Cities Index.
Agenda packet

Palo Alto City Council
August 14, 2023

Document
Agenda packet
Meeting
August 14, 2023
Body
Palo Alto City Council
Pages
47
Original file
21.6 MB
Text extracted from the city's file for reading and search. Open the original on cityofpaloalto.primegov.com. That file is the official record.

•Medical statistics including spay and neuter, microchips, and vaccinations (number of clinics and number of animals vaccinated) for in jurisdiction and out of jurisdiction animals.
•Number of animals in and out of the shelter by type of animal and type of intake and outcome.
•City of origin of all animals upon shelter intake.

PIN will submit quarterly financial reports for the Palo Alto Animal Shelter to the City to include:
•Revenues from services received at the Palo Alto Animal Shelter, such as adoptions and medical services to include vaccines and spay/neuter surgeries. •Expenditures to include staffing, contracts, animal care, indirect costs, and administrative operations.

City and PIN agree to the following:

Q.Feral Cat Policy. Both parties will work together to develop a transparent and humane feral cat program that reflects sheltering best practices and takes into account the impact on public health and wildlife. The program will continue the current practice of not releasing feral cats.

R.Animal Welfare. PIN and the City will regularly review generally accepted best animal welfare practices to ensure all policies in effect at the Palo Alto shelter are up-to-date and in line with shelter best practices.

S.Animal Shelter Software. PIN is at liberty to acquire, at its own cost, new shelter management software that best meets its needs. The City will work with PIN to identify the minimum viable data that PIN will be required to add to the current, shared software system Chameleon upon PIN animal intake.

T.Existing City Policy. PIN will comply with all applicable municipal and other laws, and with the City’s shelter policies. PIN policies approved by the City will be specified in the new Agreement. If either PIN or the City has an interest in revising or creating a new policy, it will notify the other party in writing.

Notices from PIN will be addressed to the Supervising Animal Control Officer. The Supervising Animal Control Officer will advise the PIN CEO in writing within five (5) business days whether review and approval are deemed necessary. Review and approval will be deemed necessary only if the proposed revision will result in (a) a change to the terms of the Services Agreement, or (b) a material change in the level of risk to the City, in services to residents of Palo Alto and/or the contract cities, or in roles and duties of City staff.

Notices from the City will be addressed to the PIN CEO, who will advise the City in writing within five (5) business days whether review and approval are deemed necessary. Review and approval will be deemed necessary only if the proposed revision or addition will result in (a) a change to the terms of the Agreement or the cost to PIN of Item 6
Attachment A - Proposed
Term Sheet between Pets
in Need and City of Palo
Alto for a new Five-year
Agreement, Revised July
20, 2023

Item 6: Staff Report
Pg.
10 Packet Pg. 229 of 302

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performance of the Agreement, or (b) a material change in the level of risk to PIN, in services to residents of Palo Alto and/or the contract cities, or in roles and duties of PIN staff.

In either case, if the response is not an approval, the parties will meet within five (5) business days of receipt of the response and attempt in good faith to reach an agreement. The subject policy may be revised only upon the written agreement of both parties.

All City and PIN policies relating to the operation of the Palo Alto Animal Shelter will be kept in a shared online folder and be accessible to all PIN and City staff.

U.Corrective Action Plan. The City and PIN agree to work in good faith to meet the obligations described in the Scope of Services and Capital Improvements sections of the Agreement. If either party determines that it will not meet a due date or will fail to deliver a service, it will promptly send a written corrective action plan to the other party. The corrective action plan will include the following information:
•Task that will not be met.
•Justification for failure to complete task
•Plan to correct including timeline to reach full compliance •Weekly progress updates to Project Manager (of either the City or PIN) If the timeline to reach full compliance is not acceptable to the other party, or if compliance has not been met by the due date identified in the corrective action plan, the parties will meet and confer to determine next steps.

Force Majeure
V. Standard Force Majeure provision to be added, including epidemics and quarantines.

Item 6
Attachment A - Proposed
Term Sheet between Pets
in Need and City of Palo
Alto for a new Five-year
Agreement, Revised July
20, 2023

Item 6: Staff Report
Pg.
11 Packet Pg. 230 of 302

CITY OF PALO ALTO CONTRACT NO. _C_1_9_17_4_4_9_3 __ _

AGREEMENT BETWEEN THE CITY OF PALO ALTO AND PETS IN NEED

FOR PROFESSIONAL SERVICES
This Professional Services Agreement ("Agreement") is entered into on this ..1.L day of January .~by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY'' or "City of Palo Alto"), and PETS IN NEED, a California non-profit public benefit corporation, located at 871 Fifth Ave, Redwood City, CA 94063 C'CONSULTANT' or "Pets In Need").

RECITALS
The following recitals are a substantive portion of this Agreement and are hereby incorporated herein by this reference.

A. CITY intends to provide animal sheltering and veterinary care, as more fully described in Exhibit "A" (Scope of Services), attached to and made a part of this Agreement, for the City of Palo Alto, and for the City of Los Altos and the Town of Los Altos Hills (the "Contract Cities"), at the Palo Alto Animal Shelter, 3281 East Bayshore Road, Palo Alto, CA 94303 (the "Palo Alto Animal Shelter" or the "Premises").

B. CITY and CONSULTANT desire for CONSULTANT to perform the Services {as defined below) at the Palo Alto Animal Shelter pursuant to the terms and conditions set forth in this Agreement.

C. CITY acknowledges that CONSUL TANT is entering into this Agreement in furtherance of its no-kill mission, and that, to the extent permitted by law, CONSUL TANT will operate the Palo Alto Animal Shelter as a no-kill shelter.

D. CITY and CONSUL TANT are entering into this Agreement with the intention of establishing a long -term partnership to offer exceptional shelter services for Palo Alto and its partner cities of Los Altos and Los Altos Hills, while working together towards building a new Pets in Need Palo Alto animal shelter facility.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree:

AGREEMENT
SECTION 1. SCOPE OF SERVICES. CONSUL TANT shall perform the services described at Exhibit "A· ("Services") in accordance with the terms and conditions contained in this Agreement.

SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution (the "Effective Date") and continuing for five (5) years from the Effective Date, unless terminated earlier pursuant to Section 19 of this Agreement. The term of this Agreement may be renewed or extended upon the mutual written agreement of the parties. One year prior to the expiration of the term (or other such timeline as may be mutually agreed upon by the parties), either party may request the parties to begin negotiating in good faith a renewal or extension of this Agreement.

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Item 6
Attachment B -
Professional Services
Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
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SECTION 3. USE OF PREMISES. CONSUL TANT's use of the premises shall be subject to the additional terms set forth on Exhibit "D" (Use of Premises) attached hereto.

SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be in the amount of, and shall not exceed three-million, four-hundred forty thousand six-hundred twenty six dollars and ten cents ($3,440,626.1 O) as detailed in Exhibit "B" (Compensation). CONSUL TANT agrees to complete all Services within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Notwithstanding the foregoing, a contingency fund of two-hundred thousand dollars ($200,000) (the "Contingency Fund") shall be available; as well as a fund for the compensation of renovation delays ("Compensation of Renovation Delays Fund") of sixty thousand dollars ($60,000) shall be available, as detailed in Exhibit "B" (Compensation). In the event the Contingency Fund and the Compensation of Renovations Delays Fund are utilized as provided for herein, the total compensation for Services, reimbursable expenses and the costs payable by CITY to CONSULTANT under this Agreement, shall be and shall not exceed three million, seven­ hundred thousand, six-hundred twenty-six dollars and ten cents ($3,700,626.10) as detailed in Exhibit "B" (Compensation), subject to Section 19 ("TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES").

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall invoice the CITY for payment on a monthly basis. Invoices shall describe the services performed and, if reasonably requested by CITY, supporting documentation. CONSULTANT's invoice shall be submitted to the City's project manager for payment at which point the CITY has 30 business days from the date of the submission to render payment to the CONSUL TANT. Invoices must also include CONSUL TANT name, address, contract number, description of services, date of services, and compensation amount.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSUL TANT or under CONSUL TANT's supervision. CONSUL TANT represents that it possesses the professional and technical personnel necessary to perform or supervise, as applicable, the Services required by this Agreement and that its personnel have sufficient skill and experience to perform the Services assigned to them.

CONSULTANT represents that it, and its employees have and shall maintain (and that it shall require its subcontractors, if any, to have and maintain) during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services.

Notwithstanding anything to the contrary in this Agreement, the representations and warranties in this Section 6 are exclusive and are in lieu of all other warranties of any kind, whether express or implied (including, without limitation, the implied warranties of merchantability, fitness for a particular purpose and noninfringement, and all warranties that may arise from course of dealing, course of performance or usage of trade), all of which are hereby expressly disclaimed.

SECTION 7. COMPLIANCE WITH LAWS. CONSUL TANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that are applicable to the performance of the Services or those engaged to perform Services under this Agreement. CONSUL TANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

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Item 6
Attachment B -
Professional Services
Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
Pg.
13 Packet Pg. 232 of 302

SECTION 8. ERRORS/OMISSIONS. CONSUL TANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSUL TANT's errors and omissions, including, but not limited to, the costs of correcting such errors and omissions, any change order markup costs, or costs arising from delay caused by such errors and omissions or unreasonable delay in correcting such errors and omissions.

SECTION 9. [RESERVED].

SECTION 10. INDEPENDENT CONTRACTOR . It is understood and agreed that in performing the Services under this Agreement CONSULTANT, any person employed by CONSULTANT, and any subcontractor retained by CONSULTANT to perform any of CONSULTANT'S obligations under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY.

SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSUL TANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations without the prior written consent of the City Manager. The City Manager shall have sixty (60) days from receipt of Consultant's notice of proposed assignment to accept or decline the proposed assignment in writing. If the City Manager declines the proposed assignment, he or she shall state the basis for the decision in the written notice to CONSULTANT. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment not expressly contemplated ui:,der this Agreement, or made without the approval of the City Manager shall be void.

SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subcontractors may be used to perform CONSULTANT'S obligations under this Agreement. The subcontractors authorized by CITY to perform work on this Project are:
a. Sage Veterinary Center; and
b. Pets Rest Cemetery, and
c. Any other subcontractors retained by CONSUL TANT to perform CONSULTANT'S obligations under this Agreement.

CONSULTANT shall be responsible for directing the work of any subcontractor and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning subcontractor compensation.

CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subcontractor as more fully set forth in Section 16 of this Agreement.

CONSULTANT shall change or add a subcontractor to perform the Services set forth on Exhibit A hereto only with the prior approval of the City Manager or his designee (such approval not to be unreasonably withheld, delayed or conditioned). The City Manager shall have thirty (30) days from receipt of CONSULTANT's request to approve or decline in writing CONSULTANT's request to change or add subcontractors.

SECTION 13. PROJECT MANAGEMENT. CONSULTANT shall assign its executive director, who currently is Al Mollica, as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and as the project coordinator to represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the project manager (including if, at

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Item 6
Attachment B -
Professional Services
Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
Pg.
14 Packet Pg. 233 of 302

any time, Al Mollica no longer serves as executive director of CONSULTANT).

CONSUL TANT shall promptly notify the CITY's project manager of such substitution and consider in good faith CITY's requests with respect to such substitution.

The parties agree that during the term of this Agreement and for all purposes of this Agreement, CONSULTANT'S project manager shall be authorized to act as the "Superintendent" of the City's animal services division pursuant to Section 6.04.100 of the Palo Alto Municipal Code, for purposes of [Sections 6.12.010, 6.12.030, 6.12.050,

6.16.050, and 6.32.040 of the Palo Alto Municipal Code.

CITY's project manager is the Director of Community Services, Community Services Department, 1305 Middlefield Road, Palo Alto, CA 94303, Telephone (650) 463-4900, who is currently Monique leConge Ziesenhenne. The project manager shall be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate project manager from time to time with prompt written notice to CONSUL TANT.

SECTION 14. INTELLECTUAL PROPERTY RIGHTS.

14.1 Definition of Intellectual Property Rights. "Intellectual Property Rights" means patents of any type, design rights, utility models or other similar invention rights, copyrights, mask work rights, trade secret or confidentiality rights, trademarks, goodwill, trade names, logos and service marks and any other intangible property rights, including applications and registrations for any of the foregoing, in any country, arising under statutory or common law or by contract and whether or not perfected, now existing or hereafter filed, issued, or acquired.

14.2 "Pets In Need" Ownership. The parties acknowledge and agree that, as between the parties, Pets In Need owns all Intellectual Property Rights in its name ("Pets In Need"), logos and marks, as may be amended from time to time by Pets In Need.

14.3 "City of Palo Alto" Ownership. The parties acknowledge and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property Rights in its name ("City of Palo Alto"), logos and marks, as may be amended from time to time by the City of Palo Alto, and in accordance with Palo Alto Municipal Code as may be amended from time to time.

14.4 "Palo Alto Animal Shelter" Ownership. The parties
acknowledge and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property Rights in the name "Palo Alto Animal Shelter".

14.5 Grant of License by City of Palo Alto. The City of Palo Alto hereby grants to Pets In Need a royalty-free, non-transferable term license, for the term of this Agreement, to use, reproduce, make derivative works, display, and perform publicly the name "Palo Alto Animal Shelter" solely in conjunction with "Pets in Need", for example, and without limitation, "Pets in Need Palo Alto Animal Shelter" and "Palo Alto Animal Shelter, operated by Pets in Need," for purposes of the performance of this Agreement, as provided for herein.

14.6 Name Changes; Development of Logos or Marks. Any
name changes, derivative works, or logos or marks as may be developed by Pets In Need with regard to such animal shelter are required to be approved in writing by the City of

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Item 6
Attachment B -
Professional Services
Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
Pg.
15 Packet Pg. 234 of 302

Palo Alto City Manager or designee prior to any publication, or any other public use, in any form or media. The City Manager shall approve or deny such requests in writing within 45 days of receipt of CONSULTANT's complete written proposal, and shall set forth its basis for any denial in writing. During the term of this Agreement, the City of Palo Alto shall not change such name of such animal shelter, nor develop any derivative works, or logos or marks, with regard to such animal shelter, except as is mutually agreed in writing with the Pets In Need Executive Director or designee prior to any publication, or any other public use, in any form or media. The City Manager shall approve or deny such requests within 45 days of Consultant's complete written proposal, and shall set forth its basis for any denial in writing. Notwithstanding anything to the contrary in this Agreement, CITY agrees that CONSULTANT may offer naming rights for any wing, room, kennel, or other area within the shelter in compliance with the City's Naming Policy and Procedure. · 14.7 Limitations on uPets In Need Palo Alto Animal Shelter".

The City of Palo Alto agrees that its use of the name "Pets In Need Palo Alto Animal Shelter", and as may be changed as provided for herein, with regard to the animal shelter that is the subject of this Agreement, as well as any logos or marks that may be developed and approved as provided for herein with regard to such shelter, are strictly limited to the term of this Agreement, and that, unless otherwise agreed by the parties in writing, upon expiration or termination of this Agreement, the City of Palo Alto shall cease and desist all use of such names, logos and marks with regard to such animal shelter in relation to the ongoing operation of such shelter as of the date of such termination or expiration.

14.8 Use of City of Palo Alto Seal or Logo. Any use by Pets In Need of any City of Palo Alto seal or logo is required to be approved in writing by the City of Palo Alto City Manager or designee prior to any publication or any other public use, in any form or media, and in accordance with Palo Alto Municipal Code as may be amended from time to time, provided that the City Manager or his designee shall approve or deny in writing a written request by Pets in Need within ten (10) days of the date of the request, and shall set forth his or her basis for any denial in writing.

14.9 Use of Pets in Need Seal or logo. Any use by the City of Palo Alto of any Pets In Need seal or logo is required to be approved in writing by the Pets In Need Executive Director or designee prior to any publication, or any other public use, in any form or media, provided that the Executive Director of PIN or designee shall approve or deny in writing a written request by CITY within twenty (20) days of the date of the request.

14.10 Reservation of Rights. All Pets In Need Intellectual Property Rights not expressly granted under this Agreement are reserved to and retained by Pets In Need. All City of Palo Alto Intellectual Property Rights not expressly granted under this Agreement are reserved to and retained by the City of Palo Alto.

SECTION 15. AUDITS. CONSUL TANT shall permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to CONSULTANT'S performance of the Services under this Agreement.

CONSUL TANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement.

SECTION 16. INDEMNITY; LIMITATION OF LIABILITY.

16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and

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Attachment B -
Professional Services
Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
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agents (each a "CITY Indemnified Party") from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including reasonable attorneys' fees, experts fees, court costs and disbursements ("Claims") to the extent resulting from, or arising out of (i) any act or omission of CONSULTANT that is outside the scope of CONSULTANT's authority under this Agreement and/or (ii) the negligence or willful misconduct of CONSULTANT or its officers, employees, agents or subcontractors in the performance of this Agreement. To the fullest extent permitted by law, CITY shall indemnify, defend and hold harmless CONSUL TANT, its directors, officers, employees and agents (each a "CONSULTANT Indemnified Party") from a·nd against any and all third party Claims to the extent resulting from or arising out of (i) the negligence or willful misconduct of CITY or its officers, employees, agents or subcontractors in the performance of this Agreement , (ii) any condition in or about the Premises, except to the extent caused by the negligence or willful misconduct of CONSULTANT or a CONSUL TANT Indemnified Party. or (iii) CITY's decision to transition to a consultant-provided service delivery model and City's decision, based on CONSULT ANT's representations contained in its proposal to the City and herein, to contract with CONSULTANT to provide the Services.

16.2. In the event of concurrent negligence of more than one party, its Council members (or directors), officers, employees, agents or subcontractors, the liability for any and all Claims shall be apportioned under the California theory of comparative negligence as presently established or as may hereafter be modified.

Nothing in this Agreement shall constitute a waiver or limitation of any rights that a party may have under applicable law in the event of concurrent negligence of persons or entities other than the parties to this Agreement.

16.3. The parties agree to cooperate with each other in the investigation and disposition of third-party Claims hereunder. It is the intention of the parties to reasonably cooperate in the disposition of all such Claims. Such cooperation may include joint investigation, defense and disposition of claims of third parties hereunder. The parties agree to promptly inform one another whenever an incident report, claim or complaint is filed or when an investigation is initiated concerning this Agreement.

Notwithstanding the foregoing, in the event of a conflict in interest, each party may conduct its own investigation and engage its own counsel.

16.4. Each party agrees to mitigate any loss or damage which it may suffer in consequence of any breach by the other party of the terms of this Agreement. or any fact, matter, event or circumstance giving rise to a Claim.

16.5. LIMITATION OF LIABILITY. N01WITHSTAND1NG

ANYTHING TO THE CONTRARY CONTAINED HEREIN OR ELSEWHERE, NEITHER

PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL,

CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES,

INCLUDING BUT NOT LIMITED TO LOST PROFITS IN CONNECTION WITH THIS

AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH POTENTIAL CLAIM, LOSS OR DAMAGE.

16.6. LIMITATION OF LIABILITY OF CITY. EXCEPT WITH

REGARD TO CITY'S OBLIGATIONS TO INDEMNIFY AND HOLD HARMLESS THE CONSULTANT PURSUANT TO THIS SECTION 16, CITY'S PAYMENT OBLIGATIONS

UNDER THIS AGREEMENT SHALL BE LIMITED TO THE PAYMENT PROVIDED FOR IN SECTION 4 (NOT TO EXCEED COMPENSATION) OF THIS AGREEMENT.

