Recurring(CB‐17001) $27,206 $1,082,000 Project Status: This project is for general maintenance needs of the Cubberley campus. Staff is currently re‐ assessing water damage to the gymnasium following crawlspace flooding in early 2022.

Cubberley Roof
Replacements
(CB‐16002)
Prior Year Actuals Current Year Budget
$410,102 $2,102,600
Project Status: This project replaces existing roofs at Cubberley Community Center. The roof replacement work from the previous year for Wings F and FH was completed in April 2022. The roof for Wing H was completed September 2022.

Implementing Department Project Phase Project Completion Public Works N/A Recurring
Electric Charger
Infrastructure
Installation
Prior Year Actuals Current Year Budget
$0 $310,900
Project Status: This project provides design and construction funding for the installation of electric vehicle chargers Implementing Department Project Phase Project Completion Public Works N/A Recurring
(PF‐23000) at various City facilities. The primary use of the electric vehicle chargers will be for City fleet vehicles.

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Buildings and Facilities Projects Status as of December 2022 Facility Interior
Finishes
Prior Year Actuals Current Year Budget
$449,289 $504,500
Implementing Department Project Phase Project Completion Public Works N/A Recurring
Replacement
(PF‐02022)
Project Status: This project improves the interior finishes of City facilities, including flooring, walls, cabinets, paint, lighting, ceiling tiles, soundproofing, and fixed office furniture, doors, windows, and associated fire/life safety, mechanical, electrical and plumbing code compliance requirements. Remodel of the City Auditor’s Office was recently completed to create more meeting spaces, transient staff desk stations, and a mother’s nursing room.

Design of modifications to the Revenue Collections office area on Level G was delayed due to staffing workloads and will begin in spring 2023.

Police Video Prior Years Actuals Current Year Budget Implementing Department Project Phase Project Completion Recording Systems $69,270 $133,200 Police Department N/A Recurring Replacement
(PD‐20000)
Project Status: This project maintains the Palo Alto Police Department video recording systems used to record events in the field with up to five in‐car cameras as well as body‐worn cameras (BWC). In‐car units were added to new vehicles as they came into service in FY 2023 and BWC cameras were replaced throughout the year. Purchasing will be issuing an RFP in FY2023 for all aspects of the program. The program will seek to include all detention facilities in the Public Safety Building which is expected to come online in late 2023.

Roofing
Replacement
(PF‐00006)
Prior Year Actuals Current Year Budget
$58,443 $1,423,000
Implementing Department Project Phase Project Completion Public Works N/A Recurring
Project Status: This project replaces existing roofs at City facilities that have outlived their useful lifespans. The Animal Shelter roof recoating has been delayed due to roof modifications required for the current remodel of the facility. Staff is working on the design for the Peers Park Field House roof replacement. The project to repair the roof and gutter at Mitchell Park Library was completed in October 2022. The Peers Park Field House roof replacement was completed in November 2022.

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Buildings and Facilities Projects Status as of December 2022 University Avenue Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Parking $63,179 $111,000 Public Works N/A Recurring
Improvements
(PF‐14003)
Project Status: This project maintains parking lots and parking structures within the University Avenue Downtown Business Parking District. With the completion of work on Parking Lot C in spring 2019, all University Avenue parking district lots have been resurfaced and no additional work is planned at this time.

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Parks and Open Space Projects Status as of December 2022 One‐Time Projects
Boulware Park
Improvements
(PE‐17005)
Prior Years Actuals Total Project Budget Implementing Department $480,088 $4,427,698 Public Works
Project Phase Project Completion
Design Summer 2024
Project Status: This park renovation project was initially planned in FY 2018 but was postponed due to project priorities and potential purchase of the adjacent AT&T lot located at 3350 Birch Street. In fall 2019, the lot was purchased by the City. In response to the purchase, the City utilized the funding for the initial renovation project for preliminary design and outreach for both the existing park and the newly purchased park land. A Park Improvement Ordinance for the improvements was adopted by the City Council in October 2021. The project is anticipated to go out to bid in winter 2023 and begin construction in spring 2023.

Byxbee Park
Completion
(PE‐18006)
Prior Years Actuals Total Project Budget Implementing Department $368,192 $3,699,189 Public Works
Project Phase Project Completion
Pre‐Design Spring 2025
Project Status: This project allows for the remaining improvements to Byxbee Park that follows the completion of the landfill capping work. The Baylands Comprehensive Conservation Plan (BCCP), which is currently undergoing CEQA analysis, will include recommendations on the scope of the Byxbee Park project. The BCCP and the conceptual plan for Byxbee Park need additional outreach and review that would continue through FY 2023. The project has been moved to fiscal year 2024 due to staffing constraints.

Cameron Park
Improvements
(PG‐14002)
Prior Years Actuals Total Project Budget Implementing Department $150,618 $236,418 Community Services
Project Phase Project Completion
Procurement Spring 2023
Project Status: This project upgrades and renovates safety and accessibility features at Cameron Park with a primary focus on the park playground. A park improvement ordinance was approved by Council in February 2021. The project went out to bid in summer 2022 and construction will start in winter 2023.

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Parks and Open Space Projects Status as of December 2022 Cubberley Field Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Restroom $220,222 $700,765 Public Works Design Winter 2023 (CB‐17002) Project Status: This project will install a new restroom in the sports field area of the Cubberley Community Center.

Design for the project started in fall 2018 along with public outreach. Staff assessed the feasibility of on‐site utilities connection and reviewed design and specifications of a prefabricated restroom building to incorporate in the final design for ARB review. Staff conducted outreach meetings and coordination for the potential location of the proposed restroom. Depending on the preferred restroom location, a lift station may be added to the project to pump sanitary sewage to the City sewers. The project design will continue through FY 2023 and restroom installation is anticipated in FY 2024.

Foothills Nature Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Pre‐design Fall 2023Preserve $0 $233,200 Public Works
Boronda Lake
Dock
Project Status: This project replaces an aged and deteriorating Boronda Lake Dock located in the Foothills Nature Preserve. Due to staffing constraints, the design for this project is on hold until spring 2023.

Replacement
(OS‐18000)
Foothills Nature Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Pre‐design Spring 2023Preserve Dam
Seepage
$0 $33,300 Public Works
Project Status: This project will study a location of historic seepage from the Foothills Nature Preserve Dam at the sharp bend in the road on the face of the dam. The seepage is very minor, but it appears to be slowly worsening. The source of the seepage is suspected to be the trench backfill around the pipe that returns shallow groundwater to Boronda Lake. This project will locate and investigate the pipe and trench backfill material. Staff is monitoring and investigating the seepage per the Department of Water Resources inspections and recommendations. Depending on the ongoing investigation, an engineered solution may be required.

Investigation
and Repairs
(PE‐20000)
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Parks and Open Space Projects Status as of December 2022 Foothills Nature $0 $3,287,700 Public Works Design Summer 2026 Preserve
Improvements
(PE‐21000)
Project Status: This project provides funding to repair the bridge to Sunfish Island; design and permitting costs to replace the footbridge in Los Trancos Valley; to replace the grade control structures along Buckeye Creek, and to provide new split rail fencing to protect sensitive areas, new pedestrian pathways to keep park visitors safe while walking along the park road, and improvements to some of the existing parking areas to make them safer and more efficient. Staff began initial work to determine City permitting, surveying, and concept planning needs. Staff anticipates developing concept plans and initiate design in FY 2023.

Golf Course Net Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Design Summer 2024and Artificial
Turf
$0 $854,900 Community Services
Project Status: This project provides funding for the removal and replacement of golf course driving range netting and synthetic turf. This project is being delayed as additional ball retention needs are being assessed throughout the golf course and development of a potential partnership with the First Tee of Silicon Valley for driving range and practice facility improvements.

Replacement
(PG‐18000)
Magical Bridge
Playground
Rubber and
Synthetic Turf
Resurfacing
(PE‐21003)
Prior Years Actuals Total Project Budget Implementing Department $216,083 $857,380 Community Services
Project Status: This project will replace rubberized and synthetic turf surfacing in the playground and will repair or replace play equipment including swings, climbing net, and playhouse. An IFB was issued in November 2021 and Council awarded a construction contract in spring 2022. Installation of rubberized and synthetic surfacing, replacement of climbing nets and renovation of the playhouse took place in fall 2022. Project was completed in December 2022.

Project Phase Project Completion
Completed Fall 2022
Ramos Park
Improvements
Prior Years Actuals Total Project Budget Implementing Department $248,096 $527,769 Community Services
Project Phase Project Completion
Design Summer 2023
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Parks and Open Space Projects Status as of December 2022 (PG‐14000) Project Status: This project includes safety and accessibility improvements at Ramos Park. The work includes replacing the existing park playground, benches, drinking fountains, and resurfacing the basketball court playing surface. The project will go out to bid in winter 2023 and construction is planned for summer 2023.

Rinconada Park Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Design Spring 2024Improvements $4,772,891 $10,703,087 Public Works (PE‐08001) Project Status: This project provides upgrades to safety, site amenities, playground facilities, a new restroom, irrigation, drainage, and ADA accessibility improvements at Rinconada Park. These improvements were identified in the Rinconada Long Range Plan (LRP). Phase 1 park improvements to the western half of the park were completed in spring 2022. A new restroom that was removed from the Phase 1 park improvements in FY 2022 is currently in design and permitting. The restroom installation is anticipated in FY 2024. According to the LRP, future improvement phases will include improvements to the eastern half of the park by FY 2026 including pathway improvements, new restroom, ADA upgrades, planting, irrigation, lighting, and site furnishings. The design and construction of a restroom building with a family changing room and locker room facilities is anticipated in FY 2024.

Robles Park
Improvements
(PE‐18015)
Prior Years Actuals Total Project Budget Implementing Department $0 $749,500 Public Works
Project Status: This project provides funding for the replacement of play equipment and resurfacing in two children’s playground areas; repairs to a basketball court and adjacent concrete wall; and replacement of perimeter fencing, pathways and other site amenities. Irrigation renovations and turf restoration are also included in this project. The project design is anticipated in FY 2023 and construction in FY 2024.

Project Phase Project Completion
Design Summer 2024
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Parks and Open Space Projects Status as of December 2022 Recurring Projects
Art in Public
Spaces
Prior Year Actuals Current Year Budget Implementing Department Project Phase $249,882 $2,004,800 Community Services N/A
Project Completion
Recurring
(AC‐86017) Project Status: This project provides the ongoing temporary and permanent artworks throughout the City. The FY 2023 budget funded a second round of temporary murals at the Public Safety Building construction site, the installation of artworks along the Charleston‐Arastradero corridor, ten new ArtLift microgrant projects, artist designed barricade covers in commercial corridors, and temporary artwork in Midtown. Projects in process include the ongoing King Artist‐in‐Residence including temporary artwork for King Plaza, design development for artwork at Boulware Park, , permanent artworks at the Public Safety Building, design development for permanent artwork at Fire Station 4, initiation of artist selection for Code: ART festival 2023, and implementation of the California Avenue Public Art Plan.

Athletic Courts
Resurfacing
(PG‐06001)
Prior Year Actuals Current Year Budget Implementing Department Project Phase $154,167 $314,500 Community Services N/A
Project Status: This project repairs and resurfaces athletic courts in various Palo Alto parks. The resurfacing of the Project Completion
Recurring
tennis courts at Cubberley Community Center and Peers Park were completed in summer 2022.

Benches, Signage, Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Walkways,
Perimeter
Landscaping
(PG‐06003)
$192,682 $194,300 Community Services N/A Recurring
Project Status: This project restores and replaces existing benches, signage, fencing, walkways, and landscaping at various City facilities. In fall 2022, a contract for the repair and resurfacing of the Lytton Plaza fountain was issued and repair is scheduled for winter 2023. In December 2022, site amenities improvements to the Peers Park dog park were completed including installation of waste receptacles and seating benches.

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Parks and Open Space Projects Status as of December 2022 Dog Park Prior Year Actuals Current Year Budget Implementing Department Project Phase $54,136 $161,000 Community Services N/A
Project Completion
RecurringInstallation and
Renovation
(PG‐18001)
Project Status: This project enables the construction of dog parks at various City parks and facilities that currently do not have dog parks, as well as renovating existing dog parks. A new dog park will be added at Boulware Park during the Boulware Park Improvement Project scheduled for summer 2023. Council approved a Park Improvement Ordinance on September 12, 2022 for expansion of the Mitchell Park Dog Park and construction is anticipated to begin in fall 2023.

Off‐Road Pathway Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Resurfacing and
Repair
$218,305 $168,000 Public Works N/A Recurring
Project Status: This project resurfaces failing and broken pathways within the City. Pathways are chosen based on (OS‐09001) inspections and resident requests. No repairs were performed in first half of FY 2023.

Open Space Lakes Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion and Pond $31,454 $50,000 Community Services N/A Recurring Maintenance
(OS‐00002)
Project Status: This project rehabilitates lakes and ponds in open space nature preserves to protect wildlife habitat and recreational safety and to meet State Division of Safety of Dams requirements. Year two of a three year maintenance contract is in place for removal of aquatic vegetation in Boronda Lake and is scheduled for spring 2023.

