CITY COUNCIL
Regular Meeting
Monday, October 16, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person.
Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER
This meeting will be called to order in honor of National Book Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)
1. The Great California Shakeout
2. 26th Annual United Nations Association Film Festival (UNAFF) Proclamation AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:45 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:05 ‐ 7:05 PM)
3. Bi‐Annual Discussion with the Independent Police Auditor CONSENT CALENDAR (7:05 ‐ 7:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
4. Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings
5. Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project.
6. Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐ Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities).
7. Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305.
8. Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269.
9. Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐ 06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA Guidelines Section 15301(c).
10. Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status ‐ Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019.
11. Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On‐Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt.
12. 340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200‐404 Portage Avenue as well as the Office Building at 3201‐3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3).
CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
13. Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project.
14. City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Rail Committee October 17, 2023 – CANCELED
Finance Committee October 17, 2023
City School Liaison Committee October 19, 2023
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below.
You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
1 Regular Meeting October 16, 2023
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.
CITY COUNCIL
Regular Meeting
Monday, October 16, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person.
Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER
This meeting will be called to order in honor of National Book Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)
1. The Great California Shakeout
2. 26th Annual United Nations Association Film Festival (UNAFF) Proclamation AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:45 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:05 ‐ 7:05 PM)
3. Bi‐Annual Discussion with the Independent Police Auditor CONSENT CALENDAR (7:05 ‐ 7:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
4. Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings
5. Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project.
6. Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐ Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities).
7. Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305.
8. Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269.
9. Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐ 06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA Guidelines Section 15301(c).
10. Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status ‐ Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019.
11. Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On‐Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt.
12. 340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200‐404 Portage Avenue as well as the Office Building at 3201‐3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3).
CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
13. Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project.
14. City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Rail Committee October 17, 2023 – CANCELED
Finance Committee October 17, 2023
City School Liaison Committee October 19, 2023
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below.
You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
2 Regular Meeting October 16, 2023
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.
CITY COUNCIL
Regular Meeting
Monday, October 16, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person.
Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER
This meeting will be called to order in honor of National Book Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)
1. The Great California Shakeout
2. 26th Annual United Nations Association Film Festival (UNAFF) Proclamation AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:45 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:05 ‐ 7:05 PM)
3. Bi‐Annual Discussion with the Independent Police Auditor CONSENT CALENDAR (7:05 ‐ 7:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
4. Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings
5. Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project.
6. Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐ Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities).
7. Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305.
8. Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269.
9. Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐ 06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA Guidelines Section 15301(c).
10. Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status ‐ Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019.
11. Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On‐Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt.
12. 340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200‐404 Portage Avenue as well as the Office Building at 3201‐3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3).
CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
13. Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project.
14. City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Rail Committee October 17, 2023 – CANCELED
Finance Committee October 17, 2023
City School Liaison Committee October 19, 2023
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below.
You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
3 Regular Meeting October 16, 2023
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.
CITY COUNCIL
Regular Meeting
Monday, October 16, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person.
Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER
This meeting will be called to order in honor of National Book Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)
1. The Great California Shakeout
2. 26th Annual United Nations Association Film Festival (UNAFF) Proclamation AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:45 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:05 ‐ 7:05 PM)
3. Bi‐Annual Discussion with the Independent Police Auditor CONSENT CALENDAR (7:05 ‐ 7:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
4. Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings
5. Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project.
6. Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐ Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities).
7. Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305.
8. Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269.
9. Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐ 06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA Guidelines Section 15301(c).
10. Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status ‐ Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019.
11. Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On‐Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt.
12. 340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200‐404 Portage Avenue as well as the Office Building at 3201‐3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3).
CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
13. Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project.
14. City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Rail Committee October 17, 2023 – CANCELED
Finance Committee October 17, 2023
City School Liaison Committee October 19, 2023
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below.
You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
4 Regular Meeting October 16, 2023
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.
CITY COUNCIL
Regular Meeting
Monday, October 16, 2023
Council Chambers & Hybrid
5:30 PM
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person.
Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to [email protected] and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only by email to [email protected] at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted.
TIME ESTIMATES
Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.
CALL TO ORDER
This meeting will be called to order in honor of National Book Month.
SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)
1. The Great California Shakeout
2. 26th Annual United Nations Association Film Festival (UNAFF) Proclamation AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:45 ‐ 6:00 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s).
STUDY SESSION (6:05 ‐ 7:05 PM)
3. Bi‐Annual Discussion with the Independent Police Auditor CONSENT CALENDAR (7:05 ‐ 7:10 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
4. Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings
5. Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project.
6. Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐ Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities).
7. Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305.
8. Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269.
9. Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐ 06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA Guidelines Section 15301(c).
10. Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status ‐ Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019.
11. Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On‐Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt.
12. 340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200‐404 Portage Avenue as well as the Office Building at 3201‐3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3).
CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.
13. Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project.
14. City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Rail Committee October 17, 2023 – CANCELED
Finance Committee October 17, 2023
City School Liaison Committee October 19, 2023
Public Comment Letters
Schedule of Meetings
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone.
1. Written public comments may be submitted by email to [email protected].
2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below.
You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing [email protected]. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.
5 Regular Meeting October 16, 2023
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.
3 3
0 2
City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: October 16, 2023
Report #:2310-2117
TITLE
26th Annual United Nations Association Film Festival (UNAFF) Proclamation
ATTACHMENTS
Attachment A: UNAFF Proclamation
APPROVED BY:
Mahealani Ah Yun
Item 2
Item 2 Staff Report
Item 2: Staff Report
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Proclamation
26th Annual United Nations Association Film Festival (UNAFF) WHEREAS, October 19, 2023 marks the 26th Anniversary of the United Nations Association Film Festival (UNAFF), which was originally created to celebrate the 50th Anniversary of the signing of the Universal Declaration of Human Rights; and
WHEREAS, UNAFF was founded by Stanford educator and film critic Jasmina Bojic; and
WHEREAS, UNAFF gives six awards: Grand Jury Award for Best Documentary, Grand Jury Award for Best Short Documentary, Award for Best Cinematography, Award for Best Editing, Youth Vision Award, and the Visionary Award; and
WHEREAS, UNAFF has previously screened some of the most honored and talked about documentaries including eight that went on to win Academy Awards and thirty that were nominated; and
WHEREAS, UNAFF celebrates the power of films dealing with human rights, environment, women’s issues, homelessness, racism, disease control, universal education, war and peace with the theme this year of, “SOLUTIONS”; and
WHEREAS, the UNAFF jury selected 60 films for this year’s festival dealing with topics from countries around the world; and
WHEREAS, UNAFF will be held in-person from October 19 to October 29, 2023; and
WHEREAS, UNAFF hosts academics and international filmmakers to discuss the topics in the films with members of the audience, who are often separated by geography, ethnicity and economic status.
NOW, THEREFORE, I, Lydia Kou, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim October 1 9-29, 2023 as United Nations Association Film Festival Days and encourage the citizens of our community to attend UNAFF screenings and panels during the eleven-day festival.
Presented: October 16, 2023
______________________________
Lydia Kou
Mayor
Item 2
Attachment A - UNAFF
Proclamation
Item 2: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: City Manager
Meeting Date: October 16, 2023
Report #:2308-1894
TITLE
Bi-Annual Discussion with the Independent Police Auditor
RECOMMENDATION
This Study Session is a bi-annual opportunity for Council discussion with the Independent Police Auditor. There is no recommended action.
BACKGROUND AND ANALYSIS
This is the study session with the City’s Independent Police Auditor (IPA) from the representatives of the OIR Group, the City’s contracted consultant for the Independent Police Auditor function. It is the second of two discussions in this calendar year. The previous discussion took place with the City Council on June 12, 2023.1 Purpose: In the amended contract with the OIR group, it states the following related to the IPA meetings with the City Council:
Beginning in the second half of 2021, CONSULTANT shall meet with the City Council two times per year to discuss trends in criminal justice and policing, policy and training matters, recommendations made by CONSULTANT, and other Council concerns.
CONSULTANT’S conferences with Council are not for the purpose of elaborating on published reviews of specific incidents and shall not include discussion of personnel matters prohibited by law. Semi-annual conferences shall be scheduled after publication of the CONSULTANT’S report, according to availability of Council and the CONSULTANT.
Consistent with the description above, Council discussion with the IPA is not focused on the most recent report from OIR. However, for ease in reference, the most recent report was issued as an Informational Report on the September 18, 2023 City Council packet2. 1 June 12, 2023 City Council meeting item #3:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12536 2 September 18, 2023 City Council meeting item #11:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=3163&meetingTemplateType=2 Item 3
Item 3 Staff Report
Item 3: Staff Report
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FISCAL/RESOURCE IMPACT
No additional funds are needed for this study session.
STAKEHOLDER ENGAGEMENT
The discussion with the City Council is an opportunity for the public to also share feedback related to issues covered by the IPA.
ENVIRONMENTAL REVIEW
This is not a project.
APPROVED BY:
Ed Shikada, City Manager
Item 3
Item 3 Staff Report
Item 3: Staff Report
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: October 16, 2023
Report #:2310-2113
TITLE
Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings
RECOMMENDATION
That the minutes be reviewed and approved.
ATTACHMENTS
Attachment A: September 18, 2023 Draft Action Minutes
Attachment B: October 2, 2023 Draft Action Minutes
APPROVED BY:
Mahealani Ah Yun
Item 4
Item 4 Staff Report
Item 4: Staff Report
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CITY COUNCIL
DRAFT ACTION MINUTES
Regular Meeting
September 18, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.
Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely:
Absent:
Special Orders of the Day
1. Appointment of Candidates for the Architectural Review Board First round of voting for Architectural Review Board one (1) partial term ending 3/31/2024:
Alex Lew - Burt, Kou
John Kunz - Tanaka
Mausam Adcock - Lauing, Stone, Veenker, Lythcott-Haims
Naveen Govind -
Sam Zucker -
Stephen Sun -
Candidate Mausam Adcock receiving 4 votes is appointed to a partial term expiring March 31, 2024.
Consent Calendar
2. Approval of Minutes from September 5, 2023 Meeting
3. Approval of Amendment No. 1 to the Lease Agreement Between the City of Palo Alto and the County of Santa Clara (Contract No. 1557819) at 2000 Geng Road for Safe Parking to Extend the Term for Three Years; Prioritize Local Populations; and Clarify City’s Landscaping Duties; CEQA Status – categorically exempt.
4. Approval of Construction Contract C24187742 with OBS Engineering Inc., in the Amount Not-to-Exceed $383,400 for Cameron Park Improvements, Capital Impr ovement Project Item 4
Attachment A -
September 18, 2023 Draft
Action Minutes
Item 4: Staff Report
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DRAFT ACTION MINUTES
City Council Meeting
Draft Action Minutes: 09/18/2023
PG-14002; Authorization of Contract Contingency in an Amount Not- to-Exceed $38,340 for Related, Additional but Unforeseen Work Which May Develop During the Project; and Approval of a Budget Amendment in the Capital Improvement Fund; CEQA status - Categorically exempt per regulation 15301 (existing facilities).
5. Approve the Appointment of Caio A. Arellano to the Position of Chief Assistant City Attorney; CEQA Status- not a project.
Council Member Tanaka registered a no vote on Agenda Item Number 3.
MOTION: Mayor Kou moved, seconded by Council Member Veenker to approve Agenda Item Numbers 2-5.
MOTION PASSED ITEMS 2, 4-5: 7-0
MOTION PASSED ITEM 3: 6-1, Tanaka no
Action Items
6. PUBLIC HEARING: Adoption of Resolution to Establish a New Priority Development Area (PDA) in South Palo Alto and Support for the Nomination of one Parcel as a Priority Site.
Environmental Assessment: Not a ‘Project’ and Exempt from California Environmental Quality Act (CEQA) Review.
MOTION: Vice Mayor Stone moved, seconded by Council Member Lythcott-Haims to:
1. Adopt a Resolution (Attachment A) designating a new Priority Development Area in South Palo Alto, named the Bayshore Alma San Antonio (BASA) Priority Development Area; and,
2. Support the nomination of one property as a Priority Site located at 3200 Park Blvd ., as reflected in Attachment B; and,
3. Direct staff to include San Antonio Corridor neighborhood outreach upon the initiation of the Concept Plan.
MOTION PASSED: 6-1, Kou no
7. LEGISLATIVE: Adopt an Ordinance Amending Planned Community 2343 zoning for 2901 - 2905 Middlefield Road and Adopt an Ordinance Establishing a new Planned Community Zoning Designation to Enable the Development of a new Single -Story, Single -Family Residence on 702 Ellsworth Place.
Item 4
Attachment A -
September 18, 2023 Draft
Action Minutes
Item 4: Staff Report
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DRAFT ACTION MINUTES
City Council Meeting
Draft Action Minutes: 09/18/2023
MOTION: Council Member Burt moved, seconded by Mayor Kou to continue this Item to a date uncertain, with the main motion discussed tonight on the table, and with direction to staff to attempt to resolve the package delivery issue.
MOTION PASSED: 5-2, Lauing, Kou no
8. Public Hearing: Adoption of a Resolution Approving Capped -Price Winter Natural Gas Purchases for Winter 2023-24 and Amending the FY 2024 Gas Fund Budget to Fund These Purchases; Amending the Gas Utility Long -term Plan Objectives, Strategies and Implementation Plan; and Amending Rate Schedules G -1 (Residential Gas Service), G -2 (Residential Master-Metered and Commercial Gas Service), G -3 (Large Commercial Gas Service), and G -10 (Compressed Natural Gas Service); CEQA stat us: not a project under Public Resources Code 15378(b)(5) and exempt under Public Resources Code 15273(a) MOTION: Council Member Burt moved, seconded by Council Member Lythcott- Haims to adopt a resolution (Attachment A):
1. Implementing capped-price winter natural gas purchases for winter 2023 -24 with a maximum commodity rate impact of 15 cents per therm;
2. Amending the FY 2024 Budget Appropriation in the Gas Fund (requires 2/3 approval) by:
a. Increasing the Gas Operating Budget for Commodity Purchases by $2,000,000; and
b. Increasing the Gas Operating Retail revenue estimate by $2,000,000
3. Amending the Gas Utility Long -term Plan (GULP) Objectives, Strategies and Implementation Plan (Attachment B) to implement the capped -price winter gas purchases intended to manage potential winter 2023 gas price spikes; and
4. Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service) (Attachment C), effective November 1, 2023.
MOTION PASSED: 6-1, Tanaka no
Adjournment: The meeting was adjourned at 10:57 P.M.
Item 4
Attachment A -
September 18, 2023 Draft
Action Minutes
Item 4: Staff Report
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DRAFT ACTION MINUTES
City Council Meeting
Draft Action Minutes: 09/18/2023
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary mi nutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.
Item 4
Attachment A -
September 18, 2023 Draft
Action Minutes
Item 4: Staff Report
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CITY COUNCIL
DRAFT ACTION MINUTES
Regular Meeting
October 2, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.
Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Veenker Present Remotely: Tanaka
Absent:
Special Orders of the Day
1. Proclamation Recognizing National Fire Prevention Week - October 8-14, 2023
NO ACTION
Study Session
2. Request for Pre -Screening of Application to Amend the Development Agreement and South of Forest Area Phase 1 Coordinated Area Plan for 260 Homer Avenue that Currently Restricts the Amount of Space that One or More Commercial Office Tenants can Occupy at the Property. Zoning District: AMF (MUO). CEQA Status: Not a Project. Item Removed Off Agenda
Consent Calendar
3. Approval of Minutes from September 11, 2023 and September 12, 2023 Meetings
4. Adoption of a Resolution Approving and Attesting to the Veracity of the City's 2022 Annual Power Source Disclosure and Power Content Label Reports; CEQA Status: Not a project
5. Authorization to Amend the Existing Contract for Litigation Defense Services with the Law Firm of Liebert Cassidy Whitmore (Contract S20178997) to Increase the Not - to- Exceed Amount to $110,000 and Extend the Term to December 31, 2023; CEQA – Not a Project Item 4
Attachment B - October 2,
2023 Draft Action
Minutes
Item 4: Staff Report
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DRAFT ACTION MINUTES
City Council Meeting
Draft Action Minutes: 10/02/2023
6. Approve Three Contracts for Landscape Maintenance Services: 1) a Five -year Contract with BrightView Landscape Services, Inc., in the Amount of $12,288,093; 2) a Five -year Contract with Gachina Landscape Management, Inc., in the Amount of $516,740; and 3) a Five-year Contract with Grassroots Ecology in the Amount of $529,459 for Specification for Habitat Restoration in Foothills Nature Preserve and Adobe Creek Pedestrian Bridge Native Plant Restorati on; Approval of Contract Amendment No. 2 to Contract C18170810A with BrightView Landscape Services, Inc. to increase the Not to Exceed amount by $75,152 to provide weekend services for a three -month contract extension; and Approval of Budget Amendments in Multiple Funds (2/3 vote required) as Recommended by the Finance Committee; CEQA status - Categorically exempt per regulation 15301 (existing facilities) and 15304 (minor alterations).
7. Approval of a SaaS Agreement C23188925 with Accela for an Amount Not -to-Exceed $1,143,563 for Online Planning and Building Permitting and Enhanced Reporting System for a Period of Three -Years and Authorization of a 10% Contract Contingency in an Amount Not-to-Exceed $114,356; CEQA Status - Not a Project
8. SECOND READING: Adoption of Ordinances Rezoning the Properties Located at 340 -404 Portage Avenue, 200 -404 Portage Avenue/3040 -3200 Park Boulevard, 3201- 3225 Ash Street, 3250 Park Boulevard, and 278 Lambert Avenue from RM -30 to Planned Community (PC); and Adoption of an Ordinanc e Approving a Development Agreement with SI 45, LLC for the 14.65 -Acre Property Located at 200 -404 Portage Avenue, 3040- 3250 Park Boulevard, 3201-3225 Ash Street, and 278 Lambert Avenue. CEQA Status – EIR certified by Council Resolution 10123 (SCH #2021120444)
9. SECOND READING: Ordinance Creating New Chapter 12.11 (Parklets) and Amending Certain Sections of Titles 16 and 18 (FIRST READING: September 11, 2023 PASSED 7-0)
10. SECOND READING: Ordinance Approving a Development Agreement with SI 45, LLC, for the 14.65-acre Property at 200 -404 Portage Avenue, 3040 -3250 Park Boulevard, 3201 - 3225 Ash Street, and 270 Lambert Avenue (FIRST READING: September 12, 2023 PASSED 7-0)
11. SECOND READING: Ordinance Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 340 -404 Portage Avenue from Multiple Family Residential (RM-30) to PC Planned Community Zone (FIRST READING: September 12, 2023 PASSED 7-0)
Council Member Tanaka registered a no vote on Agenda Item Number 6.
MOTION: Mayor Kou moved, seconded by Council Member Lauing to approve Agenda Item Numbers 3-11.
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MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION PASSED ITEMS 3-5, 7-11: 7-0
MOTION PASSED ITEM 6: 6-1, Tanaka no
Action Items
12. Receive the Human Relation Commission’s Recommendations on the Evaluation and Celebration of Additional Dates to Advance Race & Equity, Including Through City Recognition and City Paid Holidays and Provide Direction to Staff on Further Actions.
CEQA status – not a project.
MOTION: Vice Mayor Stone moved, seconded by Council Member Lythcott-Haims to:
1. Receive the Human Relation Commission’s recommendations responding to the Council referral on the evaluation and celebration of additional dates to Advance Race & Equity ; and,
2. Direct staff to further review and refine the proposed standard framework and procedure for considering City recognition of events, individuals, and celebrations; and,
3. Direct staff to include consideration of Juneteenth as a paid holiday as part of it's ne xt round of labor contract negotiations through meet-and-confer, and;
4. Direct staff to implement the HRC recommendation to recognize Dolores Huerta Day and Cesar Chavez Day as independent dates of significance as non-paid holidays, and;
5. Direct staff to r emove Italian-American Heritage from the 2 nd Monday in October, and
that the City will solely recognize Indigenous Peoples’ Day.
MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION PASSED 1-2, 4-5: 7-0
MOTION PASSED 3: 4-3, Tanaka, Kou, Lauing no
13. Proposed Amendments to Palo Alto Municipal Code Title 18 (Zoning) Chapters 18.04 (Definitions), 18.10 (Low -Density Residential), 18.12 (R -1 Zones), 18.13 (Multiple Family Residential Zones),18.40 (General Standards and Exceptions), and 18.54 (Parking Facilities Design Standards) to Facilitate Implementation of Green Building Standards, Including Noise Standards and Placement of Obstructions Within Garages and Exterior Setback Encroachments for Electrification Equipment Such as Heat Pumps, Energy Storage Item 4
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Systems and Electric Vehicle Charging Stations, and to Title 9 (Public Peace, Morals and Safety) Chapter 9.10 (Noise) to Facilitate the Installation of Electrification Equipment for Residential Development as Recommended by the Planning and Transportation Commission. CEQA Status – Exempt under CEQA Guidelines sections 15061(b)(3) and 15301.
Council Member Lythcott-Haims recused herself from this item.
MOTION: Council Member Burt moved, seconded by Council Member Veenker to adopt the draft ordinance amending the Title 18 and Palo Alto Municipal Code Chapter 9.10 to further facilitate the installation of electrification equipment in residential neighborhoods with the following modifications and direction:
1. Increase the base noise standards by 3 decibels for all heat pumps, and by 5 decibels for heat pumps with inverters, and to create a comprehensive list of heat pump equipment.
2. Direct staff to evaluate the following for future refinements to the ordinance:
a. Evaluate allowing units with higher manufactured dB ratings provided that the sound is attenuated, and;
b. Explore the streamline testing protocol for nonstandard equipment, and; c. The Development Center receives this information as soon as possible to disseminate for anyone looking at heat pumps or other HVAC equipment.
MOTION PASSED: 6-0-1, Lythcott-Haims recused
Adjournment: The meeting was adjourned at 8:59 P.M.
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ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: October 16, 2023
Report #:2309-2038
TITLE
Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project.
RECOMMENDATION
Staff recommends the City Council to
1) Amend the Fiscal Year 2024 Budget Appropriation for the General Fund (requires 2/3 approval) by:
a. Increasing the Community Services Department Contract Services expense appropriation by $45,000 for the Human Services Resources Allocation Process (HSRAP); and, b. Decreasing the Budget Stabilization Reserve by $45,000. 2) Direct the City manager to execute an agreement implementing additional funding of $45,000 for FY 2024-25 HSRAP recipient, Ada’s Cafe.
EXECUTIVE SUMMARY
Approval of this will increase the HSRAP grant award to Ada’s Cafe in the amount of $45,000 for a total grant of $57,442 for the FY 2024-25 HSRAP process and decreases the Budget Stabilization Reserve in alignment with Council direction received September 11, 2023. On September 11, 2023, the Human Relations Commission (HRC) presented to Council its recommendation for the distribution of $200,000 in additional funding for the Human Services Resource Allocation Process (HSRAP) as approved for Fiscal Years 2024 and 2025. 1 The recommendation 1 September 11, 2023, City Council Meeting, Item 9 Accept the Human Relation Commission’s Recommended Contingency Plan for the Distribution of $200,000 in Additional Funding for the FY2024-25 Human Services Resource Allocation Process Recipients. Staff Report #:2307-1736. https://portal.laserfiche.com/Portal/DocView.aspx?id=67656&repo=r-704298fc Item 5
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would provide funding to twenty-two (22) human services providers serving Palo Alto residents for the period July 1, 2023 – June 30, 2025. During the discussion time for this agenda item, the Council voiced its concern that one of the grantees, Ada’s Cafe, was not being funded to the same level that other applicants were and recommended additional funding in the amount of $45,000 from the Budget Stabilization Reserve for Ada’s Cafe.
BACKGROUND
The Proposed Fiscal Year (FY) 2024 Operating Budget included $651,035 in HSRAP funding recommendations from the HRC to 22 human services organizations. 2 During budget deliberations, the Council approved an additional allocation of $200,000 for HSRAP. This included $50,000 in supplemental funding presented in the Proposed FY24 budget and an additional $150,000 proposed by Council during deliberations; for a total funding investment of $851,035 for FY 2024.
The Council was aware that the HRC had already created a contingency plan in the event that additional HSRAP funding was added during budget deliberations, but since the funding allocation spreadsheet was not presented for their consideration, Council requested that it come before them at a later date for approval and this occurred on September 11, 2023.
HRC Chair Kaloma Smith presented the HSRAP funding contingency plan for the distribution of the additional $200,000. A rigorous review and consideration process was followed based on established evaluation criteria for both the initial HRC review of HSRAP applications and the contingency plan. Following a stated process is crucial according to Chair Smith, as all the applicants are beloved nonprofits who provide vital services to the community.
ANALYSIS
During the Council discussion on the contingency plan, Council members expressed concern with the funding recommendation for Ada’s Cafe. It was stated that while most applicants were receiving an average of 76% of their requested amount, the proposed allocation to Ada’s Cafe was much lower. Council members expressed a desire to provide additional funding to Ada’s Cafe and further discussion centered on options on how to do so, landing on an allocation from the Budget Stabilization Reserve, see motion below:
Motion: Accept the HRC’s recommended contingency plan for the distribution of $200,000 in additional fund for FY24-25 HSRAP recipients and direct the City Manager to execute agreements implementing such funding, and direct staff to return on consent 2 City of Palo Alto Proposed Operating Budget Fiscal Year 2024, CSD Human Service Contracts: Human Services Resource Allocation Process Contracts, Pages 222-223.
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2024-city- budget/proposed/city-of-palo-alto-proposed-operating-budget_final.pdf Item 5
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with an allocation from the BSR of an additional $45,000 for Ada’s Cafe to be administered consistent with HSRAP Standards. (6-1)3
In total, this would result in a grant to Ada’s Café in the amount of $57,442, with all funding provided and administered consistent with the HSRAP standards.
FISCAL/RESOURCE IMPACT
Funding in the amount of $45,000 from the Budget Stabilization Reserve will be shifted to the Community Services Department budget to increase HSRAP funding and specifically fund recipient Ada’s Cafe. This will bring the total HSRAP funding in FY 2024 to $896,035. An additional $50,000 also remains in the HSRAP Contingency to fund emergency or critical Human Services needs that may come up in FY 2024.
This action will leave approximately $53.7 million in the Budget Stabilization Reserve (BSR) or
19.9% of the FY 2024 Adopted Operating Budget, which is slightly below the 20.0% level recommended to be maintained in FY 2024 for continued economic uncertainty, and above the
18.5% amount of $49.9 million
STAKEHOLDER ENGAGEMENT
The HSRAP contingency plan was discussed at the April 27, 2023 meeting of the Human Relations Commission. Meeting information was both publicly noticed and sent out to all HSRAP funding applicants. The Council consideration of the contingency plan on September 11, 2023, was also publicly noticed and send out to all HSRAP funding recipients.
ENVIRONMENTAL REVIEW
Approval of this action is not a project under the California Environmental Quality Act (CEQA) per CEQA Guidelines 15061(b)(3).
APPROVED BY:
Kristen O'Kane, Community Services Director
3 September 11, 2023, City Council Meeting Action Minutes, Item 9. https://portal.laserfiche.com/Portal/DocView.aspx?id=67685&repo=r-704298fc Item 5
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: October 16, 2023
Staff Report: 2307-1742
TITLE
Approval of Contract Number C241879031 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS-14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed of $782,686, for a Total Not-to-Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities).
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or their designee to execute contract C24187903 1 with Daleo, Inc. in an amount not-to-exceed $7,826,860 for the Gas Main Replacement 24B project (GS-14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location.
2. Approve and authorize the City Manager or their designee to negotiate and execute one or more changes to the contract with Daleo, Inc. for related additional but unforeseen work, which may develop during the project, the total value of which shall not exceed $782,686 or 10% of the contract amount. The total authorized not-to-exceed expenditure amount is $8,609,546, which includes the contract amount of $7,826,860 and a 10% contingency amount of $782,686.
1 Contract C24187903 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/attachments/10-02-2023-id-2307-1742-attachment-a-c24187903.pdf Item 6
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3. Amend the Fiscal Year 2024 Budget Appropriation for the Gas Fund (requires 2/3 approval) by:
a. Decreasing the Gas Main Replacement 25 project (GS-15000) expenses by $1,021,151;
b. Increasing transfers-in from the Water Fund to the Gas Main Replacement 24B project (GS-14003) by $171,590; and
c. Increasing the Gas Main Replacement 24B project (GS-14003) expenses by $1,192,741.
4. Amend the Fiscal Year 2024 Budget Appropriation for the Water Fund (requires 2/3 approval) by:
a. Decreasing Water Fund Operations Reserves by $171,590; and b.Increasing transfers to the Gas Fund by $171,590.
EXECUTIVE SUMMARY
The Gas Main Replacement (GMR) 24B project (GS-14003) is part of the Council-approved Capital Improvement Program (CIP) designed to ensure reliable gas service for the City of Palo Alto residents and customers. The project targets the replacement of polyvinyl chloride (PVC) and black-wrapped steel pipe (BWP) distribution main and service pipes that are near or past their operational life expectancy with polyethylene (PE) pipelines. Work will be done on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real (Project Area). The City anticipates starting construction in February 2024 and completing construction in April 2025.
Funding from Gas Main Replacement 25 project (GS-15000) will be used to fund a portion of the work in GS-14003, and GS-15000 will be designed with a reduced scope. In addition, funding from the Water Fund will be transferred to GS-14003 to replace water mains and services at the same time the gas lines are being replaced at Town & Country Village.
This action advances 2023 Council Priority Community Health and Safety, Outcome zz: Begin construction of the gas main replacement project 24B.
BACKGROUND
Over time, PVC pipe material becomes embrittled and is susceptible to cracking during excavation and earth movements, which result in gas leaking from the pipelines. Steel pipe material has an increased chance of becoming corroded and eventually leaking when isolated from the cathodic protection system or receiving low cathodic protection current. Repairs on PVC and steel pipelines require specialized tooling and can be very time consuming, disruptive, and difficult.
The PVC and steel pipelines are typically replaced with polyethylene (PE) pipelines, which have greater elastic properties and do not require cathodic protection.
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Replacing the gas distribution system with PE will enhance the reliability of the gas distribution system, make the system more resilient against corrosion and earth movements, eliminate potential leaks, reduce maintenance costs, and extend the useful life of the gas distribution system. In addition, unlike PVC gas main and services, the new PE pipelines will be installed with a metallic tracer wire, which increases the pipeline locating accuracy and reduces pipe ruptures during excavation. The Distribution Integrity Management Plan (DIMP) ranks construction excavation as the greatest risk to the City’s gas system due to the potential for homeowners and contractors damaging mismarked pipelines and causing a hazardous leak. The Project Area contains a relatively large concentration of people and traffic and is considered a potentially high- consequence area for gas leaks. Replacement of the gas distribution mains and services will reduce the overall risk, maintenance costs, and emergency repair disruptions to these areas.
There are two active Grade 3 gas leaks in the Project Area, one on a PVC pipeline at University Avenue and Chaucer Street and one on the steel pipeline in the 500 block of Hale Street. Grade 3 gas leaks are not considered imminently hazardous and are monitored and resurveyed annually. This section of gas main was not part of the Upgrade Downtown Project. The replacement of these sections of pipelines on this project will eliminate these gas leaks. The remaining sections of PVC and steel pipe are recommended for replacement to improve the overall safety and efficiency of the gas distribution system. Replacement of PVC and corroded steel distribution main and services is also required to achieve the City’s planned CIP schedule and will minimize greenhouse gas emissions from leaking or damaged PVC and steel pipelines, having a positive impact on the environment.
The work scheduled at Town & Country Village has been coordinated with the Town & Country Village property management company (Ellis Partners), as well as Palo Alto High School (PAHS), and construction will be performed while PAHS is on summer break, between June 3, 2024 and August 13, 2024. While the Project Area also includes portions of the University Avenue Downtown District, no construction will be permitted in this area between Thanksgiving and New Year’s (November 25, 2024 through January 1, 2025) to avoid disruptions to retailers and shoppers. All construction equipment and materials will be removed from the University Avenue Downtown District during this shutdown.
ANALYSIS
Project Description
The work to be performed under this contract C24187903 is to replace approximately 18,750 linear feet of natural gas mains and services with polyethylene (PE) pipe in neighborhoods of University Park and Crescent Park, a business district complex adjacent to Geng Rd, and Town & Country Village Plaza (see Attachment B). The main sizes being installed are 2-inch, 4-inch, and 6-inch in diameter and the associated installation of services and reconnects are 1-inch and 2- inch in diameter. This project is essential due to the need to replace aging infrastructure and address at least two known gas leaks that may be due to embrittled PVC or steel gas facilities Item 6
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with ineffective cathodic protection. The PVC gas facilities were installed in the mid 1970’s and the steel gas facilities were installed in the 1920’s through the early 1950’s. These sections of main were prioritized to further the replacement of PVC pipelines and address leak prone steel pipelines in the gas system. Portions of this project replace mains installed on major streets and business districts and take a proactive approach to minimize impacts to the public in the event of a leak.
In addition, this project includes the installation of new 6-inch PVC water piping and replacement of three existing water services at Town & Country at El Camino and Embarcadero Road. The water main replacement portion of Town and Country Village installs approximately 145 linear feet of PVC pipe including three services and two tie-ins. The water system work was requested by the property management company at Town & Country Village due to a tenant improvement project. The Developer is responsible for the cost of approximately 75 linear feet of the main replacement and associated services; however, the City expanded the scope of the water main replacement work to address system improvements and avoid leaving a portion of the old ACP pipe that would need to be replaced in the near future Funding from the Water Fund being transferred to this project will pay for the City portion of the system improvements.
Notifications and Work Restrictions
The City anticipates starting construction in February 2024. The construction hours for this project are 8:00 AM to 4:30 PM, Monday through Friday. Streets with non-standard construction hours start at 9:00 AM and end at 4:00 PM. These streets include University Ave between Webster St and City Limits and Middlefield Rd between University Ave and Hamilton Ave. The Contractor will provide two construction message boards (CMBs) at each end of University Avenue, a minimum of 30 days prior to the start of construction, to notify the public of potential traffic impact. The CMBs will be moved and placed at appropriate locations as the project advances and will remain until all work on University Avenue is complete.
Contractor must schedule work to avoid working on City-specified school routes during the first week of school (August 14, 2024 through August 16, 2024). The Contractor will coordinate with the property manager at Town and Country, located at 855 El Camino Real and Palo Alto High School (PAHS), to facilitate the installation of the new gas pipeline and water pipeline and minimize disruption to businesses. Prior to construction, there will be coordination and delivery of project notices and maps to each business, by mail and by hand. The City will mail out project notices prior to beginning the project. The Contractor will provide 30-day, 15-day, 5-day, and 24- hour notices to Town and Country Village businesses.
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Bid Process
On June 28, 2023, the City posted a notice inviting formal bids (IFB) for the GMR 24B project on the City’s electronic procurement system, OpenGov. The bid due date was on July 25, 2023.
However, the City decided to extend the bid due date an extra week to allow Contractors additional time to review and submit a competitive bid. The new bid due date was updated to August 1, 2023.
Bid Name/Number
Gas Main Replacement Project
24B (GS-14003), IFB Number
187903
Proposed Length of Project 288 working days (Anticipated to start February 2024)
Number of Vendors notified through OpenGov 2708
# of Builder’s Exchanges notified through OpenGov 2
Number of Bid Packages Downloaded by Vendors 35
Total Days to Respond to Bid 34
Pre-Bid Meeting? Yes (Mandatory)
Number of Vendors at Pre-Bid Meeting 8
Number of Bids Received: 3
Bid Price Range $7,826,859 - $16,160,929
Staff reviewed the submitted bids and all three bids were responsible and responsive. Staff recommends Daleo, Inc. be awarded the contract as the low bidder listed in the attached Bid Summary (see Attachment A). The contingency amount of $782,686, which equals 10% of the total contract, is requested for additional unforeseen work that may develop during the project.
Additional work is common with construction projects because during construction there may be previously unknown obstructions and ground conditions that require changes in how construction will proceed, leading to change orders that may create additional costs. A contingency fund is necessary to prevent significant delays in the project to handle these unforeseen conditions, which could otherwise result in longer road closures and disruptions. Any unspent contingency funds are returned to reserves at the end of the project.
Staff confirmed with the Contractor's State License Board that Daleo, Inc., and their listed subcontractors, have active licenses on file. Daleo, Inc. has worked on multiple City projects, as recently as March 2023, and has demonstrated the knowledge and ability needed to complete this project on schedule and within budget. Staff checked other references supplied by the contractor for previous work performed and found no significant complaints. Staff also confirmed Item 6
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that Daleo Inc. and their listed subcontractors are registered and in good standing with the Department of Industrial Relations (DIR).
FISCAL/RESOURCE IMPACT
Funding of $8,433,545 is available from funds appropriated in the Gas Main Replacement 24B project (GS-14003) as part of the Fiscal Year 2024 Adopted Capital Budget. An additional $1,192,741 is recommended to be appropriated to GS-14003 to fully fund the not-to-exceed amount of $8,609,546 and other costs detailed in the table below, offset by a reduction of $1,021,151 in the FY 2024 Gas Main Replacement 25 project (GS-15000), and a transfer of $171,590 from the Water Fund. The increased project funding of $1,192,741 being requested is needed to account for economic fluctuations in material and construction costs, staff cost increases over the past five years, and the stringent traffic control requirements on University Avenue.
Staff applied for a Pipeline and Hazardous Materials Safety Administration (PHMSA) grant in FY2022 for GS-14003; however, the City was not selected to receive the grant award. The notification indicated that the project was ‘Highly Recommended’; therefore, staff has submitted another grant application as part of the next round of federal grants issued by PHMSA. Any funding received will be used to replace pipe and complete the full scope of work on GS-15000 (Gas Main Replacement 25 or GMR 25). In the meantime, GS-15000 will have the project scope reduced unless grant funding is approved.
Summary of Project Costs for GMR 24B Project (GS-14003) Pre-Design/Design Costs $54,720
Material (City Provided) $3,500
Construction Costs $7,826,860
10% Contingency $782,686
Staff Time (Includes Engineering, Operations, & Inspection) $824,575 Trench Cut Fees $113,945
Soil Compaction Testing $20,000
Total Project Cost $9,626,286
GS-14003 Budget Available $8,433,545
Additional Funds Needed $1,192,741
The size of this project significantly exceeds the City’s in-house construction resources, making it necessary to contract out the work.
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STAKEHOLDER ENGAGEMENT
Utilities infrastructure work has been coordinated with Public Works street paving activities to comply with City’s pavement moratorium and to avoid cutting into streets that have been paved within past 5 years. Staff’s GMR 24B project communications will include project notifications mailed to all residents and businesses near the vicinity of University Ave and surrounding streets in the University Park and Crescent Park neighborhoods, a business district complex on Geng Road, and Town & Country Village Plaza at least 30 days prior to the commencement of work.