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Item 6
Attachment B -
Professional Services
Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
Pg.
17 Packet Pg. 236 of 302

16.7. LIMITATION OF LIABILITY OF CONSULTANT. IN NO

EVENT SHALL THE TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT OF CONSULTANT TO CITY EXCEED FIVE MILLION DOLLARS.

16.8. CITY represents and warrants that (i) it has complied with Section 2.30.250 of the Palo Alto Municipal Code and (ii) the CITY's indemnification obligations contained in this is Section 16 represent the valid and enforceable obligations of CITY.

SECTION 17. WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, shall not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. No waiver of a condition or nonperformance of an obligation hereunder is effective unless it is in writing signed by the authorized representatives of the parties hereto and, as applicable, approved as required under the Palo Alto Municipal Code or Charter.

SECTION 18. INSURANCE. CONSULTANT, at its sole cost and expense, shall obtain, as soon as practicable following the date of this Agreement, and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "C".

CONSULTANT shall be responsible for ensuring that its subcontractors retained to perform Services under this Agreement, if any, shall obtain and maintain in full force and effect during the term of the subcontractor's engagement, the insurance coverage described in Exhibit "C," as well as a policy endorsement naming CITY as an additional insured under any policies required in this Section 18.

18.1. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-VII or higher which are licensed or authorized to transact insurance business in the State of California.

18.2. CONSUL TANT shall file with CITY certificates evidencing such insurance as soon as practicable following the date of execution of this Agreement but in any event prior to the first day any of CONSULTANT'S obligations are performed hereunder. The certificates shall be subject to the approval of CITY's Risk Manager and shall contain an endorsement stating that the insurance is primary coverage and shall not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within five (5) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Chief Procurement Officer during the entire term of this Agreement.

18.3. The procuring of such required policy or policies of insurance will not be construed to limit either party's liability hereunder nor to fulfill the indemnification provisions of this Agreement.

SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

19.1. The City Manager may terminate this Agreement or suspend

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in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
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the performance of the Services, in whole or in part, in the event of a material breach of CONSULTANT's obligations to CITY under this Agreement, which breach is not cured by CONSULTANT within (60) days of receipt of written notice from CITY to CONSULTANT detailing the nature of such failure. The City Manager may terminate this Agreement without cause by giving one-year prior written notice thereof to CONSUL TANT.

19.2. CONSUL TANT may terminate this Agreement or suspend its performance of the Services, in whole or in part, in the event of a material breach of CITY's obligations to CONSULTANT under this Agreement, which breach is not cured by CITY (i) with respect to material breach of CITY's payment obligations herein, within thirty (30) days of receipt of written notice from CONSULTANT to CITY, or (ii) with respect to material breach of all other CITY obligations hereunder, within sixty (60} days of receipt of written notice from CONSUL TANT to CITY detailing the nature of such breach.

CONSULTANT may terminate this Agreement without cause by giving one-year prior . written notice thereof to CITY.

19.3. In the event of any suspension or termination hereunder, CITY shall pay CONSULTANT for the Services rendered and materials delivered to CITY (i) on or before the effective date of such suspension or termination and (ii) in accordance with this Agreement. CITY shall pay such amounts to CONSULTANT within thirty (30) days after receipt of CONSULTANT's invoice. To the extent that CITY has prepaid any fees, CONSULTANT shall fund to CITY any prepaid fees on a pro-rata basis to the extent such fees are attributable to the period after the termination date, and CITY shall have no obligation to pay unpaid fees that would have become due during the remaining Term had this Agreement not been terminated.

19.4 The following Sections shall survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.3, this 19.4, 20, 25, and 27.

SECTION 20. NOTICES. Any notice provided for in this Agreement shall be in writing and shall be either (i} personally delivered, (ii) received by certified mail, return receipt requested, or (iii) sent by reput~ble overnight courier service (charges prepaid) to the recipient at the address indicated below.

To CITY: City of Palo Alto, City Manager's Office
250 Hamilton Ave., Palo Alto, CA 94301
With a copy also to the CITY's Project Manager.

To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above.

Notices will be deemed to have been given hereunder {i) when delivered personally to the recipient, (ii) one (1) business day after being sent to the recipient by reputable overnight courier service (charges prepaid) or (iii) five (5) business days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid.

SECTION 21. CONFLICT OF INTEREST

21.1. In accepting this Agreement, CONSUL TANT covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.

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Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

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21.2. CONSUL TANT further covenants that, in the performance of this Agreement, it shall not employ subcontractors or other persons or entities having such an interest. CONSULTANT celtifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision shall be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California.

21.3. CITY agrees and acknowledges that, as of the date of hereof, CONSULTANT is not a "Consultant" as that term is defined by the Regulations of the Fair Political Practices Commission, and that therefore CONSULTANT shall not be required to file the financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act.

SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section

2.30.510, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSUL TANT acknowledges that it has read and understands the provisions of Section 2.30.51 O of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Department (and copies of which have been provided to CONSULTANT by CITY), incorporated by reference and may be amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY's Zero Waste Program.

Zero Waste best practices include first minimizing and reducing waste; second, reusing waste and third, recycling or composting waste. In particular, CONSULTANT shall comply with the following zero waste requirements:
(a) All printed materials provided by CONSUL TANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY's project manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post­ consumer material and printed with vegetable based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Division's office, and a copy of the current policy has been provided to CONSULTANT by CITY. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

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SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.

CONSUL TANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as it may be amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the CITY, CONSUL TANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.30 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section4.62.060.

SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement shall terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. The Services are not subject to prevailing wages. CONSULTANT is not - required to pay prevailing wages in the performance of the Services in accordance with applicable law including without limitation SB 7.

SECTION 27. MISCELLANEOUS PROVISIONS.
27 .1. This Agreement shall be governed by the laws of the State of California without regard to its conflict of laws provisions.

27.2. In the event that an action is brought, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Santa Clara, State of California.

27.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties.

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

27.5. The covenants, terms, conditions and provrsrons of this Agreement shall apply to, and shall bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties.

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

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

27.8. In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT's proposal (if any), this Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT's proposal, the exhibits shall control.

27.9. If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.S(d) about a California resident ("Personal Information"}, CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform CITY as soon as practicable, but no later than 24 hours after learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without CITY's express written consent. 27 .10. All unchecked boxes do not apply to this Agreement. 27 .11. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

27.12. This Agreement may be signed in multiple counterparts, which, when executed and delivered by the parties hereto, shall together constitute a single binding agreement. This Agreement may be signed using the City's Docusign platform.
{signature page follows]

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CONTRACT No. Cl9174493 SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written.

CITY OF PALO AL TO PETS IN NEED
City Manager
Officer 2
APPROVED AS TO FORM:

By~
Attachments:

EXHIBIT "A":

EXHIBIT "B":

EXHIBIT "C":

EXHIBIT "D":
.. .

Name: ,. ;-A
Title~ ·,#'/c0~

SCOPE OF SERVICES

COMPENSATION

INSURANCE REQUIREMENTS

USE OF PREMISES

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EXHIBIT 11A"

SCOPE OF SERVICES
PETS IN NEED ("CONSULTANT") agrees to provide Animal Shelter Services as described in Section II below at the Palo Alto Animal Shelter, 3281 East Bayshore Road, Palo Alto, CA, for the City of Palo Alto ("CITY") and the Contract Cities. CITY agrees to perform the obligations as described in Section Ill below.

I. DEFINITIONS The following terms as used in this Exhibit "A" Scope of Services shall have the meaning provided below:

A. "Diseased and crippled animal" means those animals which are known or believed to be infected with a~y dangerous or
communicable disease, or which have an incurable , crippled condition or which are afflicted with any painful disease which is believed to be incurable.

B. "Dangerous animal" means any dog or other animal which demonstrates a propensity to assault, bite, scratch or harass people or other animals without provocation. There shall be a rebuttable presumption that any animal that bites a person is a dangerous animal.

Capitalized terms used but undefined herein shall have the meanings set forth in the Agreement for Professional Services (this "Agreement") to which this Exhibit is attached and of which it forms a part.

II. PETS IN NEED RESPONSIBILITIES:

1. Animal Shelter Services. CONSUL TANT shall perform the following sheltering services and shall provide shelter supplies, animal attendants, supervisors and administrative personnel, and any other personnel, supplies and equipment, reasonably required to perform the following services ("Shelter Services"):
a) Shelter of abandoned, surrendered, impounded, lost or stray domestic animals brought to the shelter by CITY or its Contract Cities, its residents, or personnel.
b) CONSULTANT may shelter and provide services to
animals outside the scope of paragraph (a) above rnon-City animals") including moving animals between the Palo Alto Animal Shelter and Pets In Need Redwood City facility on a space-available basis and at CONSULTANT's sole expense
for all costs, including labor, equipment, supplies, food, and medication. At no time shall animals within the scope of paragraph (a) above be denied services due to services
provided to non-City animals at the Pets in Need Palo Alto Animal Shelter.
c) For the avoidance of doubt, to the maximum extent

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permissible by law, CONSUL TANT shall have exclusive
discretion over how long an animal is sheltered, including exclusive discretion to shelter an animal for a longer period than the statutory minimum number of days This section shall not be interpreted to authorize funds in addition to those specified in this Agreement, and CONSULTANT shall be
responsible for managing the length of animal sheltering within the funds and resources authorized by this Agreement.
d) Quarantine of biting animals.
e) Rabies testing of suspect animals.
f) Provision for reclaim of abandoned, lost or stray domestic animals during established business hours.
g) Shelter staff shall make every effort to identify lost animals (through ID tags and microchips) and to contact owners. h) Be CITY's and Contract Cities' main point of contact (by phone, in-person, and electronic means) regarding animal shelter services, including inquiries regarding missing pets. i) Provide medical evaluation and treatment, if necessary, to all incoming animals. This includes vaccinations, and spay and neuter surgeries to domestic animals.
j) Euthanasia and disposal of abandoned, lost, impounded, or stray domestic animals that are unclaimed by their owners and found to be diseased and crippled and/or dangerous as defined by Palo Alto Municipal Code and California State Law. k) For purposes of clarity, CONSUL TANT shall not be
required to provide owner-requested euthanasia at any time, and CITY acknowledges that CONSUL TANT has elected not
to provide or subcontract this service.

I} CONSULTANT shall maintain a public website, separate from the CITY's website, with information including without
limitation: shelter hours, volunteer opportunities, adoption information, medical services offered and information about those services and contact information.
m} Consultant shall allow CITY Animal Control Officers
access to the shelter at all times for purposes of dropping off animals and provide reasonable accommodation for
Animal Control Officers to begin and end their shifts, and complete administrative work in the shelter.
n) CONSULTANT shall maintain, repair and replace all
surgical room equipment, cages, hoses, and other
equipment at the facility.
o) CONSULTANT shall comply with all federal, state, and local laws in effect applicable to the Services upon
commencement of the provision of the Services, and shall be subject to inspection by the CITY and other duly
authorized federal, state, and local authorities to insure

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such compliance. This includes the applicable provisions of Palo Alto Municipal Code Title 6, as amended from time to time. For the avoidance of doubt, this provision shall not be construed to expand the scope of the Services as
expressly set forth in this Exhibit "A".
p) CONSULTANT shall use commercially reasonable efforts to offer comprehensive volunteer and educational programs which may include, without limitation: animal fostering programs, dog walker programs, and animal care trainings.
q} When appropriate, in CONSULTANT'S sole discretion,
CONSULTANT may partner and/or coordinate with adoption
programs, rescue groups, and other no-kill shelters to maximize the shelter's adoption rate and/or place animals in suitable foster care. CONSULTANT shall seek CITY's approval for
partnerships in which CONSUL TANT pays or receives money or other financial consideration, solely to the extent that such partnership relates to CONSULTANT's performance of the
Services. CITY shall approve or deny in writing any such request within thirty (30) days after receipt of such request. r) Develop and maintain communication with CITY by:

1. Responding in a timely.manner to emails and phone
calls.

2. Communicating and resolving issues and concerns
promptly.
s} Develop, in cooperation with CITY, a feral cat plan.

The plan shall include how PIN handles feral cats, spay/neuter provisions, and release of feral cats. CONSULTANT shall not release feral cats within the City of Palo Alto or any of its Partner Cites.
t) Develop, in cooperation with CITY, a disaster preparedness plan.

2. Medical Services
a) CONSUL TANT shall provide supplies, and professional and trained personnel, employed or under subcontract or
contract, necessary to perform the following services
("Medical Services"): Provision of veterinarian services twenty-four (24} hours per day to treat and provide
veterinarian care for impounded animals, including for
animals picked-up by Animal Control Officers.

CONSULTANT may, in its sole discretion and at its sole
expense, arrange after-hours emergency care through any veterinary subcontractor.
b) Monitor quarantined animals.
c) For a fee, conduct vaccination clinics and have available, free of charge to the public, rabies control information. d) Conduct microchipping.
e) For a fee, which shall be posted on CONSULTANT's website,

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at the same rate established for City residents and Contract Cities, provide access to the CONSULTANT's low cost spay and neuter clinic.
f) The City's Animal Control Officers shall be licensed through CONSULTANT'S medical authority to administer euthanasia as necessary for animals that are unclaimed by their owners and found to be diseased and crippled and/or dq11gerous as defined by Palo Alto Municipal Code.
g) Comply with all laws requiring reporting of animal-borne diseases, including rabies. This includes Municipal Code section 6.32.020, as amended from time to time.

3. Operating Schedules
a) CONSUL TANT shall provide Shelter Services for the animals twenty-four (24) hours a day, seven (7) days a week.
b) CONSULTANT shall provide emergency veterinary services in accordance with Section 597(f) of the California Penal Code. c) CONSULTANT shall have shelter staff on site for care of shelter animals seven (7) days per week, 365 days per year.
d) CONSULTANT shall have business offices and public access areas of shelter to be open to the public on a schedule designed to benefit the public and facilitate the services established in this Agreement, provided that the public hours and access be a minimum of six (6) days per week and forty (40) hours per week.

CONSULTANT shall post the public hours on its website, and inform CITY and Contract Cities in writing of any change in hours. e) CITY acknowledges and agrees that, until the renovations described in Exhibit Dare completed, CONSUL TANT may be unable to be fully staffed and operational in accordance with this Paragraph 3, and may request to operate at a reduced schedule at its reasonable discretion. Consultant's project manager shall make any such request to City's project manager, whose consent shall not be unreasonably denied, delayed, or conditioned.
f) CONSUL TANT shall observe the following holiday closures for public hours:

January 1 (New Year's Day)
Martin Luther King's birthday
Memorial Day
July 4th (Independence Day)
Labor Day
Thanksgiving Day
Day after Thanksgiving
Christmas Eve (1/2 Day)
Christmas Day

4. Dead Animal Services
a) CONSULTANT shall provide storage facilities, disposal

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mechanisms, administrative personnel, and any other personnel, supplies and equipment reasonably required to perform the following services ("Dead Animal Services"):
i. Identification of and notification to the owner of the dead animal, whenever possible; and
ii. Disposal of the body of the dead animal. CONSUL TANT shall offer animal owners the option to pay for cremation services, in which case, CONSUL TANT shall arrange for cremation with the appropriate subcontractor.
b) CONSULTANT shall subcontract with one or more
subcontractors for the maintenance of a dead animal storage facility as well as collection of dead animals and maintenance of the facility and equipment, all at CONSULTANT's sole expense.

5. Wildlife
a) The impoundment of wildlife shall be managed by CONSUL TANT staff. An assessment of wildlife shall be done by medical staff, if necessary. If the animal is severely injured or sick, a licensed veterinarian shall be consulted, and the case shall be fully documented in accordance with AVMA guidelines. This
Agreement assumes that all wildlife animals will continue to be transferred to the Peninsula Humane Society at no cost to the CITY or to CONSUL TANT, as set forth in the Memorandum of Understanding between CONSUL TANT and Peninsula Humane
Society dated November 17, 2017. Should Peninsula Humane Society request fees for wildlife intake, CONSULTANT and the CITY shall negotiate in good faith to amend this Agreement per Section 27 .4 herein, to provide for the reimbursement by CITY to CONSULTANT of such fees (upon documentation of such fees by CONSULTANT reasonably satisfactory to CITY).

6. Records Management
a) CONSUL TANT and CITY's Animal Control shall maintain joint access to the Chameleon database, as provided for in this section.

CONSUL TANT is responsible for keeping the Chameleon
database updated in a timely fa~hion. Chameleon data is designated "For Official Use Only," meaning, CONSUL TANT may only use such data for the performance of this Agreement, and not for marketing or any other purposes without the prior written consent of the CITY's City Manager or designee. Annual
maintenance fees for the Chameleon software shall be paid by CITY. Repair and replacement cost of the server and supporting hardware, if any, shall also be paid by CITY. CONSUL TANT shall not have access to certain areas of the database, such as saved criminal information (as required by law). CITY shall work with the database programmer/vendor to ensure that such areas of the

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database are not accessible by CONSULTANT. All data entered into the Chameleon database by any party shall be property of CITY.
b) Monthly Report
i. CONSUL TANT shall deliver to CITY during the term of this AGREEMENT, and within thirty (30) days of the end
of each month, a monthly Animal Shelter and Impound
Report summarizing monthly and year-to-date services
provided by CONSULTANT for CITY. This report shall
include, but not be limited to, the following information:
( 1) Licensing statistics
(2) Medical statistics including spay and neuter,
microchips, and vaccinations
(3) Volume of animals in and out of facility by type of animal and type of outcome.
(4) For each animal, which city in which it was picked up (if known).
c) Financial Reporting
i. CONSULTANT shall deliver to CITY during the term of this Agreement, and within ninety (90) days of the end of each May, an audited financial report covering CONSULTANT's
operation of the Palo Alto Animal Shelter.
d) Retention of Records, Right to Monitor and Audit
i. CONSUL TANT shall maintain records relating to
CONSUL TANT's operation of the Palo Alto Animal Shelter for a period of four (4) years after the expiration or
termination of this Agreement or until any audits or reviews are completed, whichever comes later, and such records
shall be subject to examination and/or audit of CITY, a Federal granter agency, and the State of California for a period of four (4) years after the expiration or termination of this Agreement or until any audits or reviews are completed, whichever comes later.
ii. Records/accounts relating to CONSULTANT's operation of the Palo Alto Animal Shelter shall be open and accessible to inspection upon reasonable notice during normal
business hours throughout the term of this Agreement and for a period of four (4) years thereafter or until any audits or reviews are completed, whichever comes later.
iii. Parties, upon request by either party to the other, shall meet on occasion to consider revisions which may be needed to the reporting forms created to document performance of the Services provided.

7. Fundraising, Marketing and Branding
a) CONSULTANT shall create and manage fundraising, marketing, volunteer development and education programs. Local volunteer

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groups shall be integrated into fundraising and other activities and events when reasonably possible. The "Pets In Need Palo Alto Animal Shelter" shall be the initial brand name of the shelter to be operated by CONSULTANT pursuant to this Agreement, and any logo or name change shall be approved in writing by
CONSUL TANT and the CITY's City Manager or designee prior to use.

8. Licensing and other fee collection
a) CONSULTANT shall charge fees for services according to the CITY's municipal fee schedule or according to state or local laws.

Fees for any services not covered by CITY's municipal fee schedule or state or local laws shall be set by CONSUL TANT.