Open Space Trails Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion and Amenities $371,335 $207,300 Community Services N/A Recurring (OS‐00001) Project Status: This project restores unpaved trails, fences, picnic areas, and campgrounds at Foothills, Baylands, and Pearson‐Arastradero Nature Preserves Work performed in fall 2022 included grooming trail tread and trailside vegetation of 25 miles of existing trails at Foothills Nature Preserve and Pearson‐Arastradero Preserve.

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Parks and Open Space Projects Status as of December 2022 Parks and Open
Space Emergency
Repairs
Prior Year Actuals Current Year Budget Implementing Department Project Phase $152,778 $305,400 Community Services N/A
Project Status: This project replaces or repairs playgrounds, play yard surfaces, wooden structures, park amenities, and play equipment in the event of storms, fire, vandalism or structural failure. In December 2022, the artificial turf infill at the Mayfield Soccer Complex will be replaced due to degradation of existing infill material.

Project Completion
Recurring
(PG‐09002)
Park Restroom
Installation
Prior Years Actuals Current Year Budget Implementing Department Project Phase $35,606 $363,800 Community Services N/A
Project Completion
Recurring
(PG‐19000) Project Status: This project installs new restrooms at City parks that currently do not have restroom facilities. The restrooms may be prefabricated. City Council approved a Park Improvement Ordinance for Ramos Park for park amenities and construction of a restroom. The restroom is anticipated to be installed in FY 2024.

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Streets and Sidewalks Projects Status as of December 2022 One‐Time Projects
California Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion District Gateway
Signs
(PE‐17004)
$23,324 $150,488 Public Works Design Summer 2022
Project Status: This project includes the design and replacement of two existing gateway signs for the California Avenue business district. Public outreach was completed in winter 2021. The California Avenue District Gateway Signs project is on hold pending the outcome of project PL‐23000 California Avenue Streetscape Update.

Newell Road
San
Prior Years Actuals
$2,211,606
Total Project Budget
$16,627,643
Implementing Department Project Phase Project Completion Public Works Design Spring 2024
Francisquito
Creek Bridge
Replacement
(PE‐12011)
Project Status: This project removes and replaces the Newell Road bridge over San Francisquito Creek with a clear span to allow the channel to convey up to the natural capacity of the San Francisquito Creek, approximately 7,500 cubic feet per second, and improved safety for vehicular, bicycle, and pedestrian traffic. The project is being closely coordinated with the City of East Palo Alto, Santa Clara Valley Water District, and the San Francisquito Creek Joint Powers Authority (JPA). The Bridge Type Selection Report was submitted to Caltrans in September 2021 and approved in January 2022. Staff continues to work with Santa Clara Valley Water District to amend the funding agreement and anticipates taking the agreement to Council for approval early 2023. Final design and right‐of‐way and easements work will start in early 2023 along with continued coordination with JPA for permitting of the Reach 2 project. Right‐of‐way and permitting is anticipated to be completed in September 2023, with bidding of the project in late 2023 and construction to start in early 2024.

Street Lights
Condition
Prior Years Actuals
$8,799
Total Project Budget
$253,098
Implementing Department Project Phase Project Completion Public Works Design Summer 2023
Assessment
(PE‐13014)
Project Status: This project provides funding to assess the condition of the streetlight system. The assessment will include an inventory of the entire lighting system, including age and condition of conduit, wiring, street light poles, foundations, luminaires, and lighting coverage. Determining the inspection, maintenance, repair, and rehabilitation necessary to prolong the life of the City’s streetlight system is also included in this project.

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Streets and Sidewalks Projects
Recurring Projects
Status as of December 2022
City Bridge
Improvements
(PE‐20001)
Prior Year Actuals Current Year Budget
$108,764 $503,000
Implementing Department Project Phase Project Completion Public Works N/A Recurring
Project Status: This project includes bridge inspections, maintenance, repair, and an improvement program over the next five years. This program will include on‐going inspections to report physical changes to the structures, recommendations for work to be done, and additional information to meet functional and structural standards in accordance with industry standards. Staff hired an on‐call structural engineering firm to assist with the bridge inspection and repair program. Staff completed inspections of twenty‐five bridge and culvert structures in spring 2022 of which seven bridges have been identified for repairs in FY 2023. Staff is continuing with design of the repair work for winter 2023.

Curb and Gutter
Repairs
Prior Year Actuals Current Year Budget
$116,698 $122,600
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
(PO‐12001) Project Status: This project repairs curbs and gutters uplifted by tree roots. The FY 2022 Street Maintenance Projects replaced 555 linear feet of Type A gutter and 317 linear feet of Type B gutter in the first half of FY 2023.

San Francisquito
Creek Joint
Powers
Authority
Ongoing Creek
Projects
Prior Year Actuals Current Year Budget
$56,000 $113,900
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
Project Status: This project provides funding for studies and completion of the design for the San Francisquito Creek Joint Powers Authority (JPA) upstream project including channel widening and Continuing Authority Program Section 205 (CAP 205) study. Completion of the CAP 205 study will make the channel widening components eligible for federal funding and will help fund the construction of the upstream project and address elements of the JPA’s comprehensive flood management program.(PE‐22000)
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Streets and Sidewalks Projects Status as of December 2022 Sidewalk Repairs Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion (PO‐89003) $853,162 $1,452,900 Public Works N/A Recurring Project Status: This project repairs and replaces broken and uplifted sidewalks. The program completed all twenty‐ three sidewalk districts in 2017, a thirty‐year (1986–2017) sidewalk repair district cycle. Council approved a sidewalk assessment contract in November 2017 to evaluate the sidewalk program and assess potential improvements to the current district‐based program. Funding was reduced in FY 2022 as part of the FY 2022 Capital Improvement Program budget strategy. The FY 2022 Street Resurfacing Projects replaced 4,994 square feet of broken and uplifted sidewalks at locations reported through Palo Alto 311 in the first half of FY 2023.

Sign Reflectivity
Upgrade
Prior Year Actuals Current Year Budget
$9,358 $106,400
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
(PO‐11000) Project Status: This project includes the annual inventorying, upgrading and maintaining of all traffic signs. A list of signs not meeting the minimum requirement is derived from MUTCD approved Nighttime Visual Inspection surveys.

Due to Covid‐19 and understaffing, there were no new signs identified for reflectivity replacement in FY 2023.

Street Lights
Improvements
(PO‐05054)
Prior Year Actuals Current Year Budget
$149,149 $388,600
Project Status: This project replaces streetlights, including poles, pole foundations, luminaires and wiring as needed to restore or improve street lighting. In the first half of Fiscal Year 2023, there were seven knockdown locations with three completed repairs and four in progress.

Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
Street
Maintenance
(PE‐86070)
Prior Year Actuals Current Year Budget
$4,536,589 $5,274,700
Project Status: This project includes the annual resurfacing, micro‐seal, crack seal, and reconstruction of various city streets. This project funds the street maintenance work that supports Council’s adopted goal of achieving a citywide average pavement condition index (PCI) score of 85, representing very good or excellent conditions, by 2019. The Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
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Streets and Sidewalks Projects Status as of December 2022 citywide PCI goal of 85 was met at the end of calendar year 2018, and the emphasis has been shifted to maintaining the 85 score while addressing the remaining streets with PCI scores less than 60. The FY 2022 Street Resurfacing Project is completed. The FY 2023 Street Resurfacing Project is under procurement process and is expected to start construction in early 2023. This will help maintain and improve the City’s Pavement Condition Index (PCI) beyond its average of 83 and will address many streets whose PCI scores fall below the City’s minimum goal of 60.

Thermoplastic
Lane Marking
and Striping
(PO‐11001)
Prior Year Actuals Current Year Budget
$52,679 $166,800
Project Status: This project maintains the thermoplastic markings on roadways. Thermoplastic lane marking and striping is incorporated into annual Pavement Preventive Maintenance Projects. No new thermoplastic markings and striping were installed during FY 2023.

Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
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Traffic and Transportation Projects Status as of December 2022 One‐Time Projects
California Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Streetscape
Update
(PL‐23000)
$0 $111,000 Office of Transportation Design Summer 2023 Project Status: The project provides funding for interim changes to the street, and for preliminary community engagement to help inform an upcoming Request for Proposals in spring 2023 to procure a consultant for an Alternatives Analysis study of different street configurations and design options.

Charleston Prior Years Actuals
$19,199,414
Total Project Budget Implementing Department Project Phase Project Completion $20,788,951 Public Works Construction Winter 2023Arastradero Corridor Project
(PE‐13011)
Project Status: This project is part of the 2014 Council Infrastructure Plan. It will reconfigure the Charleston Arastradero Corridor to provide new landscaped median islands, bulb outs, enhanced bike lanes, traffic signal improvements, and new street trees to complement the new lane configurations that were approved for permanent retention. Phase 1 (Arastradero Road between Foothill Expressway to Clemo Avenue) and Phase 2 (Charleston Road from Alma Street to Middlefield Road) were completed in 2020. Phase 3 (Arastradero Road from Los Palos Avenue to El Camino Real, Charleston Road from El Camino Real to Alma Street and from Middlefield Road to San Antonio Road) was approved by Council in June 2021. Construction of Phase 3 is ongoing. The contractor has completed paving and installing final striping on Arastradero Road from Los Palos Avenue to El Camino Real in October 2022. The remaining median islands on Arastradero Road have been constructed and planted with landscaping. Construction is anticipated to be completed by early 2023.

Churchill Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $4,013,745 Office of Transportation Design Fall 2024Enhanced Bikeway
$315,398
Project Status: This project includes planning, design and construction of a shared‐use path along the north side of Churchill Avenue between the existing shared‐use path at Castilleja Avenue and the Stanford Perimeter Trail. It also includes intersection improvements at Churchill Avenue and El Camino Real, which will include a new dedicated (PL‐14000)
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Traffic and Transportation Projects Status as of December 2022 westbound right‐turn lane. The project is anticipated to gain PAUSD approval and will go out to bid in summer 2023.

Construction is anticipated to be completed by fall 2024.

Churchill Avenue Prior Years Actuals
Alma Street $203,918
Railroad Crossing Project Status: This project is a railroad crossing improvement project to enhance safety at the intersection of Total Project Budget Implementing Department Project Phase Project Completion $5,106,881 Office of Transportation Design Winter 2024
Safety
Improvements
(PL‐20000)
Churchill Avenue and Alma Street. This crossing was identified for possible funding for hazard elimination and safety improvements through the Federal Section 130 funds. Design includes traffic signal modifications, street lighting improvements, roadway resurfacing, sidewalk realignment and/or widening, drainage improvements, utility relocations, signage, and striping. Staff is currently working with Caltrain, Caltrans, and California Public Utilities Commission (CPUC). The design plans reached completion in early 2022. CPUC approved the General Order 88‐B for this project in November 2022 and authorized the City to move forward with construction. Staff is preparing bid documents for construction to be released in early 2023. Construction is anticipated to begin in spring 2023.

Downtown
Automated
Parking
Prior Years Actuals
$327,738
Total Project Budget Implementing Department Project Phase Project Completion $2,815,468 Office of Transportation Design Fall 2024
Project Status: This project includes design and installation of new downtown parking guidance systems, access controls and revenue collection equipment that will be coordinated with both the Downtown Parking Wayfinding, PL‐15004 project and the 2016 Downtown Parking Management. Staff contracted with Dixon Resources for additional management support in design and procurement for the system installation in the Downtown garages on University Avenue. The Downtown Automated Parking Guidance Systems procurement will be reissued in spring 2023.

Guidance
Systems, Access
Controls &
Revenue
Collection
Equipment
(PL‐15002)
Emergency
Vehicle Traffic
Prior Years Actuals
$486,422
Total Project Budget Implementing Department Project Phase Project Completion $682,900 Fire Department Procurement Winter 2023
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Traffic and Transportation Projects Status as of December 2022 Signal Project Status: This project will purchase and implement an emergency vehicle preemption system pilot project.

The system will integrate with the City’s current traffic signal management system and with the City’s computer‐ aided emergency response dispatch system to provide safer and quicker response times for emergency vehicles.

This project is a pilot on 25 intersections. The traffic signal controls software were updated in spring 2020 and staff is working with our CAD and Signal System vendors to integrate the two systems for communication across the two platforms. Purchasing is drafting the contract for the plug‐in software and staff expects the project will be complete by winter 2023.

Preemption
System Pilot
(PL‐19000)
Parking
Management and $137,050
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $627,247 Office of Transportation Construction Spring 2024 System
Implementation
(PL‐16002)
Project Status: This project provides funding for the design and installation of the Comprehensive Parking Permit and Citation Management System. The all‐inclusive system is a tool staff will utilize in the management of parking permits for eight parking permit programs and associated on and off‐street parking citations.