Daleo, Inc. will distribute project notifications to each property a minimum of 15 days and again 24 hours prior to beginning work. Additional project notification will be provided to the businesses at the Town & Country Village and Palo Alto High School. The Contractor will provide two Construction Message Boards (CMBs) at each end of University Avenue a minimum of 30 days in advance of beginning work on University Avenue. The CMBs will be moved as the project advances and will remain until all work on University Avenue is complete. A link to the City website for the GMR 24B project will be included in the mailed project notifications. Additional communications will be distributed to the subscribers through the City online social media accounts using Twitter, Facebook, Instagram, and Nextdoor. The construction is expected to commence on February 2024 and be completed by April 2025.
POLICY IMPLICATIONS
The approval of this contract and implementation of this project are consistent with existing City goals, policies, programs, and plans including:
Utilities Strategic Plan
The recommendation conforms with the 2018 Utilities Strategic Plan Priority 4 Strategy 1:
“Establish a proactive infrastructure replacement program, based on planned replacement before failure to support reliability and resiliency.”
ENVIRONMENTAL REVIEW
The project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302(c), replacement or reconstruction of existing utility systems or facilities.
ATTACHMENTS
Attachment A: GMR24B Bid Summary Table
Attachment B: GMR24B Project Locations Map
APPROVED BY:
Dean Batchelor, Director Utilities
Staff: Aaron Perkins, Principal Gas Engineer
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ATTACHMENT A
Gas Main Replacement Project 24B Bid Opening Date 8/1/23 GS-14000
187903
Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 1 5,956 LF Install 2" Gas MDPE pipe by horizontal directional drilling 193.00$ 1,149,508.00$ 162.55$ 968,147.80$ 413.00$ 2,459,828.00$ 474.23$ 2,824,513.88$ 2 3,049 LF Install 2" Gas MDPE pipe by open trench excavation 345.00$ 1,051,905.00$ 310.85$ 947,781.65$ 415.00$ 1,265,335.00$ 597.25$ 1,821,015.25$ 3 1,738 LF Install 4" Gas MDPE pipe by horizontal directional drilling 223.00$ 387,574.00$ 246.00$ 427,548.00$ 405.00$ 703,890.00$ 481.65$ 837,107.70$ 4 655 LF Install 4" Gas MDPE pipe by open trench excavation. 497.00$ 325,535.00$ 670.00$ 438,850.00$ 435.00$ 284,925.00$ 650.85$ 426,306.75$ 5 3,644 LF Install 6" Gas MDPE pipe by horizontal directional drilling 257.00$ 936,508.00$ 254.00$ 925,576.00$ 415.00$ 1,512,260.00$ 547.75$ 1,996,001.00$ 6 997 LF Install 6" Gas MDPE pipe by open trench excavation. 531.00$ 529,407.00$ 678.00$ 675,966.00$ 445.00$ 443,665.00$ 658.11$ 656,135.67$ 7 145 LF Install 8" water PVC pipe by open trench excavation 325.00$ 47,125.00$ 485.45$ 70,390.25$ 410.00$ 59,450.00$ 1,200.73$ 174,105.85$ 8 30 EA Install Anode Box 250.00$ 7,500.00$ 500.00$ 15,000.00$ 1,000.00$ 30,000.00$ 1,598.36$ 47,950.80$ 9 127 EA
Install 1" PE Gas Service Line Including EFV and 1" Riser with OR without a bypass at the existing gas meter location by horizontal directional drilling OR open trench excavattion 8,000.00$ 1,016,000.00$ 10,375.25$ 1,317,656.75$ 4,760.00$ 604,520.00$ 20,913.79$ 2,656,051.33$ 10 101 EA
Install 1" PE Gas Service Stub and EFV for the City to reconnect the existing 1" PE gas service to new main by horiziontal directional drilling OR open trench excavation 2,750.00$ 277,750.00$ 4,750.00$ 479,750.00$ 2,600.00$ 262,600.00$ 15,036.24$ 1,518,660.24$ 11 3 EA
Install 2" PE Gas Service Line Including 2" PE ball valve and/or EFV and 2" Riser with a 1-1/4" or 2" bypass at existing gas meter location by horizotnal directional drilling OR open trench excavation 10,000.00$ 30,000.00 $ 11,875.25$ 35,625.75$ 5,100.00$ 15,300.00$ 23,281.60$ 69,844.80$ 12 4 EA
Install 2" PE Gas Service Stub with 2" PE ball valve and/or EFV for the City to reconnect the existing 2" PE gas service to new main by horizontal directional drilling OR open trench excavation 3,600.00$ 14,400.00 $ 6,500.00$ 26,000.00$ 3,000.00$ 12,000.00$ 12,029.39$ 48,117.56$ 13 3 EA
Install 2" water HDPE service to 5/8” or 1” meter by directional drilling OR open cut method and install new Armorcast water meter box and echange meter at new or existing water meter location. 5,000.00$ 15,000.00 $ 9,200.00$ 27,600.00$ 5,100.00$ 15,300.00$ 13,722.67$ 41,168.01$ 14 10 EA
Install a 2" residential steel pipe bollards filled with concrete at existing gas meter location per Standard Detail WGW-05A 550.00$ 5,500.00$ 650.00$ 6,500.00$ 770.00$ 7,700.00$ 1,002.36$ 10,023.60$ 15 7 EA
Install a 4" residential steel pipe bollards filled with concrete at existing gas meter location per Standard Detail WGW-05B 750.00$ 5,250.00$ 850.00$ 5,950.00$ 1,900.00$ 13,300.00$ 1,020.70$ 7,144.90$ 16 48 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 25 SF) 3,000.00$ 144,000.00$ 6,800.00$ 326,400.00$ 4,800.00$ 230,400.00$ 15,654.44$ 751,413.12$ 17 10 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 50 SF) 5,000.00$ 50,000.00$ 10,100.00$ 101,000.00$ 6,800.00$ 68,000.00$ 18,955.18$ 189,551.80$ 18 2 EA
Replace existing gas meter box and lid with Armorcast Polymere Concrete Utility Box (24" x 36" x 18") with extensions and one-piece cover per Standard Detail GD- 21 3,800.00$ 7,600.00 $ 4,800.00$ 9,600.00$ 4,500.00$ 9,000.00$ 2,849.83$ 5,699.66$ 19 1 EA
Install, test, tap, and tie-in 6" PVC water main with saddle to existing 6" cast iron water main 6,000.00$ 6,000.00 $ 22,000.00$ 22,000.00$ 11,000.00$ 11,000.00$ 21,441.67$ 21,441.67$ 20 2 EA Perform 6" water main tie-in/abandonment 4,500.00$ 9,000.00$ 18,000.00$ 36,000.00$ 4,500.00$ 9,000.00$ 8,576.67$ 17,153.34$ 21 1 EA Perform GPS survey 60,000.00$ 60,000.00$ 84,000.00$ 84,000.00$ 40,000.00$ 40,000.00$ 168,003.16$ 168,003.16$ Total 6,075,562.00$ 6,947,342.20$ 8,057,473.00$ 14,287,410.09$ Gas Total 5,998,437.00$ 6,791,351.95$ 7,962,723.00$ 14,033,541.22$ Water Total 77,125.00$ 155,990.25$ 94,750.00$ 253,868.87$ Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 22 5 EA
Install 1" PE Gas Service Line Including EFV and 1" Riser with OR without a bypass at a NEW gas meter location by horizontal directional drilling OR open trench excavattion 8,000.00$ 40,000.00 $ 10,375.00$ 51,875.00$ 4,760.00$ 23,800.00$ 13,846.52$ 69,232.60$ 23 5 EA Abandon existing anode box / valve 750.00$ 3,750.00$ 400.00$ 2,000.00$ 500.00$ 2,500.00$ 1,830.02$ 9,150.10$ 24 10 EA Install sanitary sewer cleanout 3,800.00$ 38,000.00$ 400.00$ 4,000.00$ 500.00$ 5,000.00$ 1,109.06$ 11,090.60$ 25 10 CY Recycle asphalt containing petro mat 18.00$ 180.00$ 24.00$ 240.00$ 100.00$ 1,000.00$ 540.45$ 5,404.50$ 26 1,500 SF Install additional pavement (up to 10" thickness of concrete base) 4.00$ 6,000.00$ 4.50$ 6,750.00$ 5.00$ 7,500.00$ 73.43$ 110,145.00$ 27 2,000 SF Install additional pavement (up to 10" thickness of ashpalt concrete base) 6.00$ 12,000.00$ 4.00$ 8,000.00$ 6.00$ 12,000.00$ 37.38$ 74,760.00$ 28 5,000 Inch/SF Install additional finished pavement (concrete thickness) 1.00$ 5,000.00$ 2.00$ 10,000.00$ 1.00$ 5,000.00$ 13.35$ 66,750.00$ 29 5,000 Inch/SF Install additional finished pavement (asphalt concrete thickness) 1.50$ 7,500.00$ 2.00$ 10,000.00$ 1.00$ 5,000.00$ 10.68$ 53,400.00$ 30 500 LF Perform additional saw cutting 2.00$ 1,000.00$ 4.25$ 2,125.00$ 3.00$ 1,500.00$ 5.01$ 2,505.00$ 31 250 LF Install additional curb 30.00$ 7,500.00$ 30.00$ 7,500.00$ 20.00$ 5,000.00$ 166.89$ 41,722.50$ 32 250 LF Install additional gutter 30.00$ 7,500.00$ 30.00$ 7,500.00$ 20.00$ 5,000.00$ 166.89$ 41,722.50$ 33 500 SF Install additional sidewalk 15.00$ 7,500.00$ 28.00$ 14,000.00$ 20.00$ 10,000.00$ 60.08$ 30,040.00$ 34 10,000 Inch/LF Sawcut additional pavement (thickness) 0.40$ 4,000.00$ 1.25$ 12,500.00$ 1.00$ 10,000.00$ 5.01$ 50,100.00$ Project Title
CIP No.
Section A - Base Bid
Engineer's Estimate Daleo Inc
Section B - Add Alternatives - Supplemental Unit Pricing (SUP) Engineer's Estimate Daleo Inc
PR No.
Ranger Pipelines Inc
Ranger Pipelines Inc
ARB Inc
ARB Inc
Item 6
Attachment A - GMR24B Bid
Summary Table
Item 6: Staff Report
Pg.
8 Packet Pg. 30 of 228
ATTACHMENT A
35 1 EA Remove meter box 500.00$ 500.00$ 500.00$ 500.00$ 500.00$ 500.00$ 4,140.68$ 4,140.68$ 36 10 Ton Disposal of excavated soils at Class 1 landfill 450.00$ 4,500.00$ 700.00$ 7,000.00$ 50.00$ 500.00$ 313.82$ 3,138.20$ 37 10 Ton Disposal of excavated soils at Class 2 landfill 350.00$ 3,500.00$ 600.00$ 6,000.00$ 100.00$ 1,000.00$ 313.82$ 3,138.20$ 38 20 EA Additional pothole 700.00$ 14,000.00$ 650.00$ 13,000.00$ 500.00$ 10,000.00$ 1,852.74$ 37,054.80$ 39 5 EA
Investigate and removal/relocation of sewer lateral obstructions by open-cut excavation in paved area 3,500.00$ 17,500.00 $ 5,500.00$ 27,500.00$ 2,000.00$ 10,000.00$ 3,179.41$ 15,897.05$ 40 5 0
Investigate and removal/relocation of sewer lateral obstructions by open-cut excavation in unpaved area 2,500.00$ 12,500.00 $ 4,500.00$ 22,500.00$ 2,000.00$ 10,000.00$ 2,218.13$ 11,090.65$ 41 1 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (>5-ft in depth, up to 25 SF) 5,000.00$ 5,000.00$ 6,800.00$ 6,800.00$ 5,500.00$ 5,500.00$ 19,602.15$ 19,602.15$ 42 1 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (>5-ft in depth, up to 50 SF) 10,000.00$ 10,000.00$ 10,100.00$ 10,100.00$ 7,500.00$ 7,500.00$ 19,881.41$ 19,881.41$ 43 1 EA Install 6" line stop on 6" cast iron water main 15,000.00$ 15,000.00$ 18,500.00$ 18,500.00$ 8,000.00$ 8,000.00$ 20,026.63$ 20,026.63$ 44 1 EA Perform 6" water main tie-in with 6" tee on existing 6" cast iron water main 3,000.00$ 3,000.00$ 26,000.00$ 26,000.00$ 5,000.00$ 5,000.00$ 10,680.87$ 10,680.87$ Total 225,430.00$ 274,390.00$ 151,300.00$ 710,673.44$ Gas Total 207,430.00$ 229,890.00$ 138,300.00$ 679,965.94$ Water Total 18,000.00$ 44,500.00$ 13,000.00$ 30,707.50$ Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 45 1,219 LF Install 2" Gas MDPE pipe by horizontal directional drilling $ 193.00 235,267.00$ 149.50$ 182,240.50$ 413.00$ 503,447.00$ 325.49$ 396,772.31$ 46 75 LF Install 2" Gas MDPE pipe by open trench excavation $ 345.00 25,875.00$ 285.50$ 21,412.50$ 415.00$ 31,125.00$ 820.80$ 61,560.00$ 47 2 EA Install Anode Box $ 250.00 500.00$ 500.00$ 1,000.00$ 1,000.00$ 2,000.00$ 1,598.36$ 3,196.72$ 48 3 EA Install 1" PE Gas Service Line Including EFV and 1" Riser with OR without a bypass $ 8,000.00 24,000.00$ 9,910.00$ 29,730.00$ 4,760.00$ 14,280.00$ 22,587.50$ 67,762.50$ 49 1 EA Install 1" PE Gas Service Stub and EFV for the City to reconnect the existing 1" PE $ 2,750.00 2,750.00$ 4,750.00$ 4,750.00$ 2,600.00$ 2,600.00$ 20,961.29$ 20,961.29$ 50 3 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 25 SF) $ 3,000.00 9,000.00$ 6,800.00$ 20,400.00$ 4,800.00$ 14,400.00$ 16,573.08$ 49,719.24$ 51 1 EA Perform GPS survey $ 5,000.00 5,000.00$ 10,000.00$ 10,000.00$ 5,000.00$ 5,000.00$ 12,923.32$ 12,923.32$ Total 302,392.00$ 269,533.00$ 572,852.00$ 612,895.38$ Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 52 1,041 LF Install 2" Gas MDPE pipe by horizontal directional drilling 193.00$ 200,913.00$ 248.70$ 258,896.70$ 413.00$ 429,933.00$ 595.77$ 620,196.57$ 53 375 LF Install 2" Gas MDPE pipe by open trench excavation 345.00$ 129,375.00$ 518.50$ 194,437.50$ 415.00$ 155,625.00$ 754.78$ 283,042.50$ 54 2 EA Install Anode Box 250.00$ 500.00$ 500.00$ 1,000.00$ 1,000.00$ 2,000.00$ 1,598.36$ 3,196.72$ 55 14 EA
Install 1" PE Gas Service Line Including EFV and 1" Riser with OR without a bypass at the existing gas meter location by horizontal directional drilling OR open trench 8,000.00$ 112,000.00$ 8,500.00$ 119,000.00$ 4,760.00$ 66,640.00$ 15,700.55$ 219,807.70$ 56 1 EA Install 1" PE Gas Service Stub and EFV for the City to reconnect the existing 1" PE 2,750.00$ 2,750.00$ 4,750.00$ 4,750.00$ 2,600.00$ 2,600.00$ 14,419.37$ 14,419.37$ 57 1 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 25 SF) 3,000.00$ 3,000.00$ 6,800.00$ 6,800.00$ 4,800.00$ 4,800.00$ 17,634.26$ 17,634.26$ 58 1 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 50 SF) 5,000.00$ 5,000.00$ 10,100.00$ 10,100.00$ 6,800.00$ 6,800.00$ 16,279.43$ 16,279.43$ 59 1 EA Perform GPS survey 5,000.00$ 5,000.00$ 10,000.00$ 10,000.00$ 5,000.00$ 5,000.00$ 12,923.32$ 12,923.32$ 60 1 EA Town & Country Village - Perchloroethylene (PCE) contamination work restrictions 100,000.00$ 100,000.00$ 5,000.00$ 5,000.00$ 12,000.00$ 12,000.00$ 73,023.85$ 73,023.85$ Total 558,538.00$ 609,984.20$ 685,398.00$ 1,260,523.72$ Summary excluding SUP Engineer's Estimate Daleo Inc Ranger Pipelines Inc ARB Inc ……………………………………………………………………………………………………………………….. 6,075,562.00$ 6,947,342.20$ 8,057,473.00$ 14,287,410.09$ ……………………………………………………………………………………………………………………….. 225,430.00$ 274,390.00$ 151,300.00$ 710,673.44$ ……………………………………………………………………………………………………………………….. 302,392.00$ 269,533.00$ 572,852.00$ 612,895.38$ ……………………………………………………………………………………………………………………….. 558,538.00$ 609,984.20$ 685,398.00$ 1,260,523.72$ ……………………………………………………………………………………………………………………….. 6,936,492.00$ 7,826,859.40$ 9,315,723.00$ 16,160,829.19$ Gas Summary excluding SUP Engineer's Estimate Daleo Inc Ranger Pipelines Inc ARB Inc ……………………………………………………………………………………………………………………….. 5,998,437.00$ 6,791,351.95$ 7,962,723.00$ 14,033,541.22$ ……………………………………………………………………………………………………………………….. 207,430.00$ 229,890.00$ 138,300.00$ 679,965.94$ ……………………………………………………………………………………………………………………….. 302,392.00$ 269,533.00$ 572,852.00$ 612,895.38$ Base Bid (Items 14 through 29)
Add Alternate - SUP (Items 35 through )
Add Alternate Geng Rd (Items 53 through 59)
GRAND TOTAL
Add Alternate - SUP (Items 22 through 44)
Base Bid (Items 1 through 21)
Section D - Additive Alternate Bid - Town & Country
Engineer's Estimate Daleo Inc
Add Alternate Geng Rd (Items 45 through 51)
Add Alternate T&C (Items 52 through 60)
Ranger Pipelines Inc ARB Inc
Section C - Additive Alternate Bid - Geng Rd
Engineer's Estimate Daleo Inc Ranger Pipelines Inc ARB Inc Item 6
Attachment A - GMR24B Bid
Summary Table
Item 6: Staff Report
Pg.
9 Packet Pg. 31 of 228
ATTACHMENT A
……………………………………………………………………………………………………………………….. 558,538.00$ 609,984.20$ 685,398.00$ 1,260,523.72$ ……………………………………………………………………………………………………………………….. 6,859,367.00$ 7,670,869.15$ 9,220,973.00$ 15,906,960.32$ Water Summary excluding SUP Engineer's Estimate Daleo Inc Ranger Pipelines Inc ARB Inc ……………………………………………………………………………………………………………………….. 77,125.00$ 155,990.25$ 94,750.00$ 253,868.87$ ……………………………………………………………………………………………………………………….. 18,000.00$ 44,500.00$ 13,000.00$ 30,707.50$ ……………………………………………………………………………………………………………………….. -$ -$ -$ -$ ……………………………………………………………………………………………………………………….. -$ -$ -$ -$ ……………………………………………………………………………………………………………………….. 77,125.00$ 155,990.25$ 94,750.00$ 253,868.87$ Base Bid (Items through 42)
Add Alternate - SUP (Items through 60)
Add Alternate Geng Rd (Items Add Alternate - SUP (Items 22 through 44) through GRAND TOTAL) Add Alternate T&C (Items through )
GRAND TOTAL
Add Alternate T&C (Items through )
GRAND TOTAL
Item 6
Attachment A - GMR24B Bid
Summary Table
Item 6: Staff Report
Pg.