CONSUL TANT shall take CITY's comments into consideration when setting such fees. CITY shall take CONSUL TANT's
comments into considefation when setting its municipal fee schedule.
b) CONSUL TANT shall manage dog licensing including processing, issuance, and renewals on behalf of CITY and Contract Cities.

Licensing information shall be included on all Incident Reports and, additionally, provided to CITY on an as requested basis.

CONSULTANT shall collect all associated license fees on behalf of CITY, at the fee amounts set by CITY. Licensing includes the licensing of dogs as defined in Municipal Code Chapter 6.16 as amended from time to time.
c) CONSUL TANT shall process citation fees, and shall remit 100% of these fees to the CITY on a quarterly basis. PETS IN NEED shall process and retain all other fees and revenues, including without limitation adoption fees, spay, neuter, impoundment, permit, license, and other fees as listed in the municipal fee schedule.

9. Contract Cities; WeCare Alliance
a) CITY and CONSULTANT shall provide services to the City of Los Altos and the Town of Los Altos Hills (the "Contract Cities0 ) pursuant to the CITY's amended Regional Animal Care and Control contracts approved by City Council on June 2, 2014.

These contracts are valid through June 30, 2019 with an option for an additional five-year extension . The Parties agree that this Agreement assumes that the Contract Cities' contracts will be in effect during the entire term of this Agreement.
b) CITY shall consult with CONSUL TANT should the contracts with the Contract Cities be amended or terminated, provided that if any such amendment or termination is reasonably expected to result in increased costs to CONSULTANT, such amendment or
termination (if initiated by CITY) shall be subject to

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CONSUL TANT's prior written consent. CONSUL TANT shall notify CITY in writing of its consent or lack thereof within forty-five (45) days after receipt of CITY's written request, which request shall include the precise language of such amendment or all relevant details of such termination (whichever applies}. If CONSULTANT consents, the parties shall amend this Agreement (i} to adjust the scope of Services accordingly and (ii) to cover any reasonable cost increases to CONSUL TANT.
c) CITY may contract with additional cities, subject to CONSULTANT's prior written consent. CONSULTANT shall
notify CITY in writing of its consent or lack thereof within forty­ five (45) days after receipt of CITY's written request, which request shall include the text of such proposed contracts. If CONSUL TANT consents, CONSUL TANT and CITY shall
amend this Agreement (i) to adjust the scope of Services accordingly and (ii) to cover any reasonable cost increases to CONSULTANT.
d) CONSUL TANT shall continue membership in
the WeCare Alliance (www.sheltersfirst.org} .

10. Cost Overruns or Changes
a) If CITY or state laws are passed during the term of this Agreement that require a greater level of service, CITY and CONSUL TANT agree to negotiate in good faith regarding the reimbursement of CONSULTANT for additional costs associated with implementing the new laws. If Parties are unable to agree on reimbursement costs, CONSUL TANT shall document the increased costs and submit to the City Auditor. The City Auditor shall conduct an independent audit. Parties agree to accept the City Auditor's determination of any increased costs.
b) If current state laws are amended, repealed, otherwise changed or suspended during the term of this Agreement that reduce, alter, or remove existing relevant mandates, either party may require the other party to meet to discuss possible financial and operational impacts of levels of service per the change in law, including but not limited to any decrease in contract amounts paid to CONSULTANT, provided that no such decrease shall be
effective unless agreed by CONSULTANT.
111. CITY RESPONSIBILITIES. CITY shall:

1. Provide an adequate and safe facility for CONSULTANT to perform the Services.

2. Provide Animal Control Officers (ACOs) and their services for CITY and Contract Cities. This shall include maintenance of ACO vehicles

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and equipment. Establish fees for dog licensing and animal impounding.

3. With regard to the shelter facility, provide and/or pay for utilities, taxes, electricity, water, gas, waste water, recycling, waste (not animal disposal), internet, Chameleon software/database and associated support, and Chameleon server hardware and support (if any), which collectively is estimated to cost approximately $55,000 peryear.

4. Develop and maintain proactive and consistent communication and rapport with CONSUL TANT
a) Respond in a timely manner to emails and phone calls b) Communicate and resolve issues and concerns immediately c) Provide excellent customer service to CONSUL TANT staff and customers

5. Develop, in cooperation with CONSULTANT, a disaster preparedness plan

6. Administer the agreements between the CITY and the Contract Cities regarding animal shelter services.

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EXHIBIT "B11

COMPENSATION
CITY agrees to compensate CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the schedule below.

SCHEDULE
Year1
Year2
Year3
Year4
Years
Sub-total Basic Services
Reimbursable Expenses

TO EQUAL AND NOT TO EXCEED
(SUBJECT TO SECTION 19 "TERMINATION OR
SUSPENSION OF AGREEMENT OR SERVICES")
$708,000.00
$663,000.00
$676,260.00
$689,785.20
$703,580.90
$3,440,626.10
$0.00
Total Basic Services and Reimbursable expenses $3,440,626.10 Contingency Funds $200,000.00
(not to exceed $40,000 per year)
Additional Compensation for Renovation Delays $60,000.00 Maximum Total Compensation

ONE-TIME ADVANCE
(not to exceed $5,000 per month; see
Exhibit D, Section 15.7)
$3,700,626.10
Simultaneous with the execution of this Agreement, CITY shall pay to CONSULTANT One Hundred Seventy Eight Thousand dollars ($178,000) as an advance against the first three months of CONSULTANT's fee. CONSULTANT shall not submit an invoice for the remainder of its fee for the third month until the end of such third month.

CONTINGENCY FUNDS
CITY shall provide contingency funds to CONSUL TANT in the following circumstances, subject to written approval by the CITY's project manager, and to equal and not to exceed the amount in this Exhibit C:

1. CITY shall provide contingency funds for after-hours and emergency veterinary care if:
a. CONSULTANT has already spent at least $10,000 in the past 12 months on a rolling basis on after-hours or emergency veterinary care that was reasonable based on AVMA guidelines; and
b. The emergency or after hours treatment being sought is reasonable based

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on AVMA guidelines.

2. CITY shall provide contingency funds for hoarding cases if:
a. CONSUL TANT has already served more than 600 animals from the CITY or the Contract Cities in the past 12 months; and
b. The hoarding case involves a minimum of 12 animals brought at once that are expected to stay in the facility for at least 30 days each.

3. CITY shall provide contingency funds for the actual costs of wildlife intake at the Peninsula Humane Society if:
a. The Peninsula Humane Society begins charging for the costs of wildlife services; and,
b. This Agreement has not yet been amended to reflect the additional costs of such services.

4. CONSULTANT may also request contingency funds in other unforeseen circumstances.

To request contingency funds, the CONSULTANT shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, for such services. In addition to the factors above, CITY may consider whether contingency funds are appropriate within existing funding and workload, and contingency funds shall not be released if CONSULTANT has not exhausted unused or unallocated funds.

The CITY shall notify CONSULTANT in writing of its approval or lack thereof within ten (10) days after the date of CONSUL TANT's proposal. If CITY's project manager does not approve CONSUL TANT's request, CONSUL TANT may appeal that decision to the City Manager.

If authorized by CITY, the contingency services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's project manager and CONSULTANT, and payment shall be made to CONSUL TANT, no later than ten (10) days after the date of CITY's authorization. Contingency funds are subject to all requirements and restrictions in this Agreement.

ADDITIONAL COMPENSATION FOR RENOVATION DELAYS
The City shall pay Consultant up to $5,000 monthly for up to twelve consecutive months pursuant to the terms of Exhibit D, Section 15.7 ("Additional Compensation for Renovation Delaysa) of this Agreement.

REIMBURSABLE EXPENSES
No Reimbursable Expenses are authorized by CITY through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein.

ADDITIONAL SERVICES
No Additional Services are authorized by the CITY through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein.

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REQUIRED
YES
YES
YES
YES
YES
YES

INSURANCE
YES
YES
EXHIBIT 11C"

INSURANCE REQUIREMENTS

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

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

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

MINIMUM LIMITS

TYPE OF COVERAGE REQUIREMENT EACH

OCCURRENCE AGGREGATE

WORKER'S COMPENSATION STATUTORY

EMPLOYER'S LIABILITY
BODILY INJURY $5,000,000 $5,000,000
GENERAL LIABILITY. INCLUDING
PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $5,000,000 $5,000,000

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY
BODILY INJURY $1,000,000 $1,000 ,000
- EACH PERSON $1,000,000 $1,000,000
- EACH OCCURRENCE $1,000,000 $1,000,000

AUTOMOBILE LIABILITY, INCLUDING
ALL OWNED, HIRED, NON-OWNED PROPERTY DAMAGE $1,000,000 $1,000 ,000 BODILY INJURY AND PROPERTY $1.000,000 $1,000,000

DAMAGE, COMBINED

PROPERTY INSURANCE ALL RISK, FULL REPLACEMENT INSURANCE \/.II.I I I&:

BUSINESS INTERRUPTION

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $2,000,000

APPLICABLE), AND NEGLIGENT

PERFORMANCE
THE CITY OF PALO AL TO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR , AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN. IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY

RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND

ITS SUBCONTRACTORS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER 'S

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

I. INSURANCE COVERAGE MUST INCLUDE:

A PRIMARY COVERAGE

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

INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT

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

B. CROSS LIABILITY

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

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UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS

OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF

MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF CONSULTANT UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR

ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM,
CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30)

DAY WRITIEN NOTICE BEFORE THE EFFECTIVE DATE OF
CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE

FOR THE NON-PAYMENT OF PREMIUM, CONSULTANT SHALL
PROVIDE CITY AT LEAST A TEN (10) DAY WRITIEN NOTICE
BEFORE THE EFFECTIVE DATE OF CANCELLATION.

II. INSURANCE COVERAGE MUST INCLUDE:

1. A PROVISION FOR AWRITIEN THIRTY (30) DAY ADVANCE NOTICE

TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE
CANCELLATION; AND

2. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING

INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO
INDEMNIFY CITY.

3. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL.

Vendors are required to file their evidence of insurance and any other related notices with the City of Palo Alto at the following URL:
https://www .planetbids.com/portal/portal.cfm?Company1D=25569 OR
http://www .cityofpaloalto.org/qov/depts/asd/planet bids how to.as Q

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. EXlllBITD

USE OF PREMISES
SECTION 1. USE OF PREMISES. Consultant shall have the exclusive right to enter and use the Premises during the tenn of this Agreement for the sole purposes of perfonning the Services and fulfilling Consultant's obligations under the Agreement, as detailed in this Section 1 ("Use of Premises") of this Exhibit D. Consultant shall have the right to pennit Consultant's employees, agents and subcontractors to enter and access the Premises for the sole purposes of perfonning the Services and fulfilling Consultant's obligations under this Agreement. Consultant shall have the right to exclude third parties and trespassers onto the Premises. Notwithstanding the foregoing, City's Animal Control Officers and their supervisors have the right to enter the Premises at any time. In addition, City has the right to enter Premises at any time for the purposes of inspection, emergency response and the perfonnance of City obligations under this Agreement. Consultant shall, at City's request, promptly remove any of Consultant's property or Consultant-installed improvements on the Premises to allow City access to the utilities or other City owned facilities/property. In the event City deems it necessary, for purposes of health, safety or building code requirements, in City's sole discretion, City shall have the right to move, alter or remove any such property or improvements and City shall be responsible for promptly restoring or returning the same to its prior condition.

SECTION 2. CONDITION OF PREMISES, CLEANING AND MAINTENANCE.

2.1 Condition of Premises, Routine Interior Cleaning and Janitorial Activities. In connection with its use, Consultant shall maintain the Premises in a clean, safe, secure, orderly, and sanitary condition, consistent with a commercially reasonable standard for a well-run animal shelter facility, so far as the Premises may be affected by Consultant's activities under this Agreement.

Specifically, Consultant shall undertake routine cleaning and janitorial activities as necessary to maintain the interior of the Premises in an orderly condition, as above, provided that nothing in this section shall obligate Consultant to make any alterations or capital improvements to the Premises. Consultant shall maintain all of its own equipment, furnishings and trade fixtures upon the Premises which are required for the maintenance and operation of the Palo Alto Animal Shelter.

2.2 Maintenance and Utilities. Outside of Consultant's responsibilities for routine interior cleaning and janitorial activities in Section 2.1 of this Exhibit, City shall be responsible for the maintenance of the interior and exterior of the Premises and the surrounding grounds, including (without limitation) the maintenance, repair, and replacement of the roof, building structure, improvements, and the HV AC, electrical, plumbing, and other building systems. City shall perfonn any alterations to the Premises (1) required by applicable laws or laws of general application (i.e. ADA, seismic regulations, and building codes) and (2) to ensure that utilities (including, without limitation, water, gas, and electricity) are available to the Premises, in amounts sufficient for Consultant to perform the Services. In the event of a utilities outage, the City will work diligently to restore availability as quickly as possible.

City shall promptly perform its obligations under this Section 2.2 ("Maintenance and Utilities"). In the event of a maintenance issue that impacts the health and safety of the operations, the City shall respond within 24 hours of receipt of notice from Consultant to develop an action plan to address the issue in an expedited timeframe.

SECTION 3. HAZARDOUS MATERIALS.

3.1 Environmental Laws. "Environmental Laws" means any applicable federal, state or local laws and regulations relating to Hazardous Material (including, without limitation, its use, handling, transportation, production, disposal, discharge or storage) or to human health and safety, industrial hygiene or environmental conditions in, on, under or adjacent to the Premises, including without limitation soil, air and groundwater conditions.

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3.2 Hazardous Materials. "Hazardous Materials" means any substance, material, waste, pollutant or contaminant which is regulated by applicable Environmental Laws as being hazardous, toxic, flammable, carcinogenic, explosive or radioactive, or is potentially injurious to the public health, safety or welfare or the environment.

3.3 Release. "Release," when used with respect to Hazardous Materials, means any actual or imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, depositing, or disposing on, in, under or adjacent to the Premises, or any improvements constructed hereunder by or on behalf of the Consultant, or in, on, under or adjacent to the Premises or any portion thereof in violation of Environmental Laws.

3.4 Remediation. "Remediation" (and derivatives thereof such as an without limitation "remediate"), when used with reference to Hazardous Materials, means any activities undertaken to clean up, remove, contain, treat, stabilize, monitor or otherwise control Hazardous Materials located in, on or under or adjacent to the Premises, or which have been or are being, or risk of being Released into the environment. Remediation includes, without limitation, those actions included within the definition of "remedy" or "remedial action" in California Health and Safety Code Section 25322 and "remove" or "removal" in California Health and Safety Code Section 25323, and as may be amended from time to time.

3.5 No Hazardous Materials. Consultant covenants and agrees that Consultant shall not, nor shall Consultant permit any of Consultant's officers, employees, agents, or subcontractors, to cause or pe1mit any Hazardous Material to be brought upon, kept, used, stored, generated, deposited or disposed of in, on, under or adjacent to the Premises in violation of Environmental Laws, provided that Consultant may store and use such substances in and on the Premises in such limited amounts as are customarily used in the operation of an animal shelter such as the Premises so long as such storage and use is at all limes in full compliance with all applicable Environmental Laws and permits. Consultant shall notify the City as soon as possible within 24 hours if and when it learns or has reason to believe that there has been any Release of Hazardous Material in, on, under or adjacent to the Premises. The City may request Consultant to provide adequate information for City to determine that any Hazardous Material permitted hereunder is being handled in compliance with all applicable Environmental Laws, and Consultant shall promptly provide all such information. In the event that any Hazardous Material is Released in, on, under or adjacent to the Premises by Consultant or any of Consultant's officers, agents, employees, or subcontractors, Consultant shall promptly undertake all necessary actions to Remediate the contaminating Hazardous Material from the Premises and to return the Premises and other City property affected thereby, to the condition existing prior to such Release, or its reasonable equivalent or better, and otherwise investigate and Remediate the Release in accordance with applicable Environmental Laws, at no cost to City. Notwithstanding the foregoing, and excluding Consultant's notice obligations under this Section, Consultant shall have no Remediation obligations under this Section for (i} the mere discovery of any preexisting condition, or (ii) any conditions arising out of any action or inaction of City, its Council members, officers, employees, agents or subcontractors, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iii) any conditions arising out of any action or inaction of third party vendors that are not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iv) any conditions arising out of any action or inaction of a third party, not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors.

3.6 Hazardous Material Indemnity. Consultant shall, on behalf of itself and its successors and assigns, indemnify, defend and hold harmless City, its Council members, officers, employees and agents ( each a "City Indemnified Party"} from and against any and all claims, liabilities, penalties, forfeitures, losses and/or expenses (including, without limitation, diminution in value of the Premise, damages for the loss or restriction on use of the rentable or usable space or of any amenity of the Premise, Item 6
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damages arising from any adverse impact or marketing of the Premises and sums paid in settlement of claims, response costs, cleanup costs, site assessment costs, reasonable attorneys' fees, reasonable expert fees, judgments, administrative rulings or orders, fines, penalties, costs of death of or injury), to any person or damage to any property whatsoever (including, without limitation, groundwater, sewer systems and atmosphere), arising from, or caused or resulting, in whole or in part, directly or indirectly, by the presence or discharge in, on, under or adjacent to the Premises by Consultant, or Consultant's officers, employees, agents or subcontractors, of Hazardous Material, or by any such party's failure to comply with any applicable Environmental Law, whether knowingly or by strict liability. Such Consultant indemnity obligations include, without limitation, and whether foreseeable or unforeseeable, all costs of any Hazardous Materials management plan, closure, investigat.ion, repairs, and Remediation and restoration of the Premises to its prior condition. For purposes of such indemnity obligations, any acts or omissions of Consultant, its officers, employees, agents, or subcontractors (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Consultant. Consultant shall provide the City with written notice of and afford City a full opportunity to participate in any discussions with governmental regulatory agencies regarding any settlement agreement, Remediation or abatement agreement, consent decree, permit, approvals, or other compromise or proceeding involving a Release of Hazardous Materials in, on, under, or adjacent to the Premises by Consultant or Consultant's officers, employees, agents, or subcontractors as detailed in this Section. Notwithstanding the foregoing, Consultant shall have no obligation to indemnify the City or any City Indemnified Party for (i) the mere discovery of any preexisting condition, or (ii) any conditions arising out of any action or inaction of City, its Council members, officers, employees, agents or subcontractors and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iii) any conditions arising out of any action or inaction of third party vendors that are not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors, (iv) any conditions arising out of any action or inaction of a third party, not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant's officers, employees, agents, or subcontractors.

SECTION 4. DAMAGE TO UTILITIES. Consultant shall exercise reasonable care to not do anything in, on, under or adjacent to the Premises that damages any City utilities (e.g. gas, water, wastewater, fiber, electric) located in, on, under or about the Premises. Consultant agrees to reimburse City within thirty (30) calendar days of City's written request for any damages caused to City owned utilities caused by a failure of PIN to exercise reasonable care the Premises.

SECTION 5. [RESERVED BY AGREEMENT OF THE PARTIES]
SECTION 6. SURRENDER; DUTIES UPON TERMINATION OR EXPIRATION. Upon the expiration or earlier termination of this Agreement, Consultant shall immediately surrender the Premises in the same condition as received upon completion of the improvements detailed in this Agreement and any other improvements completed by City during the term of this Agreement (excepting reasonable wear and tear; casualty not caused or contributed to by Consultant or its officials, employees, agents or subcontractors; or condemnation not caused or contributed to by Consultant or its empl9yees, agents or subcontractors), broom cleaned, walk-through with City staff completed, and free from hazards that are not pre-existing and were not introduced by the City or its officials employees, agents or subcontractors and clear of all debris that is not pre-existing and was not introduced by the City or its officials, employees, agents or subcontractors. At such time, Consultant shall remove all of its property from the Premises hereunder, and shall repair, at its cost, any damage to the Premises caused by such removal.