Quarry Road
Improvements
and
Transit Center
Access
Prior Years Actuals
$1,282,050
Total Project Budget Implementing Department Project Phase Project Completion $3,394,046 Office of Transportation Pre‐Design Fall 2024 Project Status: This project includes the planning, design, and construction of bicycle, pedestrian, and transit access improvements along Quarry Road between El Camino Real and Welch Road, including, but not limited to, upgraded bicycle lanes and crosswalks, innovative intersection treatments for bicyclists, improved access to transit stops, roadway improvements for transit access, and signal modification. Planning, design, and construction of bicycle lanes and pedestrian improvements between the Palo Alto Transit Center bus depot and the intersection of Quarry Road and El Camino Real, and between El Camino Real and Welch Road have been completed. The next phase of the project will provide the transit access from Quarry Road to the Transit Center. The City is working with Stanford on evaluating the land ownership and entitlements before proceeding with design of such improvements. (PL‐16000)
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Traffic and Transportation Projects Status as of December 2022 Railroad Grade
Separation and
Safety
Improvements
(PL‐17001)
Prior Years Actuals
$3,836,455
Total Project Budget Implementing Department Project Phase Project Completion $18,764,851 Office of Transportation Pre‐Design Fall 2025 Project Status: This project is a community‐based process to advance the railroad grade crossing circulation study and context sensitive solutions study envisioned by the City Council. It will also fund the preparation of a Project Study Report and environmental analysis that will be required for the City to realize its goals of advancing grade separations. This capital project provides funds to perform preliminary engineering design, conduct project related studies, and to prepare environmental documents for the project. The consultant in collaboration with the community prepared several conceptual plans for grade separations. Council directed staff to perform additional studies to review geotechnical conditions, refine the underpass/partial underpass alternatives, and to reconvene the Rail Committee and discuss the financial considerations. The consultant contract amendment was approved in May 2022. Staff will seek Rail Committee direction in the review of additional studies for the development of Project Alternatives for City Council Approval. Staff is working with VTA to allocate funding from Measure B Grade Separation Funds for initiating the Preliminary Engineering and Environmental Phase and pursuing other Federal and State grant funding opportunities for these three crossings.

University Ave
Streetscape
Project
Prior Years Actuals
$40,111
Total Project Budget Implementing Department Project Phase Project Completion $175,000 Public Works Design Fall 2023
Project Status: This project includes a study to reconfigure University Avenue between Alma Street and Middlefield Road to adapt the public realm to maximize pedestrian and bicycle use, reduce congestion, and enhance the retail environment/economic activity, while maintaining two‐way vehicular access, parking opportunities, delivery and loading zones, ride share spaces, and other amenities including performance space. Council awarded a professional services contract for CSW/Stuber‐Stroeh Engineering in February 2022. The project uses a phased approach with Phase 1 consisting of public outreach, conceptual design, preliminary environmental studies, and financial assessment. A preferred plan will be developed in Phase 1 based on community and stakeholders’ input. Upon completion of Phase 1 assessment and Council’s review of the community preferred plan, future phases including design, environmental assessment, bidding and construction will be developed. The City initiated the focus group (PE‐21004)
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Traffic and Transportation Projects Status as of December 2022 meetings in November 2022 and will continue public outreach to develop project alternatives. Phase 1 is anticipated to be completed by fall 2023.

Recurring Projects
Bicycle and Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Pedestrian $9,526,878 $2,400,000 Office of Transportation N/A Recurring Transportation Plan
Implementation
(PL‐04010)
Project Status: The Neighborhood Traffic Safety and Bicycle Boulevards Phase 1 Project along Amarillo Avenue, Moreno Avenue and Ross Road was completed in November 2018. Conceptual plans for the Neighborhood Traffic Safety and Bicycle Boulevards Phase 2 Project along Bryant Street, Maybell Avenue, Stanford Avenue, Park Boulevard, and Wilkie Way were adopted by City Council in 2015. Currently, Phase 2 is on hold at 75% design until staff resources are available.

Parking District
Implementation
(PL‐15003)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $0 $182,000 Office of Transportation N/A Recurring
Project Status: This project will fund the introduction of additional parking permit programs throughout the city.

One aspect of this project is the City Council approved Residential Preferential Parking (RPP) ordinance to establish uniform procedures to implement RPP districts through the process outlined in the Municipal Code 10.50.

Safe Routes to
School
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $276,686 $849,900 Office of Transportation N/A Recurring (PL‐00026) Project Status: This project enables the City’s Safe Routes to School program, including school commute planning, encouragement activities, and capital improvements along local and collector streets that may be impacted by school commute activities. The capital improvements include traffic calming devices, enhanced crosswalks, and improved signage along suggested safe routes to school. The community engagement and planning process for the construction of the South Palo Alto Bikeways project began in FY 2021. The project will implement buffered or protected bike lanes on East Meadow Drive from Alma Way to Fabian Way, Fabian Way from East Meadow Traffic and Transportation Projects – Page 5 of 6
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Traffic and Transportation Projects Status as of December 2022 Drive to East Charleston Road, and widen and repave the Waverley Avenue Bike Path between East Meadow Drive and Charleston Road. Due to lack of staff resources, the project schedule was delayed, and the City relinquished construction grant funds prior to expiration of funding. Staff is awaiting results of grant applications to fund construction. In FY 2023, the project funded improved crosswalks to improve school access.

Traffic Signal and
Intelligent
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $232,020 $673,300 Office of Transportation N/A Recurring Transportation
Systems
(PL‐05030)
Project Status: This project includes design and construction of traffic signals, traffic signal communications networks, detection, and data projects for transportation use, and maintenance of the City’s traffic signal central management system. The project includes the replacement of traffic signal controllers/cabinets, video detection systems, accessible pedestrian buttons, and related field equipment. Design for traffic signal safety and operational improvements at the intersection of San Antonio Road and Charleston Road is nearing 100% completion. Staff is finalizing the plans, and will be preparing bid documents for construction to be released in spring 2023, with construction anticipated to begin in late 2023 or early 2024. City Staff is starting the process to update the Centralized Traffic Management system servers to improve operational functions and system security.

Transportation and Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Parking $86,063 $1,406,403 Office of Transportation N/A Recurring Improvements
(PL‐12000)
Project Status: This project implements miscellaneous neighborhood traffic calming improvements including neighborhood traffic studies and parking improvements. This project also funds the development of grant proposals used to procure funding for future projects. Projects currently in progress include the Crescent Park neighborhood traffic calming pilot. The conceptual plan for the traffic calming pilot project in the Crescent Park neighborhood was approved by Council in November 2020. Temporary traffic calming elements were placed in the summer 2021 for trial and to seek feedback from community. Staff is planning to conduct a post installation survey in early 2023 and plan for permanent improvements accordingly.

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Airport Projects Status as of December 2022
One‐Time Projects
Airport Apron Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Reconstruction $35,523,554 $41,563,570 Public Works Construction Winter 2023 (AP‐16000) Project Status: This project includes the design and reconstruction of the Palo Alto Airport apron and is being implemented in multiple phases. The need to reconstruct the aircraft parking apron is critical to airport safety.

Construction Phase I was completed in November 2017. Construction Phase II was completed in winter 2020.

Construction on Phase III began in November 2020 and the project is 95% complete. The project is expected to be completed in winter 2023.

Airport Layout Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Construction Summer 2024Plan $58,000 $1,342,500 Public Works (AP‐21000) Project Status: This project provides updates to the Airport Layout Plan (ALP), including a narrative report and environmental study. The Airport received funding for a Phase I portion of this project in fall 2020. Phase I is approximately 75% complete, and funding for Phase II was received in fall 2022 and work has begun. The project is expected to be completed by summer 2024.

Airport
Temporary
Office
Buildings
AP‐22001
Prior Years Actuals Total Project Budget Implementing Department $947 $359,800 Public Works
Project Status: This project provides funding for the installation and Furniture, Fixtures, & Equipment (FF&E) of existing temporary modular buildings at the airport to provide adequate office space for airport staff as well as terminal space for the public. A Request for Bids will be issued in spring 2023.

Project Phase Project Completion
Design Winter 2023
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Airport Projects Status as of December 2022
Airport Zero
Emission
Prior Years Actuals Total Project Budget Implementing Department $0 $349,200 Public Works
Project Phase Project Completion
Design Summer 2024
Vehicle Fleet
Replacement
Program
Project Status: The Airport vehicle fleet will be replaced by three zero emissions vehicles (ZEV) and three electric charging stations. The van is used for the transportation of airport guests and passengers and improves safety by minimizing foot traffic on the airport apron. The truck is used as a maintenance, first response, and operations vehicle. The ZEV fleet will include one passenger vehicle and two trucks. The Airport is working with the FAA to receive funding for the passenger van in spring 2023 and will go out for bid for the trucks again in spring 2023. (AP‐23000)
Automated
Weather
Observation
System
Prior Years Actuals Total Project Budget Implementing Department $0 $538,800 Public Works
Project Status: This project provides a new weather information system to be installed at the Palo Alto Airport.

Project Phase Project Completion
Design Summer 2024
The Airport has applied for FAA funding, and is waiting for the grant agreement to start design. (AWOS)
AP‐19000
Recurring Projects
2022‐2026 – Airport Capital Improvements Program Projects: There are no recurring projects scheduled at this time.

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Electric Fund Projects Status as of December 2022
One‐Time Projects
115 kV Electric
Intertie
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $689,663 $6,990,040 Utilities Pre‐Design Summer 2027
(EL‐06001) Project Status: This project will perform a technical feasibility study to determine the general project requirements to establish a 115 kV electric intertie line and construct a 115/60 kV substation to connect the City's electric system directly to the 15 kV transmission line at an additional location. Staff did not receive California Independent System Operator’s commitment to support this interconnection. Staff is reassessing CPA’s position and reviewing alternatives that might be more favorable.

Coleridge
Cowper
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $180,813 $2,661,878 Utilities Design Summer 2025
Tennyson
4/12kV
Conversion
(EL‐14000)
Project Status: This project converts the primary electric distribution system in the Coleridge Avenue, Cowper Street, Tennyson Avenue area from 4 kV to 12 kV. This project is a precursor to work being planned for the Colorado Street and Hopkins Avenue Substations. Design is at 90% completion and is delayed due to staffing needs. This project has been deferred to align with available staffing resources and current project priorities. Staff will reassess the project next budget cycle.

Colorado Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Distribution
Feeder Outlet
Replacement
(EL‐22002)
$0 $400,000 Utilities Design Summer 2023
Project Status: This project is for the installation of a new underground duct bank and cable at Colorado Substation.

The installation will improve reliability for all Colorado circuits. The design is in progress and construction will begin by early spring 2023.

Colorado Power
Station
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $4,335,869 $10,865,445 Utilities Pre‐Design Fall 2027
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Electric Fund Projects Status as of December 2022
Equipment
Upgrades
(EL‐19001)
Project Status: This project is for the upgrades to equipment at the Colorado Power substation. In FY 2022 staff completed the evaluation of existing equipment and will proceed with replacing the COP‐3 115 kV/60 kV transformer bank and the 115 kV breaker. . The preliminary design is delayed due to staffing needs.

Colorado Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Substation Site
Improvements
(EL‐19002)
$250,139 $1,306,071 Utilities Design Fall 2024
Project Status: This project will make modifications to the substation driveways and fence to provide adequate ingress and egress for utility vehicles used for maintenance and repair. Staff is preparing an overall master plan for Colorado Substation to include all proposed improvements. Detailed designs for lighting, driveway, fences, walls, and an oil containment improvement are being prepared. The design is currently in progress.

East Meadow
Circles 4/12kV
Conversion
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $239,819 $1,838,701 Utilities Design Spring 2025
Project Status: This project converts the primary electric distribution system in the East Charleston/Alma Street/East Meadow Drive/Middlefield Road area from 4 kV to 12 kV and is challenging because of the configuration of the streets and rear easement facilities. This project has been split into six design and construction phases. Engineering has completed the substructure and electrical design work for Phase 1. The engineering design for Phase 2 is currently in progress. Construction for Phases 1 and 2 will be completed by spring 2023. All six phases are targeted to be completed by spring 2025. Construction for this project was deferred to maintain zero rate increases to ease economic recovery because of COVID‐19. Phase 1 substructure construction and electric equipment install are completed.
(EL‐17001)
Foothills Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion (Fire Mitigation) $1,742,548 $4,000,000 Utilities Design Fall 2025 Electric Fund Projects – Page 2 of 8
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Electric Fund Projects Status as of December 2022
(EL‐21001) Project Status: This project will rebuild the approximately 11 miles of overhead line in Foothills Park, as necessary to mitigate the possibility of wildfire due to overhead electric lines. This could include the utilization of more robust equipment or construction practices, rerouting to avoid vegetation and improve access for inspection and maintenance, or converting the overhead lines to underground where feasible. Two proposals were received for this project and both proposals were rejected because they did not provide an option to underground existing overhead electric lines. Substructure for Phase 1 was completed in spring 2022 and the substructure for Phase 2 is currently in progress. Phases 3 and 4 are currently in design phase.

Hopkins Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Substation 4/12
kV Conversion
(EL‐20000)
$0 $2,010,000 Utilities Design Fall 2025
Project Status: This project will convert the distribution system connected to the Hopkins Substation from 4 kV to 12 kV. The future conversion of the Hopkins Substation from 4 kV to 12 kV requires that all the areas currently served at 4 kV from the Hopkins Substation be converted to 12 kV. This project will improve operating flexibility of the system, service reliability, and back‐up to customers in downtown and other adjacent areas. This project is temporarily delayed due to available staffing levels and a refocus on current priorities and customer service projects.