10 Packet Pg. 32 of 228
489-
499
425
400
570
568
556
550327
328
536-
540
591-
599
330
318
406-418
417
568
578
440-446
579
567
625
610
600
624
511
517
524
555
581
329
634
576
257
259
228
660
236
228
218
242
250
676
688
644
154-158
428
422
416
732
724
328
434
352
360
401
760
402
311
312
817-829
831-
845
421
425
530
775
771
723
608
618
755
705
680
721
641
639
637
633
640
634
728
750
764
776
788
744
752
759
755
757
744
738
740
670
650
649
641
644
627
628
619
750
762
766
780
620
605
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969
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940
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958
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1 498
805
815
445
433
810
830
811
833
526
880
909
925
900
830
860
821
827
750
812-
822
836-
846
848-
858
835
851
850
860
880
871
881
404
970
950
920
449
919
969
480
470
460
440
420
960
970
980
400
950
930
939
435
1021
859
827
840
905
649
633
627
900
920
930
938
940 656
664
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972
877
890
880
960
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947
935
701
645
655
665
990
1099
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1002
1101
1051
10411031
910
920
930
932
938 936
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950
956
1058 1066105010401030
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1140 1146
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1100
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1120
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1126
1017
1023
1021
1009
1007
1001
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515
525
545
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575
565
1101
1130
625
509
567
1101
1125
480
50 1111
555
1109
1107
580
570
560
1001
1031
1170
1250
1050
460
1310
1280
12901270
1340
1394
1376
1145
1133
1125
1121
1117
35 1136
1330
55 47
1115
1260
475
1116 1130
1144
1137
1149
1171
1001
1011
1025
1053
1180 10631156
1170
1127
1175 1181
1105
991
1170
1210
1205
1140
1060
1050
1121
1187118511831181
11771175
1165
1153
1156
1168
1170 1178 1184 1190 1196
1145
1141
1131
11411137
1425
1405
1235
1245
14401420
1410
1450
423
1353
1181
1169
1163
520
1570
1560
1556
1201
1505
1 1370
1531
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1600
1650
580
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505
1401
548
566
125
165
593
590
557
585
245
170
190
200
1408
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441
430
420
421
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456
440
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1144
1134
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400
455
405
401
420
419
418
15 45
63 51
39 27
16 24
90 1771
1755
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1737
1661
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70 97
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525
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241
275
1870
80 1365
95 87
79 10
150
212
684
204
211
201
133
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710
730
130
120
744
770
798
320
771
245
235
225
754
784
215
225
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786
788
247
253
820
482
490
483
1189
620
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417
1148
630
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834
778
763
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555
678
333
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669
937
933
963
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8 519
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518
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1418
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872
801
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548
200
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637
563
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720
533
235
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1103
830
437
657
121
451
434
234
707
811
525
1120
525
765
772
604
645-651
838A
833
536
1449
438
675
335
823
529
610
636
830
665
236
530
820
1094
742
576
318
752-
766
550
355
515
951
1147
539
969
245
1044
912
959
1010
575
520-
526
680
630
540-546
999
332
638
336
237
925
631
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737
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649
623
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543
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412
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644
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115
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164-168
734
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782
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668
656Bldg C
336
228
765
405
428
1085
656Bldg D
418
840
1057
329
500
625
426
321
328
544
780
345
478
660
761
573
603
320
60B
614
1030
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325
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835
1167
211
865
870
860
740
859
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780
344
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608
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528
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951-955
880
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351
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319
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423
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260
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417
861
518
550
557
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360
243-247
800
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642
552
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515
425
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435
243
770
1730
600
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876
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251
524
250
1307
419
1087
357
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1233
537
630
235
715
541-547
831
812
365
561
731
229
780-
798
430
542
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848
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875
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804
720
227
664
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409
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345
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416
311
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320
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537-555
213
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930
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790
240
864
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422
465
565
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401
1071
348
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1025
343
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1131
1625
428
352
579
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334
870
212
1139
928
851
616A
256
558-
562
730
945
825
575
1121
840
360
633
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961
725
244
909
437
342
60 1042
531
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415
615
1019
555
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434
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489
221
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187
639
836
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359
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222
1321
865
654
842
212
445-455
761
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519
527
1828
1836
559
571
1850
604
543
1565
1525
601
640
651
635
625
1651
1711569
563
555
570
535
525
521
1669
1631
526
544
578
1700
595
566
1720
680
658
650
1730
1732
667
659
651
643
635
627
611
619
1745
1733
1755
620
634
626
618
1741
1729
1717
1707
780
790
744
111
735
847
842
828
248
230
825
829
839
831
801
815
718
745
209
834
836
895
934
942
910
926
935
759
905
1008
541
685
500
302
324
340
848
751
1207
727
733
214
1305
807
829
801
818-824
420
424
430
911
943
951
940
944
271
253
241
301
319
935
928
1010
423
425
733-743
936
920
1515
152
808
915
206
739
840
642
643
1018
1120
426
756-760
940
534
930
1330
673
819
725
828
229
668
821
250
651
643
528
540
931
933
1336
1300
405
409
1225
538
443
927A
705
1177
1701
644
275
467
160
795
1280
340
451
625
650
1246
1700
855
857
872
501
359A
355A
604
1421
1048
367
918
729
300
862A
385Bldg D
1028
1216
281
358A
1119
904
539
903
1248
939
1736
1620
1861
432-438
536
646
351
434
463
521
1525
355
437
350
1239
630
737
458
1224
1232
444
730
631
1035
800-818
909A
1275
1950
831-835
381
425
936
740-746
839-855
631
907
1500
1032
223-
239
845
1119
1233
1705
351
505
171
1201
1700
837
212
936-940
865
909
1015
445
521
971
834
285
650
627
1550
1005
175
240
708
960
824-828
1302A
1665
569
475
1036
1189
1290
1853
1720
352
917
449
162
801
270
1832
459
1633
610
1319
558
315
361
865A
1015
654
539
501-
505
525
1036
840
626
540
1130
445
1144
528
365Bldg C
363A
616
903A
918
761
936A
1252
532
544
1716
195
540
932
1821
520
435
610
1736
817
538
852A
1160
703
915
351A
210
745
778
947
852
1725
1013
1311
1215
1138
220-
244
1046
919A
509
561
635
1011
365
363
602
825
619
325
905A
469
151-
155
375Bldg C
600
1168
1325
505
525
1620
818
1276
833
1401
160
507
201
185
315-
325
332
940
936
1640
836
830
1328
260
1152
1030
601
1729
232
919
528A
663
774
675
Bldg A
828
1708
200
819
904B
1738
453
503
441
360
959
1270
685
1830
707
913
140
1332
640
623
698
1320
540
1243
744
1699
730
465
151-
161
436-440
690
Bldg D
911
490
872A
1302
1314
460
946
777-791
537
1037
909A
1230
904
270
835
820
949
1120
762-776
1005
325
1625
455
359
1105
1630
704
1176
1280
1655
518
439
264
862
965
1127
753
727
555-595
707
1030
642
1033-1037
925
221-
227
905
622
1030
734
832
353
367A
820
832A
358
701
448
261
925
310
1336
909
724
1330
945
372
1155
1027
832
1141
702-730
465
927
1715
1630
441
731
1010
1111
915
1022
541-549
367
1726
664
165
1034
842A
1451
354
926
909
1017-1023
845
589
842
1308
629
425-
443
527
700
345
490A
523
1238
445A
483
2121
2101
1400
450
325
365
355
353
345
343
335
333
327
530
1357
1435
140
144
103
1347
106
1260
1300
1326
152
1336
159
151
135
117
1263
134
1143
319
303
235
252
1200
262
251
1160
1344
1352
1360
220
1510
160
180
1492
159
151
145
140
143
133
126
118
160
1402
168
1420
215
227
1485
1429
1401
230
240
242
244
1440
256
270
150
152
110
114
225
259
1570
265
1536
236
237
260
1520
1500
1505
1521
224
251
1450
263
260
320
364
352
328
340
342
1525
1501
1535
301
305
1551
1345
333
305
343
339
1325
1321
374
356
1201
1225
305
315
321
334
325
335
353
363
1240
1248
330
340
1221
1245
409
340
330
350
355
354
1400
345
1303
440
1321
1329
1331
425
427
473
1390
1330
360
1450
369
342
330
1445
1431
335
1650
1600
1715
1709
300
380
356
1664
315
301
312
330
340
300
1410
1401
1415 525
1416
1440
1451
1499
541
1530
1550
464
1525
1511 435
421
1545
1557
1617
1527
460
474
2105
2115
511
524
514
545
555
515
2085
2112
481
461
441
2180
460
534
550
565
575
585
2126
2144
2150
566
546
561
575
585
580
545
535
510
2175
2176
2164
540
2230
2231
1680
249
1637
215
1652
1664
161
1750
156
160
1756
140
290
280
250
1750
233
243
225
219
1751
265
251
299
218
226
220
221
200
1703
1749
317
335
236
234
244
270
258 1828
1836
253
1818
1865
310
1837
320
339
344
1826
1850
350
358
271
1850
1900
345
1820
385
370
354
348
1925
310
311
1932
355
1862
1944
1952
2020
2045
2065
1935
435
2040
2020
1990
1933
1921
420
1911
4701934
1940
1936
1955
1920
1930
455
491
1415
92 1520
1512
96 1527
105
111
1445
119
135
112
102
127
129
215
1520
1536
1564
150
1570
159
151
141
136
181
119
109
200
186
166
1628
1636
151
131
143
1635
110
102
144
134
1547
1539
135
133
120
128
112-120
125
127
1728
1327
357
1820
129
1635
373
375
1657-1663
132
118
458
142
86 1250
289
158
160
1559
1768
136
138
123
337
327
142
1224
2021
247
1337
1251
1436
257
1425
345
1505
1220
123 121
14461448
255
1610
1851
138
1550
1425
14521464
1875
1655
1552
335
1500
138A
1235
1437
336
271
1325A
1335
140
1951A
1300
364
1421
1541
235
1445
458
1445A
334A
1435
126-130
335
334
1560
1566
1525
1319
1551
1310
433
228
250
119
335A
1650
360
1543
243
1341
1345
374
1550
221
410
1519
1336
1444
231
127
1554
2030
1301
375
232
1545
1404
62 450
237
127A
1729
375A
1645-1651
1910
1951
434
1310
2050
1929
345A
275
1628
1549
154
235
1343
1427-1431
1555
320
1433
440
1511
342
1331
325
444
170
1995
1339
1655B
160
233
933-937
1001
318
102
151
128
1210
1230
1234
1246
1101
1128
1120
1112
1111
115
104
116
120-124
107
109 111
127-131
133
135
1245
112
114
150
130
179
189
1028
1036
1044
1052
1013
1021
1029
1037
1047
1057
1020
1024
1030
1040
1048
251
1035
1027
1023
1017
1001
1111
1121
1129
1116
1112
1106
1102
132
1060
1043
151
1090
1080
1040
1028
1102
1118
160
1111
1119 1127
1174
1176
1134
1128
1053
1055
155
157
210
308
1135
200
222
223
1133
1135
1103
1115
1139
1147
257
1148
1140
1130
1116
1106
1100
1215
1156
1132
825
805
51 75
63 841
44 675
49 711
799
1019
1035
1052
1044
1061
1045
1028
1020
1001
1005
1009
1015
1027
1037
1010
1024
1004
930
929
181
960
145
900
955
875
853
925
87 1038
1036
849
165
926
190
948
203
209
219
225
929
50 332
918
1020
949
943
941
904
27 29
945
1012
225
1032
901
1251
1148
691
1103
1107
625
795
160
158
1200
108
101
103
603
1170
221
1155
152
100
144A
1141
938
Bldg 5
809
1249
Bldg 4
1327
81 103
1125
1329
1121
118
907
1243
944
98 940
1027
15 159
901
901
101
41 936
1215
1000-1006
909
1235
33 855
921
100
827
931
841
105
144
1237
112
166
116
903
1239
1085
1101
Bldg 3
113
905
800
85 917
999
934
882
1241
945-975
801
136
Bldg 1
1247
122
118
120
Bldg 2
107
1175
105
948
925
960
910
896
890
860
880
1475
1450
1400
1471
1476
1470
1542 1550 1560 1568
901
1514 1524
1532
921
941
1586
204
1578
210216228 222
240
1507
1526
1516
809
825
841
861
897
707
705
1535
867
873
879
1482
1488
1494
1491
1490
1487
1481
1482
1486
1491
780
1490
1494
1498
777
723
1537
765
761763
160115951585
730
722
718
773
785
781
1517
1527
855
721
719
717
715
713
711
762
759
1536
1530
735
745
755
725
1516
729
725
663
665
925
753
975
1610
16301624
1616
196
194
192
190
16291621
751755
757
1613
726
754
750
746
742
738
734
1590
1600
798
1636 1644 1650
1656
1664
188
186
184 182
1670
1676
180
1684
174
749
747
745
728
742
756
770
784
700741
743
1610
714
1796
680
660
640
1772
1748
1724
1700
1698
1682
1668
1733
1765
586
591
1701 1717
17361712 1724
212
366
360
356
170 1690
1696
199
203
207
211
215
1807
581
587
651
681
1765
1810
1795
580
178417761748 1760
350
340
336
621
1595
1533
1537
1539
1543
1547
1551
1555
1561
1565
1571
1581
1591
1601
690
1610
1602
1596
1586
1576
1566
1558
1550
1580
1550
1544
1540
739
737
735
733
731
1607 582
579
572
588
576
570
564
558
569
559
552
1689
1661
549
555
561
556
562
567
568
573
574
579
585
601
1646
583
577
1450
1458
1471
1440
1437
1445
185
1411
1478
1479
1475
1462
1496
1486
1476
1495
1491
1487
1483
1469
1473
1477
1465
1461 1480
1484
1476
1468
1472
1481
1485
1489
1457
670
1488
1499
580
6 8
10 1511
1515
1523
1531
580
14 1505
1516
5 655
1525
1529
1542
1530
1526
1518
1510
603
12 1492
1470
1466
575
565
1505
1515
705
1462
1475
1479
1485
1491
1431
1441
1451
1457
1465
1475
1500
1525
1450
475
1459
1467
1444
570
566
578
570575
569
562
561
554
555
1575
532
539
538
544
547
550
555
558
563
553
547
546
540
541
534
535
528
529 522
523 516
517
537
543
1532
1540
1548
1558
1568
1588
510
558
554
550
546 538
530
15 11
7 1585
545
546
539
512
516
528
524
511
510
1629
1643
1657
1597
1605
1615
1606
182018081796330
326
320
1822
538
544
550
1836
1813
17971781
1814
1815 1823
563
563
570
575
269
2525
1730
519
525
531
1687
1673
513
1636
1524
1446
930
1460
1450
1491
877
1525
1468
727
1499
1456
1451
160
1449
1766
1455
1436
1570
1464
515
571
1480
1458
849
535
1565
976
1425
100
1670
1535
1690
368
2479
1517
1560
1607
1545
1485
705
531A
1444
1417
746
1625
2440
1498
531
961
930
1545
1452
1575
1616A
869
1453A
1555
1536
1454
709
1480
1537
1490
346
1457
1515
1474
893
758
234
1465
1509
523
893A
178
14 1721
1711
799
1210
1249
1430
1402
1259
1405
1200
14171401 14091395
1390
1442
14361430
1424
14141350
1509
1594
1844
1832
1808
1775
1751
1725
836
846
1825
1837
1820
1836
1849
1852
1873
1861
1868
852
1150 1551
1590
1584
1580
1570
1574
1564
1560
1554
1550
1544
153015241520
15141510
1534
1185
292
298
1174
1160
1543
291
1533
1525
1539
98 872
876
880
869
875
863
851
1889
868
860
1873
1855
857
864
1837
1884
841
872
866
1920
873
881
860
1900
877
848
854
842
1950
1992
890
1911
1916
2002
2022
2091
2096
2106
2126
2146
2181
1919
1969
1966
1950
1932
1982
1996
1989
2001
2019
2004
2020
2040
2060
2039
2065
2080
34 30
2108
2151
2125
2105
2093
2075
2114
2123
869
873
877
102
104
1585 881
885
889
108
110
112
114
116
893
897
118
901
907
911
120
122
107
105
103
108
101
885
881
1900
106
1595
147
144
145
140
143
141
132
117
119
139
129
136
128
115
113
111
120 124
109
112
116
1563
149
145
125
121
117
113
1167
109
1555
1175
10 70
50 30
148
135
921
135
125
121
115
111
142
131140
130
134
138
126
917
61134
130
51 124
41 120
31 20
947
953 957
961
965
110
40 130
120
940
944
948
10 38
26 22
18 42
11 101140
144
111
150 184112
108
131
102
144
146
141
145
151
107
1401
1431
1451
1471
1351
1405
1425
1445
1449
1060
1040
1470
1450
1402
1350
1491
1010
246981
1003 250
2561017
1031 262
2681045
274
280
286
1087
1073
1059
1146
1132
1104
111873
61 49 1082
1058
37 25 1034
205
201235
249
255 38
26 50261
62267
74273
279
86 285
85 97
167
195 193
189
188
184
180
1061
1021
187
176
172
168
181 179
161
159
169
157
155
153
156
152
151
164
1111
1131
189 185
181 177
153
31 51 71
90 149
191 185
183
115
154
121
160
125164
170 129
184
190
194
365 359 355