Consultant's obligations under this Section shall survive any termination of this Agreement. Consultant shall deliver to the City the originals of all books, permits, plans, records, licenses, contracts, and other documents pertaining to the Premises and its operation, any insurance policies, bills of sale or other documents evidencing title or rights of the City, and any and all other records or documents pertaining to the Premise, whether or not enumerated herein, which are requested by the City or necessary or desirable for the ownership and operation of the Premise, which are in the Consultant's possession. Consultant shall also deliver to City all keys, alarm codes, passwords, and other items used to secure the Premise.

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Consultant further agrees to do all other reasonable things reasonably necessary to cause an orderly transition of the management and operation of the Premises. The provisions of this Section shall survive the expiration or earlier termination of this Agreement until the obligations of the Consultant under this Section are fulfilled to the reasonable satisfaction of the City.

SECTION 7. REPAIR OF DAMAGE. If any portion of the Premises or any property of City located in, on, under or adjacent to the Premises is damaged or at risk of damage by any of the activities conducted by Consultant or anyone acting by or through Consultant, Consultant shall immediately notify City in writing of such damage or risk of damage. City may remedy, but shall not be obligated to remedy, such damage or risk of damage at Consultant's sole cost, or City may elect to witness Consultant's repair work. In the event City elects not to remedy such damage or threat, Consultant shall repair any and all such damage and restore the Premises or such property to its previous condition subject to City's inspection, review and approval.

SECTION 8. CITY'S RIGHT TO CURE DEFAULTS BY CONSULTANT. If Consultant fails to perform any of its obligations under this Exhibit D to restore the Premise, remove or alter improvements or repair damage, or if Consultant defaults in the performance of any of its other obligations under this Exhibit D within a reasonable time after demand by City, then City may, at its sole option, remedy such failure at Consultant's expense; within ten ( I 0) days of receipt of a bill, Consultant shall promptly reimburse the City's actual reasonable costs (including without limitation all costs, damages, expenses or liabilities incurred by City, reasonable attorneys', experts' and Consultants' fees) in remedying or attempting to remedy such failure, or City may reduce any outstanding amount due to Consultant under the Agreement by the cost to City of such remedial action. In the alternative, the cost thereof may be made a lien on Consultant's property as provided in section 12.12.010 of the Palo Alto Municipal Code.

Any such remedial action by City shall not be construed as a waiver of any rights or remedies of City under this Exhibit D or the Agreement, and nothing herein shall imply any duty of City to do any act that Consultant is obligated to perform. Consultant's obligations under this Section shall survive the expiration or earlier tennination of this EKhibit D.

SECTION 9. GENERAL PROVISIONS. (a) If Consultant consists of more than one person, the obligations of each person shall be joint and several. (b) Consultant may not record this Exhibit Dor any memorandum hereof. ( c) Any sale or conveyance by City of the Premises, the provisions of Section 19 ("Termination or Suspension of Agreement or Services") of this Agreement shall govern.

SECTION 10. HOLDING OVER. If Consultant remains in possession of the Premises or any part thereof after the expiration of the term of this Agreement, or any renewal option thereto, such occupancy shall be a revocable license from month to month with all the obligations of this Exhibit D applicable to Consultant. Nothing contained Exhibit D or in the Agreement shall give to Consultant the right to occupy the Premises after the expiration of the term of this Agreement, or any renewal option thereto, or upon any earlier termination.

SECTION 11. WAIVER OF CML CODE. Consultant expressly waives. the benefit ofany statute now or hereinafter in effect, including the provisions of sections 1941 and 1942 of the Civil Code of California, to the extent applicable, which would otherwise afford Consultant the right to make repairs at City's expense or to terminate this Agreement because of City's failure to keep Premises in good order, condition and repair.

SECTION 12. ALTERATIONS BY CONSULTANT. Consultant shall not make any alterations or improvements to the Premises without obtaining the prior written consent of the City Manager, except for alterations or improvements that cost less than Ten Thousand Dollars ($10,000 .00) and which do not affect any building systems or the structural integrity or any structural components of the Premises.

12.1 Ownership of Improvements. All improvements constructed, erected, or installed upon the Premises by Consultant must be free and clear of all liens, claims, or liability for labor or material and Item 6
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shall become the property of City, at its election, upon expiration or earlier tennination of the term, and shall remain upon the Premises upon expiration or earlier termination of this Agreement. Any furniture, trade fixtures installed by Consultant, equipment or other property of Consultant (whether obtained prior to or during the term of this Agreement) shall remain the property of Consultant. Consultant shall restore the Premises to the condition prior to Consultant's installation of such trade fixtures, consistent with Section 6 ("Surrender; Duties Upon Termination or Expiration") . .

12.2 Indemnity for Claims Arising Out of Construction. For the avoidance of doubt, included in Consultant's obligations under Section 16 ("Indemnity; Limitation of Liability") of the Agreement to which this is an exhibit, is Consultant's obligation to indemnify, defend and hold hannless City Indemnified Parties against all Claims arising out of construction and maintenance work perfonned on the Premises by Consultant or caused to be performed on the Premises by Consultant.

12.3 Certificate of Inspection. In the event Consultant will perform, or cause to be performed, any construction, improvement or alteration or any other work on or to the Premises for which City requires a certificate of completion, then upon completion of any such construction, improvement or alteration, Consultant shall submit to the City Manager a Certificate of Inspection, verifying that such construction, improvement or alteration was completed in conformance with Title 20 of the California Code of Regulations for residential construction, or in conformance with Title 24 of the California Code of Regulations for non-residential construction, as applicable.

12.4 As Built Plans. Consultant shall provide the City Manager with a complete set of reproducible "as built plans" reflecting actual construction within or upon the Premises upon completion of any: (i) new construction or (ii) structural alterations.

SECTION 13. ASBESTOS NOTIFICATION. Consultant acknowledges that City has advised Consultant that the Premises contains, or because of its age, is likely to contain asbestos-containing materials ("ACMs"). If Consultant undertakes any alterations, additions, or improvements to the Premises, Consultant shall do so in a manner that avoids disturbing any ACMs present on the Premises .

If ACMs are likely to be disturbed in the course of such work, Consultant shall encapsulate or remove the ACMs in accordance with an asbestos-removal plan approved by the City and otherwise in accordance with all applicable laws, including giving all notices required, if any, by California Health and Safety Code§§ 25915-25919.7, as may be amended.

SECTION 14. MATERIAL CASUALTY

14.1 Damage and Repair. If a Material Casualty (as defined herein) occurs, then the City shall detennine, in its sole and absolute discretion, whether it wishes to continue to operate the Premises as an animal shelter. The City's failure to provide written notice to Consultant of such election within thirty (30) days after the occurrence of a Material Casualty or other damage or destruction of the Premises shall constitute the City's election to continue the operation of the Premises as an animal shelter. If the City elects (or is deemed to elect) to continue the operation of the Premises as an animal shelter after a Material Casualty, or if the Premises is damaged but such damage does not constitute a Material Casualty, then the City shall promptly reconstruct or repair the destroyed or damaged portion of the Premises. City shall pay all costs of repairing and reconstructing the Premises. A "Material Casualty" is a total destruction of the Premises or any damage to the Premises the repair of which would exceed the City Manager's Council-delegated contracting authority under Palo Alto Municipal Code section 2.30.210, depending on the applicable contract types in relation to the repairs required.

14.2 Termination. If City notifies Consultant in writing within thirty (30) days after the occurrence of a Material Casualty that the City elects to not continue the operation of the Premises as an animal shelter after such Material Casualty, then the Agreement shall immediately terminate as of the date such notice is delivered to Consultant. In the event of such termination, (i) City shall pay Consultant's reasonable costs in winding down the operations at the Premises, including, but not limited to, any costs Item 6
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associated with the tennination of employees by Consultant and (ii) Consultant shall be entitled to retain its prorated compensation amount for the quarter in which termination occurs (prorated for the number of days in such quarter that elapsed up to the date of termination).

14.3 Continuation. If the City elects (or is deemed to elect) or is obligated to reconstruct or repair the damaged portions of the Premises because such damage does not constitute a Material Casualty pursuant to Section 14. l ("Damage and Repair"), the City and Consultant shall make a determination as to whether the Premises will continue to operate during the reconstruction/repair period. If the parties mutually determine (in their respective reasonable discretion) that the Premises will operate during such period, this Agreement shall remain in full force and effect. Otherwise, Consultant's obligations to provide animal shelter services under this Agreement shall be suspended during such period. In the event of such suspension, (i) City shall pay Consultant's reasonable costs incurred by Consultant during any such suspension of operations and (ii) Consultant shall be entitled to retain its prorated compensation amount for the quarter in which suspension occurs (prorated for the number of days in such quarter that elapsed up to the date of suspension). City shall further pay all reasonable costs incurred by Consultant due to such suspension. If the parties desire, during the suspension period, the parties may negotiate in good faith to try to provide for animal shelter services to the best of the parties' reasonable abilities under the circumstances of such a suspension.

SECTION 15. CITY IMPROVEMENTS TO PREMISES. The City has worked with Consultant to identify improvements to the Premises. The City shall improve the Premises as follows, subject to the Contingencies described in this section:

15.1 Expansion of Existing Medical Suite. The City shall expand the medical suite at the Premises to accommodate more animals and offer more privacy to customers. The remodeled medical suite shall expand into the office area for the shelter and shall offer separate entrances for medical customers, separate treatment, recovery, and preparation areas, as well as a lobby for medical customers.

The expansion will not be inconsistent with the plans entitled "Floor Plan - New Medical Area" that Consultant provided to City, attached as (Exhibit D-1 ), to the extent practicable and feasible based on site requirements and architectural- or engineering-based considerations. The City shall abate asbestos and lead paint within the medical suite area of the Premises.

Expected Timeline:

Design and Review Timelines:

A/E Consultant Procurement: November 8 - December 30, 2018 Schematic Design/ Design Development: January 2, 2019 - February 25, 2019 Construction Documents: February 28- March 22, 2019
Building Permit: April 4-May 5, 2019
Procurement and Construction Timelines:

General Contract Bidding/Procurement: April 25 - July 7, 2019 Construction: July 24 - November 14, 2019
Note: During construction, the building will be closed, and staff will need alternative worksites. All other parts of the building should still be open.

15.2 Addition of New Modular Building. The City shall place a modular building on the site to supplement the existing building. The building shall be used for offices as well as for meetings and educational programs for the public. The modular building shall be connected to utilities and will likely require a concrete pad. The modular building will not be inconsistent with Exhibit D-2, to the extent practicable and feasible based on site requirements and architectural- or engineering-based considerations.

The City will place one (1) construction-type trailer within sixty (60) days as temporary accommodations until the modular building is installed and operational.

Expected Timeline:

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Design and Review Timelines:

Design: November 8, 2018 - February 25, 2019
ARB Review: January IO, 2019- February 8, 2019
Building Pennit (concurrent): January I I, 2019 - May 4,2019 Procurement and Construction Timelines:

Procurement (9 steps): February 28 - May 12, 2019
Construction (4 major steps): May l, 2019 - July 28, 2019

15.3 Renovation of Existing Dog Kennels. The City shall renovate the existing dog kennels located at the Premises to ensure that all kennels are operable and expected that this work shall be done by March 15, 2019. The renovation shall be as described in Exhibit D-3, to the extent practicable and feasible based on site requirements and architectural- or engineering-based considerations.

15.4 Construction of New Dog Kennels. The City shall construct 16 new kennels on the Premises. Construction is expected to be complete by July 30, 2020. The new kennels will be constructed of galvanized steel, will be air-conditioned and heated, and located as close as possible to the existing dog kennels and medical area, to the extent practicable and feasible based on site requirements and architectural- or engineering-based considerations. Interior and exterior runs shall be of material size and quality not inconsistent with the applicable items as set forth on Exhibit D-4, to the extent practicable and feasible based on site requirements, architectural- or engineering-based considerations, and procurement requirements applicable to the City as a public entity.

15.5 Total Cost. The total cost of these improvements above is expected to be approximately $3.4 million, not including staff time, as estimated at the time as of the execution of this Agreement, and shall be fully paid for by the City of Palo Alto.

15.6 Contingencies. The Parties acknowledge that the improvements in this Section are subject to conditions which may alter the scope of the aforementioned improvements and could prevent one, some, or all of them from being constructed . These conditions include, but are not limited to:
(a) Permitting and architectural review;
(b) Appropriation of sufficient funds, as decided by the City Council; (c) Compliance with all laws, regulations, permits, and conditions, including CEQA; and (d) Changes in the prices for construction and materials.

15.7 Additional Compensation for Renovation Delays. Due to facility inadequacies, that would be remedied by the completion of the renovations outlined in sections 15.1, 15.2, and 15.3, the City will provide additional compensation to Consultant up to five-thousand dollars ($5,000) per month, should the City be unable to substantially complete the renovations in the time periods outlined in sections 15.1, 15.2, and 15.3. The additional compensation must be specifically documented and related to costs Consultant incurs as a result of facility inadequacies that would be remedied by the completion of renovations.

15.8 All work perfonned by the City shall be performed in a workmanlike manner, in compliance with all applicable laws., City shall take reasonable steps to perfonn such work in a manner which results in minimal disruption to Consultant's activities in the Premises. Consultant will take reasonable steps to accommodate City's work. The City shall enforce all applicable third party warranties at the request of Consultant. City shall promptly obtain final certificates of occupancy for all applicable portions of the Premises.

15.9 Renovation Timeline Updates. City shall provide renovation timeline updates to Consultant on a quarterly basis or more frequently upon request. Six months after the commencement of the construction of the improvements detailed in this Agreement, the parties will meet to review whether the renovation timelines stated herein are on track. City shall provide renovation timeline updates to Item 6
Attachment B -
Professional Services
Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
Pg.
43 Packet Pg. 262 of 302

Consultant on a quarterly basis or more frequently upon request. If, in Consultant's reasonable determination, there is excessive delay in any renovation timelines stated herein, and City is not diligently pursuing completion of the improvements detailed in Section 15.1, 15.2, or 15.3, Consultant may terminate this Agreement upon sixty (60) days' written notice to City.

Item 6
Attachment B -
Professional Services
Agreement Between Pets
in Need and City of Palo
Alto 2019-2023

Item 6: Staff Report
Pg.
44 Packet Pg. 263 of 302

Palo Alto Animal Shelter
3281 East Bayshore Rd., Palo Alto, CA
Legend
Item 6
Attachment B - Professional Services
Agreement Between Pets in Need
and City of Palo Alto 2019-2023

Item 6: Staff Report
Pg.
45 Packet Pg. 264 of 302

City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: August 14, 2023
Report #:2306-1652
TITLE
Update on Pending State and Federal Legislation and Advocacy and Grant Writing Support Activities; Consideration of Resolution Offering Comments on SB 532 - the Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act

RECOMMENDATION
Staff recommends that the City Council receive an update on pending State and federal legislation and lobbying activities. Staff also recommends that the City Council consider a resolution offering comments on SB 532 - the Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act.

BACKGROUND AND ANALYSIS
The City Council previously received a legislative update on May 15, 2023 and April 3, 2023 related to recent actions in Sacramento and Washington, D.C. The League of California Cities also participated in the May update.

For this current update, staff included a memo from Townsend Public Affairs (Attachment A) with the current status of bills organized in the same way as the May 2023 memo. The memo is organized in the State updates section by pulling a handful of bills to the top and including specific Palo Alto impact information for those bills and previous positions the City has taken. It also includes information on where the bills are in the legislative process. The memo also includes 3 additional bills with a proposed position for the City Council to take on the bills. Two of those bills fit within the City’s Legislative Guidelines and thus staff is only asking for Council confirmation on the proposed positions for those 2 bills (AB 531 and SB 326).

The third bill, SB 532, is related to transportation funding and staff wanted to receive Council direction related to this bill. Given the burden this bill could place on lower income people, staff proposes a position of offering comments and drafted a resolution for the City Council to consider (Attachment B). If the City Council chooses not to weigh in on this bill or chooses to oppose or support it, staff can amend the resolution to reflect the position.

Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
1 Packet Pg. 265 of 302

The TPA memo also lists other bills that Townsend is monitoring on behalf of the City. Staff will continue to analyze these bills with Townsend as they progress. If desired, Council members may also raise for discussion other legislation of Palo Alto interest that is not listed in the memo or may recommend action on any of the bills listed on the monitoring list. Positions could also relate to bills the Council would like to request the Governor to veto. The memo also includes brief Federal and Grants updates.

As a reminder, the 2023 State legislative calendar (which includes deadlines and other important dates) can be found online at: www.assembly.ca.gov/system/files/2023- 01/2023_legislative_calendar_final.pdf. This calendar provides helpful context when reviewing the bills included in the Townsend memo.

Lastly, the Legislative Ad Hoc will be convening in August and another legislative check in will come to the City Council in the fall.

FISCAL/RESOURCE IMPACT
There is no additional funding needed for this update report. The City Council budgets annually for the legislative advocacy services and these efforts are led by staff in the City Manager’s Office with stakeholder support across departments on key issues.

STAKEHOLDER ENGAGEMENT
Staff from multiple departments are involved in the legislative process in helping to review the impacts of bills as well as discussing grant opportunities linked to state and federal programs.

ENVIRONMENTAL REVIEW
The City’s legislative advocacy activities are not a project under section 15378(b)(5) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical changes in the environment).

ATTACHMENTS
Attachment A: State and Federal Update Memo from Townsend Public Affairs, August 2023 Attachment B: Draft Resolution for Consideration on SB 532 (Wiener) APPROVED BY:

Ed Shikada, City Manager
Item 7
Item 7 Staff Report

Item 7: Staff Report
Pg.
2 Packet Pg. 266 of 302

1 M E M O R A N D U M

To: The Honorable Lydia Kou and Members of the Palo Alto City Council CC: Ed Shikada, City Manager
Chantal Cotton Gaines, Deputy City Manager

From: Townsend Public Affairs
Christopher Townsend, President
Niccolo De Luca, Vice President
Ben Goldeen, Federal Advocacy Manager
Alex Gibbs, Grants Manager
Carlin Shelby, Associate

Date: August 14, 2023

Subject: State and Federal Legislative and Funding Updates

Townsend Public Affairs, Inc. (TPA) has prepared this report for the City of Palo Alto to provide a summary of State and Federal efforts, highlight the current status of the legislative process, identify various pieces of legislation that may be of interest to the City, and provide an update on funding advocacy efforts.

STATE LEGISLATIVE UPDATES

The Legislature adjourned for its Summer Recess beginning July 14 until August 14. Upon its return, the Legislature will have one final month to complete bill consideration before the 2023 Legislative Session officially adjourns on September 14. Of the over 2,600 measures introduced this Session, the Legislature will consider 1,231 in the final month before adjournment.

The return from Summer Recess on August 14 w ill feature Appropriations Committee hearings for both houses – both with immense bill agendas to consider. Following the first week of Appropriations Committee hearings, lawmakers will also need to get any financially significant bills through a second suspense file before they can move to the floor for final votes. These committees will consider a number of the City’s priority bills, including high-profile measures relating to housing and land use, public safety, and economic development. Bills that pass the Appropriations Committees will move to the second house floor for consideration from the entire legislative body. Governor Newsom will then have until October 14 to sign or veto any bills that make it out of the Legislature and to his desk.