Inter‐Substation
Line Protection
Relay
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $370,372 $821,030 Utilities Construction Summer 2024
Project Status: This project replaces the existing HCB pilot wire relays with a new microprocessor line differential protective relay to protect the city’s 60 kV sub‐transmission line sections and equipment from damage due to faults (i.e. short circuits) on the 60 kV line sections. This project is being done in phases, with design and construction happening concurrently on the different phases. Construction of these improvements relies on work completed by other projects to install fiber optic connections. This project is temporarily delayed due to available staffing levels and a refocus on current priorities and customer service projects. (EL‐17005)
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Electric Fund Projects Status as of December 2022
Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $43,348 $1,293,337 Utilities Design Fall 2027Underground District 15
(EL‐11003)
Project Status: This project rebuilds and replaces the underground electric system in Underground District 15, the area bounded by Los Palos Avenue, Glenbrook Drive, Pomona Avenue, and Arastradero Road. This project is in the preliminary stages of engineering design and work will be coordinated with EL‐16000 which is currently rebuilding the electric system along Arastradero Road. Work on this project was delayed due to public input regarding the design of the project. Changes to the Rules and Regulations will require property owners to pay for the differential cost should they want submersible equipment instead of pad mount. This project is temporarily delayed due to available staffing levels and a refocus on current priorities and customer service projects.

Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Underground
District 16
(EL‐13003)
$28,742 $735,335 Utilities Design Spring 2027
Project Status: This project rebuilds and replaces the underground electric system in Underground District 16, the area along Louis Road between Greer Street and Loma Verde Avenue. The engineering design work is complete. This project is temporarily delayed due to available staffing levels and a refocus on current priorities and customer service projects
Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Underground
District 24
(EL‐10006)
$1,949,767 $2,525,338 Utilities Construction Fall 2024
Project Status: This project rebuilds and replaces the underground electric system in Underground District 24, the area bounded by Lytton Avenue; Bryant Street; Forest Avenue; and Alma Street. This project is temporarily delayed due to available staffing levels and a refocus on current priorities and customer service projects Electric Fund Projects – Page 4 of 8
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Electric Fund Projects Status as of December 2022
Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $36,817 $312,447 Utilities Pre‐Design Spring 2025
Project Status: This project rebuilds and replaces the underground electric system in Underground District 26, the area along Arastradero Road between El Camino Real and Hillview Avenue. This is a four‐phase project. The first phase design is complete. This project is temporarily delayed due to available staffing levels and a refocus on current priorities and customer service projects.

Underground
District 26
(EL‐16000)
Smart Grid
Technology
Installation
(EL‐11014)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,058,142 $17,674,003 Utilities Construction Fall 2024 Project Status: Council approved the Advanced Metering Infrastructure (AMI) with Sensus on October 18, 2021.

The project includes replacement of 30,000 electric meters and retrofit of 20,800 water and 24,200 gas meters with radio endpoints to transmit meter data to the AMI network. The proof of concept phase including AMI network installation, meter testing, and system integration will occur between January 2022 and June 2023. Full deployment is anticipated to run from July 2023 through December 2024.

Substation
Breaker
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,467,555 $6,062,637 Utilities Pre‐Design Summer 2028
Replacement
(EL‐17002)
Project Status: This project replaces high voltage circuit breakers that interconnect the nine electric substations and two power switching stations that are reaching the end of their useful life and are now underrated for their use. This project is being done in phases, with design and construction happening concurrently on the different phases. Four breakers were replaced recently while anticipating the multi‐year contract procurement method.

Staff completed the construction on the first phase and is working to procure a multi‐year contract with a contractor to complete the design and replacement of the remaining breakers. This project is temporarily delayed due to available staffing levels and a refocus on current priorities and customer service projects.

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Electric Fund Projects Status as of December 2022
Substation
Physical Security $1,489,198
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,200,190 Utilities Construction Winter 2025
(EL‐16003) Project Status: This project installs facilities providing physical protection of electric substations from vandalism and intrusion. A professional services contract was awarded to Burns & McDonnell and the study was completed.

Staff continues to implement recommendations from the study each fiscal year. Staff awarded the bid for security cameras and lighting in July 2022. Construction will start in January 2023.

Recurring Projects
Communications Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Utilities N/A RecurringSystem $14 $170,000
Improvements
(EL‐89031)
Project Status: This project installs high frequency coaxial cable, fiber optic cable, and related equipment to provide communications services for traffic signal coordination, telephone links, computer data transmission, and the Electric Supervisory Control and Data Acquisition (SCADA) system. This project is funding a portion of the design phase of an expanded Utilities fiber optic network. The contract for design of this network was approved by Council in June 2020. Staff is in the planning stages for design implementation.

Electric Customer Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Utilities N/A RecurringConnections $1,255,231 $2,689,745 (EL‐89028) Project Status: This project installs services, transformers, and meters for new customers; upgrading of existing services; temporary service connections; and overhead and underground extensions for new or existing customers. Projects are in many stages of design and construction to provide temporary and permanent power to residential and commercial customers in Palo Alto. There are ongoing electric customer connections each year.

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Electric Fund Projects Status as of December 2022
Electric System
Improvements
(EL‐98003)
Prior Year Actuals Current Year Budget
$909,344 $2,597,000
Project Status: This project consists of various projects that replace deteriorated facilities or install protective devices that improve the Electric Distribution System. Projects are in many stages of development to replace transformers, replace poles, replace overhead wires, and install protective devices to improve service reliability.

There are ongoing electric systems improvements each year.

Implementing Department Project Phase Project Completion Utilities N/A Recurring
Electric Utility
Geographic
Information
System
Prior Year Actuals Current Year Budget
$172,408 $492,100
Implementing Department Project Phase Project Completion Utilities N/A Recurring
Project Status: This project enhances the citywide Geographical Information System (GIS). The primary emphasis will be to provide a compatible user interface and estimating software, to edit and update data which will reside in the citywide GIS. This funding is also being used to pay for Utilities Electric Division’s share of cost for the implementation of new city‐wide GIS system (ESRI) led by IT. Staff is also working directly with IT to assess GIS needs and the transition of the mapping information to ESRI. The data migration to ESRI’s Utility Network Model is in progress. The migration for Electric is 80% complete. (EL‐02011)
SCADA System
Upgrades
Prior Year Actuals Current Year Budget
$283,489 $405,674
Implementing Department Project Phase Project Completion Utilities N/A Recurring
(EL‐02010) Project Status: This project upgrades the Supervisory Control and Data Acquisition (SCADA) system hardware.

Staff completed upgrade of the servers used for monitoring the utility substations and equipment in 2014. The next hardware and software upgrade is in progress at the factory and work will occur in winter 2023.

Prior Year Actuals Current Year Budget
$264,757 $450,000
Implementing Department Project Phase Project Completion Utilities N/A Recurring
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Electric Fund Projects Status as of December 2022
Substation
Facility
Project Status: This project makes improvements to facilities at the electric substations in Palo Alto. Staff is working on the replacement of Remote Terminal Units (RTU) at various substations, upgrading gravel and grounding, 60 kV air switches, and reconfiguring steel trusses and associated devices.Improvements (EL‐89044)
Substation
Protection
Improvements
(EL‐89038)
Prior Year Actuals Current Year Budget
$183,000 $480,000
Implementing Department Project Phase Project Completion Utilities N/A Recurring
Project Status: This project makes improvements to equipment used at electric substations to protect the substation equipment and circuits emanating from the substation from damage due to faults (i.e. short circuits) on the electric system.

Underground
System Rebuild
(EL‐16001)
Prior Year Actuals Current Year Budget
$36,944 $349,999
Implementing Department Project Phase Project Completion Utilities N/A Recurring
Project Status: This project replaces underground electric equipment in areas that were originally installed underground, that are not part of an Underground District. Staff is working to identify areas where the age of the existing cables are a high priority for cable replacement. To date, this includes areas in the Stanford Research Park, Arastradero Road, and along East Bayshore Road. New areas have been identified and progress has been made on development of the project. Construction of this project was deferred to maintain zero rate increases to ease economic recovery because of COVID‐19.

Wood Pole
Replacement
(EL‐19004)
Prior Year Actuals Current Year Budget
$1,297,849 $1,739,927
Project Status: This project will fund the annual replacement of deteriorated wood power poles. The project is in the design phase with expected completion in December 2022 and construction starting summer 2023. The project is delayed this year because of staffing shortages. Staff hired a contractor to complete the design of 36 pole replacements.

Implementing Department Project Phase Project Completion Utilities N/A Recurring
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Fiber Optics Fund Projects Status as of December 2022
One‐Time Projects
Fiber Optic
Network
System
Rebuild
(FO‐16000)
Prior Years Actuals Total Project Budget
$1,318,527 $3,315,100
Implementing Department Project Phase
Utilities Design
Project Completion
Spring 2024
Project Status: This project is for the System Capacity Improvement that rebuilds portions of the "dark" fiber optic network around Palo Alto. On September 19, 2022, Council approved the City’s fiber expansion plan including construction of a new fiber backbone and a phased buildout of a fiber‐to‐the‐premises network. The Fiber Optic Network System Rebuild CIP will be replaced with new Fiber Backbone and Fiber‐to‐the‐Premises CIP’s in FY 2024.

Recurring Projects
Fiber Optics
Customer
Prior Year Actuals
$75,326
Current Year Budget Implementing Department Project Phase Project Completion $250,000 Utilities N/A Recurring
Connections
(FO‐10000)
Project Status: This project enables the installation of fiber optic infrastructure for new service connections.

Projects are developed as needed to meet customer requests for leasing of fibers on the Dark Fiber system. Staff have processed and completed seven customer connection projects in FY 2023.

Fiber Optics
Network
System
Prior Year Actuals
$84,086
Current Year Budget Implementing Department Project Phase Project Completion $595,000 Utilities N/A Recurring
Project Status: This project improves the reliability within the fiber optic network system. As part of the City’s Improvements wildfire mitigation plan, this project will add new fiber conduit and substructure in the foothills to support city (FO‐10001) infrastructure and improve telecommunication and connectivity in the open space.

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Gas Fund Projects Status as of December 2022
One‐Time Projects
Gas Main
Replacement $5,675,198
Project 23
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Summer 2022$7,951,858 Utilities Completed
Project Status: This project enables the design and construction to replace approximately 21,700 linear feet (which represents 1.9% of the City's Gas distribution main system) of distribution main and 320 gas services constructed mainly of PVC material on various streets within the Midtown, Evergreen Park, Ventura, College Terrace, Charleston Terrace, and Research Park neighborhoods. Gas pipeline replacement at the Town & Country Village property was removed, while the pipeline replacement on Encina Avenue, Embarcadero Road and El Camino Real will continue. Construction began in winter 2021 and was completed in summer 2022.
(GS‐13001)
Gas Main
Replacement $44,459
Prior Years Actuals Total Project Budget Implementing Department Project Phase $10,000,000 Utilities Construction
Project Completion
Winter 2024
Project 24
(GS‐14003)
Project Status: This project enables the design and construction to replace approximately 20,100 linear feet (which represents 1.9% of the City's Gas distribution main system) of distribution main and 260 gas services constructed mainly of PVC on various streets within the University Park, Stanford, and Green Gables neighborhoods. Release of the project for bidding has been delayed to incorporate the Town & Country Village scope. This project was split into GMR24A and GMR24B. GMR24A was bid in summer 2022 and the construction project was awarded. Construction is anticipated to be complete in winter 2023. GMR24B is currently in design and anticipated to be bid in winter 2023.

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Gas Fund Projects
Recurring Projects
Status as of December 2022
Gas
Distribution
System
Prior Year Actuals Current Year Budget Implementing Department $164,389 $750,000 Utilities
Project Status: This project enables Gas Distribution System improvements. Typical activities include increasing Project Phase
N/A
Project Completion
Recurring
Improvements distribution system capacity for load growth, replacing deteriorated capital facilities, reconfiguring/adding to the system (GS‐11002) to improve service reliability, and conducting research related to performance of the gas distribution system or its various components making general improvements to the system. The City must continuously evaluate service reliability needs and make improvements to the system to maintain top level service to City customers and to minimize potential economic losses due to service interruptions. In the first half of FY 2023, replacement of various gas services and valves throughout the system were completed.

Gas Prior Year Actuals Current Year Budget Implementing Department $52,474 $50,000 Utilities
Project Status: This project purchases polyethylene (PE) fusion equipment and tools, directional boring/locating equipment and tools, and general shop equipment and tools. The equipment needs to be upgraded on an annual basis to safely operate and maintain a natural gas distribution system and to ensure operators’ safety and productivity. No new equipment was purchased in the first half of FY 2023.