345 339
335
128 164
170124
174120
178116
137 141 149
153
148
150
152
154
156
158
160
166
133
155
161
165
171
181
185
191
195
162
2111
2121
2156
2142
2128
909
917
969
140
160
150
973
185
960
964
968
15 35
55 2564
1010
2632
2618
2651
2631
2613
1080
26011021
1011
2579
2591
2563
2551
1031
1074
1062
1072
1082
1052
1051
1063
1053
1054
2444
2456
2480
2492
2468
2506
25182527
25392505
2515
1057
2395
1033
1037
1043
2374
2375
1049
1092
1098
2491
2477
2463
2449
2435
2421
2430
1075
1074
1073
1083
1084
1064
1063
2470
2440
2431
2455
2468
2456
2442
2390
2380
1065
1085
2360
2441
2429
1128
2392
1103
1107
2399
2391
2384
2376
2352
2351
2351
2363
2331
2329
2280
2340
2330
2350
2341
2296
2286
2290
2344
2336
2310
2300
1133
1125
1115
1119
2385
2377
2369
2361
2353
2345
2279
764
758
752
746
738
732
726
720
708
189218801868185618441832312
306
298
290
280
270
260
250
240
714
329 325 319
281
305
271
261
251
241
169
165
175
179
157
161
70 675
693
1917
1929
1938
1926
1914709
715
11 15
739
745
751
757
763
50 40
30 74 12
8 16
1853
1843
18501844
1840
1829
1831
561 559 557
1841 1847 1855
557
566 562 558
20 40
60 45
539
533
528
1835
637
609
1919
623
18911863
1860
1870
1880
690
555
1863 1871
551
1879
642
554
80 65
530
532
534
542
538
546
550
628
614
600
549
547 586
572
558
543
545
541 544
530
539
516
537
502
535
533
531
657
553
656
51 47
43 39
35 31
27 23
19 1950 1962
1974
1986
1990
1996
714
726
738
750
762
774
2190
777
2182
761
2170
749
2154
725
2146
715 2130
2020703
1161
1101
2285
2291
2297 2303 2311
2317
2337
2350
23512339
2320
1972
1958
682
690
1977
1965
1953
1941
658
19471933
1961
1975
674
1905
1893
1883
1906
1912
1918
1924
1936
1942
651643635
627
619611
587
571
559
543
531
517
501
650
642634
610
626
618
2115
2129
2145
2160
2148
2085
2073
2134
2120
2061
2104
2088
2058
2052
697
693
2015 2029
2090
2082
689
2074
685
2066
663
661
2058
2050
653
1949
1953
1979
1991
2003
2029
2047
2069
2079
2091
2101
2076
2070
2064
2028
2034
2022
2016
2010
2004
2000
1978
1972
1966
1960
2040
1954
1948
1930
657 2046
659
2073
2085
1069
1075
1086
2467
2450
2225
2370
1700
1802
1941
19391873
1863
1853
1843
1833
1823
1813
1803
17951761
525
509
515
527
1812
1822
529 1842527
1741
17211701
1699
532
526
520
1790
514
507
151
1947
1945
2480
25 2370
7 777
1547
1300
2452
197
1313
2060
2076
2081
1130
1408
2070
2072
2062
2078
20802082
20862088
2170
668
1902
948A
2450
1430
1511
1820
1710
145
2327
1722
1050
1213
180
1083
2053
2363
300
1862
14 2159
1832A
1921
1806
2386
2387
1731
2100
160
1540
2391
1755
11 1350
1420
2191
2180
1071
698A
2047
1862A
2641
1430A
11A
1832
2275
2190
1125
2340
1735
2200
Bldg 2
698
508
508A
2394
1916
1120
669
2025
1872
2197
2300
Bldg 3
2319
2327
1985
1726
349
2375
2023
1900
1540A
1944
1085
1410
2400
Bldg 4
2015
2330
1717
1055
1435
816
160A
1425
2387
2000
1930
2100
Bldg 1
175
1852
2027
157
2491
2170
810
854 865 931 2984937
3110
2147
2139
933
50 54
955
956
960
951
950
945
941
935
946
938
936
925
921
931
905
901
911
915
920
924
912
906
914
910
2205
912
2230
795
785
1015
977
981
985 989
993
190
180170
997
999
200
972
976
59 63
67 71
87 91
58 953
955
66 62
70 963
74 971
967
78 82
86 988
992
996
2120
90 2130
995
991
981
985
975
796
788
952
946
956
943
951
955
959
970
913
979
975
951
943
917
967
2424
963
967
977
981
985
990
984
978
2390
2370
972
976
982
986
992
956
962
968
954
958
962
966 974
981
966
962
989
985
903
907
940
971
2470
2448
2510
2490
2530
2548
2427
2439
2463
2451
2474
968 985
993
2621
26072487
2643
2640
992
2460
2475
979
2499
2420
2395
2432
2441
2459
2421
2473
2433
966
968
964
965
961
2202
978
972
971
975
991
985
2204
981
988
1018
2207
1013
959
955
2304
2316
2328
2276
976
982
992
986
974
2293
2261
2275
2243
2256
2244
2215
2217
2228
2227
2229
2216
2241
2200
951
1023
2227
2215
1050
1052
2201
1060
2145
1024
1040
1021
2135
1033
1044
1035
2305
2291
2315
2312
2324
2327
2337
2334
2349
2359
2383
2371
2368
2380
1011
1017
1023
2362
2350
2338
2328
2313
2316
2302
2270
2306
2279
2267
2253
2241
2200
2206
2216
2210
2246
2236
2211
2381
2368
2371
2361
2360
2250
2307
2317
2339
2276
2273
2267
2270
782
774
768
230
220
210
231
221
181
1039
79 75
55 786
1087
1079
1071
1063
1055
1047
785
1106
1110
2201
813
826 834
823
862
837
2643
825
2543
2480
2490
2567
841
878
2742
2722
2704
883
893
872
871
868
864
855
863
847
890
882
888
871
853
840
831
848
858
816
866
870
876
906
2701
2711
901
2811
917
900
2897
908
2876
2802
2824
2770
886
892
2790
928
920
912
2707
2739
926
2781
2796
877
871
2577
2585
2599
909
919
923
925
927
929
933
914
925
911
910
914
916
918
920
922
924
921
915
926
920
914
908
935
937
931
2569
930
934
938
978
960
966
972
926
922
984
990
971
967
956
952
946
963
957
940
951
945
939
936
932
942
935
939
948
915
922
930
938
946
954
951
947
943
963
955
976
955
962
959
970
963
967
973
1015
2669
2657
996
985
984
964
960
975
979
994
986
991
1003
1013
947
953
954
958
962
966
961
957
965
975
972
978
983
991
984
958
954
950
925
929
909
947
914918
2718
2708
1002
1008
2701
1020
1026
1027
2879 909
921
924
916
949
941
933
925
946
1081
1047
1063
1045
1041
2495
2496
1090
2479
962
966 970
974
978
982
2882
927
932
940
933
939
948
951
950
957
965
971
979
973
993
983
962
958
957
963
969
910
914
924
930
936
2924
2944
2914
968
1082
1088
1096
1092
2707
2743
2719
2731
1032
1038
1044
1050
1056
2742
2730
2768
910
906
2754
902
951
905
955
959
997
901
963
993
1098
1095
1021
1075
1071
1049
1012
1016
2755
1062
1072
1076
2809
2767
2791
2779
998
2792
2808
994
2826
990
986
2842
2862
2964
3024
3032
3040
3048
3056
3064
2979
2963
2947
972
966
960
2972
2950
2965
2945
2925
965
956
946
978
1013
1023
3095
951
961
971
3094
3102
960
2928
2970
2960
991
988
982
985
981
975
2993
1003
1001
2975
2965
970
3016
2931
968
3023
3039
3055
3068
3052
3020
3036
3017
3029
3041
3053
3065
3077
3084
3089
3071
1010
1020
1030
990
1032
1040
1042
1044
1046
1048
1078
1014
1010
1031
1005
1083
1079
1073
1047
1026
1022
1052
1056
1046
1042
1036
1032
1024
1020
1064
1060
1070
1074
1084
1080
1090
1094
2873
2857
2841
2955
2960
2956
2905
2889
1030
1040
1034
1050
1044
1054
1011
2978
2972
2968
2901
2903
2907
2905
2909
2911
2913
2915
2917
2919
2850
1062
1068
1074
1087
1095 1069
1067
1065
1049
1093
2800
1066
2585
2600
2575
2656
2650
2995
2891
2925
2721
1098
2550
939
945
2751
950
898
2155
2221
950
63 1039A
2462
2223
2468
2666
2325
1081
1177
1072
2456
880
2460
942
71 2963
1090
919
1102
931
1094
2290
1033
950
970
986
2335
1034
919A
1088
2452
1039
1022
1171
67 972
2454
2586
1145
2230
2261
2373
978A
1091
2220
2260
928
2466
945
1077-1107
Bldg B
1089
2303
2692
1037
2595
896
978
1141
983
2385
2240
2570
59 1079
2601
1109-1139
Bldg A
1143-1151
Bldg E
2358
1077
1139
1035
1093
941
1157
2361
1073
2293
1072
1080
909
2346
2290A
1087
2860
2464
957
1031-1061
Bldg D
1075
915
1031A
1030
2266
928B
1071
1031
1163
1031
991
1078
1183
1076
2226
971
2692A
2256
991
910
1151
900
2458
1063-1075
Bldg C
2347
896A
1770
1765
1750
1740
1730
1720
1735
1710
1700
1745
1755
1740
1760
1775
1780
1795
1805
1800
1825
1830
1840
1845
1860
1810
1892
821
1875
811
1880
1861
1868
1849
1835
1856
1815
1801
1885
831
1913
1776
850
858
897
898
892
838
848
868
878
836
849
839
830
824
829
818
819
812
806
869
859
885
2190
2180
2150
2130
2110
882
888
892
896
2090
2066
899
895
2042
891
2111
2174
2194
2191
2181
2151
2131
890
888
884
880
2005
1975
1990
1970
1944
1950
1965
1985
1976
1990
2005
2002
2020
2040
595
1941
1955
1940
1960
1900
630
1920
601
1875
627
560
669
678
666
650
1850
671
1870
691
639
646
1849
757
1775
1802
1823
701
1753
1748
1756
1766
1770
747
640
702
1801
651
655
661
663
2000
2075
2061
2070
2090
2025
2045
2060
2030
2020
2000
1950
1970
2001
2020
2041
2050
1999
1988
1985
1990
1998
2081
700
606
640
2120
2121
2130
2140
2150
650
590
2112
2066
2080
2090
2091
655
675
2080
2081
2048
2064
2063
2047
2031
2032
2015
2016
700
1835
1849
1875
1801
1800
1814
1811
1844
1821
1833
1965
1968
1948
1945
1918
1925
690
660
1830
1981
1961
1941
740
711
733
727
719
701
1991
720
710
737
747
730
740
765
755
1910
775
770
785
1885
1870
777
1875
1861
1881
1890
1874
1860
1845
1861
2001
2015
680
2120
2130
2140
2150
2121
2131
2160
2170
695
2151
2161
2171
2181
2170
2160
690
2220
2260
2201
2121
742
748
754
762
772
782
792
2160
771
761
751
766
713
723
743
703
2141
2111
2101
2091
2071
730
7272303
2311
711
713
715
717
719
725
723
721
745
757
753
745
737
733
723
717
716
720
724
728
732
712
740
764
762
736
743
731
741
817
810
753
765
769
775
779
783
789
801
805
809
770
776
780
2330
2350
766
765
769
761
2321
2301
756
760
768
2306
813
749
761
757
889
828
818
827
837
807
817
2021
846
836
826
820
806
2111
811
821
829
833
843
851
857
871
808
1995
2110
2080
787
786
776
783
780
770
773
750
760
710
750
809
1955
868
876
862
856
848
842
836
832
824
810
816
2165
2020
1990
791
2574
2603
2632
2590
931
930
3124
3116
3137
3143
3140
3132
3101
935
3156
3161
3133
3125
3117
3118
2080
2188
2280
2233
2321
701
2234
896
904
2242
932
936
933
935
939
942
922
926
916
951
943
959
960
2025
747
751
759
755
767
771
2430
2410
763
2450
2470
775
740
2391
2371
2351
2331
2390
2370
815
807
818
814
2557
2539
2521
2501
2497
2491
2471
2451
2431
2411
779
2490
2498
783
785
789
2500
2520
2538
2556
820
840
846
850
837
831
2510
2550
2530
851
847
836
819
823
822
826
830
827
833
836
848
839
845
858
853
862
2328
879
2320
2318
2312
2226
853
849
863
861
859
865
867
869
821
825
829
833
837
841
857
845
871
2286
2298
2252
2290
2270
859
866
865
870
873
874
878
881
882
885
891
886
895
890
894
2388
2303
2315
2333
2343
2355
875
871
867
863
859
855
842
841
831
854
847
860
855
2604
2608814
824
2593
860
856
2569
845
848
836
2570
2590
843
2591
2575
849
851
855
866
872
863
871
870
2637
2625
2619
2611
2620
813
805
818
804
840
810
890
2550
2570
879
885
873
865
876
880
884
888
891
897
2490
864
868
872
891
887
883
879
2521
2493
2477
2470
2463
878
884
879
896
885
893
885
878
886
898
905
2675
2635
907
2385
2445
2423
2421
928
931
920
912
9232430
2440
2450
2465 2460
2469
935
911
919
927
952
944
939
936
923
925
921
919
905
915
917
1940
2238
829
743
1935
768
789
1919
688
647
800
2266
870
1901
2145
1810
8281991
763
2323A
1755
847A
2361
760
2240
2133
1919
900
1850
1975
2061
1828
710
1830
825
832
1810A
2268
847
3148
1828A
2264
736
1880
795
2323
551
867
750
1921
1731
1820
1861
3109
947
1995A
2351
3149
824
2165
908
780
824A
750
2021
825
3155
1995
722
720
2262
1745
564 713
708
732
773
781
777
751
724
728
767720
747
716
739
725
2503
2521
2533
706
711
718
719
727
722
726
735
734
743
748
752
757
749
765
764
754
714
702
720
730
742
736
795
797
774
778
786
790
783
777
771
756
776
780
768
2732
2748
2762
2770
2773
2763
2757
2755
2751
2758
762
784
739
757
2604
2626
769
781
786
747
760
727
719
788
2668
794
790 2692
2704
2724
2684
2672
2663
2671
2660
2648
2651
2631
2621
2697
2731
799
772
812
816
820
825
830
2799
2780
2663
2671
802
811
805
800
2683
817
846
823
2691
805
809
813
2781
2779
2765
2735
2747
2797
853
817
859
818
812
831
847
851
859
830
867
863
836
842
848
854
866
860
875
879
825
843
848
831
837
836
842
871
841
835
829
866
870
883
887
889
891
893
894
890
2928
2946
879
2904
2908
843
2912846
849
855
857
867
2903
880
2901
873
840
898
2966
2982
895
899
891
907
2975
925
2911
908
2901
860
866
872
878
890
3064
2997
2931
3101
891
3065
927
925
915
3075
920
910
3085
3095
931
927
3059
912
906
918
924
942
936
930
954
947
919
943
948
928
922
927
938
930
3108
3125
3131
929
932
921
925
500
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UNIVERSITY AVENUE
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FOREST AVENUE LINCOLN AVENUE
GUINDA STREET
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MARTIN AVENUE
SENECA STREET FIFE AVENUEFIFE AVENUEHAMILTON AVENUE
LINCOLN AVENUE
PITMAN AVENUE
FOREST AVENUE
SENECA STREET
BOYCE AVENUE
FOREST AVENUEFOREST AVENUE
FOREST AVENUE
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WEBSTER STREET
UNIVERSITY AVENUE
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HAMILTON AVENUE
MIDDLEFIELD ROADLYTTON AVENUE
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BYRON STREET
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KINGSLEY AVENUE
ADDISON AVENUE
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MIDDLEFIELD ROAD
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WEBSTER STREET GUINDA STREET
CHANNING AVENUE
LINCOLN AVENUE
FULTON STREET
MELVILLE AVENUEMIDDLEFIELD ROAD
ADDISON AVENUE
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LINCOLN AVENUE
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CHANNING AVENUE
ADDISON AVENUE
GUINDA STREET
MELVILLE AVENUE
CHANNING AVENUE
CHANNING AVENUE
CHANNING AVENUE
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HOMER AVENUE
LINCOLN AVENUE
GUINDA STREET
CENTENNIAL WALK
GILMAN STREET
HAMILTON AVENUE
HIGH STREET
BRYANT STREET
LYTTON AVENUE
RAMONA STREET
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WAVERLEY STREET
LANE 21
EMERSON STREET
LANE 20 WEST
BRYANT STREET
UNIVERSITY AVENUE
RAMONA STREET
EVERETT AVENUE
WAVERLEY STREET
EMERSON STREET
HAMILTON AVENUE
FLORENCE STREET
BRYANT STREET
LANE 20 EAST
LYTTON AVENUE
RAMONA STREET
WAVERLEY STREET
LANE 15 EAST
LANE 30
UNIVERSITY AVENUE
COWPER STREET
EVERETT AVENUE
BRYANT STREET
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OREGON AVENUENORTH CALIFORNIA AVENUE
CARMEL DRIVE
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WILDWOOD LANE
TULIP LANE
CHANNING AVENUE
CHANNING AVENUE
WILDWOOD LANE
WEST BAYSHORE ROAD
WALNUT DRIVE
EMBARCADERO ROAD
WALTER HAYS DRIVE
WALTER HAYS DRIVE
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MARK TWAIN STREET
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BYRON STREET
HARRIET STREET
HARRIET STREET
HARRIET STREET
HARRIET STREET
MIDDLEFIELD ROAD
COMMUNITY LANE
CHANNING AVENUE
GREENWOOD AVENUE
HOPKINS AVENUE
HARKER AVENUE
PARKINSON AVENUE
WILSON STREET
HUTCHINSON AVENUE
CEDAR STREET
CEDAR STREET
CHANNING AVENUE
HOPKINS AVENUE
COMMUNITY LANE
HARKER AVENUE
GREENWOOD AVENUE
PARKINSON AVENUE
PINE STREET
EMBARCADERO ROAD
COMMUNITY LANE
HOPKINS AVENUE
NEWELL ROAD
NEWELL ROAD
NEWELL ROAD
NEWELL ROAD
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JORDAN PLACE
LOIS LANE
LOIS LANE
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WALTER HAYS DRIVE
SEALE AVENUE
LOIS LANE
NORTHAMPTON DRIVE
WALTER HAYS DRIVE
BARBARA DRIVE
LOUIS ROAD
HEATHER LANE
EMBARCADERO ROAD
PRIMROSE WAY
PRIMROSE WAY
IRIS WAY
IRIS WAY
MORTON STREET
PRIMROSE WAY
LOUIS ROAD
BELLVIEW DRIVE
IRIS WAY
MORTON STREET
EMBARCADERO ROAD
IRIS WAY
NORTH CALIFORNIA AVENUE
GREER ROAD
KINGSLEY AVENUE
TASSO STREETMELVILLE AVENUE
COWPER STREET
WAVERLEY STREET WEBSTER STREET
LINCOLN AVENUE
KELLOGG AVENUE
KINGSLEY AVENUE
COWPER STREET
BYRON STREET
MELVILLE AVENUE
WEBSTER STREET
ADDISON AVENUE
MIDDLEFIELD ROAD
COWPER STREET
LINCOLN AVENUE
BYRON STREET
KINGSLEY AVENUE
WEBSTER STREET
MELVILLE AVENUE
MIDDLEFIELD ROAD
ADDISON AVENUE
COWPER STREET
BYRON STREET
WEBSTER STREET
LINCOLN AVENUE
FULTON STREET
KINGSLEY AVENUE
PARKINSON AVENUECHANNING AVENUE
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OREGON AVENUE
AMARILLO AVENUE
EL CAJON WAY
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ELMDALE PLACE
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EL CAJON WAY
MORENO AVENUE
TANLAND DRIVE
BLAIR COURT
BLAIR COURTELSINORE DRIVE
INDIAN DRIVE
CARDINAL WAYOREGON EXPRESSWAY
OREGON AVENUE
ELSINORE COURT
GREER ROAD
ARROWHEAD WAY
TANLAND DRIVE
TANLAND DRIVE
AZTEC WAY
SANTA ANA STREET
GREER ROAD
CHABOT TERRACE
SANTA CATALINA STREET
CHANNING AVENUE
HOMER AVENUE
WAVERLEY STREET
COWPER STREET
FOREST AVENUE
HAMILTON AVENUE
EMERSON STREET
BRYANT STREET
LANE 39
RAMONA STREET
DOWNING LANE
ADDISON AVENUE
CHANNING AVENUE
COWPER STREET
WAVERLEY STREET
FOREST AVENUE
BRYANT STREET
HOMER AVENUE
LANE D WEST
KIPLING STREET
RAMONA STREET
SCOTT STREET
ADDISON AVENUE
LANE D EAST
WAVERLEY STREET
BRYANT STREET
WEBSTER STREET
HOMER AVENUE
COWPER STREET
CHANNING AVENUE
LANE 56
WELLS AVENUE
UNIVERSITY AVENUE
ALMA STREET
EMERSON STREET
LANE 12 WEST
HIGH STREET
RAMONA STREET
HAMILTON AVENUE
LANE 6 EAST
FOREST AVENUE
EMERSON STREET
ALMA STREET
LANE 11 WEST
LANE 7 WEST
HIGH STREET
RAMONA STREET
FOREST AVENUE
LANE 7 EAST
HOMER AVENUE
ALMA STREET
BRYANT STREET
EMERSON STREET
LANE 8 WEST
RAMONA STREET
HIGH STREET
FOREST AVENUE
HOMER AVENUE
CHANNING AVENUE
BRYANT STREET
EMERSON STREET
RAMONA STREET
COLERIDGE AVENUE
BRYANT STREET
EMERSON STREET
KELLOGG AVENUE
BRYANT STREET
CHURCHILL AVENUE
EMERSON STREET
WAVERLEY STREET
BRYANT STREET
EMBARCADERO ROAD KELLOGG AVENUE
CHURCHILL AVENUE
WAVERLEY STREETKINGSLEY AVENUE
EMBARCADERO ROAD
COWPER STREET
BRYANT STREET
MELVILLE AVENUE
CHURCHILL AVENUEEMBARCADERO ROAD
WHITMAN COURT
BRYANT STREET EMBARCADERO ROADKINGSLEY AVENUE
WAVERLEY STREET
MELVILLE AVENUE
TASSO STREET
COWPER STREET
KELLOGG AVENUE
LINCOLN AVENUE
WAVERLEY STREET
COLORADO AVENUE
ROSS ROAD
MORENO AVENUE
BRUCE DRIVE
MARSHALL DRIVE
LOUIS ROAD
ROSS ROAD
COLORADO AVENUESYCAMORE DRIVE
FIELDING CT
MARSHALL DRIVE
FIELDING DRIVE
MORENO AVENUE
LOUIS ROAD
MARSHALL DRIVE LAWRENCE LANE
AMARILLO AVENUE
MORENO AVENUE
VAN AUKEN CIRCLE
WARREN WAY
LOUIS ROAD
GREER ROADCOLONIAL LANE
AMARILLO AVENUE
COLONIAL LANE
AGNES WAY
CELIA DRIVE
LOUIS ROAD
MORENO AVENUE
DENNIS DRIVE
R
TENNYSON AVENUE
WEBSTER STREET
SEALE AVENUE
COWPER STREET
FULTON STREET
SEALE AVENUE
TENNYSON AVENUE
TASSO STREET
MIDDLEFIELD ROAD
WEBSTER STREET
FULTON STREET
COWPER STREET
SANTA RITA AVENUE
GUINDA STREET
SEALE AVENUE
BYRON STREET
MIDDLEFIELD ROAD
WASHINGTON AVENUE
NEWELL ROAD
SEALE AVENUE
SANTA RITA AVENUE
WEBSTER STREET
PORTAL PLACE
NORTHAMPTON DRIVE
NEWELL ROAD
MIDDLEFIELD ROAD
BYRON STREET
NORTH CALIFORNIA AVENUE
NORTHAMPTON DRIVE
WEST GREENWICH PLACE
SOUTHAMPTON DRIVE
MORRIS DRIVE
MADDUX DRIVE
CLARA DRIVE
SANDRA PLACE