In addition to upcoming legislative deadlines for the progression of priority measures, the Legislature has recently undergone notable leadership changes. Following nearly a year-long transition, Friday, June 30 marked the final day of the Session with Anthony Rendon as the Assembly Speaker, as Robert Rivas was sworn in to serve as the 71 st Speaker of the Assembly.

Representing an agricultural swath of central Calif ornia, Rivas becomes the first Speaker in a generation to hail from a rural region. His priorities as Speaker include working to address the issues of homelessness and affordable housing.

Item 7
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, August 2023

Item 7: Staff Report
Pg.
3 Packet Pg. 267 of 302

2 As Speaker, Rivas has made some changes to in ternal Assembly leadership, including the Appointment of Assembly Member Juan Carrillo (D-Palmdale) as Chair of the Local Government Committee. Assembly Member Carrillo previously served on the Palmdale City Council. His tenure as Chair will impact the progression of numerous local government measures in the coming years.

Advocacy Update
Over the last few months, the City/TPA team has been actively working on extension of the Homekey grant project completion deadline. This effort includes strategizing and implementing a plan of action with our regional partners including the County, neighboring jurisdictions, and their advocates. We are working closely with our St ate Legislative delegation to brief them on the interconnectivity of the projects, reasons why more time is needed, and desired outcomes; providing input on project materials and summary documents; and driving follow up and next steps.

Priority Legislation for the City of Palo Alto

1. Bills With City Positions

The following chart provides an overview and update as of July 27, 2023 on bills on which the City has taken positions.

BILL SUMMARY/STATUS CITY IMPACT POSITION
AB 12
(Haney)
Prohibits tenants from having to pay more than one
month's rent as a security deposit for furnished or
unfurnished rental property.

Status: Pending final consideration on Senate Floor.

This measure adds another
tool in protecting renters
against unreasonable
housing costs. This could
benefit residents in Palo Alto
who utilize rental housin
g.

Support (letter
submitted in
June)
AB 1469
(Kalra)
Authorizes the Santa Clara Valley Water District to
assist unsheltered people living along streams, in
riparian corridors, or otherwise within the district’s
jurisdiction, in consultation with a city or the County of Santa Clara, to provide solutions or improve
outcomes for the unsheltered individuals.

Status: Pending consideration from the Senate
Appropriations Committee.

This measure provides the
City with additional resources
for homelessness prevention
and regional collaboration by
authorizing the Water District
to assist homeless individuals
occupying areas within its
jurisdiction.

Support (letter
submitted in
June)
AB 1484
(Zbur)
Requires temporary employees of cities and counties
to join existing bargaining units accessible to
permanent employees. Imposes requirements on
employers with temporary employees hired to do the
same or similar work performed by permanent
employees. Requires complaints alleging a violation
of its provisions to be processed as unfair practice
charges under the Meyers-Milias-Brown Act.

Status: Pending consideration from the Senate
Appropriations Committee.

This measure could impact
hiring, retention, and
collective bargaining
practices for city employees,
by grouping temporary,
retired annuitant, and full-time
employees into the same
bargaining units.

Oppose
(postiion shared
in June; letter
recently
submitted)
Item 7
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, August 2023

Item 7: Staff Report
Pg.
4 Packet Pg. 268 of 302

3 BILL SUMMARY/STATUS CITY IMPACT POSITION
AB 1505
(Rodriguez)
Authorizes the Office of Emergency Services (OES)
to dedicate Hazard Mitigation Grant Program and
Building Resilient Infrastructure and Communities
application funding to specified projects to augment
and support the Seismic Retrofitting Program for Soft
Story Multifamily Housing.

Status: Pending consideration from the Senate
Appropriations Committee.

Seismic safety improvements
align with the Palo Alto City
Council’s 2023 Priority of
Community Health and Safety
and will help the City
progress in the seismic
improvements objective.

Support (letter
submitted in
May)
AB 1598
(Berman)
Requires DOJ to prepare a firearm-safety-certificate
study guide, separate from the current instruction
manual, explaining information covered on the
firearm safety certificate test, and to develop a new
pamphlet on the risk and benefits of firearm
ownership.

Status: Pending consideration from Senate Floor.

This measure could improve
safety related to gun handling
and violence. City support
demonstrates continued
support for Assembly
Member Berman’s legislative
agenda.

Support (letter
submitted in
June)
AB 1637
(Irwin)
Requires cities and counties that maintain a public
internet website and use public email addresses for
employees to utilize a “.gov” or a “.ca.gov” domain
name for their websites and email addresses by
January 1, 2029.

Status: Pending consideration from the Senate
Appropriations Committee.

This could present a long and
costly process for the City to
comply and could impact
constituents’ ability to
communicate with the City.

Further, the bill is without
state compliance support or
tangible security benefits.

TPA advocated for a delayed
compliance deadline, which
was recently achieved with a
recent amendment that
pushed compliance from
2026 to 2029.

Oppose (letter
submitted in
June)
ACA 1
(Aguiar-
Curry)
Proposes amendments to the California Constitution
to allow a city, county, or special district, with 55%
voter approval, to incur bonded indebtedness or
impose specified special taxes to fund projects for
affordable housing, permanent supportive housing,
or public infrastructure.

Status: Pending consideration from the Assembly
Appropriations Committee. Not required to adhere to
typical deadlines because it is a constitutional
amendment.

This bill creates another
optional tool for infrastructure
financing and levels the
threshold between other
public agencies that already
enjoy a 55% voter threshold,
such as school boards.

Support (letter
submitted in
June)
ACA 5 (Low)
Repeals a provision in the California Constitution that limits marriage to a “man and a woman,” and
replaces it with provisions that make the right to
marry a fundamental right.

Status: Chaptered on July 20, 2023. Pending
consideration from the state electorate as a ballot
initiative in 2024.

One of the Palo Alto City
Council Priorities for 2023 is
the equal treatment of all
individuals. This measure
removes outdated and
discriminatory language from
California’s constitution.

Support (letter
submitted in
June)
SB 2
(Portantino)
Creates a new issuing process for concealed carry
weapons (CCW) licenses following the U.S. Supreme
Court ruling in New York Rifle and Pistol Association
v. Bruen from June of 2022.

Status: Pending consideration from the Assembly
Appropriations Committee
This measure aligns with
recent Council action taken to
restrict concealed weapons in
sensitive areas such as
government buildings,
schools, and polling places.

Support (support
shared in June;
letter recently
submitted)
Item 7
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, August 2023

Item 7: Staff Report
Pg.
5 Packet Pg. 269 of 302

4 BILL SUMMARY/STATUS CITY IMPACT POSITION
SB 43
(Eggman)
Updates the definition of “gravely disabled” to include a new focus on preventing serious physical and
mental harm stemming from a person’s inability to
provide for their needs for nourishment, personal or
medical care, find appropriate shelter, or attend to
self-protection or personal safety, due to their mental or substance use disorder.

Status: Pending consideration from the Assembly
Appropr
iations Committee.

One of the Palo Alto City
Council Priorities for 2023 is
Community Health and Safety
which includes some focus on
mental health. This bill aligns
with that priority.

Support (letter
submitted in
May)
SB 363
(Eggman)
Establishes a real-time, internet-based dashboard to
collect, aggregate and display information about the
availability of beds in a range of psychiatric and
substance abuse facilities.

Status: Pending consideration from the Assembly
Appropriations Committee.

One of the Palo Alto City
Council Priorities for 2023 is
Community Health and Safety
which includes some focus on
mental health. This bill seems
to align with that priority. The
City would need to further
analyze the resources
required for this le
gislation.

Support (letter
submitted in
May)
SB 423
(Wiener)
Extends the sunset for SB 35 provisions (Wiener,
Statutes of 2017) from 2026 to 2036, relaxes
specified construction labor requirements, and
removes the exclusion of the coastal zone.

Status: Pending consideration from the Assembly
Appropriations Committee.

Palo Alto has included in the
Legislative Guidelines many
principles to support local
control of land use and this
bill conflicts with that.

Oppose via
Recorded
Council Majority
(letter submitted
in June)
SB 572
(Stern)
Requires the California Public Utilities Commission
(CPUC) to submit a report to the Legislature, by
February 1, 2024, on the status, outcomes, and
recommendations of the agency’s investigation into
natural gas prices during winter 2022-23.

Status: Pending consideration from the Assembly
Appropriations Committee.

This measure aligns with City
efforts to investigate and
prevent future natural gas
price spikes, like what
occurred in winter of 2022.

Support (letter
submitted in
June)
SB 719
(Becker)
Requires law enforcement agencies to ensure any
non-confidential radio communications are
accessible to the public.

Status: Held as a 2-year bill. May be acted upon
January 2024.

The City Council supported
similar legislation in 2022. As
of Fall 2022, the City of Palo
Alto switched routine Palo
Alto Police radio
transmissions to now be
broadcast on an unencrypted
channel. This bill in its current
form should not affect Palo
Alto operations.

Support (letter
submitted in
May)

Item 7
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, August 2023

Item 7: Staff Report
Pg.
6 Packet Pg. 270 of 302

5 2. Bills With Recommended Action

The following chart features three measures that TPA advocates have identified with recommendations for the City to take a formal position on, pending Council consideration and approval on August 14.

BILL SUMMARY/STATUS CITY IMPACT RECOMMENDED
ACTION
AB 531
(Irwin)

Enacts the Behavioral Health Infrastructure Bond
Act of 2023, which places a $4.68 billion GO Bond
authorization before voters at the March 2024
statewide primary election to fund behavioral health
infrastructure.

Status: Pending consideration from the Senate
Appropriations Committee
This measure would provide funding
for the development of care facilities
for the state’s homeless. This is
likely to impact regional and City-
wide homelessness services, and
result in reductions in homeless
populations once effectively
implemented.

Support
SB 326
(Eggman)
Recasts the MHSA by, among other things,
renaming it the Behavioral Health Services Act
(BHSA), expanding it to include treatment of
substance use disorders, changing the county
planning process, and expanding services for which
counties and the state can use funds.

Status: Pending consideration from the Assembly
Appropriations Committee
This measure is complementary to
AB 531 and would increase the
efficiency with which behavioral
health care dollars are used. This is
likely to have a positive impact on
City and regional homeless needs.

Support
SB 532
(Wiener)
Requires the Bay Area Toll Authority (BATA) to
increase by $1.50 the toll for each of the seven
state-owned toll bridges in the San Francisco Bay
Area and continuously appropriates toll revenues to
the Metropolitan Transportation Commission
(MTC), including revenues from the toll increase for
allocation to transit operators in the region that are
experiencing a financial shortfall.

Status: Pending consideration from the Assembly
Appropriations Committee
This measure would generate
needed operations funding,
however, funding would be
disproportionately directed to MUNI
and BART services located in San
Francisco and the East Bay. This
measure could increase commute
costs andtransit accessibility for
low-income riders.

Seek input from
Council – a
possible draft
resolution is
included in this
packet

3. Notable Bills with Recommendations to Monitor Progress

The following chart includes priority legislation TPA advocates are monitoring on behalf of the City with active engagement with Author’s offices and staff, stakeholders, and committees.

BILL SUBJECT SUMMARY STATUS POSITION
AB 309
(Lee)
Housing and
Land Use
Creates the California Housing Authority, as an
independent state body, the mission of which
would be to ensure that social housing
developments that are produced and acquired
align with the goals of eliminating the gap
between housing production and regional
housing needs assessment targets and
preservin
g affordable housing.

Pending
consideration
from the
Assembly
Appropriations
Committee.

Monitoring
Item 7
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, August 2023

Item 7: Staff Report
Pg.
7 Packet Pg. 271 of 302

6 BILL SUBJECT SUMMARY STATUS POSITION
AB 557
(Hart)
Open
Meetings
Extends modified teleconferencing provisions
under the Brown Act when a declared state of
emergency is in effect, or in other situations
related to public health, indefinitel
y.

Pending
consideration
on Assembly
Floor.

Monitoring
AB 894
(Friedman)
Housing and
Land Use
Requires public agencies to allow proposed
and existing developments to count
underutilized and shared parking spaces
toward a parking requirement imposed by the
a
gency.

Pending
consideration
from
Appropriations
Committee.

Monitoring
AB 965
(Carrillo)
Energy and
Utilities
Requires a local agency to undertake “batch
permitting” upon receiving two or more
broadband permit applications for “substantially
similar projects.” The bill deems approved any
such permit application that a local agency
neither approves or rejects within a
“presumably reasonable time.”
Pending
consideration
from
Appropriations
Committee.

Monitoring
AB 1317
(Carrillo)
Housing and
Land Use
Adopts a pilot program that requires property
owners of new multi-family residential
properties in certain counties to unbundle the
cost of parking from the cost of the housing
unit. Includes Santa Clara County.

Pending
consideration
from
Appropriations
Committee.

Monitoring
AB 1319
(Wicks)
Housing and
Land Use
Modifies how the Bay Area Housing Finance
Authority (BAHFA) may collect and expend
revenue. Provides that actions taken by
BAHFA to raise, administer, or allocate funding
for tenant protection, affordable housing
preservation, or new affordable housing
production, or to provide technical assistance
consistent with BAHFA’s purpose is exempt
from CEQA.

Pending
consideration
from the
Assembly
Appropriations
Committee.

Monitoring
AB 1567
(Garcia) Climate
Places a $15.955 billion climate resilience
general obligation bond before the voters on
the March 5, 2024, Primary Election ballot.

Pending policy
committee
consideration.

Monitoring
AB 1633
(Ting)
Housing and
Land Use
Specifies that a local agency has disapproved
a housing project in violation of the Housing
Accountability Act (HAA) if it fails to make a
determination that a project is exempt from the
California Environmental Quality Act (CEQA),
or fails to adopt, certify, or approve certain
environmental documents under specified
circumstances.

Pending
consideration
from
Appropriations
Committee
Monitoring
AB 1657
(Wicks) Housing
Enacts the Affordable Housing Bond Act of
2024, which places a $10 billion
General Obligation bond before voters in the
March, 2024 primary election to finance
specified affordable housing and
homeownership programs
Pending
consideration
from
Appropriations
Committee.

Monitoring
Item 7
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, August 2023

Item 7: Staff Report
Pg.
8 Packet Pg. 272 of 302

7 BILL SUBJECT SUMMARY STATUS POSITION
SB 321
(Ashby)
Community
Services
Establishes the Local Public Library
Partnership Program in which the State
Librarian would coordinate with each local
public library to ensure each student is issued
a student success card by 3rd grade and
increase their access to a librar
y.

Pending
consideration
from
Appropriations
Committee.

Monitoring
SB 4
(Wiener)
Housing and
Land Use
Establishes that affordable housing
development projects are a “use by right” on
land owned by religious institutions or
independent higher education institutions
Pending
consideration
from
Appropriations
Committee.

Monitoring
SB 440
(Skinner)
Housing and
Land Use
Authorizes two or more local governments to
establish a regional housing authority
(Authority) for purposes of raising,
administering, and allocating funding and
providing technical assistance at a regional
level for affordable housin
g development
Pending
consideration
from
Appropriations
Committee.

Monitoring
SB 450
(Atkins)
Housing and
Land Use
Identified as the SB 9 (Atkins, Statutes of
2022) "Clean up bill." Among other things,
prevents local agencies from creating zoning,
subdivision, and design rules that do not apply
equally to all development within a particular
area.

Pending
consideration
from
Appropriations
Committee.

Monitoring
SB 567
(Durazo)
Housing and
Land Use
Provides renter protections including
expanding the population of protected tenants,
limiting allowable rent increases, and closing
loopholes related to the no-fault just cause for
eviction.

Pending
consideration
from
Appropriations
Committee.

Monitoring
SB 867
(Allen) Climate
Authorizes a $15.5 billion climate resilience
bond to be placed before voters at an
unspecified election.

Pending policy
committee
consideration.

Monitoring.

State Budget Update

On June 13, Governor Newsom signed the 2023 Budget Act, SB 101, into law, four days before the constitutional deadline of July 1. Overall, the budget reflects a $310.8 billion spending plan for the 2023-24 fiscal year. This agreement also closes an estimated $32 billion budget deficit while setting aside about $37.8 billion in reserves. In early July, the Governor signed into law a package of “Budget Jr. Bills” and “Budget Trailer Bills” which amend the Budget Act and provide implementing language for key spending programs, and reflect the final agreement on the state’s spending plan reached between the Administration and the Legislature.

Much of the negotiations throughout this year’s budget process centered around the Governor’s desire to include several measures to expedite large-scale infrastructure projects by, in part, accelerating the judicial review of CEQA lawsuits and providing funding for transit operations. Ultimately, the negotiations resulted in a concession the Governor made, to remove the proposed Delta Tunnel water project from being eligible for expedited CEQA review. Key accounts related to housing, homelessness, public safety, and transportation are mostly stabilized from budget amounts in the past few years.

Item 7
Attachment A - State and
Federal Update Memo
from Townsend Public
Affairs, August 2023

Item 7: Staff Report
Pg.
9 Packet Pg. 273 of 302

8 Below is an overview of key spending programs included in the final budget agreement, organized by issue area:

Housing

The housing package in the state budget includes various annual and one time funding programs.

The California Dream for All shared equity down payment assistance program for first-time homebuyers is fully funded by rejecting the $200 million proposed cuts, as is the Accessory Dwelling Unit Grant Program by rejecting $50 million in proposed cuts.

The budget directs $100 million to the Housing and Community Development Department’s flagship affordable housing development program: Multi-Family Housing Program. It retains $50 million for the CalHome affordable housing retention and rehabilitation program, by partially rejecting $100 million in proposed cuts, and $82.5 million for the Foreclosure Intervention and Housing Preservation Program while achieving budget year savings through deferral of $345 million previously allocated to the program.

Homelessness

The state budget includes $1 billion into round five of the state’s Homeless Housing, Assistance and Prevention program, which local officials can use for housing, outreach at encampments, emergency shelters and more. In accordance with the Governor’s desire to see local accountability for use of funds, the agreement includes language to require local government recipients to incorporate more data relating to homelessness prevention goals and outcomes to more effectively assess the efficacy of the program.

Public Safety

The state budget includes various programs for opioid overdose education and prevention, with $3.5 million ongoing funding to county offices of education to supply opioid overdose reversal medication, with at least two units at all middle and high schools within each county office’s jurisdiction.

The budget also includes $15.3 million annually for four years from the Opioid Settlements Fund to support harm reduction programs for staff and costs related to delivery of naloxone, fentanyl test strips, overdose prevention and response training, and drug treatment provision and navigation, in the California Harm Reduction Initiative.

Further, the budget agreement includes annual funding over the next four years for the expansion of the Naloxone Distribution Project includes expenditure authority from the Opioid Settlements Fund of $74.7 million in 2023-24, $35.7 million in 2024-25, and $24.7 million in 2025-26 and $24 million in 2026-27.

Transportation

The transportation budget package includes a restoration of the $2 billion from the General Fund for the TIRCP program, as well as committing $1.1 billion in new and previously appropriated transit funding for the newly created Zero Emis sion Transit Capital Program. This funding would flow to regional transportation agencies by formula and can be used for transit capital infrastructure or can be directed to meet the operational needs of transit agencies in their Item 7
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9 jurisdiction. The trailer bill language describes the process by which the regions can access their share of these funds and includes some accountability measures regions must meet.