Project Phase
N/A
Project Completion
RecurringEquipment
and Tools
(GS‐13002)
Gas Meters
and
Prior Year Actuals Current Year Budget Implementing Department $333,356 $500,000 Utilities
Project Phase
N/A
Project Completion
Recurring
Regulators
(GS‐80019)
Project Status: This project provides replacement of the existing gas meters and regulators annually. The coordination of gas meter and regulator replacements with gas meters identified to be replaced under the AMI contract, which is generally gas meters that are 25 years or older. The gas meter replacement program ensures the accuracy of gas consumption measurement, reduces possible revenue loss due to under‐registered gas, and provides customers with accurate monthly bills. Replacement of aged gas meters and regulators is on‐going. The next major replacement of Gas Fund Projects – Page 2 of 3
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Gas Fund Projects Status as of December 2022
meters and regulators will be coordinated with Gas Main Replacement Project 24 (GS‐14003) and the Advanced Metering Infrastructure project.

Gas System,
Customer
Prior Year Actuals Current Year Budget Implementing Department $754,755 $1,166,900 Utilities
Project Phase
N/A
Project Completion
Recurring
Connections
(GS‐80017)
Project Status: This project enables the Gas Distribution System to be extended in order to provide gas service to new customers and augment service to customers with increased natural gas demands. Improvements include new mains, services, valves, regulators, meters, and accessories. This project upgrades infrastructure to provide gas service connections to new customers, meet changes in existing customer service demands, and respond to changes in gas service requirements due to new development or redevelopment. This project is funded partially from reimbursements by customers. City crews completed 27 new gas service installations and 26 gas service demolitions in the first half of FY 2023.

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Stormwater Management Projects Status as of December 2022 One‐Time Projects
Corporation
Way System
Upgrades and
Pump Station
(SD‐21000)
Prior Years Actuals
$161,853
Total Project Budget Implementing Department Project Phase Project Completion $3,949,827 Public Works Design Fall 2024
Project Status: This project incorporates a design of a new small pump station with 25 cubic feet per second capacity and upgrades 700 linear feet of pipe to 30‐inch diameter High Density Polyethylene pipe. The existing system does not have the force needed to discharge storm flows into the Adobe Creek. Adding a pump station in advance of the outfall and upsizing the storm pipe will eliminate the routine flooding along East Bayshore Road and convey runoff from a 10‐year storm event. Staff is also in the process to secure an easement for the pump station from adjacent property owners. The design consultant contract was awarded in June 2020. The final design will be completed in spring 2023 and construction is anticipated to start in fall 2023.

Trash Capture
Device
Prior Years Actuals
$11,562
Total Project Budget Implementing Department Project Phase Project Completion $657,000 Public Works Design Fall 2023
Installation
(SD‐22002)
Project Status: This project provides funding for the design and construction of a large trash capture device (TCD) to be installed in the planting strip along Embarcadero Road located in front of the Palo Alto Baylands Golf Links parking lot. The TCD will be integrated into a 36‐inch storm pipe to capture trash as small as five millimeters from a section of the storm drain system prior to discharging to the San Francisco Bay. The 189‐acre drainage area treated by the TCD consists of 169 acres of commercial and office land use in the City’s jurisdiction and 20 acres in the California Department of Transportation (Caltrans) right‐of‐way. The design is in progress and is expected to go out to bid for construction in spring 2023.

West Bayshore Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,748,396 Public Works Design Spring 2024Road Pump
Station
$235,329
Project Status: This project incorporates design and construction of a new small pump station with 15 cubic feet per second capacity. Installing a new pump station will allow storm flows to be pumped into the Adobe Barron Creek confluence while adding a pump station in advance of the outfall would eliminate the routine flooding along (SD‐20000)
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Stormwater Management Projects Status as of December 2022 West Bayshore Road and allow the system to convey runoff from a 10‐year storm event. The design consultant contract was awarded in June 2020. The consultant has reached 90% completion of the design plans. Staff is also in the process to secure an easement for the pump station from adjacent property. The final design will be completed in spring 2023 with construction expected to start by fall 2023.

West Bayshore Prior Years Actuals
Road Trunk Line $5,271
Total Project Budget Implementing Department Project Phase Project Completion $2,478,965 Public Works Design Spring 2024
Improvements
(SD‐23000)
Project Status: This project replaces approximately 1,400 linear feet of existing 15‐inch diameter pipe with 36‐inch High Density Polyethylene pipe. These improvements along with the new West Bayshore Road Pump Station (SD‐ 20000) will eliminate the routine flooding along West Bayshore Road and allow the system to convey runoff from a 10‐year storm event. Once the design for the pump station is finalized the consultant will advance the design for the capacity upgrades. The final design will be completed in spring 2023 with construction expected to start by fall 2023.

Recurring Projects
Green Prior Year Actuals
$0
Current Year Budget Implementing Department Project Phase Project Completion $2,111,351 Public Works N/A RecurringStormwater
Infrastructure
(SD‐22001)
Project Status: This project provides funding for Green Stormwater Infrastructure (GSI) projects and the integration of GSI features to be included in the design and implementation of planned CIP projects supported by other funds and in the future maintenance of the City’s GSI assets. GSI mimics the natural environment to slow, spread, sink, and filter storm runoff through native or engineered soils or other pervious material rather than discharging it directly into storm drain inlets. Elements include bioretention planters, tree wells, pervious pavement, and rainwater harvesting (rain barrels and cisterns) to manage stormwater runoff.

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Stormwater Management Projects Status as of December 2022 Storm Drainage
System
Prior Year Actuals Current Year Budget
$1,072,691 $1,233,100
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
Replacement and Project Status: This project provides for annual replacement and rehabilitation to maintain the integrity of the Rehabilitation
(SD‐06101)
storm drain system, including deteriorated storm drain piping, manholes, and storm drain inlets. The rehabilitation includes cured‐in‐place pipe (CIPP) lining, and replacement of broken pipe with HDPE. The rehabilitation project went to bid in summer 2021. Construction started in early 2022 and was completed in fall 2022.

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Wastewater Collection Fund Projects Status as of December 2022 One‐Time Projects
Wastewater
Collection
System
Prior Years Actuals Total Project Budget Implementing Department Project Phase $801,528 $4,656,777 Utilities Construction
Project Completion
Winter 2023
Project Status: This project includes the design and construction of high priority mains with structural defects that cannot be addressed with routine maintenance. The wastewater mains on various streets in the City, will be replaced with approximately 10,000 linear feet of sanitary sewer mains and associated laterals in the Ventura, Charleston Meadows, Fair Meadow, and Palo Verde neighborhoods. The Notice to Proceed for construction was issued in March 2022 with an anticipated project completion in January 2023.

Rehabilitation
Augmentation
Project 30
(WC‐17001)
Wastewater
Collection
System
Prior Years Actuals Total Project Budget Implementing Department Project Phase $0 $5,200,000 Utilities Design
Project Completion
Summer 2025
Project Status: This project funds the design and construction of high priority main replacement work, which reduces inflow of rainfall and groundwater into the collection system. The project replaces approximately 11,000 linear feet (which represents 1.1 percent of the City’s Wastewater Collection System) for El Camino Real from Page Mill Rd to Cesano Ct, and Page Mill Rd from Ramos Way to Ash St. The project will be comprised of mains identified in video inspection work or through maintenance records as deficient and in need of replacement. The work will be in Caltrans (El Camino Real) and the County of Santa Clara (Page Mill Rd) right‐of‐way.

Rehabilitation
Augmentation
Project 31
(WC‐19001)
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Wastewater Collection Fund Projects
Recurring Projects
Status as of December 2022
Sewer Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Lateral/Manhole
Rehabilitation
and
Replacement
(WC‐99013)
$0 $825,000 Utilities N/A Recurring
Project Status: This project replaces defective sewer laterals, cleanouts, manholes, backwater devices, and equipment to support these activities to maintain the Wastewater Collection System, as well as to comply with the Sanitary Sewer Master Plan (SSMP). Information collected during routine annual maintenance activities is used to prioritize work.

The continued work performed will also help reducing both sewage blockage and the City's treatment expenses to treat rainwater or groundwater infiltration. A new 3‐year contract was approved in FY 2023 to replace problematic sewer laterals.

Sewer System,
Customer
Prior Year Actuals Current Year Budget Implementing Department $453,078 $450,000 Utilities
Project Phase Project Completion
N/A Recurring
Connections
(WC‐80020)
Project Status: This project installs sewer lateral connections and additions or extensions of existing mains to serve new customers and to respond to changes in sewer requirements due to redevelopment. Old existing non‐plastic sewer laterals with condition deficiencies per Utilities Operations’ criteria are required to be replaced in accordance with the latest 2022 WGW Standards. This project recovers the cost for installation and maintenance for Development Service projects through customer connection fees and capacity increase fees for connecting to the wastewater collection system.

Wastewater
General
Prior Year Actuals Current Year Budget Implementing Department $71,193 $50,000 Utilities
Project Phase Project Completion
N/A Recurring
Equipment and
Tools
(WC‐13002)
Project Status: This project funds contract C23184325A to procure 39 new sanitary sewer level monitoring units. The City’s current monitoring system is operating on the 3G cellular network which sunsets in December 2022. Sanitary sewer level monitoring units are strategically placed in manholes throughout the City that will trigger alarms when high level of sewage is detected. This early warning system helps the Wastewater Operations crew respond faster to Wastewater Collection Fund Projects – Page 2 of 3
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Wastewater Collection Fund Projects Status as of December 2022 emergency situations and prevent sanitary sewer overflows. The remaining budget in this project may potentially be applied towards a sedimentation tank at the Municipal Service Center.

Wastewater
System
Prior Year Actuals Current Year Budget Implementing Department $413 $600,000 Utilities
Project Phase Project Completion
N/A Recurring
Improvements
(WC‐15002)
Project Status: This project implements improvements to the Wastewater Collection System by increasing system capacity for growth, flow monitoring, hydraulic modeling and system analysis, load simulations, asset management analysis and assessment, system inflow/infiltration analysis, and sanitary sewer overflow monitoring and reduction.

The City is currently using Sedaru’s asset management software to document maintenance activities.

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Wastewater Treatment Fund Projects Status as of December 2022 One‐Time Projects
Advanced
Water
Prior Years Actuals Total Project Budget Implementing Department $1,451,891 $20,197,389 Public Works
Project Phase Project Completion
Design Fall 2025
Purification
Facility
(WQ‐19003)
Project Status: This project enables the design and construction of an Advanced Water Purification Facility to further improve the quality of the tertiary‐treated recycled water by ultrafiltration followed by reverse osmosis to reduce the level of total dissolved solids. The water reuse partnership agreement with Valley Water and Mountain View provides $16 million in funding from Valley Water for this project. The City has also received grant funding for a portion of the project costs and a State low‐interest loan for the design and construction phases. The Project was submitted to the Planning Dept, and a meeting with ARB is anticipated in early 2023. The project was presented to the Parks & Recreation Commission in late 2022. The design is currently at 90% completion and is expected to be completed in winter 2023, with project construction completion in fall 2025.

Headworks
Facility
Prior Years Actuals Total Project Budget Implementing Department $0 $48,778,300 Public Works
Project Phase Project Completion
Design Fall 2028
Replacement
(WQ‐16002)
Project Status: This project replaces influent pumping, including the suction and discharge piping, pipe manifolds, valves, the electrical and controls system, screening equipment, grit handling equipment, the force main to the primaries and modifying headworks building, and yard piping. Solicitation for a consultant to perform advance planning is expected to begin in summer 2023.

Horizontal
Levee Pilot
(WQ‐22001)
Prior Years Actuals
$0
Total Project Budget Implementing Department
$750,800 Public Works
Project Phase Project Completion
Design Summer 2027
Project Status: This project consists of the design, permitting, and construction of a horizontal levee pilot system. The system will utilize treated wastewater to create a transitional brackish habitat on the Bayside of a future flood control levee located in the Palo Alto Baylands, adjacent to the City of Palo Alto’s Regional Water Quality Control Plant (RWQCP). Information and data collected by this pilot system could support broader implementation of horizontal levees as green infrastructure components in larger flood control levee improvement projects within Palo Alto and Wastewater Treatment Fund Projects – Page 1 of 4
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Wastewater Treatment Fund Projects Status as of December 2022 beyond. The project completed 60% design, CEQA review, conducted several stakeholder out‐reach events, and submitted construction applications to resource agencies. The project is currently working on progressing the design to 100%, composing a Parks Improvement Ordinance, and continuing stakeholder outreach.

New
Laboratory and $363,705
Environmental Project Status: This project was originally envisioned to replace the existing plant laboratory and environmental Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $24,134,403 Public Works Design Fall 2027
Services
Building
(WQ‐14002)
services offices. Staff is currently revising space planning assumptions as the City and WQCP are investigating the potential acquisition of a property adjoining the WQCP and have put further design efforts on hold until more advanced planning can be completed. Solicitation for engaging a consultant for advance planning is expected in summer 2023.

Outfall Line
Construction
(WQ‐19000)
Prior Years Actuals Total Project Budget Implementing Department $0 $10,616,200 Public Works
Project Phase Project Completion
Design Summer 2026
Project Status: This project consists of the construction of a new parallel outfall pipe to convey final plant effluent to San Francisco Bay. The PWE/USACOE Levee Project requires a re‐design of the pipeline to accommodate a potential future runway shift at PAO Airport. Staff is currently working with PAO/FAA staff towards gaining FAA concurrence for the project re‐design. The City has received a State low‐interest loan for the design and construction phase, and the State is working with the City to retain the loan through the re‐design process.