CLARA DRIVE
GREER ROAD
COLORADO AVENUE
HIGGINS PLACE
GREER ROAD
COLORADO AVENUE
OTTERSON COURT
COLORADO PLACE
COLORADO AVENUE
SIMKINS COURT
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L
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BAYSHORE FREEWAY
EAST BAYSHORE ROAD
AMARILLO AVENUE
BAUTISTA COURT
LOUIS ROAD
PIERS COURTCLARA DRIVE
MORAGA CT
STOCKTON PLACE
LOUIS ROAD
CLARA DRIVE
BAYSHORE FREEWAY
SIERRA COURT
EAST BAYSHORE ROAD
WEST BAYSHORE ROAD
OREGON EXPRESSWAY
EMBARCADERO ROAD
BAYSHORE FREEWAY
BAYSHORE FREEWAY
BAYSHORE FREEWAY
BAYSHORE FREEWAY
WEST BAYSHORE ROAD
WATSON COURT
GENG ROAD
EAST BAYSHORE ROAD
BAYSHORE FREEWAY
EAST BAYSHORE ROAD
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MORENO AVENUE
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MARSHALL DRIVE
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NORTH CALIFORNIA AVENUE
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MIDDLEFIELD ROAD
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NORTH CALIFORNIA AVENUE
SOUTHAMPTON DRIVE
MIDDLEFIELD ROAD
GARLAND DRIVE
NORTH CALIFORNIA AVENUE
GARLAND DRIVE
OREGON AVENUE
OREGON EXPRESSWAY
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GARLAND DRIVE
MARION AVENUE
COASTLAND DRIVE
ELSINORE DRIVE
OREGON AVENUE
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WARREN WAY
OREGON AVENUEWASHINGTON AVENUE
OREGON EXPRESSWAY
OREGON AVENUESANTA RITA AVENUE
TASSO STREET
NORTH CALIFORNIA AVENUE
WEBSTER STREET
WAVERLEY STREET
WEBSTER STREET
COLERIDGE AVENUECOWPER STREET
LOWELL AVENUE
BRYANT STREET
TENNYSON AVENUE
WAVERLEY STREET
WEBSTER STREET
EMBARCADERO ROAD
COWPER STREET
LOWELL AVENUE
COLERIDGE AVENUE
TENNYSON AVENUE
WAVERLEY STREET
SEALE AVENUE
WEBSTER STREET
EMBARCADERO ROAD
SEALE AVENUE
LOWELL AVENUE
COWPER STREET
TENNYSON AVENUE
WEBSTER STREET
WAVERLEY STREET
MIDDLEFIELD ROAD
ALMA STREET
LOWELL AVENUE
PENINSULA CORRIDOR JOINT POWERS BOARD
EMERSON STREET
TENNYSON AVENUE
CHURCHILL AVENUE
COLERIDGE AVENUE
ALMA STREET
EMERSON STREET
LOWELL AVENUE
ALMA STREET
BRYANT STREET
PENINSULA CORRIDOR JOINT POWERS BOARD
CHURCHILL AVENUE
EMERSON STREET
COLERIDGE AVENUE
ALMA STREET
BRYANT STREET
LOWELL AVENUE
KELLOGG AVENUE
EMERSON STREET
CHURCHILL AVENUE
URBAN LANE
ENCINA AVENUE
EMBARCADERO ROAD
EL CAMINO REAL
ALMA STREET
EL CAMINO REAL
LANE A WEST
HIGH STREET
ADDISON AVENUE
ALMA STREET
LANE B WEST
HIGH STREET
LINCOLN AVENUE
LANE B EAST
EMERSON STREET
ALMA STREET
EMBARCADERO ROAD
HIGH STREET
PENINSULA CORRIDOR JOINT POWERS BOARD
LINCOLN AVENUE
KINGSLEY AVENUE
ALMA STREET
EMERSON STREET
RAMONA STREET
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MELVILLE AVENUE
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WAVERLEY STREET
KIPLING STREET
HAWTHORNE AVENUE
WAVERLEY STREET LANE 33
RUTHVEN AVENUE
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EMERSON STREET
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HAMILTON AVENUE
LANE 5 EAST
PALM DRIVE
PALM DRIVE
LASUEN STREET
ARBORETUM ROAD
EL CAMINO REAL
PALO ALTO AVENUE
EMERSON STREET
HAWTHORNE AVENUE
PALO ALTO AVENUE
EL CAMINO REAL
ALMA STREET
PALO ALTO AVENUE
HIGH STREET
POE STREET
BRYANT STREET
EVERETT AVENUE
HAWTHORNE AVENUE
MITCHELL LANE
PALO ROAD
TOWN & COUNTRY
S:\UTL\EngrOps\WGWEngr\CIP Projects\Gas\GMR 24B\2.0 - Design\2.5 - Drawings & Maps\Sh2 - Sheet Index Map\Vincity Map.dwg SHEET NO. OF SHEETS
FILE:
CURRENTSHEETSETPROJECTNUMBER SHEETSETNOSHEETSETNO_OFCURRENTSHEETSETPROJECTNAME
CITY OF
PALO
ALTO
UTILITIES
SANTA
880
680
MILPITAS
MATEO
ALTOS
STANFORD
MOUNTAIN
PALO ALTO
280
SAN
UNIV.
PARK
WOODSIDE
REDWOOD MENLO PARK
VIEW
LOS
SUNNYVALE
101
CAMPBELL
SAN
JOSE
CO.
CO.
SANTA CRUZ
SAN MATEO
SAN
GREGORIO
PESCADERO
LA HONDA CUPERTINO
SARATOGA
CO.
SANTA CLARA CO.
CO.
CLARA
SANTA CLARA
80 680
780
VALLEJO
CONTRA COSTA CO.
4 CONCORD
LAFAYETTE
MARTINEZ
4 SAN PABLO
HERCULES
PINOLE
680
HILL
PLEASANT
242
MARIN 101
MILL
MADERA
ANSELMO
SAN
LARKSPUR
RAFAEL
SAN
CORTE
CO.
CONTRA COSTA CO.
MARIN CO.
580
580
580 80
80 24ALBANY
BERKELEY
EMERYVILLE
OAKLAND
CONTRA
MORAGA
COSTA CO.
PLEASANTON
ALAMEDA CO.
LIVERMORE
SAN BRUNO
SAN LEANDRO
LORENZO
ALAMEDA
BRISBANE
SOUTH
SAN
238
580
HAYWARD
CONTRA COSTA CO.
SAN FRANCISCO CO.
SAUSALITO
SAN
CITY
MARIN
SAN
280
PACIFICA
CO.
DALY
CITY
FRANCISCO
COLMA
SAN MATEO CO.
SAN FRANCISCO CO.
SAN FRANCISCO
FRANCISCO
VALLEY TIBURON ORINDA WALNUT CREEK
PROJECT AREA
FREMONT
101
SAN
CARLOS
92 BELMONT
MATEO
FOSTER CITYSAN
BURLINGAME
MILBRAE
880
84 NEWARK
UNION CITY
ATHERTON
REDWOOD CITY
MOSS BEACH
MONTARA
LINDA MAR
EL GRANADA
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: October 16, 2023
Report #:2309-2007
TITLE
Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution ordering the summary vacation of a public service easement for utility and incidental purposes located on the residential property at 160, 162, and 164 Waverley Street in Palo Alto, CA.
DISCUSSION
The City currently holds a public utility easement affecting the properties located at 160, 162, and 164 Waverley Street. The current property owner has requested this easement on the property to be vacated for the demolition of three single dwelling units for the development of four new dwellings on the property; a single-family home, a duplex, and a detached accessory dwelling unit (ADU). City staff has reviewed the vacation request and has determined that the easement to be vacated is excess and that there are no other public facilities located within the easement. Therefore, the easement may be vacated in accordance with the summary proceeding authorized in Section 8333 of the California Streets and Highways Code.
FISCAL/RESOURCE IMPACT
The Summary Easement Vacation Processing fee of $1,980 as set forth in the FY 2024 Municipal Fee Schedule has been paid by the property owner.
POLICY IMPLICATIONS
The recommendation does not represent any change to City policies.
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ENVIRONMENTAL REVIEW
The proposed summary vacation is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15305 of the CEQA Guidelines as a minor alteration in land use limitations.
ATTACHMENTS
Attachment A: Resolution to Summarily Vacate a Public Service Easement for 160, 162, and 164 Waverley Street
APPROVED BY:
Kiely Nose, Assistant City Manager
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Recorded at no charge in accordance with
Streets & Highways Code Section 8336 at
the request of and when recorded return to:
City of Palo Alto
Real Estate Division
250 Hamilton Avenue
Palo Alto, CA 94301
SPACE ABOVE LINE FOR RECORDER’S USE
APN: 120-12-011
Address: 160, 162, and 164 Waverley
Street, Palo Alto, CA 94301
SUMMARY VACATION
RESOLUTION NO. _____
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
SUMMARILY VACATING A PUBLIC SERVICE EASEMENT
AT 160, 162, and 164 Waverley Street, PALO ALTO, CA
WHEREAS, Section 8333 of the Streets and Highways Code authorizes the City Council to summarily vacate a public service easement in any of the following cases:
(a) the
easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation, (b) the date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was not used continuously since that date , (c) the easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement; and
WHEREAS, the City of Palo Alto accepted and recorded a Deed on the property located at 160, 162, and 164 Waverley, Palo Alto, CA 94301, for public utility purposes, dated April 24, 1959, in Book 4400, page 552 of Santa Clara County Office Records; and
WHEREAS, the City of Palo Alto Utilities Department has evaluated and determined that the public utilities easement located on the property at160, 162, and 164 Waverley Street Palo Alto, CA 94301 is excess.; and
WHEREAS, the City Council of the City of Palo Alto intends to summarily vacate the public service easement as more particularly described in Exhibit “A” attached to this resolution and depicted on the plat map attached as Exhibit “B” to this resolution; and
NOW, THEREFORE, the City Council does hereby RESOLVE as follows:
SECTION 1 . This vacation is made under the authority of California Streets and Highways Code Chapter 4 of part 3 of Division 9, commencing at Section 8333 et. seq.
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1. The public service easement described herein on Exhibit “A” and depicted on the plat map attached as Exhibit “B” is excess; and
2. There are no other public facilities located within the easement.
SECTION 2. Based upon the findings made in Section 1 of this Resolution and the provisions of Section 8333 of the Streets and Highways Code, the City Council does hereby order that the public service easement as shown on the said Exhibits “A” and “B” shall be summarily vacated.
SECTION 3. The City Clerk , acting by and through the Real Property Manager, is hereby directed to record at the Santa Clara County Clerk -Recorder’s Office a certified copy of this Resolution, including the Map.
SECTION 4 . The public service easement for utilities and incidental purposes described in Exhibit “A” and depicted in the plat map attached as Exhibit “B” will no longer constitute a public servic e easement from and after the date of recordation of the documents identified in Section 3 of this Resolution.
SECTION 5 . The Council finds that the summary vacation of the public service easement is exempt from review under the California Environmental Act pursuant to Title 14 California Code of Regulations section 15305 as a minor alteration in land use limitations.
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Resolution to Summarily
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Exhibit B
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 16, 2023
Report #:2308-1935
TITLE
Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269.
RECOMMENDATION
This report provides Council a progress update on the Memorandum of Understanding (MOU) and funding agreement between the City of Palo Alto, Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park regarding emergency repairs to the north bank of San Francisquito Creek.
Staff recommends that Council amend the Fiscal Year 2024 Budget Appropriation for the Capital Improvement Fund by (requires 2/3 approval):
1. Increasing the City Bridge Improvements Project (PE-20001) appropriation by $1,100,000;
2. Decreasing the Capital Improvement Fund Administration project (AS-10000) appropriation by $30,000; and
3. Decreasing the Capital Improvement Fund Infrastructure Reserve by $1,070,000.
BACKGROUND
In early January 2023, after a week of heavy rain, JPB/Caltrain staff inspected the rail bridge over San Francisquito Creek at Alma Street and discovered that storms had eroded the soil on the north creek bank supporting the foundation of the rail bridge, owned by JPB/Caltrain. On March 29, 2023, JPB/Caltrain declared an emergency, and the Caltrain board authorized staff to enter into contracts for the purpose of implementing emergency repairs.
In early April 2023, staff from Public Works Engineering Services Division identified erosion on the same northern creek bank supporting the Alma Street Bicycle Bridge, which was constructed and is maintained by the City of Palo Alto, with the City of Menlo Park responsible Item 8
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for 50 percent of maintenance costs under a 1996 maintenance agreement1. On April 7, 2023, the City’s on-call structural engineering consultant, Biggs Cardosa Associates, conducted a structural assessment of the Alma Street Bicycle Bridge. The consultant recommended that the north creek bank be restored in conjunction with Caltrain’s bank restoration to prevent further erosion that could threaten the integrity of the Alma Street Bicycle Bridge.
Additionally, the high creek flows undermined a storm drain outfall owned and maintained by the City of Menlo Park.
On June 19, 20232, Council authorized the City Manager to negotiate and execute a Memorandum of Understanding (MOU) and funding agreement with JPB/Caltrain and the City of Menlo Park for emergency repairs to the north bank of San Francisquito Creek. This staff report provides an update on the MOU and funding agreement and recommends that Council approve a budget amendment in the Capital Improvement Fund to appropriate funds to pay for the City’s share to implement creek bank repairs.
ANALYSIS
Staff from JPB/Caltrain and the cities of Palo Alto and Menlo Park have coordinated design, permitting, outreach strategies, access and construction logistics, and have executed a MOU to jointly conduct repairs to the northern creek bank supporting the San Francisquito Creek Rail Bridge, the Alma Street Bicycle Bridge, and the storm drain outfall to maintain the integrity of these assets. The MOU is provided in Attachment A.
In accordance with the MOU, the JPB/Caltrain will oversee the emergency repairs on behalf of the JPB/Caltrain and the cities of Palo Alto and Menlo Park. JPB/Caltrain will issue all contracts and make all payments directly to the contractors to complete the scope of work and will invoice the cities of Palo Alto and Menlo Park on a quarterly basis for their respective cost share. Any cost increases resulting from increased contract prices or changes that require additional funding will be evaluated for cost share by all three agencies based on the scope of changes. The cities of Palo Alto and Menlo Park will continue their responsibility for maintenance of the Alma Street Bicycle Bridge during and after completion of the creek stabilization project per the 1996 maintenance agreement. A no-cost encroachment permit for construction access via the south side of San Francisquito Creek has been issued by the City. No impacts on the El Palo Alto tree are expected as part of the construction activities. Any tree and vegetation removal required for construction activities in the City’s jurisdiction will be coordinated with the City’s Urban Forester. Special consideration and care will be taken for protection of the El Palo Alto tree and restoration of El Palo Alto Park. 1 1996 Alma Street Bicycle Bridge Maintenance Agreement https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip-contracts/alma- street- bicycle-bridge-maintenance-agreement.pdf
2 City Council Staff Report, June 19, 2023, Agenda Item #14 https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/city-council-special- meeting_20230818175340762.pdf
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The MOU establishes a cost sharing methodology and funding agreement between JPB/Caltrain and cities of Palo Alto and Menlo Park as follows:
1. The City of Menlo Park will be responsible for 100 percent cost to reconstruct the storm drain outfall.
2. JPB and the cities of Palo Alto and Menlo Park will share cost for the remaining scope of creek stabilization work based on the project size. JPB will be responsible for 66.8 percent and cities of Palo Alto and Menlo Park will each be responsible for 16.6 percent of the total costs. Cost sharing methodology is further explained in Exhibit C of the MOU.
The 100% design was completed in August 2023 and the engineer’s opinion of probable cost for design and construction is $6,471,067. This includes a 15% design and construction contingency. Menlo Park’s storm drain outfall replacement cost is estimated to be $100,000. A high-level cost share summary for the three partnering agencies is presented below.
Engineer’s estimate
Design, permitting, and construction $5,627,015
15% design and construction contingencies $844,052
Total cost $6,471,067
JPB/Caltrain (66.8%) $4,255,871
City of Palo Alto (16.6%) $1,057,598
City of Menlo Park (16.6% plus cost of replacing storm drain outfall) $1,157,598 JPB/Caltrain was planning to complete the emergency repairs work during the dry season ending October 15, 2023, pending approval of the regulatory permits. However, construction has been deferred to the 2024 dry season because of the additional review needed by the US Army Corps of Engineers for the project’s Section 404 permit and approval required from the State Historic Preservation Officer. JPB/Caltrain will continue to coordinate permits from the regulatory agencies to begin construction in summer 2024. In the meantime, JPB/Caltrain and the cities of Palo Alto and Menlo Park will continue to monitor the creek’s condition and if significant erosion occurs in winter of 2023, a temporary contingency plan will be implemented to protect the creek bank. The most recent update to Caltrain’s Finance Committee on October 5, 2023 can be found here3.
FISCAL/RESOURCE IMPACT
There is no funding programmed in Fiscal Year 2024 for the emergency repairs to the San Francisquito Creek north bank. A budget amendment is needed for the City to pay for its cost share in the amount of $1,100,000. Staff recommends that Council approve allocating 3 Joint Powers Board Finance Committee Meeting 10/5/2023 Item #6.b. Renew Findings of an Emergency Regarding the North Channel Embankment of the San Francisquito Creek Bridge https://www.caltrain.com/meetings/2023/10/caltrain-board-meeting Item 8
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$1,070,000 from the Capital Improvement Fund Infrastructure Reserve to the City Bridge Improvements Project (PE-20001) for the City’s cost share and shifting $30,000 from the Capital Improvement Fund Administration project (AS-10000) to PE-20001 for estimated staff salaries and benefits to monitor construction activities in the right-of-way and respond to contractor and public inquiries.