In addition, the transportation package requires CalSTA to establish and convene the Transit Transformation Task Force to include representatives from transit operators, local governments, transportation advocacy organizations, and other stakeholders, to develop policy recommendations to grow transit ridership and improve the transit experience for all users of those services. From this effort, a report of findings and policy recommendations are to be submitted to the Legislature no later than October 31, 2025.

Proposed Statewide Bond Measures

The Governor’s Administration and the Legislature have proposed a number of statewide bond measures to address issues related to housing production, behavioral health services, climate resiliency, and the modernization of school facilities, among others. The proposed statewide bonds feature roughly $100 billion in total funding. The state’s estimated borrowing limit is $26 billion.

The state does not impose limitations on how much it can borrow, however, in deciding which measures to prioritize, the Legislature and Administration will weigh a number of factors. Those include voter sentiment and the state’s economic outlook and its debt service ratio — the percentage of the state’s general fund that is spent paying down its debt. The state’s annual debt service from the general fund sits at $8.1 billion and is expected to grow to $8.9 billion in 2026- 27, according to estimates from the California Department of Finance.

High-profile proposed bond measures include the following. Bond measures for the March primary ballot must be approved by two-thirds of lawmakers by the end of the legislative session on September 14 and then signed by Governor Newsom. Items for the November election can be voted on until early next summer.

 AB 531 (Irwin) enacts the Behavioral Health Infrastructure Bond Act of 2023, which places a $4.68 billion General Obligation Bond authorization before voters at the March 2024 statewide primary election to fund behavioral health infrastructure. These funds would be used for the construction of care facilities throughout the state to support those struggling with mental illness and substance abuse.

 AB 1567 (Garcia) and SB 867 (Allen) both propose over $15 billion in bonds for a comprehensive climate resiliency package. Funds would be used for drought, flood, and fire mitigation, coastal resilience, park and outdoor access programs, and clean energy development, among other things. The two near-identical measures are parked in the Senate and the Assembly as a means to facilitate negotiations between both houses and the Administration on final funding priorities.

 AB 1657 (Wicks) Enacts the Affordable Housing Bond Act of 2024, which places a $10 billion General Obligation bond before voters in the March 2024 primary election to finance specified affordable housing and homeownership programs. Programs include the Multifamily Housing Program to finance t he construction of permanent and transitional housing for lower income households, and the CalHOME program, which provides grants to local public agencies and non-profit developers to assist individuals and households through deferred-payment loans.

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10 The Governor has publicly announced his support for a behavioral health facilities capital construction bond (AB 531) totaling $4.8 billion and is prioritizing its placement on the March primary election ballot. In addition, he is suppor tive of a climate resiliency bond – even going so far as to predicate portions of the state’s total climate budget on the passage of a future bond.

The passage of these bonds would provide for ongoing funding programs that align with many of the City’s goals, including clean energy development, parks and recreation, affordable housing, and transportation, to name a few.

State Advocacy Next Steps:
 Townsend Public Affairs (TPA) will continue to work with the Legislature to advocate on behalf of priority bills.
 TPA will work with Legislators moving forward bond measures to identify strategies for the inclusion of funding for priority projects and programs.  TPA will plan to meet with Staff and the City Council following the adjournment of the 2023 Legislative Session to identify funding priorities to incorporate into a budget request for the coming year, as well as opportunities for sponsored legislation.  TPA to work with City staff to create a process for City legislative engagement, including an updated Legislative Platform Document and/or a Legislative Subcommittee at the direction of the Council.

FEDERAL UPDATES

Update on Congressionally Directed Spending Submittal

TPA worked in partnership with the City to draft, fine-tune, and submit a congressionally directed spending request for infrastructure funding to help redevelop the Buena Vista Mobile Home Park.

The Park, a locally significant affordable housing resource, is in desperate need of sustainable redevelopment, including 100% electrification. An award would assist the predominantly Latinx and very low-income residents who call it home. This application was in partnership with the Santa Clara County Housing Authority and the requested amount was $2 million. The request was submitted to Senator Padilla, Senator Feinstein, and Congresswoman Eshoo.

Congresswoman Eshoo chose the project as one of her priorities to move forward. The request was incorporated into the House Appropriations Subcommittee on Transportation, Housing, and Urban Development (THUD)’s markup in the amount of $850,000. Due to the partisan composition of the House, Republican lawmaker s received an outsized share of community project request funding, with many Democratic lawmakers seeing funding cuts to their original request amounts.

The House and the Senate must move forward with reconciling the differences between their proposed spending packages. Congress must approve or extend funding for all twelve appropriations bills by September 30 or risk a government shutdown. What’s more, the debt limit compromise passed earlier this year includes a trigger provision that would automatically cut one percent of all discretionary programs if Congress fails to pass all measures before the start of 2024. Republicans are advocating for significant funding reductions within the House, which can impact action on fiscal year 2024 spending bills. Lawmakers in both chambers will use the August break to negotiate a final package.

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11 Update on Federal Aviation Administration (FAA) Authorization Legislation

On July 20, the US House of Representatives passed H.R. 3935, a bill to reauthorize the Federal Aviation Administration for the next five years by a 351-69 vote. One of the amendments incorporated into the package was offered by Congresswoman Anna Eshoo. The amendment requires the FAA to solicit feedback from communi ties impacted by aircraft noise as part of the Community Collaboration Program. The amendment was adopted by voice vote as part of a package of amendments. If effectively signed into law, this amendment will offer additional transparency and collaboration between communities like Palo Alto, airlines, and the FAA in negotiating flight paths and their associated impacts.

While the House voted to pass the authorization legislation, in the Senate, progress has slightly lagged. However, noteworthy advancements are on the horizon. A significant revelation came from Aviation Subcommittee Chair Tammy Duckworth (D-Ill.) who highlighted a recent "breakthrough." The crux of this agreement involves an extension of the commercial pilot retirement age from 65 to 67. In tandem, there's an agreement to uphold the current rules necessitating up-and-coming commercial pilots to log 1,500 flight hours. Notable disagreements between airlines like Delta and United are impeding the bill's progression. A central contention revolves around flight quotas at Reagan National Airport with endeavors to maintain within- perimeter services and ensure operational dependability. Concurrently, there's a push to bolster competition in the national capital area, a sticking point that's currently stalling the Senate bill's entirety.The current FAA authorization expires on September 30.

In addition to the progress of this legislation, TPA is working with city staff to submit a comment letter to the FAA regarding airplane noise review to articulate concerns regarding noise from aircraft overflights. The FAA is engaging with the public and other stakeholders to learn more about aviation noise and provide input for the agency’s consideration. Comments are due September 29, 2023.

Federal Advocacy Next Steps:
 TPA to continue to advocate for the inclusion of the Congressionally directed spending proposal and keep the Council and City Staff updated on its progress.  TPA to continue to work with City staff on the crafting of the FAA Noise Policy review comment letter and keep the City updated on opportunities to engage in the public comment process.
 TPA to continue to monitor updates from the Federal Energy Regulatory Commission (FERC) and their investigation into high natural gas prices during the winter of 2022 and provide opportunities for the City to engage in public comment processes.  TPA to work with City Staff and the Council to identify funding priorities and federal grant programs that match with eligible projects.

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12 GRANT FUNDING UPDATES

Townsend Public Affairs (TPA) currently provides grant writing support to city staff. Since coming onboard, TPA grant writers have provided consultation, review, editing, narrative drafting, grant assembly, submission and advocacy for the following projects.

Grant Program Project TPA Action
Requested
Amount
Patrick Leahy
Bulletproof Vest
Partnership
Program
This program would reimburse the
City of Palo Alto's Police
Department for the purchase of
bullet proof vests for peace officer
personnel protection.

TPA provided direct consultation,
narrative drafting, technical
assistance, and submitted the
application on behalf of the City.
$30,000
Organized Retail
Theft Prevention
Grant Program
This program would support the
City law enforcement support local
law enforcement in preventing and
responding to organized retail theft
and motor vehicle or motor vehicle
accessory theft.

TPA provided direct consultation,
narrative drafting, technical
assistance, and submitted the
application on behalf of the City.
$5,103,283
FY 2024 State
Homeland Security
Grant Program
(HSGP)
This program would support the
City's law enforcement in improving
homeland security detection and
response capabilities.

TPA provided direct consultation,
narrative drafting, technical
assistance, and submitted the
application on behalf of the City.
$15,000
Total: $5,148,283

TPA currently provides a monthly grant memo to staff that covers relevant and upcoming funding opportunities that align with municipal priorities. TPA then hosts a monthly grant meeting with relevant departments to review and discuss upc oming grant programs and determine eligibility and competitiveness. In addition, the TPA grant writing team regularly organize calls with staff outside of standing calls to discuss specific projects and how best to position them for future funding success. TPA works closely with staff to track all grant applications submitted by the city, due dates, and if successful reporting requirements.

TPA and city staff are currently working on several grant applications for transportation infrastructure, community resilience, recreat ion infrastructure, emergency preparedness and more.

Grant
Program Project TPA Action Due Date
Approx.

Request
Amount
The Mega
Grant
Program
The Mega Program (the National
Infrastructure Project Assistance program)
supports large, complex projects that are
difficult to fund by other means and likely to
generate national or regional economic,
mobility, or safety benefits. Palo Alto is
seeking funding for grade separation
projects within the City.

TPA is actively
working with City
transportation
department staff to
formulate a
competitive project
and scope to submit
prior to the grant
deadline.

August
21,2023 $50,000,000
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13 Grant
Program Project TPA Action Due Date
Approx.

Request
Amount
Strategic
Growth
Council
Community
Resilience
Center Grant
This program supports the planning and
construction of neighborhood-serving
‘community resilience centers’ that can
protect people from extreme heat and other
climate-driven extreme weather and build
community preparedness. City staff are in
the process of identifying a location to
implement a construction grant to develop a
communit
y resilience center.

TPA is actively
working with City
staff to determine a
competitive project
location and need
that would serve
vulnerable residents
in times of extreme
climate events.

September
18, 2023
$1,000,000 -
$3,000,000
Reconnecting
Communities
Pilot Program
This program seeks to reconnect
communities by removing, retrofitting, or
mitigating transportation facilities, like
highways or rail lines, that create barriers to
community connectivity, including to
mobility, access, or economic development.

TPA is working with
City staff and
agency staff to work
toward an
application for the
rehabilitation of the
Newell Road Brid
ge.

September
20, 2023
$2,000,000 -
$5,000,000

Grant Funding Next Steps:
 TPA to continue to work with City staff in identifying priority projects with matching programs and advise, draft, and submit comprehensive applications on the City’s behalf.  TPA to continue post grant submittal advocacy for submitted applications and to schedule debrief calls between the City and agency staff once award announcements are released.  TPA to continue to work on upcoming applications for City prioritiy projects, such as grade separation funding and funding for the completion of the Newell Road Bridge.

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RESOLUTION NO. ___

A RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
OFFERING COMMENTS ON SB 532 (WIENER) The Safe, Clean, and Reliable Bay Area Public Transportation Emergency Act
WHEREAS, any official position of the City of Palo Alto, with respect to legislation, rules, regulations or policies proposed to or pending before a local, state, or federal government body or agency must have first been adopted in the form of a Resolution; and WHEREAS, the onset of the COVID-19 pandemic in 2020 caused a steep decline in public transit ridership and revenue. The federal government provided $4.4 billion of emergency relief funds to Bay Area transit operators, which allowed agencies to continue to deliver transit services over the past three years. However, the operators are expected to exhaust those federal relief funds in the coming years; and
WHEREAS, in response to this fiscal crisis facing the agencies, the Newsom Administration and State Legislature provided $5.1 billion of transit capital and operating funding – including $1.1 billion of new funding – in this year’s state budget to give transit agencies across the state more time to recover ridership and make adjustments to adapt to post-pandemic travel patterns. The entire $5.1 billion was made flexible to be used to cover operating shortfalls, and all together, allows transit to avoid any fiscal cliffs until 2027; and WHEREAS, Senate Bill 532 (Wiener), introduced as a “gut and amend” bill on June 22, 2023, would raise tolls on the seven state-owned Bay Area bridges by $1.50 effective January 1, 2024 for even more support for transit operators; and
WHEREAS, bridge tolls are already high and set to be raised again in 2025 for Regional Measure

3. The tolls are overwhelmingly paid for by non-San Francisco residents, but the funds would inequitably go to largely fund Muni and BART operations into San Francisco which may not serve the toll payers’ commute corridors; and
WHEREAS, in a post-pandemic world, commuters who drive a car or pick-up truck across our bridges and paying tolls are statistically lower income and are disproportionately people of color. Post-pandemic, we have a bifurcated society in the Bay Area of those with the luxury to work remotely and those that cannot. Many of these bridge-crossing drivers cannot work from home nor reasonably take transit, and the cost of providing transit to them would be prohibitively expensive.

WHEREAS, SB 532 is a gut and amend bill that would bypass the voters to levy a bridge toll increase on the commuters who can least afford it. It could undermine the region’s ability to raise transit revenue at the ballot going forward; and
WHEREAS, The state budget relief package bought the region valuable time to maintain service while transit agencies find ways to operate more efficiently, collect fares from existing riders, and provide a more attractive service to build ridership and revenue; and Item 7
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Resolution for
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WHEREAS, The Bay Area should wait to see how transit agencies use the state budget relief funding to improve their services to respond to rider concerns and then the region can reevaluate new revenue options next year.

NOW, THEREFORE, BE IT RESOLVED, that by the adoption of this Resolution, the City of Palo Alto hereby offers these comments as part of its 2023 State Legislative Advocacy Program to SB 532 (Wiener) that seeks to raise tolls on the seven state-owned Bay Area bridges to fund transit operations and encourages the Legislature to explore other ways to financially support the transit agencies. There are clear benefits and drawbacks to this legislation and more effort should be focused on equity for low-income workers if the legislation continues to move forward.

PASSED AND ADOPTED BY THE COUNCIL OF THE CITY OF PALO ALTO this [DATE] by the following vote:

AYES: X COUNCILMEMBERS:

NOES: X COUNCILMEMBERS:

ABSENT: X COUNCILMEMBERS:

ABSTAIN: X COUNCILMEMBERS:

APPROVED:

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Resolution for
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(Wiener)

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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: City Manager
Meeting Date: August 14, 2023
Report #:2307-1790
TITLE
City Council Recess Report

RECOMMENDATION
Informational report only.

EXECUTIVE SUMMARY
This memorandum provides an overview of notable city activities through the month of July. As noted, progress continued on several Council priorities as well as general city operations. A full list of Citywide updates is listed by department under the Analysis section of this informational report.

Here are a few highlights:
A cross department team focused on transitioning financial reporting from FY 2022-2023 to the new Fiscal Year, which started on July 1, 2023. Staff anticipates publishing the FY 2023-2024 budgets in August.
The Trusted Response Urgent Support Team for North County added outreach workers (to promote the program), case managers (to follow-up with clients and better connect them to services) and are focused on providing mental health first aid trainings in the community. Hiring, recruitment and promotions continue to be a top priority for all departments. An in-house crew supported Foothills Roadside Vegetation Clearance/Fire Prevention over the span of three weeks and over 2,300 work hours, clearing a total of 20 miles of road. Work locations included Los Trancos Road, Arastradero Road, and Page Mill Road. On July 3, the City released the Request for Proposals for consultant services to study different street alternatives, configurations, and activations for Cal Ave. and Ramona St. With proposals due in early August, staff plans to present a contract with a preferred vendor to the City Council this fall.
Palo Alto Fire Department (PAFD) and Santa Clara County Fire Department (SCCFD) firefighters began staffing Fire Station 8 in the Palo Alto Nature Preserve. Summer 2023 is the third fire season that PAFD and SCCFD staffed Fire Station 8 since a Tri-Party Fire Agreement for Foothills Fire Station staffing was executed.

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The City received notification from the California State Transportation Authority (CalSTA) that the Churchill Avenue Grade Crossing was chosen for $23.7 million of funding towards final design. Staff is coordinating with Santa Clara Valley Transportation Agency (VTA), Joint Peninsula Board (JPB/Caltrain), and granting agencies on the next steps for award of the funding. The Police Department coordinated with several departments to install six of the twenty Automated License Plate Reader (ALPR) cameras approved by Council and anticipate installing the remainder of the cameras in the coming weeks.
Capital improvement projects continue to be on time and on budget, including the Public Safety Building, Regional Water Quality Control Plant (RWQCP) projects including the 12kV Electrical Loop Rehabilitation, Primary Sedimentation Tank Rehabilitation, and Secondary Treatment Upgrades, and Boulware Park, and the Palo Alto History Museum Roth Building construction have begun.
The Grid Modernization and Electrification study is in progress and on track for completion this fall.
The 11% voluntary water use reduction request implemented by the San Francisco Public Utilities Commission (SFPUC) and State of California’s emergency drought regulations expired in June. As a result, Palo Alto lifted the 2-day per week watering restriction. Several State water waste restrictions continue to be in effect and staff is working on community outreach.

BACKGROUND
The following informational report provides a brief update on activities accomplished during the City Council’s July recess. The updates are organized by department. While this report is not an exhaustive list of staff activities, it seeks to inform the City Council and the broader community about items completed since the last City Council meeting of the fiscal year or recent efforts underway.

ANALYSIS
Administrative Services Department
End of Fiscal Year and New Fiscal Year Activities
The Administrative Services Department (ASD) has been focusing on transitioning to the next fiscal year.

In partnership with the Information Technology (IT) Department, ASD staff completed the transition in the financial system. Both departments have been working closely to increase automation of this transition and due to these efforts, the team completed the transition error free and ahead of schedule.

ASD’s annual inventory of both warehouses, the Municipal Services Center and Regional Water Quality Control Plant (RWQCP), were completed with no discrepancies. This process requires physically counting inventory of close to 5,000 stocked parts, totaling approximately $7 million.

The Office of Management and Budget (OMB) is working on publishing the FY 2024 Adopted Operating and Capital Budget books, along with the FY 2024 Municipal Fees, targeting an August release date.

Working with the IT Department and the Human Resources Department, staff continued implementation for employee contract terms for payroll processing, effective July 1, 2023.

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Recruitments
ASD continues work to fill key department vacancies, aiming new employees to start by fall 2023. These positions include two analyst positions in OMB, two Contract Administrator positions in Purchasing, one administrative support position, and positions in Revenue Collections and Payroll as part of ASD’s succession planning efforts.
eProcurement Implementation Update + Other Process Efficiencies The Purchasing Division continues implementing the new eProcurement system from OpenGov after first going live in June. Since going live, 11 solicitations were started. Streamlining enhancements in the new system include consolidated direct messaging with vendors, integrated solicitation intake processing, and agreement development. In addition, the processes for soliciting request for proposals (RFP) and invitation to bids (IFB) are being centralized, consolidating several individual steps into one.

The new system can be reached here. Staff also implemented two new tools that automated a manual step to change the fiscal year of purchase orders and one that allowed for mass updating of purchase requisitions, resulting in process efficiencies.

Business Tax Implementation Update
Staff continues implementing the City’s Business Tax. The City partnered with MuniServices, who also supports collection and administration of the Business Registry Certificate (BRC) Program and Business Improvement District (BID), to create a one stop platform for the BRC, Business Tax, and BID. To assist business owners with the implementation of the tax, new online resources are now available, including a Resource Guide, a Business Tax Calculator, and FAQ’s. Visit www.cityofpaloalto.org/businesstax for these new tools and to gain news and updates.