Plant Master
Plan
Prior Year Actuals
$431,720
Current Year Budget Implementing Department
$221,500 Public Works
Project Phase Project Completion
Construction Winter 2028
(WQ‐10001) Project Status: This project enables the ongoing program management support for major capital projects. Current tasks include developing scopes of work, evaluating consultant proposals, coordinating project management activities, pursuing State low‐interest loans for multiple projects, and updating partner agreements. The consultant provides Wastewater Treatment Fund Projects – Page 2 of 4
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Wastewater Treatment Fund Projects Status as of December 2022 support for the projects associated with the Long‐Range Facilities Plan (LRFP). The contract was renewed in December 2022 through 2028.

Primary
Sedimentation $3,658,289
Prior Years Actuals Total Project Budget Implementing Department $20,502,245 Public Works
Project Phase Project Completion
Construction Winter 2023
Tank
Rehabilitation
(WQ‐14003)
Project Status: This project enables the design and construction for new protective coatings on each of the four concrete primary sedimentation tanks, with replacement of worn rotating parts and mechanical and electrical equipment. These tanks were installed in 1972 and the recoating project will extend the concrete life for another 30 years. The design and construction cost of the project is funded by a state low‐interest loan through the Clean Water State Revolving Fund with the Installment Sale Agreement executed on July 12, 2021. Construction began in summer 2021, with completion expected by winter 2023.

Secondary
Treatment
Upgrades
Prior Years Actuals Total Project Budget Implementing Department $3,402,946 $193,351,077 Public Works
Project Phase Project Completion
Design Winter 2028
Project Status: This project upgrades the Secondary Treatment process at the Regional Water Quality Control Plant.

The existing Secondary Treatment process has two main components, the Fixed Film Reactors (FFR) and the Activated Sludge (AS) Process. This project includes the reconstruction of the AS process, rehabilitation and reconfiguration of the AS Aeration Basins, the elimination of the FFRs, and replacement of equipment beyond its useful life. Project cost has increased to address sea level rise policy implications, new infrastructure needed to reduce project life cycle costs, a larger standby power generator for unanticipated loads, and to meet code requirements. The project construction timeline has been increased to five years due to the sensitive nature of the work that needs to take place, while also allowing the Plant to operate and meet permit requirements for treatment. The City has received a State low‐interest loan for the design and construction phases. The design was completed in spring 2022. Construction contract will be issued in winter 2023.
(WQ‐19001)
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Wastewater Treatment Fund Projects
Recurring Projects
Status as of December 2022
Plant Repair,
Retrofit and
Equipment
Prior Year Actuals Current Year Budget Implementing Department Project Project Completion Recurring
Phase
$1,122,530 $10,465,000 Public Works N/A
Replacement
(WQ‐19002)
Project Status: This project enables the assessment, repair, and retrofit of the Plant's concrete and metal structures; the replacement of necessary Plant equipment and ancillary facilities, including electrical equipment/systems, to maintain treatment reliability and existing infrastructure; and the replacement of large diameter flow meters built into the wastewater treatment system on sewers, pipes, and water lines. Design of the 12 kV Electrical Loop Upgrade Project was completed in spring 2022; construction contract will be issued in winter 2023.

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Water Fund Projects Status as of December 2022
One‐Time Projects
Water Main
Replacement
Project 28
Prior Years Actuals Total Project Budget
$447,384 $10,305,619
Project Status: This project will replace approximately 18,600 linear feet (which represents 1.6% of the City's water distribution system) of mains and 265 services on various streets in the City, including areas in the Duveneck, St.

Francis, Barron Park and Charleston Meadows neighborhoods. Construction started in April 2022, and around 35% of water mains have been installed. This project is anticipated to be completed in late 2023.

Implementing Department Project Phase Project Completion Utilities Construction Fall 2023
(WS‐14001)
Water Main
Replacement
Project 29
Prior Years Actuals Total Project Budget
$8,229 $9,350,000
Implementing Department Project Phase Project Completion Utilities Design Spring 2024
Project Status: This project will fund the design and replacement of structurally deficient water mains and appurtenances. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and/or subject to breaks. The project scope includes approximately 10,000 linear feet (which represents 0.8 percent of the City’s Water Distribution System) of mains and services on various streets within the City, including areas in the Evergreen Park, Ventura, and Midtown/Midtown West neighborhoods. (WS‐15002)
Water Recycling Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Utilities Pre‐Design Fall 2023Facilities $710,106 $1,243,714 (WS‐07001) Project Status: This project allows the City to hire a consultant to prepare a business plan, prepare preliminary design, and secure funding options for an expansion of the existing recycled water delivery system in the City. The expansion pipeline is one of several water reuse projects being considered in the Northwest County Recycled Water Strategic Plan. This, or one of the other projects, may be recommended to Council for design and construction.

Staff is considering expanding the recycled water distribution system as one project to the One Water Plan tentatively scheduled for Council approval in fall 2023. The earliest such a project could begin is spring 2024.

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Water Fund Projects Status as of December 2022
Water
Regulation
Station
Improvements
(WS‐07000)
Prior Years Actuals Total Project Budget
$1,735,652 $2,960,992
Implementing Department Project Phase Project Completion Utilities Design Summer 2023
Project Status: This project for Water Regulation Station Improvements includes seismic upgrades, piping improvements and other various upgrades to increase the structural reliability of two of the City’s turnouts with SFPUC. Work under this project includes Seismic Upgrade of California and Page Mill Turnouts. Structural evaluation for restraining the Page Mill turnout and piping was included in the design. City Council approved this project and the construction is scheduled to start in March 2023.

Water Tank
Seismic Upgrade $9,348,646
Prior Years Actuals Total Project Budget
$27,111,359
Implementing Department Project Phase Project Completion Utilities Construction Spring 2024
and
Rehabilitation
(WS‐09000)
Project Status: This project for Seismic Water System Upgrades includes seismic upgrades at the Montebello, Mayfield, Corte Madera, Park, Boronda, and Dahl Reservoirs in compliance with the American Society of Civil Engineers (ASCE 7) seismic codes. Seismic upgrade of Boronda and Montebello Reservoirs was completed in 2016 and 2018. The Mayfield Reservoir was rehabilitated in September 2020. The new concrete Corte Madera Reservoir was completed in April 2022. Park Reservoir is scheduled next for retrofit or replacement and will have its condition assessed by a tank expert to determine how to proceed. Condition Assessment will take place in early 2023. Design for Park Reservoir will also begin in spring 2023, with construction planned for 2024.

Recurring Projects
Water
Distribution
System
Improvements
(WS‐11003)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $24,621 $285,900 Utilities N/A Recurring
Project Status: This project enables improvements to water distribution system deliverability and reliability.

Typical activities include installing restraining joints at critical pipelines and bridge crossings, increasing the size of inadequate facilities, system leakage surveys, network modeling, and fire flow studies or other system improvements as required. Continuous evaluation of system needs and making required improvements is Water Fund Projects – Page 2 of 5
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Water Fund Projects Status as of December 2022
necessary to maintain adequate quantities of quality water, meeting local, state, and federal safe drinking water standards. The Pump Station Painting project, for painting the five foothill pump stations, will go out to bid early 2023, with the work to be performed by fall 2023.

Water, Gas,
Wastewater
Utility GIS Data
(WS‐02014)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $343,131 $498,500 Utilities N/A Recurring
Project Status: This project enables contracts related to Utilities GIS (Geographic Information System) needs. AME database is heavily utilized by Utilities Engineering staff to update the utility information in GIS. The updated information is used by various City staff, such as marking/locating underground utilities to comply with USA (Underground Service Alert) requirements; developing design drawings for pipeline replacement projects; verifying existing underground utilities during construction activities; creating customized utility map books for field crews and on‐call personnel to meet their specific needs. Annual surveying contracts collect GPS points of existing above‐ ground utility features within the CIP project areas. The data being collected continues to be used to correct the GIS database. Accurate utility data helps the design to select new pipe alignment to minimize construction conflicts.

Water General Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Equipment/Tools $30,008
(WS‐13002)
$105,000 Utilities N/A Recurring
Project Status: This project acquires new equipment and tools, the replacement of existing fusion equipment, and other associated tools. The fusion equipment is used to fuse together pipe joints in the City's water distribution system. Equipment and tools are required to be upgraded on an annual basis to maintain high quality standards for the installation of the City's water distribution mains, along with the associated service standards and worker safety and productivity measures.

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Water Fund Projects Status as of December 2022
Water Meters
(WS‐80015)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $91,192 $962,800 Utilities N/A Recurring
Project Status: This project enables the purchasing of meters for new customers, upgrading meters for current customers, installing meter bypasses, and replacing obsolete meters that are no longer repairable. This funding also allows for annual testing and calibration of selected meters to maintain meter accuracy and reliability. During the AMI implementation process, approximately 50% of the meters will be replaced. Staff is currently targeting large diameter meter sets to be replaced first in preparation for the upcoming AMI project.

Water Service
and Hydrant
Replacement
(WS‐80014)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $99,814 $400,000 Utilities N/A Recurring
Project Status: This project replaces system control valves, deteriorated galvanized service lines, lead goosenecks, and fire hydrant valves and assemblies per the Fire Department’s flow testing, upgrades fire hydrants in main line replacement project areas, and replaces existing undersized or deteriorated copper water services.

Water System
Customer
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $924,125 $904,600 Utilities N/A Recurring
Connections
(WS‐80013)
Project Status: This project allows for improvements that include new main extensions, valves, domestic services, meters on upgraded services, backflow devices, fire services, and fire hydrants. System extensions are required to provide service to new large developments and to serve existing customers requesting expanded service on Development Services projects.

Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $17,073 $285,900 Utilities N/A Recurring
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Water Fund Projects Status as of December 2022
Water System
Supply
Improvements
(WS‐11004)
Project Status: This project evaluates and improves the City’s water distribution system on an as‐needed basis. This project includes piping modifications, equipment replacements associated with water delivery, supervisory control software upgrades, system modifications for water system quality compliance, conditional assessment of the reliability of transmission mains, and security system installations. The water system includes the connection facilities between the City’s and the San Francisco Public Utility Commission’s pipelines, emergency water wells within the City, pumping stations, water reservoirs, and pipelines. Security cameras will be added to various tanks, pump stations, and turnouts as part of the Security Cameras project. Staff are also exploring adding generators to two foothill pump stations and several emergency wells. These projects are still in the planning stage due to competing priorities.

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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project replace rubberized and synthetic turf surfacing in the playground and replace play equipment including swings, climbing net, and playhouse. An IFB was issued in November 2021 and Council awarded a construction contract in spring 2022. Installation of rubberized and synthetic surfacing, replacement of climbing nets and renovation of the playhouse took place in fall 2022. Project was completed in December 2022.

Magical Bridge Playground
PE‐21003 Rubber and Synthetic Turf Parks and Open
SpaceConstruction
Construction
Public Works Fall 2022
2022
$
$
857,380.00
Resurfacing
This project designed and constructed approximately 21,700 linear feet (which represents 1.9% of the City's Gas distribution main system) of distribution main Gas Main Replacement and 320 gas services constructed mainly of PVC material on various streetsGS‐13001 Gas Utilities Summer 7,951,858.00Project 23 within the Midtown, Evergreen Park, Ventura, College Terrace, Charleston Terrace, and Research Park neighborhoods. Construction began in winter 2021and was completed in summer 2022
This project replaced the entire complement of Automated External Automated External Defibrillators (AEDs) throughout City facilities and emergency response vehicles, Buildings and FacilitiesFD‐21000
PF‐17000
Procurement
Construction
Fire Department
Public Works
Summer
Fall
2022
2022
$
$
237,500.00Defibrillator Replacement which currently totals 93 AEDs. The RFP process was completed in fall 2021.

The new AEDs were purchased and deployed in summer 2022.

This project replaced the existing MSC roofs. The existing asphalt and gravelMunicipal Service Center A, B, & C Roof roofs have reached the end of their useful life and needed to be replaced. The new roofs will meet current cool roofing codes to optimize energy efficiency.

Construction was completed in November 2022.

Buildings and
Facilities 2,013,475.00
Replacement
This project installed capacitor banks at electric substations and on distribution lines to ensure Northern California Power Association Power Factor requirements are met. Capacitor banks were installed at Hanover Avenue, Hansen Way, Maybell Avenue, and Park Boulevard Substations. The project was substantially completed in June 2022 and will be commissioned and energized in summer 2022.

EL‐16002 Capacitor Bank Installation Construction Electric Electric
Utilities Spring 2022 $ 1,050,443
Facility Relocation for The Utilities Department removed the overhead lines allowing for the EL‐17007 Caltrain Modernization installation of the Overhead Catenary System above the rails for the Caltrain Construction Construction
Utilities Spring
Spring
2022
2022
$
$
3,055,472
4,646,247
Project Modernization. This project was completed in spring 2022 This project upgraded safety, site amenities, playground facilities, a new restroom, irrigation, drainage, and ADA accessibility improvements at Rinconada Park. These improvements were identified in the Rinconada Long Range Plan (LRP). Phase 1 of construction started in August 2021 and construction was completed in spring 2022.