The Infrastructure Reserve was adopted with $3.6 million in FY 2024, and together with other budget amendments to date in FY 2024, the recommended action would bring the estimated available fund balance down to $2.4 million. In addition, approximately $1.1 million will remain in AS-10000 to address additional or unforeseen salaries and benefits needs for projects in the Capital Improvement Fund.
STAKEHOLDER ENGAGEMENT
Staff from JPB/Caltrain, San Francisquito Creek Joint Powers Authority, and cities of Palo Alto and Menlo Park will provide outreach during construction to all users of the facilities as well as nearby residents on construction impacts.
ENVIRONMENTAL REVIEW
JPB filed a CEQA Notice of Exemption with the County Clerks of Santa Clara and San Mateo for the project citing PRC sec. 21080(b)(3) [CEQA Guidelines sec. 15269(a)]. The project is statutorily exempt as the project would repair and restore the slope of a streambank supporting the JPB San Francisquito Bridge and Alma Street bicycle/pedestrian bridge that was damaged as a result of substantial erosion and scour that occurred from heavy storms and high water levels as observed in January 2023. The Governor included San Mateo and Santa Clara counties in a Storm State of Emergency on March 8, 2023.
ATTACHMENTS
Attachment A: Memorandum of Understanding and Funding Agreement APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 #4233
MEMORANDUM OF UNDERSTANDING AND FUNDING AGREEMENT REGARDING EMERGENCY
REPAIRS TO THE NORTH BANK OF THE SAN FRANCISQUITO CREEK WITHIN THE CALTRAIN RIGHT OF WAY AND THE .CITIES OF MENLO PARK AND PALO ALTO
This Memorandum of Understanding and Funding Agreement {the "AGREEMENT") is entered into this 15th day of August , 2023, by and between the Peninsula Corridor Joint Powers Board, a joint exercises of power agency (the "JPB") organized and existing under the laws of the state of California, and the City of Palo Alto, a municipal corporation, and the City of Menlo Park, a municipal corporation, {collectively, the "CITIES" and collectively with JPB, the "PARTIES").
RECITALS
A. The JPB owns and maintains the San Francisquito Creek Rail Bridge, which is located in Palo Altꢁ betweeꢃ Cꢁꢃtrꢁl Pꢁints Alma (29.98) and Mayfield (33.50). It was built in 1902 as a two track, steel truss structure over the San Francisquito Creek.
B.
C.
The City of Palo Alto owns the portion of the creek within its boundaries, and the City of Menlo Park owns the portion of the creekwithin its boundaries.
In early January 2023, after a week of heavy rain, Caltrain Engineering staff inspected the Bridge and discovered that storms had eroded the soil on the north creek bank suppoꢀing the foundation of the Bridge.
D. On March 29, 2023, pursuant to its authority under Public Contract Code sections 22050 and 1102, theJPBdeclared that an emergencyexists at the north creek bank at the San Francisquito Creek Rail Bridge, due to erosion, which threatens the integrity of the structure supporting the JPB's track, and authorized staff to enter into contracts for the purpose of conducting emergencyrepairs.
E.
F.
The CITIES identified erosion on the same nꢁrthern creek bank suppꢁꢂiꢃg the Alma Street Bicycle Bridge (the "Alma Street Bridge"), which was constructed and is owned by the CITIES.
On April 7, 2023, the CITIES procured a structural assessment of the Alma Street Bridge which recommended that the north creek bank be restored in conjunction with JPB's bank restoration to prevent further erosion that could threaten the stability of the Alma Street Bridge.
G.
H.
I.
In the space between the San Francisquito Creek Rail Bridge and the Alma Street Bridge, the CITIES have also identified erosion on the north creek bank which is undermining an existing storm drain outfall {the ' Drain Outfall"), which is owned by the City of Menlo Park.1 The PARTIES have agreed tojointly conduct repairs to the northern creek bank supporting the San Francisquito Creek Rail Bridge, the Alma Street Bridge, and the Drain Outfall to maintain the integrity of all three of these assets, as described in Exhibit A, Scope of Work.
The PARTIES have agreed that the JPB will undertake and oversee the emergency repairs oh behalf of the JPB and the CITIES and that the CITIES willreimburse the JPB for their respective shares of the costs that JPB incuꢄ in conducting the repairs. None of the PARTIES intends to use federal funds tq pay for the repairs.
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9/11/2023
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 16, 2023
Report #:2306-1630
TITLE
Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD-22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD-26000), Storm Drainage System Replacement and Rehabilitation (SD-06101), and Sidewalk Repairs (PO- 89003); CEQA status – exempt under CEQA Guidelines Section 15301(c).
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or their designee to execute construction contract C24188585 with Golden Bay Construction in the amount of $1,247,069 for the East Meadow Drive System Upgrades project (SD-22000), East Meadow Circle Connection to Adobe Creek Pump Station project (SD-26000), Storm Drainage System Replacement and Rehabilitation project (SD-06101), Green Stormwater Infrastructure (SD-22001), and Sidewalk Repairs (PO-89003); and
2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Golden Bay Construction for related, additional, and unforeseen work that may develop during the project, the total value of which shall not exceed $311,767.
BACKGROUND
The 2015 Storm Drain Master Plan identified that the storm drain trunk lines upstream of the Matadero Creek pump station need to be upsized to convey a 10-year storm event. In 2017, voters approved a ballot measure to continue the Storm Water Management Fee and to implement 13 new storm drain capital improvement projects to upgrade and improve the storm drain system in Palo Alto. In 2018, the completion of the Matadero Creek Storm Water Pump Station project (SD-13003) was the first step towards increasing the capacity of the station to convey flows for large storm events. The Loma Verde Avenue Trunk Line Improvements project (SD-19000), completed in 2020, is the first of the 13 projects completed.
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This contract implements two Storm Drain Master Plan Capital Improvement Program (CIP) projects, the East Meadow Drive System Upgrades project (SD-22000) and East Meadow Circle Connection to Adobe Creek Pump Station project (SD-26000). The Storm Drain Master Plan identifies both as high-priority improvements to the City’s storm drain system.
Both SD-22000 and SD-26000 include several utility relocations due to conflicts with existing utilities as a result of upsizing the diameter of the storm drain pipe and addition of new storm drain pipe.
SD-22000 is located on East Meadow Drive where the existing 36-inch pipe is undersized and lacks the capacity to convey the runoff from a 10-year storm to the Adobe Pump Station. This project will upsize the existing pipe to a 48-inch pipe.
SD-26000 is located on East Meadow Circle and will redirect flows from Barron Creek to Adobe Creek. East Meadow Circle tends to flood during storm events. The runoff within the pipe drains by gravity through a flap-gate into Barron Creek. Flooding occurs when flows within Barron Creek exceed the height of the gate and the pressure created by the water in the creek prevents the gate from opening. This project creates a bypass to allow flows from Barron Creek to overflow to the Adobe Creek pump station. The bypass will add a new storm drain line connecting the existing manhole on East Meadow Circle to the existing manhole on East Meadow Drive. The bypass will divert storm drain runoff to Adobe Creek Pump Station where it can be pumped into Adobe Creek and ultimately the Palo Alto flood basin. Work on East Meadow Circle also provides an opportunity to incorporate Green Stormwater Infrastructure (GSI) (SD-22001) features in the planter strip area.
Additional storm drain repair or replacement is associated with Storm Drainage System Replacement and Rehabilitation Project (SD-06101). This will address storm drain pipe failures that occurred during the winter 2023 storm events as well as emergency repairs.
ANALYSIS
Project Description
Staff recommends approval of Contract No. C241885851 to implement high priority projects identified in the Storm Drain Master Plan to increase capacity and improve the storm drainage system in the City. The project limits for SD-22000 are East Meadow Drive from Adobe Creek to the intersection of East Meadow Circle. The project limits for SD-26000 are from the intersection from East Meadow Drive to 1036 East Meadow Circle, depicted on the attached Location Map (Attachment A). Pipe replacement in the streets may require additional work such as pavement restoration, striping, replacement of sidewalk, curb and gutter, and curb ramp due to the location of the work.
1 Contract No. C24188585 https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering- services/cip-contracts/c24188585-golden-bay-construction_cc_staff-report_10.16.2023.pdf Item 9
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The work under this contract includes the replacement of 407 linear feet of existing 36-inch diameter pipes with 48-inch diameter pipes on East Meadow Drive. The project will also remove two storm drain manholes and replace them with two junction boxes and modify one existing manhole junction box. The work on SD-26000 includes a bio-retention planter, the addition of 526 linear feet of new 15-inch diameter pipe, replacement of 28 linear feet of 12- inch pipe, two catch basins, and five manholes. Due to utility crossing conflicts that result from installing a larger storm drain pipe, utility relocations include the removal of an abandoned sanitary sewer lateral, cutting and capping two abandoned gas services, installing offsets of existing 6-inch and 8-inch water mains, relocation of one water service, and relocating 4-inch cable lines.
Additionally, the scope of work for SD-22001 will install GSI features to improve quality of storm water runoff and encourage onsite stormwater retention. A bio-retention planter will be located in the planter strip that is to be re-built to capture flows from small storms. This part of the project requires removing four trees that were planted in the early 2000s. The trees are stunted and have not grown as well as other trees planted at the same time.
Although the two individual CIP projects could be completed independent of one another, staff proposes to advance both projects concurrently, based on their proximity to each other, the relative costs of each project, and available budget. Combining these two relatively small projects is more attractive to contractors and may result in lower costs in the long run.
Expenses such as mobilization will be incurred once, and slightly greater quantities help to reduce the bid item costs of items such as manholes or catch basins.
SD-06101 encompasses storm drain work related to pipe failures from previous storms that need replacement and emergency work that may arise during the wet season. In response to the 2023 storm events and a current El Niño forecast for this upcoming winter, this project includes spot repairs at various locations to remove and replace pipe that failed during the recent storms. Staff videoed the conditions of the storm drain pipes at various locations and found that the corrugated metal pipe has eroded away and caused the surface to collapse. The rehabilitation work includes the replacement of 271 linear feet of broken pipe, removal and replacement of three catch basins, and two storm drain manholes. Concrete work includes removal and replacement of one curb ramp, curb and gutter, and sidewalk. Several spot repair locations require sidewalk replacement and will be funded by the Sidewalk Repairs project (PO- 89003). The forecasted El Niño may result in new pipe failures needing immediate repair or replacement during the wet season. An additional 15 percent contingency beyond the standard 10 percent contingency is proposed to cover any storm preparation and any emergency repair work that may arise during the wet season while this project is under construction. The contingency would allow immediate action while avoiding waiting until the next season to make repairs under a new construction contract.
One of the locations where storm drain repair is needed is on Fielding Drive and Louis Road where a Public Art feature of koi fish swimming within the crosswalk resides. The installation, titled Go with the Flow was installed in 2018 using thermoplastic material. Storm drain lines are Item 9
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typically installed by opening a trench in the pavement. Unfortunately, the art installation is directly above the storm drain pipe, and this will destroy a portion of the art installation.
Although this installation was not intended to be permanent and the risks involved in placing the art in the crosswalk were known at the time of installation, Public Works Engineering intends to replace the art installation following completion of the storm drain repair, subject to confirmation that the Public Art program and community want it reinstalled.
Bid Process
On July 17, 2023, an Invitation for Bids (IFB) for the Capacity Upgrades along East Meadow Drive and Connection to Adobe Creek Pump Station from East Meadow Circle Project was posted to the City’s online bid solicitation web portal, OpenGov. The bidding period was 21 days. Only one bid was received from a qualified contractor on August 7, 2023, as listed on the attached Bid Summary (Attachment B).
Summary of Bid Process
Bid Name / Number Capacity Upgrades along East Meadow Drive and Connection to Adobe Creek Pump
Station from East Meadow Circle (SD-22000
& SD-26000) Project IFB No. 188585
Proposed Length of Project 210 Calendar Days
Number of Bid Packages Downloaded by
Prime Contractors
9 Total Days to Respond to Bid 21 Calendar Days
Pre-Bid Meeting? No
Number of Bids Received 1
Base Bid Price Range NA
Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/53534
The apparent low bidder was selected based upon the base bid with no consideration to the add alternate. The Base Bid price is 15% above the engineer’s estimate. Staff has reviewed the bid submitted and recommends acceptance of the base bid and add alternates 1-17 submitted by Golden Bay Construction in the amount of $1,247,069, and that Golden Bay Construction be declared the lowest responsible bidder. The construction contingency amount of $124,707, which equals 10 percent of the total contract, is requested for related, additional, but unforeseen work which may develop during the project.
An additional 15 percent construction contingency is requested to address any additional storm drain related preparation and any emergency repair work that may be needed for what is being forecasted as a moderate to strong El Niño. This amount totals $187,060 and results in a total construction contingency of $311,767.
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Staff reached out to the four bidders who downloaded the bid packages and asked why they did not submit a bid. One of the bidders provided a response and elaborated that the green infrastructure component made the work less appealing. That, along with their current backlog, were the reasons why they did not bid on the project.
Staff reviewed other similar projects performed by the lowest bidder, Golden Bay Construction, Inc., including projects performed for the City and found them to be the lowest responsive and responsible bidder. Staff also checked with the Contractors State License Board and confirmed that this contractor has an active license on file.
Project Coordination
The projects have been coordinated with Public Works Street Maintenance and Utilities Department. Street cut fees in the amount of $2,507 will be transferred to the General Fund.
Utility relocation fees are estimated to be approximately $75,000. The final amount will be determined in the field during construction and transferred to Utilities.
FISCAL/RESOURCE IMPACT
Funding is available in the Fiscal Year 2024 Adopted Capital Budget within the East Meadow Drive System Upgrades (SD-22000), East Meadow Circle Connection to Adobe Creek Pump Station (SD-26000), Storm Drainage System Replacement and Rehabilitation (SD-06101), Green Stormwater Infrastructure (SD-22001), and Sidewalk Repairs (PO-89003) projects.
The funding allocation is as follows:
Funding Source Contract Contingency Total
Encumbrance
1 East Meadow Drive System
Upgrades
SD-22000
$487,590 $48,759 $536,349
2 East Meadow Circle Connection to
Adobe Creek Pump Station
SD-26000
$399,861 $39,986 $439,847
3 Storm Drainage System
Replacement and Rehabilitation
SD-06101
$256,805 $212,741 $469,546
4 Green Stormwater Infrastructure
SD-22001
$86,867 $8,687 $95,554
5 Sidewalk Repairs
P0-89003
$15,946 $1,594 $17,540
Totals $1,247,069 $311,767 $1,558,836
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The additional 15% contingency requested for storm preparation and emergency repair is allocated to come from the Storm Drainage System Replacement and Rehabilitation (SD-06101) project, as the anticipated work relates most closely to the description of that project.
Additionally, approximately $105,000 is available in the various project budgets for soil testing, outreach material, fees associated with GSI inspections and verification, utility relocation and street cut fees.
STAKEHOLDER ENGAGEMENT
Staff has presented to the Storm Water Management Oversight Committee on the progress of SD-22000, SD-26000, and the Storm Drain Rehabilitation and Replacement Project. Once the construction contract is awarded, staff will continue to notify and update the Storm Water Management Oversight Committee during construction.
Extensive public outreach will be conducted before and during the construction phase to keep the community informed throughout the process, including flyers sent to adjacent residences and businesses, and notices posted online on Nextdoor and the City’s website.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301 (d) (repair, maintenance and/or minor alteration of existing facilities and 15302 (c) (replacement of existing structures) of the CEQA Guidelines and no further environmental review is necessary.