Update on the Roth Building Construction
On July 1, 2023, the Palo Alto Museum and partners held a groundbreaking ceremony for the Palo Alto Museum project at the Roth Building located at 300 Homer Avenue. The County of Santa Clara Board of Supervisors notified the City that they approved a $182,448 grant to restore and repair the Roth Building windows. Regular meetings between Museum staff and the City Construction Liaison Team started in July to discuss construction progress and significant project developments. The City deposited 20% ($2 million) of its contribution in the account held jointly by the Museum and the City as required in the tenant work letter. The fully executed license agreement for a construction laydown area (extending into the southern portion of Heritage Park, between the Roth Building and the Woodmark condominium project at 325 Channing Avenue) is pending.

CalPERS Update
Staff anticipates transmitting the June 30, 2022, CalPERS valuations for the City’s pension plans to the Finance Committee in October. CalPERS completes valuations using member data two years in arrears and issues annual reporting each August. As of July 2023, CalPERS provided the following preliminary investment returns as compared to a 6.8% target:
-6.1% for the period ending June 30, 2022 (impact in FY 2025) Item 8
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5.8% for the period ending June 30, 2023 (impact in FY 2026) Consistent with past practice, staff will incorporate these results in financial planning, including the Long Range Financial Forecast (LRFF) and annual budget development. Additionally, staff continues to use a lower discount rate than the 6.8% used by CalPERS to calculate the employer's normal cost ("pay-go" cost) and transmit the difference as an additional contribution to the City's Pension Trust. As part of the FY 2023 Adopted Budget, the City Council approved lowering this discount rate from 6.2% to 5.3% over two years; 5.8% in FY 2023 and 5.3% in FY 2024.

CalPERS preliminary investment returns for the period ending June 30, 2023, were announced on July 19, 2023.i
City Manager’s Office
Trusted Response Urgent Support Team (TRUST)
The $2M federal earmark is being used to augment the North County TRUST program. This includes adding outreach workers (to promote the program), case managers (to follow-up with clients and better connect them to services) and providing mental health first aid trainings in the community. Recent outreach activities included attending the City’s Municipal Services Center Open House in July. They are reaching out to neighborhood businesses, community organizations, and attending events to spread the word about TRUST and offer mental health first aid trainings. The earmark originally came with a spending deadline of September 2023. Recently, the program received a 1-year extension through September 2024.

Annual Community Survey
Per City Council direction, staff is conducting the Community Survey annually through a third party.

Survey goals include gaining insight into residents’ perspectives about the community, including local amenities, services, public trust, resident engagement, and unmet service needs. This year, the survey will be conducted in late summer to hopefully increase survey participation. The survey will be offered in English, Spanish and Chinese. Survey results will be presented to the City Council in the fall.

Point-In-Time (PIT) Count
In mid-July, the County released city-specific data from the January 2023 point-in-time (PIT) count of people experiencing homelessness. The PIT count provides a snapshot of the number of people experiencing homelessness, as counted by volunteers, on a particular day. The City of Palo Alto count of people experiencing homelessness decreased 25% from 274 in 2022 to 206 in 2023. The 206 people counted included 187 unsheltered and 19 sheltered individuals. More people in Palo Alto experiencing homelessness were unsheltered (91%) than countywide (75%). Besides the snapshot of the PIT count, there is data from every time a service provider interacts with someone experiencing homelessness.

Since this time last year, service providers received 162 first-time housing assistance requests from Palo Altans and 75 Palo Alto households were placed in housing.ii Item 8
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Communications
Staff is working to reactivate the City Hall lobby screen by mid- August. Curated information will be displayed on a rotating basis that shares upcoming events, community engagement opportunities, City resources and services, and more. This will be a pilot program as staff continues to evaluate technology limitations, and the staff resources needed to manage this effort longer-term.

Staff provided an Uplift Local update at a Midtown Chamber of Commerce mixer in late July sharing details on the Uplift Local initiative history and future planning. In preparation for the holiday season, staff has set up a local portal to receive local business promotions. Due by September 1, holiday promotions will be shared via City communications channels to encourage the community to shop and eat local this holiday season. Businesses can submit holiday promotion information here.

Other communications shared during the Council recess can be found in the Stakeholder Engagement section of this report.

Community Services Department
Art Center
The Palo Alto Art Center experienced record summer camp registrations this year, welcoming thousands of children and youth for programs, and this year continued the youth ceramics apprenticeship program with great success. This summer nine paid interns joined the team to support programs, providing them with hand-on experience and professional development throughout the summer. The summer exhibition EARTH is on view through August 19 and concludes the Art Center’s year-long Climate Connections series. EARTH features a collaborative program with Canopy showcasing the connections between trees, art, and environmental stewardship. Thanks to funding provided by the California Cultural and Historical Endowment, the Art Center is working to produce Social and Emotional Learning Toolkits, available in Spanish/English and Spanish/Simplified Chinese, complete with materials to low- income seniors and families in Palo Alto and schoolchildren in our programs from East Palo Alto.

Activities in the Toolkits were developed by Art Therapist, Anh Tran, LMFT, ATR. The Art Center hosted the Association of Clay and Glass Artists Palo Alto Clay and Glass Festival on July 15 and 16, drawing more than 10,000 attendees.

Cubberley Artist Studio Program
During the summer, the Cubberley Artist Studio Program (CASP) artists were busy offering free programming in collaboration with Palo Alto City Library. Adrienne Defendi offered a Cyanotype workshop in the Secret Garden at the Children’s Library.

Participants used special paper and liquid, along with the sun, and items found in nature, and created beautiful images.
Nasim Moghadam hosted a Self-Expressive Photo Collage Workshop at the Rinconada Library, with participants ranging from ages 2 to 70.

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May and Mik Gaspay offered a paper weaving workshop for youth at the Mitchell Park Library.

Participants got the chance to try out traditional weaving patterns from the Philippines and were able to create designs woven with paper.
Ala Mohseni hosted two workshops at the Mitchell Park Library where he taught participants how to make a documentary with their cell phones and how to capture and edit videos, along with special effects tips and tricks.
Brittany Bradley did a demonstration of Wet Plate Collodion for teens and adults at the Rinconada Library in her unique traveling darkroom.

Children’s Theatre
Palo Alto Children’s Theatre opened its annual outdoor Summer Hot Dog Series with a sold-out production of Snow White in June, and continued with a 50th Anniversary Celebration of Marlo Thomas and Friends' Free to Be … You and Me. This summer, in addition to ongoing Sensory and Spectrum Friendly performances, the theatre added additional accessibility options, including ASL interpreted performances, and "read-along" options for families who benefit from having the text visible on a mobile device or tablet. In August, the Children’s Theatre will host a Day Camp for participants with special needs, in collaboration with the Magical Bridge Foundation. Plus, the Children’s Theatre is participating in its 5th annual collaboration with Stanford University Engineering Department’s Compression Forum, with this summer’s research project focused on the ethics of collaboration with artificial intelligence in arts and sciences.

Open Space
Open Space Rangers provided support to Public Works and Fire Department staff to clear brush and vegetation along Arastradero Road, Los Trancos Road, and Page Mill Road to reduce fire risk in the Foothills. Rangers closely monitored Open Space preserves on July 4 for visitors and preventing the use of illegal fireworks. Open Space and the Office of Emergency Services staff submitted a grant application for eucalyptus tree removal in Foothills Nature Preserve, Pearson-Arastradero Preserve, and Esther Clark Park.

Palo Alto Junior Museum & Zoo
The Palo Alto Junior Museum & Zoo (JMZ) was selected to receive a 2023 John F. Kennedy Center for the Performing Arts LEAD Community Asset Award for its exemplar achievement in improving accessibility in a Museum and Zoo. The JMZ welcomed 26,513 guests in June and July, and the total number of active memberships exceeded 5,000 households for the first time in July. Zoo programs have been popular all summer especially flamingo feedings and the weekday afternoon program “Meet Luna the Sloth.” The camp session served 834 campers this summer with 10 types of camps offered throughout Palo Alto including the JMZ, Stern Community Center, the Lucy Evens Baylands Nature Center, the Lou Henry Hoover Girl Scout House, and the Foothills Nature Preserve Visitor Center.

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Parks
Parks staff continued to maintain neighborhood parks, athletic fields, and courts. Staff have been working with the City’s Zero Waste team to bring all parks into compliance with the Recycling and Disposal Ordinance, which requires all facilities to provide all three waste services – garbage, recycling, and compost. New 3-sort waste stations were installed at Seale Park.

Public Art
Public Art wrapped up a successful mural event in June and began conversations with the Public Art Commission about growing and expanding murals Citywide. Staff is preparing for the protection of the Victor Arnautoff frescoes at the Roth building during demolition and is installing protection barriers in early August. Staff completed four additional maintenance projects at the Water Quality Control Plant, University Avenue, the Baylands Golf Links course, and at the Art Center. Staff held a public meeting with the artist for the upcoming artwork at Fire Station 4 in July and has been working with artists for Boulware Park on the artwork’s conceptual design. Artist in Residence Kirti Bassendine continued holding workshops with residents of Buena Vista Park, Alta Housing, and Avenidas as part of her community outreach and research. Her engagement with the community will culminate in a temporary artwork on King Plaza near the end of the year. Final preparations are underway for Code:ART to take place downtown October 12-14.

Recreation
The Recreation Department offered a variety of sports camps, recreation camps, and Special Interest Camps. Most of the camps are doing well with enrollment at historic high levels with 1,700 enrolled campers. The most popular camps are Baking and Cooking as well as Coding and STEM camps. LEGO and Academic camps also continue to be popular.

The Green Energy Engineering camp had a fun visit from the Saratoga High Robotics team. The team presented their newest hand-built robot, which they recently competed with at Nationals in Texas. It was great for the campers to see the next step in real world robotics and what they can look forward to in High School.

In addition to camps, the Recreation team hosted the annual 4th of July Summer Festival, and brought back the Chili Cook-Off for the first time since the pandemic. The event included live music, games, inflatables, food trucks, and chili tasting. Family Fun Movie Nights, Friday evenings continue through August at Mitchell Park.

Fire Department
Fire Station 8 Staffing
The Palo Alto Fire Department (PAFD) and the Santa Clara County Fire Department (SCCFD) firefighters began staffing Fire Station 8 in the Palo Alto Nature Preserve. Summer 2023 is the third fire season that PAFD and SCCFD staffed Fire Station 8 since the Tri-Party Fire Agreement for Foothills Fire Station staffing was executed. Firefighters staff Fire Station 8 every day between 8 a.m. and 8 p.m., and crews Item 8
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are available to respond to emergencies in Palo Alto, Los Altos Hills, and surrounding open spaces. This staffing rotation will continue until the weather conditions lower the wildfire risk, typically in November.

Preparing for Wildfire
On July 6, PAFD, Palo Alto Office of Emergency Services, and the Santa Clara County Fire Safe Council held a Fire Safety Presentation at the Palo Alto Hills Golf and Country Club for residents living in the Wildland Urban Interface (WUI). This presentation included best practices to protect families and homes from wildfire. Residents learned about defensible space, home hardening, and having and creating an evacuation plan.

Hiring and Recruitment
There are ten recruits in the South Bay Regional Fire Academy who will graduate on August 11 at Mitchell Park Community Center. This graduating class has three women joining the PAFD. After graduation, the new firefighters will spend another three weeks in Palo Alto Fire’s internal academy.

Human Resources Department
Human Resources (HR) staff continue to focus on employee recruitment and filling workforce vacancies.

In June and July, 67 new hires were onboarded and/or will start in August. This includes the annual hiring process HR completes in partnership with the Community Services and Library Departments to onboard 54 hourly new hires, leading summer camps or working in the City‘s libraries. In addition, there were 18 promotions.

A new program recently announced by the City Manager is a result of the longstanding relationship and deep connection between the City and Palo Alto Unified School District. PAUSD is offering City employees the opportunity to enroll their children into PAUSD schools that have openings. This new program will help deepen employee commitment to the Palo Alto community and strengthen the City’s ability to attract and retain its employees. The children of nine City employees from Community Services, Fire, Police and Public Works were accepted and placed for the 23-24 school year.

As HR continues to support a Positive Work Environment, an enhancement to the City Employee Assistance Program through Concern will offer 5 sessions per wellness topic in a 12-month period starting this fiscal year. These wellness topics include eldercare concerns, financial and legal consultations, mental health resources, guided mindfulness, identify theft response, and parenting skill- building.

Library Department
The annual Summer Reading Program was changed in 2023, including a renaming to Summer Reading for a Cause (SRFC), to keep in line with its altruistic mission to donate to a local organization in lieu of various prizes to participants. This summer’s theme was “Share Your Story,” and the Library challenged participants to read 20,000 books, so that the Library (through the Friends of the Palo Alto Library) could donate $2,500 to Foundation for a College Education. This local organization provides mentoring and tutoring for first-generation, low-income students of color, in order to increase their attendance and graduation from a four-year college or university.

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During the summer reading program, in-person and virtual events were held at all five library locations.

Events featured youth performers, author events, and arts and craft workshops led by several Cubberley Artist Studio Program artists.

The Library also attended outreach events, including visits to Channing House to demonstrate virtual services, and the City’s Open House event on July 15. The Library gave out prizes, shared service and event information, and provided crafts for nearly 300 visitors who stopped by.

The Library continues to hold groundbreaking digital literacy programs in the Reboot Room at Mitchell Park Library's Ventura Technology Learning Center. This includes two recent AI Storytelling workshops where participants learned to use AI to generate video stories, written by AI, read by AI, and illustrated by AI. The stories can be viewed on the Reboot Room's YouTube channel. In late July, a group of technology educators from Korea visited to learn about our techniques for enhancing digital literacy in the community.

Meanwhile, the Library also conducted e-Help outreach services such as monthly visits to Channing House where librarians provide personalized assistance with library eBook and digital collections apps.

Library staff also worked closely with HR staff to develop a skills development program for City employees, featuring learning platform access through Upskill.

Office of Emergency Services
Office of Emergency (OES) staff conducted the annual 4th of July Safety Watch in partnership with numerous agencies (CAL FIRE, Midpeninsula Regional Open Space District, San Mateo County agencies, Santa Clara County agencies, etc.).

OES continued to host the City’s Foothills Fire Emergency Management working group, with members from the Fire Department, Utilities, Public Works, and the Community Services Department. This group facilitated efforts to remove hazardous fuels from evacuation routes and other key sites in our Wildland Urban Interface (WUI).

OES also conducted training and exercise sessions for the Emergency Services Volunteer (ESV) program, community members, and organizations. General public safety education topics range from earthquake preparedness to active shooter (violence) training.

Other actions:
Initiated requisitions for two vacant positions: OES Coordinator position approved in the FY2023 budget, and apart time administrative specialist.
Supported City efforts to complete FEMA Public Assistance applications for reimbursement of City expenditures and damages from the January-March storms. Completed the City’s participation in the Multi-Jurisdictional Local Hazard Mitigation Plan led by Santa Clara County Office of Emergency Management.

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Facilitated a training seminar for the new Boronda Lake/Foothills Nature Preserve Dam Emergency Action Plan.
Prepared and submitted a Hazard Mitigation Grant sub-application to the State for Eucalyptus removal.

Office of Transportation
Car Free Streets
On July 3, the City released the Request for Proposals for consultant services to study different street alternatives, configurations, and activations for Cal Ave. and Ramona St. With proposals due in August 2023, staff plans to present a contract with a preferred vendor to the City Council in fall 2023. The study is anticipated to take nine months to a year to complete and will include a robust community engagement plan.

The City implemented four demonstration projects in response to feedback received from the public and stakeholders, including:
Flexible Community Spaces: free public gathering places New barriers: replacing the orange water-filled barriers  Public art: ground plane and building murals
Pedestrian and vehicular signage: directing people to nearby destinations and parking areas Churchill Avenue Enhanced Bikeways Project
Staff has been working to finalize the design of Churchill Avenue Enhanced Bikeway Project. Legal descriptions and plat maps (property line maps) were developed for the easements that require approval from PAUSD, which are expected to be approved at the school board meeting in August.

Churchill Avenue/Alma Street Intersection and Railroad Crossing Safety Improvements Staff completed the final design for the Caltrain rail crossing and intersection traffic signal improvements. A construction contract for portions of this project within the City’s right-of-way was awarded and will be managed by Public Works staff. Portions of the project that fall within the Caltrain right-of-way will be managed by the Peninsula Corridor Joint Powers Board.

Embarcadero Road Improvement Project (Alma Street to Emerson Avenue) Staff has been working on the design to improve bicycle and pedestrian facilities on Embarcadero Road between Alma Street and Emerson Street. Improvements include sidewalk realignment, high-visibility crosswalks, signing and striping, pedestrian lighting, landscaping, and traffic calming elements. Staff procured consultant services for repackaging the reduced scope of the project. Draft Final plans are under review.

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Palo Alto Link
The Palo Alto Link service has continued to have strong ridership and is providing around 1,000 passenger trips per week. One of the EV fleet vehicles and staff attended the MSC Open House. From March 7 through July 31, Palo Alto Link completed 18,225 rides.

Parking Updates
Staff has been improving the parking permit order process. College Terrace Residential Preferential Parking permit renewal sales began online on August 1, with permits expiring at the end of August.

Crescent Park No Overnight Parking permit renewal sales begin September 4, with current permits expiring at the end of September. California Avenue Parking District permit sales were fully transitioned to the Duncan Solutions permit portal in the second quarter of 2023. Duncan Solutions manages nine parking programs in Palo Alto and sold approximately 10,000 permits in FY23.

After several months of collecting feedback from the business community, staff recommended reducing off-street daily parking permit fees from $25 to $8 in City parking garages and surface lots, due to ongoing changes in visitor trends and employees reducing their commute because of hybrid work models. The $8 daily permits became active and available for purchase on July 1.

Quiet Zones
Staff is working on Request for Proposals for professional services to conduct a comprehensive quiet zone study at three crossings: Churchill Avenue, Meadow Drive, and Charleston Road. This study will evaluate the feasibility of implementing a quiet zone in compliance with Federal Railroad Administration regulations and determining the safety measures to compensate for the absence of train horn sounding.

Additionally, staff is working to procure the consultant services to proceed on next steps to develop final design and assist in seeking permits for implementation of Quiet zone at Palo Alto Avenue.

Rail Grade Separation Project Grants
In June, the Federal Railroad Administration (FRA) announced that they selected the Palo Alto Grade Separation Projects at Churchill Avenue, Meadow Drive, and Charleston Road and allocated $6 million towards the costs of completing the Preliminary Engineering and Environmental Phase. Additionally, in early July, the City received notification from the California State Transportation Authority (CalSTA) that the Churchill Avenue Grade Crossing was chosen for $23.7 million of funding towards the final design phase. Staff is coordinating with Santa Clara Valley Transportation Agency (VTA), Joint Peninsula Board (JPB/Caltrain), and granting agencies on the next steps for award of the funding.

Safe Routes to School
Staff continued to explore materials to pilot Zero Waste Bike Rodeos and coordinated with PAUSD staff regarding data collection and education programming.

Traffic Signal Operations
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procurement for an update of the central operations system and intelligent transportation systems (ITS) to incorporate current standards and technologies.