Rinconada Park
Improvement
Parks and Open
SpacePE‐08001 Public Works
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project reconfigured the distribution circuits to the substation transformer at Quarry Substation. Design of QR 27 feeder replacement was completed in spring 2021. Construction was completed in December 2021 .

Reconfigure QuarryEL‐14005
AC‐18001
Construction
Construction
Electric Utilities Fall
Fall
2021
2021
$
$
792,034Feeders
This project provided for the relocation of the Junior Museum and Zoo to Cubberley for two years while a new JMZ was being built, tenant improvements to the Cubberley Auditorium and then removal of tenant improvements post‐ construction. Construction of the new Junior Museum and Zoo started in June 2018 and was completed in late 2021. The new Junior Museum and Zoo was opened to the public on November 12, 2021.

Buildings and
Facilities
Community
ServicesJMZ Renovation 2,927,870.00
264,235.00
This project included a systems analysis and repaired the water proofing system High and Bryant Street in the High Street and Bryant Street parking garages. Water proofing repairs PE‐18002 Garages Waterproofing were completed in the High Street parking garage. Additional funding was Buildings and FacilitiesConstruction Public Works Fall 2021 $
and Repairs added and the contractor completed waterproofing repairs in the subterranean stairwells in the Bryant Street garage in fall 2021.

As part of the 2014 Council Infrastructure Plan, this project designed and constructed a new pedestrian bridge across Highway 101 at Adobe Creek.

Council approved a contract with Granite Construction in November 2019.Highway 101 Pedestrian Traffic and TransportationPE‐11011
EL‐12001
Construction
Construction
Public Works Fall
Fall
2021
2021
$
$
22,889,453
3,904,425
Bicycle Overpass Project Construction began in January 2020. The project construction completed on November 20, 2021, with a ribbon‐cutting ceremony and a community celebration.

This project undergrounded the existing overhead utility systems in the area along the 400 block of West Charleston and El Camino Real. Staff completed cable, equipment installation and 100% of customer service conversions. The construction for the final phase of the project to install two 60 foot tall steel poles and to reconductor the 60 kV sub‐transmission lines was completed in the fall 2021.

Underground District 46
Charleston Electric Utilities
This project improved the Pearson Arastradero Preserve parking lot by improving the base rock surfacing, adding drainage, widening the entrance for safety, and new fencing. This new improvement will allow the overflow parking area to be open year round. The work was completed in May 2021.

Pearson Arastradero
OS‐18001 Preserve Parking lot Parks and Open
Space
Community
ServicesConstruction
Study
Spring
Spring
2021
2021
$
$
170,300
926,792
Improvement
Cubberley Community
Center Master Plan
This project developed the master plan for future use of the Cubberley Community Center site by the City and Palo Alto Unified School District.

Buildings and
Facilities
Community
ServicesCB‐16001
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department Public Works
Fire Departent
CMR Date
This project replaced the Building management System(BMS) controls for the pavilion, Theater, Wing I, and Gyms A and B boiler rooms at the Cubberley Community Center. The project included the installation of control points for each building along with controllers, valve and damper actuators.

Cubberley Building
Management Systems
Buildings and
FacilitiesCB‐19001 Construction Spring 2021 $ 350,000
This project replaced the current ring down system that provides an audible alert of calls in the fire stations. Ongoing installations started in 2018 and were Construction completed with Fire Station #3.

Fire Ringdown System
Replacement
Buildings and
FacilitiesFD‐14002
PD‐14000
Spring
Winter
Spring
Winter
2021
2021
2021
2021
$
$
$
$
400,144
77,569
94,500
146,466
Internal Alarm System
Replacement
The project replaced the citywide internal alarm system. The alarms at City Hall migrated to this new system in FY 2019, but was completed in early 2021.

Buildings and
Facilities
Police
DepartmentConstruction
Construction
Construction
Self Contained Breathing This project replaced the central air compressor that provides air for the self‐ FD‐20001 Apparatus (SCBA) Air Buildings and
Facilitiescontained breathing apparatus (SCBA) tanks to ensure firefighter safety when Fire Department Public Works
Compressor Replacement entering environments with hazardous air quality.

Airport Electrical
Improvements
This project replaced the outdated electrical panels for the Palo Alto Airport office rental spaces. Construction was completed in January 2021.AP‐20000 PE‐18000
Airport
This project built the California Avenue Area Parking Garage, as part of the 2014 Council Infrastructure Plan. The parking garage has 627 parking spaces with 2 basement levels and 4 above grade floors. The garage features an automated parking space guidance system, EV charging stations, bicycle parking, and motorcycle parking. The garage was opened to the public on December 8, 2020.

New California Avenue
Area Parking Garage
Buildings and
FacilitiesConstruction
Construction
Public Works
Public Works
Fall
Fall
2020
2020
$
$
50,119,976
187,064
This project updated the individual sleeping quarters in the firehouse to address gender issues and privacy concerns. Fire Station #1 was the only fire station in the City that did not have separate bedrooms to accommodate male and female firefighters. This project was completed in fall 2020.

Fire Station 1
Improvements
Buildings and
FacilitiesPF‐14002
GS‐18000
This project replaced gas services laterals constructed of Acrylonitrile‐butadiene‐ styrene (ABS) or Tenite material on various streets. Council approved funding in June 2019. The project replaced 104 ABS and Tenite gas services. The WQCP ABS gas service is assigned to Utility Operations for replacement and the remaining five ABS gas services will be scheduled for replacement once the five‐ year moratorium ends on those streets. As of November 2020, this project is complete.

Gas ABS/Tenite
Replacement Project Construction Gas Utilities Fall 2020 $ 2,615,100 3 Item 13
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project replaced 1,750 linear feet of storm drain with 48‐inch diameter High Density Polyethylene (HDPE) pipe and associated catch basins, laterals and manholes. In addition to underground work, additional street restoration and Loma Verde Avenue Trunk concrete work was completed. Work includes resurfacing one full lane on LomaSD‐19000 Construction Storm Drain Utilities Fall 2020 $ 2,976,813Line Improvements Verde from the beginning to the end of the project limits, replacement of driveways, sidewalk, and 718 linear feet of curb and gutter. The contract was awarded in June 2020, construction work began in August 2020, and was completed in December 2020.

This project is part of the City’s recent Seismic Upgrade and Emergency Water Supply and Storage Projects. The reservoir was drained in 2012 for Mayfield Reservoir
WS‐19000 Subgrade and Venting
approximately two years to allow extensive seismic rehabilitation work to be performed and construction of a new pump station. Subsequently hairline cracks were sealed in the reservoir. A geotechnical consultant was hired to evaluate the tank foundation. This study was completed and there were several options identified. Staff has completed the design and construction of the vent Construction
Construction
Construction
Water Utilities
Utilities
Utilities
Fall
Fall
Fall
2020
2020
2020
$
$
$
600,000
3,649,356
4,434,839
Repair
This project undergrounded the existing overhead distribution system in the area bounded by Middlefield Road, Homer Avenue, Webster Street, and Addison Avenue. Installation of substructures and utility electric system is completed. Where possible, the overhead electric lines were removed and poles cut down to the level of the communication lines.

Underground District 47
EL‐11010 Middlefield, Homer,
Webster, Addison
Electric
This project replaced of 8,972 linear feet of wastewater mains. The sanitary sewer mains, laterals, and manholes to be rehabilitated or replaced in this project are located in the Charleston Meadows neighborhood. Construction started in February 2020 and was suspended for almost 3 months due to COVID‐ 19 County’s Shelter‐in‐Place Order. The project is complete as of December 2020.

Wastewater Collection
WC‐16001 System Rehabilitation
Augmentation Project 29
Wastewater
Collection
This project modernized the existing elevators at parking Lot J. The project involves upgrading the interior of the elevators, elevator control interface, call buttons, and meeting current ADA standards. Construction started in April 2019. Project is complete except for the State final inspection on the second car. State is behind because of COVID, but the inspection should be done by the end of July 2020.

Parking Lot J Elevator
Modernization
Buildings and
FacilitiesPF‐18000 Construction
Construction
Public Works
Public Works
Spring 2020
2020
$
$
781,324
This project replaced the existing Fire Station at Embarcadero Road and Newell PE‐15003 Fire Station 3 Replacement Road with a new structure that meets essential services standards and current Buildings and Facilities Winter 10,080,258
program needs. Construction completed in March 2020.
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project included the recoating of four steel tanks. Work under this project was included in the Seismic Upgrade of four Steel Tanks and the three Turnout Water Reservoir Coating Projects. Once construction started, it was found that the Montebello ReservoirWS‐08001 WS‐13001
Construction Water Utilities Spring 2020 $ 2,141,172Improvements was in very poor condition. Due to escalating costs associated with roof replacement, staff decided to complete construction of the Montebello Reservoir and re‐evaluate the remaining three tanks for replacement.

This project replaced approximately 9,600 linear feet of structurally deficient, aging, or corroded water mains and services along the mains on Sand Hill Road, Construction Oak Creek Drive (5%) and Fulton Avenue.

Water Main Replacement ‐
Project 27 Water Utilities
Utilities
Spring
Spring
2020
2020
$
$
7,786,998
5,665,897
This project enabled the design and construction of a high priority wastewater main and lateral replacement work to reduce inflow of rainfall and groundWastewater Collection Wastewater CollectionWC‐15001 System Rehabilitation water into the collection system. The project replaced or rehabbed a total of Construction Augmentation Project 28 7,655 linear feet of wastewater mains located in the Leland Manor/Garland, Midtown West, and Lower Page Mill/Los Altos Hills areas of the City.

This project met the growing electric needs of the VA Hospital. Staff has had numerous discussions with VA Hospital on electric load growth at the hospital VA Hospital ‐ Customer
Load Requirements
and anticipated needs from the utility. Much of the cost is reimbursed to the City by the VA Hospital. Staff has prepared preliminary designs for interim solutions and is awaiting additional information from VA to develop long range plans to meet their future needs.

EL‐17003 Design Electric Utilities Spring 2020 $ 84,984 This project added electronic security systems at utility sites to protect equipment at electric substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism. Cameras and detection systems have been installed at nine electric substations, three water stations, and one natural gas station to monitor facilities.

Utility Site Security
ImprovementsEL‐04012
EL‐11008
Construction Electric
Electric
Utilities
Utilities
Spring
Spring
2020
2020
$
$
1,644,681
149,023
This project rebuilt and replaced the underground electric system in Underground District 19, the area bounded by Forest Avenue, Waverley Street, Construction Addison Avenue, and Alma Street.

Rebuild Underground
District 19
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project replaced Self Contained Breathing Apparatus equipment (SCBA) used by firefighters when entering hazardous conditions when responding to fire and hazardous materials incidents. The SCBA provides breathable air for firefighters when entering environments where the atmosphere is immediately dangerous to life or health. The expected service life for SCBAs is 15 years.

Self Contained Breathing
Apparatus Replacement
Buildings and
FacilitiesFD‐18000 Purchase Fire Department Spring 2020 $ 799,999 This project replaced the entire complement of twenty cardiac monitors in the Department. Along with other tools needed for patient assessment and airway verification, cardiac monitors assess cardiac activity in patients and provide defibrillation and pacing.

Cardiac Monitor
Replacement
Buildings and
FacilitiesFD‐20000
PL‐16001
Purchase Fire Department
Office of
Spring
Fall
2020
2019
$
$
850,000
This project included the construction of curb extensions and the installation of new pedestrian signal heads and traffic signal modifications in 2019 as part of the Upgrade Downtown project.

Downtown Mobility and
Safety Improvements
Traffic and
Transportation TransportationConstruction 1,819,847
This project replaced the Thermal Imaging Cameras (TICs) on all fire and response vehicles used to help identify the location of victims; assess the source of fires, smoke, and heat; to assist in creating a plan of action.

Thermal Imaging Cameras
Replacement
Buildings and
FacilitiesFD‐20002 Purchase Fire Department Fall 2019 $ 99,000 This project addressed areas that were identified in Wastewater Capital Improvement Project 17 (Cleaning and Video Inspection of the Collection System) as needing rehabilitation. This project was combined with Project 25 and 26(WC‐12001; WC‐13001).

Wastewater Collection
WC‐11000 System Rehabilitation Wastewater
CollectionConstruction
Construction
Construction
Utilities
Utilities
Fall
Fall
Fall
2019
2019
2019
$
$
$
3,131,595
3,309,998
1,851,708
Augmentation Project 24
Wastewater Collection
WC‐13001 System Rehabilitation
This project was combined with Project 24 and 25(WC‐11001; WC‐12001). All new service laterals were installed from the new sewer main to the new sewer Augmentation Project 26 cleanouts located in the City’s right‐of‐way.

Wastewater
Collection
Cubberley Track and Field This project replaced the synthetic turf field, installed an all‐weather track and a Parks and Open SpaceCB‐19000
PE‐14018
Public WorksReplacement fitness area.

Baylands Boardwalk
Improvements
This project replaced the existing boardwalk with similar alignment and configuration.

Buildings and
FacilitiesConstruction
Construction
Public Works
Public Works
Winter
Winter
2019
2019
$
$
2,123,681
494,818This project improved the Administrative Services Department offices on the fourth floor of City Hall.

Buildings and
FacilitiesPE‐17009 City Hall Floor 4 Remodel
Lucie Stern Buildings This project replaced and upgraded the mechanical, electrical, and fire/life Buildings and FacilitiesPE‐14015 Mechanical and Electrical safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Upgrades Theater, and Lucie Stern Community Center.

Construction Public Works Spring 2019 $ 6,142,607
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department CMR Date Quarry Road
PL‐16000 Improvements and Transit
Center Access
Planning and
Community
Environment
This project included planning, design and construction of bicycle and pedestrian improvements along Quarry Road.

Traffic and
TransportationConstruction
Construction
Spring 2019
2019
$
$
5,148,378
499,997Utility Control Center
UpgradesEL‐17008 This project upgraded the Utility Control Center working environment. Electric Gas
Utilities Winter
This project replaced approximately 23,700 linear feet of gas mains and services along University Avenue and other streets in the Downtown North nieghborhood.

Gas Main Replacement
Project 22GS‐12001 Construction
Construction
Construction
Construction
Construction
Utilities Spring
Spring
2019
2019
2019
2019
2018
$
$
$
$
$
11,658,997
3,211,998
27,497,551
7,506,161
525,000
Wastewater Collection
WC‐12001 System Rehabilitation /
This project was combined with Project 24 and 26 (WC‐11001; WC‐13001) replacing 45,294 linear feet of sanitary sewer mains in university South, Wastewater Collection Utilities
Public Works
Utilities
Augmentation Project 25 Professorville and Old palo Alto neigborhoods.

This project provides funding for the design and construction of the sludge dewatering facility and truck loadout to retire existing dewatering and sewage sludge incinerators.

Dewatering and Loadout
Facility
Wastewater
TreatmentWQ‐14001
WS‐12001
Spring
This project replaced approximately 11,000 linear feet of aging water mains and services which included water main replacement as part of the Upgrade Downtown Project.

Water Main Replacement
– Project 26 Water Spring
This project improved the Planning and Community Environment (PCE) Department offices on the fifth floor of City Hall.

Buildings and
FacilitiesPE‐17009 City Hall Floor 5 Remodel Public Works Summer Baylands Nature
AC‐14001 Interpretive Center Exhibit
Improvements
This project replaced worn out or non‐functioning exhibits at the Baylands Nature Interpretive Center.

Buildings and
Facilities
Community
ServicesConstruction
Construction
Construction
Summer
Summer
Summer
2018
2018
2018
$
$
$
56,000
250,000
78,000
Mitchell Park Adobe Creek Parks and Open
SpacePE‐17000
PD‐14000
This project replaced the existing bridge over Adobe Creek in Mitchell Park. Public Works Police
Bridge Replacement
Internal Alarm System
Replacement
This project replaced the citywide system of panic alarms from various departments and the Council chambers.

Buildings and
Facilities
Maybell 1&2 4/12kV
ConversionEL‐14004
GS‐15001
This project converted circuits 1 & 2 at Maybell substation from 4kV to 12kV. Construction Construction
Electric
Gas
Utilities
Utilities
Fall 2018
2018
$
$
364,796
150,000Security at City Gas
Receiving Stations
This project equiped the City’s four Gas Receiving Stations with video surveillance systems. Summer
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Storm Drain
Airport
Department CMR Date
Matadero Creek Storm
SD‐13003 Water Pump Station and This project upgraded the capacity to the Matadero Creek Storm Water Pump Station, which serves a low‐lying 1200‐acre area of southeastern Palo Alto. Construction Public Works Summer 2018 $ 6,685,317 Trunk Line Improvements
Wildlife Hazard
Management Plan
The Wildlife hazard Management Plan identified the specific actions the airport will take to mitigate the risk of wildlife strikes on or near the airport.AP‐16002 Study Construction
Study
Public Works
Utilities
Summer
Winter
Spring
2018
2018
2018
$
$
$
63,415
4,022,455
167,741
Wastewater Collection
WC‐14001 System Rehabilitation This project replaced 16,859 linear feet of sanitary sewer mains of various sizes on various streets.

Wastewater
CollectionAugmentation Project 27
This project analyzed flooding conditions and recommended flood control structures and drainage and erosion control solutions for the creek located within Foothills Park.

Buckeye Creek Hydrology
Study
Parks and Open
SpacePG‐15000 Public Works
CalTrain Corridor Video
PE‐17004 Management System This project replaced two existing gateway signs in the right‐of‐way for the California Avenue business district.

Streets and
SidewalksConstruction
Construction
Study
Public Works
Public Works
Spring
Fall
2018
2017
2017
2017
2017
2017
2017
$
$
$
$
$
$
$
1,550,000
170,608
Installation
Parking Lot Q Elevator
Modernization
Buildings and
FacilitiesPF‐16003 This project modernized the existing elevator at Parking Lot Q.

Parks, Trails, Open Space,
PE‐13003 and Recreation Master This master plan provided guidance on the recreation and improvement needs for Palo Alto’s parks, trails, open space and recreational programs.

Parks and Open
Space
Community
Services Fall 627,057
Plan
This project developed a plan for short, medium and long range improvements to the regional park including the consideration of pathways, new restrooms and playgrounds, new landscaping, and revitalization of underutilized areas within the park.

Rinconada Park Master
Plan
Parks and Open
Space
Community
ServicesPE‐12003
PE‐13012
Study Fall 541,355
198,529
The project developed an inventory of all City‐owned bridges and culvert Structural Assessment of structures, condition assessment, cost estimate for rehabilitation, and Buildings and FacilitiesStudy Public Works
Utilities
FallCity Bridges recommendation for future inspection frequencies, assessment and improvements.

Wastewater Collection
WC‐11000 System Rehabilitation /
Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced and/or rehabilitated approximately 42,398 linear feet of sanitary sewer mains of Construction Wastewater Collection Fall 3,119,806
3,361,118
Augmentation Project 24 various sizes, 779 sewer laterals, and 121 sewer manholes.

Wastewater Collection
WC‐13001 System Rehabilitation /
Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced and/or rehabilitated approximately 42,398 linear feet of sanitary sewer mains of Construction Wastewater Collection Utilities Fall
Augmentation Project 26 various sizes, 779 sewer laterals, and 121 sewer manholes. 8 Item 13
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project completed the rehabilitation of the Palo Alto Municipal Golf Course, including a new layout for the course, new prefabricated restroom, new water‐ saving turf and irrigation system, and rebranded the course as the Baylands Golf Links.

Golf Reconfiguration and
PG‐13003 Baylands Athletic Center Parks and Open
SpaceConstruction
Construction
Construction
Public Works
Utilities
Fall 2017
2017
2017
$
$
$
13,675,177
2,364,937
5,445,069
Improvements
Gas Main Replacement – This project combined with GWR 19B & GMR 20 and replaced ABS gas mainsGS‐11000 WS‐11000
Gas Winter
Winter
Project 21 and services.

This project provided installation of approximately 11,869 linear feet of new High Density Polyethylene (HDPE) water mains, 232 new HDPE water services, and 15 new fire hydrants within the City limits.

Water Main Replacement
– Project 25 Water Utilities
The 2015 Water System Master Plan identified present capital improvements WS‐15004 Water System Master Plan and replacement rates required to ensure optimal reliability levels of service to Study Water Utilities Utilities
Utilities
Utilities
Utilities
Spring
Winter
Spring
Winter
Winter
Fall
2017
2017
2017
2017
2017
2016
2016
2016
$
$
$
$
$
$
$
$
500,000
1,272,289
696,918
208,648
400,000
1,499,979
94,419
the existing distribution and transmission systems.

Wastewater Collection Combined with Project 22 (WC‐09001). This project replaced and/or Wastewater CollectionWC‐10002 System Rehabilitation / rehabilitated approximately 33,497 linear feet of sanitary sewer mains of Construction Construction
Construction
Construction
Construction
Construction
Construction
Augmentation Project 23 various sizes, 554 sewer laterals, and 102 sewer manholes.

Street Light System Street
EL‐10009 Light System Conversion This project converted HPS streetlights to LED and the conversion of approximately 4500 cobrahead streetlight fixtures. Electric Electric
Electric
Project
Sand Hill / Quarry 12kV
InterTie
This project installed new wire to connect circuits QR‐24 and QR‐27 in the Sand Hill/Quarry area.EL‐13006
EL‐15001 Electric Substation Battery
Replacement This project replaced the batteries in all nine of the City's electric substations.

This project replaced the synthetic turf at the Stanford/Palo Alto Playing Fields.

Stanford/Palo Alto Playing
PG‐13001 Fields Soccer Turf Parks and Open
Space
Community
ServicesReplacement
Park Maintenance Shop
Remodel
This project renovated and remodeled the Parks maintenance shop for safety and efficienciency upgrades.

Parks and Open
Space
Community
ServicesPG‐09003
PE‐12017
Summer
SummerCity Hall First Floor
Renovations
This project installed new elevator control panels and replaced the gray‐painted panels inside the elevators.

Buildings and
Facilities Public Works 3,974,963
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department Public Works
Public Works
CMR Date
This project created a temporary main Library to be used while the new one was being constructed.

Buildings and
FacilitiesPE‐11012 Temporary Main Library Construction
Construction
Construction
Construction
Construction
Construction
Construction
Construction
$
$
$
$
$
$
$
$
$
$
156,254
Baylands Nature The project replaced decking, railings, structural framing members, exterior Buildings and FacilitiesPE‐15029 Interpretive Center Facility wood flooring, and cabinetry, restroom reconfiguration, and provided Spring Summer
Fall
2017
2016
2016
2017
2016
2017
2017
2016
2016
889,452
421,126
334,607
440,000
3,247,248
65,000
Improvement Americans with Disabilities Act (ADA) improvements.

This project improved the children’s playground and included park amenity upgrades such as new playground equipment, a new retaining wall, surfacing and pathway upgrades, planting restoration and irrigation renovations, and replaced of damaged wood benches and the playground perimeter fence.

Bowden Park
Improvements
Parks and Open
Space
Community
ServicesPE‐13008
This project provided trail and site amenities over the remaining area of the landfill cap.

Parks and Open
SpacePE‐13020 Byxbee Park Trails Public Works
Public Works
Public Works
This project improved the Utilities Department administrative offices on the third floor of City Hall. It included new carpet, wall reconfiguration, a kitchenette, cabinets, paint, soundproofing, office furniture, doors, and associated building systems.

Buildings and
FacilitiesPE‐17002 City Hall Floor 3 Remodel Spring
Lucie Stern Buildings This project replaced and upgraded the mechanical, electrical, and fire/life Buildings and FacilitiesPE‐14015 Mechanical and Electrical safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Summer Winter
Spring
Upgrades – Phase 1 Theater, and Lucie Stern Community Center.

Sarah Wallis Park
Improvements
This project improved site amenities with new concrete pathways, replaced old furnishings, and upgraded landscape with drought tolerant species.

Parks and Open
Space
Community
ServicesPG‐12004
This project replaced the perimeter fencing and gates surrounding the Palo Alto Airport boundaries to prevent unauthorized access to the airport runway in accordance with Federal and State standards.

AP‐16003 Airport Perimeter Fence Airport
Storm Drain
Gas
Public Works
Public Works
Utilities
2,003,540
7,676,275
149,500
Channing Avenue/Lincoln This project installed of 5,800 linear feet of 36‐inch to 60‐inch diameter storm SD‐11101 Avenue Storm Drain drain along Channing and Lincoln Avenues over three project phases to increase Construction drainage system capacity.

Winter
Summer
Improvements
Gas Distribution System
Model
This project included the development, model installation, testing, documentation, and staff training of a natural gas distribution system model.GS‐14004 Study 10 Item 13
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List of Completed Projects
Season
Completed
Year
Completed
Total Project
Budget **CIP # Project Name Project Description Project Type Fund Source Department CMR Date Art Center Auditorium
AC‐14000 Audio, Visual and This project replaced outdated audio visual equipment and furnishings following the auditorium’s use as a temporary library.

Buildings and
Facilities
Community
ServicesConstruction
Construction
Construction
Winter
Winter
2016
2016
2015
$
$
150,000
Furnishings
Rinconada Pool Locker
Room
This project renovated the Rinconada Pool locker room including the changing area, restrooms, and showers in the women's and men's locker rooms.

Buildings and
FacilitiesPF‐15000 Public Works 464,433
This project installed new athletic fields, synthetic turf, field lighting, fencing, a new restroom, scorekeeper booth and storage buildings, an expanded parking lot, new bike and pedestrian pathways, landscaping, benches, and other amenities.

Parks and Open
Space
Community
ServicesPE‐13016 El Camino Park Restoration Fall $ 5,611,122 Notes: ** Final Project Actuals may be different from Total Project Budget amounts Grand Total $ 295,492,136 11 Item 13
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Palo Alto City CouncilMay 1, 2023

Palo Alto City Council
May 1, 2023