Staff have been reviewing development projects and traffic control plans, responding to Palo Alto 311 items, fulfilling bicycle Parking requests, monitoring Palo Alto Link service, and providing continued support for cross-departmental initiatives, including the Sustainability and Climate Action Plan, the North Ventura Coordinated Area Plan, and Uplift Local Parklet Guidelines.

Planning and Development Department
Boards and Commissions Continued to Meet
In July, Planning and Development Services continued to support commission and board meetings and hearings. The Historic Resources Board held a Friday evening retreat, a first for the HRB, to discuss: the 2023 Historic Reconnaissance Survey, existing inventory and potential for a future survey of properties 50 -75 years old, and a pilot Mills Act program and outreach. Planning and Transportation Commission held two hearings on the Sobrato project at the former Bayside Cannery site, and one hearing of a proposed planned community amendment at the corner of Middlefield and Ellsworth.

Santa Clara County’s Environmental Impact Report (EIR) for its Housing Element and Stanford Community Plan
Staff submitted a comment letter on the Santa Clara County’s EIR for its Housing Element and Stanford Community Plan on July 24.iii
Proposed Priority Development Area
Planning and Development Services and Office of Transportation collaborated to define a new priority development area boundary at and around the San Antonio Corridor and an application was submitted to the Metropolitan Transportation Authority/Association of Bay Area Governments. Staff will present a resolution to City Council in September 2023 and may revise or reject the application based on Council input.

Policy Development
Staff have scheduled and will hold an informational presentation and discussion with the Policy & Services Committee regarding the Seismic Hazards Identification program. In 2017, Council directed staff to update the Seismic Hazards identification program based on an extensive Seismic Risk Assessment Study. With the adoption of the Fiscal Year 2023-2024 budget, the City Council, staff supported funding to launch this project and staff will be presenting an update on this effort at the Policy & Services Committee meeting set for August 8.

Hiring
The Department continues to recruit and fill vacant positions—including newly approved positions in the FY 2024 budget. In the past month, four vacant positions were filled: Senior Planner (Data), Senior Management Analyst, Building Inspector, and Plan Check Engineer. The recruitment focus is now on the long-range planning team, which has four vacant positions, including a housing planner.

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Police Department
Making Community Connections
The Police Department (PD) held its third “Breaking with the Law” event of 2023 on July 12 at the Pop Tea Bar in Midtown. This local café was specifically chosen for its popularity in the afternoon with families and teens, with the intention to reach a different segment of the community than standard coffee-drinking adults. Planning for the next Breaking with the Law event is underway for early fall.

On Tuesday, August 1, PD hosted two concurrent National Night Out events at Johnson Park and Bol Park. Staff attended to talk with the community and showcase various aspects of the Department and all aspects of public safety services offered. At both locations, there were games, emergency vehicles on display (including police cars, vehicles from the Fire Department and Office of Emergency Services, as well as animal control and park ranger trucks) and public safety personnel. Consistent with last year, teams of PD personnel also visited resident-hosted block parties throughout town.

Recruiting and Hiring
Recruiting and hiring continued to be a focus to fill existing officer, dispatcher, and administrative vacancies. Over the summer, the Court Liaison Officer position was filled, closing out the final vacancy in the Records Unit. Once all the Records new hires have been trained, the PD will expand its hours of operation to better serve the public and increase the frequency of our Press Log distribution. PD also hired two entry level police officers, with an additional lateral police officer in the hiring process to join the Department soon. Additionally, the PD hired three dispatchers, one of which is a lateral from a regional dispatching center.

Automated License Plate Reader (ALPR) – Flock Safety
Over the last few months, the PD coordinated with Public Works, Caltrans, and Flock Safety on planning, engineering, and installing the twenty fixed ALPR cameras approved by Council. Staff received training on the new ALPR system to ensure policy compliance and department expectations for its use. Six of the cameras are installed, with the remainder expected to be installed in the coming weeks. These cameras have already led to the identification of criminal activity associated with regional theft crews and other prolific property crime trends in Palo Alto and the Bay Area.

Public Works Services Department
Foothills Roadside Vegetation Clearance/Fire Prevention For a second consecutive year, efforts to contract for roadside vegetation clearing work were unsuccessful as no bids were received in response to the City’s solicitation. As a result, the work became a major summer effort for an in-house crew of 13 Public Works, Public Services Division staff and 2 Community Services, Open Space Division staff. Fire mitigation work involved clearing dry grass, weeds, and brush 10-15 feet from the edge of the road or to a fence line and removing dead trees/branches for 10-15 feet of vertical clearance. Over the span of 3 weeks and over 2,300 work hours, the crew cleared a Item 8
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total of 20 miles of road. Work locations included Los Trancos Road, Arastradero Road, and Page Mill Road.

Capital Improvement Program Projects Progress
Significant progress continued on the Public Safety Building project including fire sprinkler and electrical installation work for the photovoltaic system on the 350 Sherman Avenue garage, installation of overhead electrical and mechanical work, and removal of exterior scaffolding. The project is close to 90% complete and staff anticipates beginning the move-in phase this fall, with 3-4 months of installation of furniture and critical communications and information systems, and a phased relocation of Police Department, Fire Department, and Office of Emergency Services groups. The new facility is expected to become fully operational in early 2024. As is typical with large, complex capital projects, staff is working through bringing the project to completion, including following the contractual dispute resolution process for claims received in relation to work completed by the general contractor and sub-contractors.

Additionally, progress was made on initiation construction contracts for capital projects that were approved by Council in June 2023, including contracts signed and executed, notices to proceed issued, and pre-construction meetings held. Two of the more notable projects are the Downtown Parking Guidance System project, which began design work under its design-build contract, and the Boulware Park Improvements project, which is expected to begin construction in mid-August. Staff is working to plan a groundbreaking event for the Boulware Park Improvements project. The Palo Alto History Museum had a groundbreaking ceremony in late-June and held a pre-construction meeting with staff from the City, museum, and contractor. Construction is anticipated to start in early August.

Progress also continued on important Regional Water Quality Control Plant (RWQCP) projects that are under construction, including the 12kV Electrical Loop Rehabilitation, Primary Sedimentation Tank Rehabilitation, and Secondary Treatment Upgrades projects.

Unleaded Fuel at Palo Alto Airport
The fuel farm improvements required to provide unleaded aviation fuel at the Airport are nearly complete. The Airport contractor is waiting on the delivery of final parts for piping to bring the tank into operation by September. The fuel provider has been communicating with the supplier of the unleaded fuel, and the supplier is prepared to deliver the fuel once the tank is ready. Palo Alto Airport Association is aware of the most updated timeline.

Regional Purification Facility
Staff continued to work with Valley Water on several agreements in support of the future Regional Purification Facility. These agreements include a land lease for the old Los Altos Treatment Plant, a separate land lease for a portion of the Regional Water Quality Control Plant (RWQCP) site for siting the required pump station, and an Operations and Maintenance Agreement. In addition, staff has been coordinating with Valley Water and the San Francisco Bay Regional Water Quality Control Board on permitting for reverse osmosis concentrate discharge through the RWQCP’s existing outfall.

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Stormwater Program
The Stormwater Compliance team has been working to comply with the new, more stringent Bay Area Stormwater Permit that became effective in July. The new permit requires constructing more green stormwater infrastructure and additional trash control projects, controlling sources of mercury and polychlorinated biphenyls (PCBs) from older industrial and commercial areas in the City, and other projects. The Fats, Oil and Grease Compliance team filled their Investigator position after a long vacancy and is working to revamp their program to align with industry best practices and better protect the City’s sanitary sewer system.

Utilities Department
Sustainability and Climate Action Plan Progress
Staff continue to move forward with the updated Sustainability and Climate Action Plan implementation, including the heat pump water heater pilot program. The program requires evaluating issues related to grid impacts and permitting. The first neighborhood grid modernization project is in progress and staff are preparing resources for residents in those areas who are interested in electrifying other appliances beyond water heaters. Staff anticipate bringing a recommendation to Council on joining the Statewide GoGreen Financing program in September for consideration. Staff also continue progress on other key priorities such as completing the Sea Level Rise Vulnerability Assessment and beginning work on the Sea Level Rise Adaptation Plan. Staff are also implementing the updated tree ordinance and working to complete the OneWater Plan.

Fiber-to-the-Premises (FTTP) Update
Progress continues implementing Council direction proceeding with the Fiber Rebuild project and Phase 1 of the Fiber-to-the-Premises (FTTP) project. The Utilities Advisory Commission (UAC) will discuss the Palo Alto Fiber project and areas of deployment at their September 6 meeting. Staff anticipate a Council update and consideration of next steps in the fall.

Fiber Optics and Grid Modernization
The Citywide engineering design for the electric grid modernization project is underway. The grid modernization project will overlap with the Fiber Expansion Plan in engineering make-ready work and construction as aligning the projects will help minimize costs and community disruptions. However, depending on how closely the grid modernization project and fiber projects are aligned, there may be significant milestone and timeline impacts to the Fiber Expansion Plan. The City must conduct a California Environmental Quality Act (CEQA) analysis to evaluate the potential impacts of the project on various environmental factors and identify whether those impacts can be mitigated. In addition, the City needs to coordinate an agreement with AT&T for sharing space on utility poles to install new fiber optics attachments, while remaining in compliance with California Public Utilities Commission General Order 95 (GO 95) requirements for overhead electric line construction for electric utility service and worker safety.

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Update on Engineering and Operations Projects
Electric Engineering continues to underground utilities in the Foothills to reduce fire risk. The section of overhead line in the Arastradero Preserve between Arastradero and Page Mill Road intersection and Foothills Park will be transferred to the new underground line by August 1, 2023. The Grid Modernization and Electrification study is in progress and on track for completion this fall . Advanced planning is occurring for expected rotation outage blocks in late summer due to systemwide shortages caused by the lack of reliable energy sources when renewable resources such as solar and wind become unavailable.

Water-Gas-Wastewater (WGW) Engineering and Operations continued working with a contractor for the Sanitary Sewer Replacement Project 31 (SSR 31), which started on July 31. Planning for public outreach in advance of construction is underway. The City received bids for the Water Main Replacement Project 29 (WMR 29) and began the process of awarding the construction contract.

Staff prepared and submitted a Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) federal grant application for approximately $16.5 million in funding to complete three priority gas projects.

Advanced Metering Infrastructure (AMI) Update
The City deployed about 1,600 electric, gas, and water Advanced Metering Infrastructure (AMI) meters.

The City has nearly completed the system integration amongst the AMI network, meter data management, customer billing information, outage management, and geographic information systems.

Utilities is conducting parallel billing of two-meter routes to validate the accuracy of the meter read and billing in the customer billing system before full deployment. AMI full deployment for residential customers is tentatively scheduled to begin in mid-September 2023. Depending on availability of meters and equipment, staff will complete residential AMI deployment by the end of 2024. Due to supply chain issues, the estimated rollout timeline of electric commercial AMI meters is mid-2024 through mid-2025.

Outage Management System (OMS)
The new Outage Management System (OMS) will substantially improve the City’s ability to notify customers and mobilize resources in response to electric outages and emergencies, and is expected to go live in September 2023. The new system will alert customers via text, voice, or email of an electrical outage. The system also provides management and staff with additional details on outage events and updates as the status of an outage situation changes. Once the OMS is live, customers with a mobile number will be initially subscribed to the texting service and can opt-out at any time.

Changes to Watering Restrictions
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sites. Staff are focusing outreach on making conservation a way of life, reminding the community about Palo Alto’s permanent water use restrictions, and spreading awareness of the suite of rebates and educational workshops available to help residents and businesses conserve water.

Water Quality Report
Each year, in late June or early July, the Utilities Department publishes an annual Consumer Confidence Report on water quality conditions for the previous year. The 2022 report update is available in English, Spanish, and Chinese online at cityofpaloalto.org/WaterResources and in print upon request by contacting [email protected] or (650) 329-2479.

FISCAL/RESOURCEIMPACT
This report is informational only and items will be brought before the City Council independently, should they need additional fiscal or policy considerations.

STAKEHOLDER ENGAGEMENT
During recess, the City Manager’s Office Communications Office drafted and/or coordinated important updates to keep the community aware of—and encourage engagement in—City Initiatives.

Staff collaborated with several departments to update website pages and online resources. A new permit portal consolidates planning and development permits available in one, easy to use location. The Teen Services web page now shares cross-departmental opportunities for teens to get involved and find relevant resources. The City’s heat pump water heater program page was updated to share community details about the City’s program offering free, expert help with permits, installation, and rebates worth thousands of dollars to upgrade to a heat pump water heater. Zero Waste launched Zero Waste Living with a new online portal sharing waste reduction tips heat pump water heater program page was updated to share community details about the City’s program offering free, expert help with permits, installation, and rebates worth thousands of dollars to upgrade to a heat pump water heater.

Website Statistics for the 2nd Quarter include:
763,231 total CityofPaloAlto.org pageviews
Top web page visits include Utilities Department (14,836), Foothills Nature Preserve (14,177), Children’s Theatre (10,392), Palo Alto Art Center (9,369), and Registration for Activities and Classes (8,702) (9,369), and Registration for Activities and Classes (8,702) (8,702)
Other communications shared during the Council recess include:
 Existing & Expanded Renter Protections, Plus Changes Being ConsideredExisting & Expanded Renter Protections, Plus Changes Being Considered
 Summer Family Fun in Palo AltoSummer Family Fun in Palo Alto Item 8
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 Connecting to Palo Alto Fiber’s FutureConnecting to Palo Alto Fiber’s Future  Celebrate the Arts in Palo AltoCelebrate the Arts in Palo Alto  Race and Equity Updates July 2023Race and Equity Updates July 2023  Be Prepared & Fire Safe This SeasonBe Prepared & Fire Safe This Season  Newell Road Bridge Replacement Project Status UpdateNewell Road Bridge Replacement Project Status Update
 Exploring the Best Summer Activities in Palo Alto: A Local GuideExploring the Best Summer Activities in Palo Alto: A Local Guide

ENVIRONMENTAL REVIEW
This report is for informational purposes only with no action required by the Council, and therefore it is not a project as defined by the California Environmental Quality Act (CEQA).

ATTACHMENTS
None
APPROVED BY:

Ed Shikada, City Manager
i CalPERS preliminary investment returns for the period ending June 30, 2023. https://www.calpers.ca.gov/page/newsroom/calpers-news/2023/calpers-preliminary-investment-return-fiscal- year-2022-23?utm_source=esubscriptions&utm_medium=email&utm_campaign=CalPERS-News ii Santa Clara County Point In Time Count 2023: https://osh.sccgov.org/continuum-care/reports-and- publications/santa-clara-county-homeless-census-and-survey-reports iii City Comment Letter for the Santa Clara County EIR-Housing Element and Stanford Community Plan https://www.cityofpaloalto.org/files/assets/public/planning-amp-development-services/palo-alto-draft-eir- comments-ssc-hescp-update-072423.pdf
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Public Works
Meeting Date: August 14, 2023
Report #:2306-1647
TITLE
Fiscal Year 2023 Annual Evaluation Report for the Santa Clara County Multi-Jurisdictional Program for Public Information on Flood Preparedness and Awareness, and the Resulting Community Rating System Flood Insurance Discounts

RECOMMENDATION
This is an informational report and no Council action is required.

BACKGROUND
The Community Rating System (CRS) is a voluntary program under the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program that allows communities to earn flood insurance premium discounts for their residents and businesses. Communities earn CRS credit points for activities that promote flood risk reduction practices and encourage residents and businesses to purchase flood insurance. CRS Class Ratings are assigned at 500- point increments, and each improvement in Class Rating nets an additional 5% flood insurance premium discount. The CRS Class Ratings range from 1 to 10, with 10 being the lowest rating and 1 being the highest. The City of Palo Alto has participated in the CRS program since 1990 and has been rated as a Class 6 community since 2017, affording residents and businesses a 20% or 10% (outside of Special Flood Hazard Area, or SFHA) discount on their flood insurance premiums. The CRS rating was due to a significant effort on flood awareness and floodplain management by the City. Neighboring cities have earned similar CRS ratings (Mountain View – 7, East Palo Alto – 8, Los Altos – 8, Sunnyvale – 7).

The CRS Coordinator’s Manual includes the option to implement a regional Program for Public Information (PPI). Under the PPI, a community or group of communities work together to create and deliver customized and consistent flood risk reduction outreach messages. By disseminating these messages, each community earns points that can improve their CRS rating.

The number of CRS credit points earned depends on how extensive the implemented program is within each community’s boundaries. City of Palo Alto has earned up to 122 points for its PPI efforts.

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City of Palo Alto residents and businesses pay $2.3 million (per FEMA data as of June 6, 2023) for flood insurance premiums per year. The total savings from the 20% insurance discount achieved by the City on behalf of its residents due to its CRS participation is approximately $500,000 per year (per FEMA data as of June 6, 2023). Without CRS, the residents and businesses would have paid $2.8 million. Palo Alto participates in the Santa Clara County Multi- Jurisdictional program to enhance the effectiveness of the flood risk messages to residents, reduce flood risks, and to maintain or improve the City’s CRS rating of 6.

As required by the terms of the PPI, the regional PPI committee must convene annually to evaluate whether the flood risk reduction messages are still appropriate and adjust them as needed. A report to FEMA must be submitted annually describing the PPI implementation. The annual report is transmitted to the council of each participating agency to provide updates on the various flood preparedness and awareness outreach programs that the Santa Clara County Multi-Jurisdictional PPI has undertaken for the past year.

ANALYSIS
The annual report for the 2023 Santa Clara County Multi-Jurisdictional PPI is provided as information for Council.1 The report highlights the elements of the flood safety outreach programs implemented by the eleven Santa Clara County communities (Cupertino, Gilroy, Los Altos, Milpitas, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Santa Clara County, and Sunnyvale) that participate with the Santa Clara Valley Water District (Valley Water) in CRS.

Valley Water, along with representatives from each of the participating communities, developed the original 2015 PPI and the associated annual report. The committee meets annually to evaluate and approve the PPI. The 2023 report was created based on meetings that occurred on March 21, 2023 and May 16, 2023. The final version of the 2023 PPI was presented to and approved by Valley Water’s Board of Directors on July 7, 2023. The worksheet on Appendix A lists the outreach projects, implementing agencies, and the messages associated with each of the projects; similarly, Appendix B of Attachment A lists the non-credited CRS outreach projects.

Every year, participating communities must present the PPI plan to the legislative bodies to continue receiving CRS credit. The 2022 Santa Clara County Multi-Jurisdictional PPI was presented to Council on August 8, 2022.2 Staff will continue to provide information to Council on the Santa Clara County Multi-Jurisdictional PPI on a yearly basis after the end of each Fiscal Year to achieve the maximum number of CRS credit points and associated flood insurance premium discounts for the community.
1 2023 Santa Clara County Multi-Jurisdiction Program for Public Information Annual Report https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/2023-santa-clara-county- multi-jurisdictional-ppi.pdf
2 City Council, August 8, 2022; Agenda Item #9, SR #14466 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/2022/id-14466-fy-annual-report-crs-flood-insurace-discouts.pdf Item 9
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FISCAL/RESOURCE IMPACT
The review and approval of this informational report has no impact on the City’s budget.

Maintaining this rating and participation in this program saves the Palo Alto community 20% on flood insurance costs.

STAKEHOLDER ENGAGEMENT
The program was discussed and prepared by representative staff from the eleven participating communities.

ENVIRONMENTAL REVIEW
This is an informational report and not subject to the California Environmental Quality Act (CEQA).

APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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