ATTACHMENTS:
Attachment A: Location Map
Attachment B: Bid Summary
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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EAST MEADOW DRIVE AND CONNECTION
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Capacity Upgrades along East Meadow Drive and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐22000 & SD‐26000) IFB 188585
IFB Post Date: 7/17/2023
IFB Due Date: 8/7/2023
BID FORM SUMMARY
QTY UNIT
UNIT PRICE BID TOTAL UNIT PRICE BID TOTAL
1 MOBILIZATION 1 LS $ 50,000.00 $ 50,000.00 $ 70,000.00 $ 70,000.00 2P U B L I C NOTIFICATION AND POSTING 1 LS $ 2,500.00 $ 2,500.00 $ 4,000.00 $ 4,000.00 3 TRAFFIC CONTROL 1 LS $ 80,000.00 $ 80,000.00 $ 46,013.00 $ 46,013.00 4 SHEETING, SHORING AND BRACING 1 LS $ 80,000.00 $ 80,000.00 $ 9,000.00 $ 9,000.00 5I N E R T SOLIDS RECYCLING WITH FABRIC 1 LS $ 8,000.00 $ 8,000.00 $ 1,000.00 $ 1,000.00 6 STRIPING 1 LS $ 5,000.00 $ 5,000.00 $ 18,860.00 $ 18,860.00 7 UNFORSEEN UTILITY ALLOWANCE 1 LS $ 20,000.00 $ 20,000.00 $ 10,000.00 $ 10,000.00 8I N S T A L L 12‐INCH HDPE PIPE 28 LF $ 250.00 $ 7,000.00 $ 375.00 $ 10,500.00 9I N S T A L L 15‐INCH HDPE PIPE 514 LF $ 300.00 $ 154,200.00 $ 269.00 $ 138,266.00 10 INSTALL 48‐INCH REMOVE 36‐INCH HDPE PIPE 407 LF $ 300.00 $ 122,100.00 $ 741.00 $ 301,587.00 11 VIDEO INSPECTION OF NEW STORM DRAIN PIPELINE 949 LF $ 4.00 $ 3,796.00 $ 8.00 $ 7,592.00 12 INSTALL NEW STORM DRAIN CATCH BASIN TYPE A2 E A $ 4,500.00 $ 9,000.00 $ 5,500.00 $ 11,000.00 13 INSTALL STANDARD STORM DRAIN MANHOLE 4 EA $ 10,000.00 $ 40,000.00 $ 11,000.00 $ 44,000.00 14 INSTALL STORM DRAIN SUMP MANHOLE 1 EA $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 15,000.00 15 INSTALL NEW STORM DRAIN MANHOLE JUNCTION BOX 2 EA $ 20,000.00 $ 40,000.00 $ 22,000.00 $ 44,000.00 16 MODIFY EXISTING STORM DRAIN MANHOLE JUNCTION BOX 1 $ 15,000.00 $ 15,000.00 $ 18,000.00 $ 18,000.00 17 6 ‐INCH TO 8‐INCH WATER MAIN BACKFILL 2 EA $ 5,000.00 $ 10,000.00 $ 4,500.00 $ 9,000.00 18 WATER SERVICE BACKFILL 1 EA $ 2,000.00 $ 2,000.00 $ 3,100.00 $ 3,100.00 19 ABANDONED SEWER LATERAL BACKFILL 1 EA $ 2,000.00 $ 2,000.00 $ 3,000.00 $ 3,000.00 20 GAS SERVICE BACKFILL 2 EA $ 2,000.00 $ 4,000.00 $ 3,500.00 $ 7,000.00 21 4 ‐INCH FIBER OPTICS CABLE BACKFILL 1 EA $ 5,000.00 $ 5,000.00 $ 3,100.00 $ 3,100.00 22 2 ‐INCH ASPHALT CONCRETE OVERLAY 362 TON $ 150.00 $ 54,300.00 $ 306.00 $ 110,772.00 23 REMOVE AND REPLACE TYPE A CURB AND GUTTER 20 LF $ 50.00 $ 1,000.00 $ 133.00 $ 2,660.00 24 DELETED
25 DELETED
26 DELETED
27 REMOVE SOIL FOR BIORETENTION 63 CY $ 65.00 $ 4,095.00 $ 165.00 $ 10,395.00 28 REMOVE EXISTING CURB AND GUTTER 100 LF $ 28.00 $ 2,800.00 29 TREE REMOVAL INCLUDING STUMP AND ROOTS 4 EA $ 300.00 $ 1,200.00 $ 1,600.00 $ 6,400.00 30 REMOVE EXISTING SIGN
POST 1 EA $ 600.00 $ 600.00 $ 500.00 $ 500.00 31 EXISTING IRRIGATION REMOVAL 1E A $ 850.00 $ 850.00 $ 3,698.00 $ 3,698.00 32 C3 SOIL 48 CY $ 385.00 $ 18,480.00 $ 200.00 $ 9,600.00 33 ROCK FOR BIORETENTION AREA 16 CY $ 250.00 $ 4,000.00 $ 264.00 $ 4,224.00 34 RUBBER LINER 1747 SF $ 28.00 $ 48,916.00 $ 2.50 $ 4,367.50 35 4 ‐INCH PERFORATED PIPE 125 LF $ 35.00 $ 4,375.00 $ 75.00 $ 9,375.00 36 6 ‐INCH PVC PIPE 5 LF $ 50.00 $ 250.00 $ 300.00 $ 1,500.00 37 REMOVE CURB FOR CURB CUTS 100 LF $ 125.00 $ 12,500.00 $ 127.00 $ 12,700.00 38 SPLASH PADS 2 EA $ 200.00 $ 400.00 $ 993.00 $ 1,986.00 39 OVERFLOW STRUCTURE 1 EA $ 1,800.00 $ 1,800.00 $ 2,500.00 $ 2,500.00 40 PLANTING 1 LS $ 10,000.00 $ 10,000.00 $ 10,031.00 $ 10,031.00 41 IRRIGATION 1 LS $ 12,000.00 $ 12,000.00 $ 6,791.00 $ 6,791.00 Base Bid Total: $ 844,362.00 $ 974,317.50
10% Contingency: $ 84,437.00 $ 97,432.00 Total Base Bid: $ 928,799.00 $ 1,071,749.50
Over Engineer's Estimate: 15%
BID ALTERNATE
QTY UNIT
UNIT PRICE BID TOTAL UNIT PRICE BID TOTAL
Alt1 MOBILIZATION 1 LS $ 2,000.00 $ 2,000.00 $ 8,000.00 $ 8,000.00 Alt2 PUBLIC NOTIFICATION AND POSTING 1 LS $ 50,000.00 $ 50,000.00 $ 500.00 $ 500.00 Alt3 TRAFFIC CONTROL 1 LS $ 5,000.00 $ 5,000.00 $ 4,693.00 $ 4,693.00 Alt4 SHEETING, SHORING AND BRACING 1 LS $ 5,000.00 $ 5,000.00 $ 500.00 $ 500.00 Alt5 STRIPING 1 LS $ 2,000.00 $ 2,000.00 $ 21,390.00 $ 21,390.00 Alt6 INSTALL 10‐INCH HDPE 261 LF $ 200.00 $ 52,200.00 $ 245.00 $ 63,945.00 Alt7 INSTALL 12‐INCH HDPE 50 LF $ 250.00 $ 12,500.00 $ 385.00 $ 19,250.00 Alt8 VIDEO INSPECTION OF NEW STORM DRAIN PIPELINE 311 LF $ 4.00 $ 1,244.00 $ 8.00 $ 2,488.00 Alt9 REMOVE AND REPLACE EXISTING CB 3E A C H $ 5,000.00 $ 15,000.00 $ 6,200.00 $ 18,600.00 Alt10 INSTALL STANDARD STORM DRAIN MANHOLE 2E A C H $ 10,000.00 $ 20,000.00 $ 11,000.00 $ 22,000.00 Alt11 REMOVE AND REPLACE TYPE A C&G 84 LF $ 50.00 $ 4,200.00 $ 166.00 $ 13,944.00 Alt12 REMOVE AND REPLACE CURB TRANSITION 6‐INCH TO 8‐INCH 102 LF $ 50.00 $ 5,100.00 $ 86.00 $ 8,772.00 Alt13 REMOVE AND REPLACE CONCRETE SIDEWALK 814 SF $ 18.00 $ 14,652.00 $ 34.00 $ 27,676.00 Alt14 REMOVE AND REPLACE CURB RAMP 1 EACH $ 5,000.00 $ 5,000.00 $ 12,287.00 $ 12,287.00 Alt15 2 ‐INGH ASPHALT CONCRETE OVERLAY 44 TON $ 150.00 $ 6,600.00 $ 815.00 $ 35,860.00 Alt16 MISCELLANEOUS STORM DRAIN IMPROVEMENTS 1 LS $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 Alt17 MILL EXISTING CROSSWALK 225 SF $ 2.00 $ 450.00 $ 12.65 $ 2,846.25 $ ‐ $ ‐
Bid Alternate Total: $ 210,946.00 $ 272,751.25 10% Contingency: $ 21,095.00 $ 27,276.00 Total Bid Alternate: 232,041.00 $ 300,027.25$
Over Engineer's Estimate: 29%
LOWEST BIDDER
BID #D E S C R I P T I O N Engineer's Estimate Golden Bay Construction LOWEST BIDDER
BID #D E S C R I P T I O N Engineer's Estimate Golden Bay Construction Item 9
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 16, 2023
Report #:2308-1863
TITLE
Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee.
CEQA status - Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019.
RECOMMENDATION
The Finance Committee and Staff recommend that the Council:
1. Approve the Financing Plan for the Local Salt Removal Facility to be constructed at the Regional Water Quality Control Plant and authorize staff to amend the Recycled Water Agreement with the City of Mountain View; and
2. Direct staff to issue an invitation for bids and secure financing for the project financing through the Clean Water State Revolving Fund (SRF).
EXECUTIVE SUMMARY
The City commenced design on a salt removal facility in 2017. This report provides an updated cost estimate and financing plan for the project. Total estimated project costs are $56 million.
Previously identified funding sources included $16 million from Valley Water and $12.9 million from a US Bureau of Reclamation grant. The City of Mountain View has agreed to pay for the remaining $27 million in project costs. If approved, this action will continue staff work to construct a local salt removal facility including financial and contract adjustments to continue this project. On September 19, 2023, the Finance Committee reviewed the Preliminary Finance Plan for the Advanced Water Purification System and voted unanimously to recommend Council approval.
The Palo Alto Regional Water Quality Control Plant currently produces approximately 230 million gallons of recycled water per year for beneficial re-use. The majority of the recycled water customers are located in Mountain View, with some municipal uses within Palo Alto. The proposed Local Salt Removal Facility at the Regional Water Quality Control Plant will produce higher quality recycled water for existing and future customers in Mountain View and Palo Alto.
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The existing customers have been requesting lower salinity water to reduce impacts to salt sensitive landscapes. For the past decade, Palo Alto and its partner cities have worked to reduce the amount of salt that enters the sewage treatment plant. Unfortunately, salt is extremely hard to remove at the source.
In the early 2000s, the City investigated the possibility of expanding recycled water use within the City. A 2015 environmental impact report (EIR) prepared in connection with that effort identified potentially significant impacts to salt-sensitive plant species resulting from recycled water irrigation and included a salt removal facility as a mitigation measure for future recycled water expansion projects.
Palo Alto’s current recycled water use is limited to existing municipal facilities, however this project benefits Palo Alto by producing higher quality recycled water that would be suitable for broader uses in other areas within the city. The project supports Palo Alto’s Sustainability Action Plan by improving a local supply or recycled water. The Local Salt Removal Facility could potentially serve as a step toward producing potable water. This alternative is being evaluated as part of the City’s One Water planning process, which will be completed in 2024.
BACKGROUND
The RWQCP treats wastewater from a total of six communities: Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford, and East Palo Alto Sanitary District (Partner Agencies). The RWQCP also produces approximately 230 million gallons per year1 of tertiary-treated recycled water for beneficial reuse. Recycled water is non-potable and not used for drinking water. In the early 1990s, the recycled water program’s original objective was to reduce the effluent discharge volume and metal mass loadings to the Lower South San Francisco Bay. As the City’s potable water supply became scarcer and rates increased, the objective expanded to include reducing potable water consumption, mainly for City park irrigation. The RWQCP supplies tertiary-treated recycled water to the City of Mountain View, several City-owned facilities and parks (Greer Park and the Baylands Athletic Center), the Palo Alto Golf Course, Caltrans, and a commercial truck-fill standpipe at the RWQCP.
In the early 1990s, a more stringent mass loading limit for copper was placed on the RWQCP. To meet the copper limit and to assist with impacts of the drought in the late 1980s, the City developed a 1992 Water Reclamation Master Plan and a financial plan2.
Council decided to have RWQCP partners build the first phase of the recycled water system and distribute recycled water to the Palo Alto Golf Course to reduce the amount of pollutants 1 Throughout the report different units are referenced for measuring volumes of water; specifically, million gallons per day (MGD) or million gallons per year, 100 cubic feet (CCF), and acre-feet. 1 CCF is equal to 748 gallons, and 1 acre-foot is equivalent to 325,830 gallons.
2 City Council, September 2, 1993; Agenda Item #N/A, SR #464:93 https://portal.laserfiche.com/Portal/DocView.aspx?id=66040&repo=r-704298fc Item 10
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discharged to the Bay. The Recycled Water System expanded when Mountain View installed a new pipeline to the Shoreline area3.
Palo Alto investigated expanding recycled water to South Palo Alto and Stanford Research Park; however, two organizations, Canopy and Stanford Real Estate, voiced concerns regarding the irrigation of redwood trees and sensitive species with recycled water. The City then prepared an EIR focused on water quality issues and salinity impacts. On January 25, 2010, Council approved the Recycled Water Salinity Reduction Policy4, including a goal of reducing the recycled water salinity as measured by total dissolved solids (TDS) to under 600 parts per million (ppm). In the following years, the City and the other Partner Agencies completed several projects to reduce the infiltration of salty groundwater by repairing leaking sewer pipes. The repairs reduced the salts entering the RWQCP, but not by enough to reach the target. Palo Alto, Mountain View, and Valley Water wanted to increase the amount of recycled water used in the County and realized that reducing salts would help.
In 2017, Council approved the Preliminary Conceptual Design Report for a phased Local Salt Removal Facility. The Local Salt Removal Facility would improve the recycled water quality by reducing its average concentration of TDS from 800 ppm to 450 ± 50 ppm by blending reverse osmosis product water with the existing recycled water. The highly treated water would enable the City as well as Mountain View to expand non-potable recycled water use and/or provide a first step toward small-scale direct or indirect potable reuse in the City.
In December 2019, the City, Mountain View, and Valley Water signed an Agreement to Advance Resilient Water Reuse Programs in Santa Clara County5. The Agreement included funding of $16 million from Valley Water that could be put towards finalizing the design and construction of the Local Salt Removal Facility. In March 2021, the City hired Black & Veatch to design the Local Salt Removal Facility, which included updating cost estimates at each stage of design56.
An update on the Local Salt Removal Facility design including updated cost estimates and an update on the City’s collaboration efforts on Valley Water’s Regional Purified Water Project 3 City Council, June 18, 2007; Agenda Item #9, SR #243.07 https://portal.laserfiche.com/Portal/DocView.aspx?id=46352&repo=r-704298fc 4 City Council, January 25, 2010; Agenda Item #9, SR #111:10, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2010/cmr-111-
5 City Council, November 18, 2019; Agenda Item #17, SR #10627, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2019/id-10627-
mini-packet-11182019.pdf?t=60382.02
6 City Council, March 3, 2021; Agenda Item #3, SR #11782 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-
11782.pdf
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were presented to Council at a September 12, 2022 study session7. Due to increases in construction prices as well as refinement of design elements, the cost estimate of the Local Salt Removal Facility at the detailed design ($56 million) was significantly higher than that of the preliminary design in 2017 ($22 million). Staff has worked to mitigate these increases by seeking out grant opportunities as well as considering alternative bidding options, pre-selection of equipment where possible, and optimization of permeate storage tank. Staff committed at the September 12, 2022 study session to prepare a Preliminary Finance Plan (Attachment A) to describe the costs associated with the Local Salt Removal Facility, the various funding sources available, and the fiscal impacts to the City.
This project benefits Palo Alto in a number of ways. It will provide higher quality recycled water for the Golf Course and Greer Park, reduce conversion of marsh near the RWQCP outfall, and reduce discharge to the Bay. The project also furthers our collaborative efforts with treatment plant partner agencies and sets up potential for future recycled water customers within Palo Alto.
ANALYSIS
Staff worked with an engineering consultant, Woodard & Curran, to produce the Preliminary Finance Plan summarized herein (Attachment A). The incorporated assumptions regarding estimated construction costs, construction schedules, and facility operations are based on the Black & Veatch 90 percent design contract documents from October 2022. The most recent estimated Local Salt Removal Facility capital cost is $56,302,667 and includes Phase 1 design, construction, change order contingency, construction cost escalation, program management, and construction management. Total project cost for Phase 1 assumes a facility capacity of
1.125 million gallons per day of total reverse osmosis permeate with equipment sized, spaced, and configured for a potential Phase 2 expansion to 2.25 million gallons per day of total reverse osmosis permeate. Once the Finance Committee and City Council provide direction regarding this project, staff will work to prepare an updated cost estimate based on the 100% design documents and amend the 2005 agreement between Palo Alto and Mountain View for Recycled Water to reflect the parties’ respective obligations regarding the new facility.
Funding for the Local Salt Removal Facility is projected to come from several sources. Prior to allocation of the $56 million total project cost for the Preliminary Finance Plan, external funding sources were subtracted from the total to reduce the overall cost to each agency. External funding sources include the $16 million from the 2019 Agreement with Valley Water and a $12,867,875 US Bureau of Reclamation grant, leaving a remaining funding requirement of $27,434,792 (Table 1) which will be covered by Mountain View. Palo Alto currently has no plans to expand its existing recycled water system and current customers are mainly municipal users, 7 City Council, September 12, 2022; Agenda Item #3, SR #14650 https://portal.laserfiche.com/Portal/DocView.aspx?id=59240&repo=r-704298fc&searchid=1fc7f635-8174-45b3- b0b1-cd496145aa8f
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therefore, Palo Alto does not have a customer base requesting this higher quality water. Palo Alto and Mountain View staff agreed that Mountain View would pay the remainder of the capital costs associated with this project. Mountain View staff recommended this project and Mountain View’s City Council approved it on June 27, 20238.
If approved for construction by Palo Alto, an amendment to the existing Agreement 9 with Mountain View will be brought to Council at a later date to memorialize the capital cost contributions for the project.
Table 1: Summary of Project Capital Costs and Available External Funding (based on 90% design contract documents)
Amount
Capital Cost Estimate for Local Salt Removal Facility $56,302,667 Valley Water Funding -$16,000,000
US Bureau of Reclamation Grant -$12,867,875
Remaining Capital Cost to Be Paid By Mountain View $27,434,792 Estimated Debt Service Costs
The remaining capital costs allocated to Mountain View ($27 million) will be partially debt financed through the SRF program. Financing terms for this loan assume a 30-year repayment term at an estimated interest rate of 3.0%. Under these terms, the annual debt service payment is $1,436,000 and is to be allocated to Mountain View. Based on Council recommendation, staff will move forward with formalizing this loan in Fiscal Year 2024. Interest rates are subject to change; any delay in formalizing the loan with the state could potentially increase the total cost of the loan. Mountain View may elect to pay a portion of the capital cost initially rather than using the SRF for the full remaining capital cost. These details will be finalized in an amendment to the Recycled Water Agreement between Palo Alto and Mountain View.
Operation & Maintenance Cost Allocation
There will be new O&M expenses following the Local Salt Removal Facility construction completion. Black & Veatch prepared O&M cost estimates based on the projected operating expenses for several production rates. O&M cost will vary year by year depending on the actual demand by the users. Under the lowest cost O&M estimate, Palo Alto would be responsible for 8 City of Mountain View Council, June 27, 2023: Agenda Item #4.11, SR # EF-LA/LL/1/CAM 703-06-27-23CR 202873 https://mountainview.legistar.com/LegislationDetail.aspx?ID=6269443&GUID=FC0B7945-2797-4CE8-A439- 135187236514&Options=&Search=
9 City Council, August 28, 2017; Agenda Item #4, SR #8312 https://portal.laserfiche.com/Portal/DocView.aspx?id=50741&repo=r-704298fc&searchid=790798d8-ffbc-4bb6- 998b-faa57f8a8bbe
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annual operating costs proportional to its use of the water, ranging from $188,000 for the first full year of operation up to $230,400 at year 1010.
FISCAL/RESOURCE IMPACT
Current and future use of recycled water in the City of Palo Alto One of the City’s Climate Action-Protection and Adaptation goals is to develop a water supply portfolio which is resilient to droughts, changes in climate, and water demand and regulations, and that supports our urban canopy. Currently the City is developing the One Water Plan, a key action within the City’s Sustainability and Climate Action Plan (S/CAP)11. The development of a water plan will evaluate alternative water supplies, define existing and future uncertainties and supply risks, and identify community needs and priorities. The One Water Plan will serve as a long-term guide to better prepare for future uncertainties like multi-year drought and climate change. The Local Salt Removal Facility could be a component of several of the supply options being evaluated.
One alternative considered in the One Water Plan is the Phase III recycled water system expansion to the Stanford Research Park. The Local Salt Removal Facility is critical to that project as only enhanced recycled water will be acceptable to Stanford. This project is, however, unlikely to be included in a final recommendation due to the cost compared to other alternatives and the direction the State is headed toward restricting irrigation of non-functional turf at commercial sites.
If the City’s non-potable reuse system is not expanded (i.e., Phase III expansion screened out from One Water Plan), there is a small demand for enhanced recycled water in the City to use on the Golf Course’s fairways and other landscaped areas.
With the City’s future recycled water demand and objectives largely uncertain, staff decided to focus the Preliminary Finance Plan on the scenario that assumes no change in current recycled water demand in Palo Alto, except a small increase for the Palo Alto Golf Course.
STAKEHOLDER ENGAGEMENT
Palo Alto hosted a community meeting on October 23, 2019 to inform the community and answer questions about the components of the funding Agreement between Palo Alto, Valley Water, and Mountain View, including partial funding for the Local Salt Removal Facility.
Members of the public approached staff during break-out sessions to get direct answers to questions. Most comments were focused on the 2019 Agreement to Advance Resilient Water Reuse Programs in Santa Clara County terms and were overall supportive of the Local Salt 10 Prior to the first year of operation there is a 6-month period with half the annual cost referenced in Table 5 in Attachment A: Preliminary Finance Plan for the Advanced Water Purification System – Phase 1. 11 City Council, September 27, 2022; Agenda Item #10, SR #14606 https://portal.laserfiche.com/Portal/DocView.aspx?id=59252&repo=r-704298fc&searchid=b7c55b77-936d-4d8d- 88d7-cd472a13d1b2
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Removal Facility. Previous public meetings related to options to reduce salinity in recycled water were also held.
ENVIRONMENTAL REVIEW
Finance Committee and eventual Council action on this item is a project subject to review under the California Environmental Quality Act (CEQA). CEQA analysis for the project is contained in the 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved by the City Council on November 18, 2019.
ATTACHMENTS
Attachment A: Preliminary Finance Plan for the Advanced Water Purification System – Phase I APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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101 Montgomery Street
Suite 1850
San Francisco CA 94104
www.woodardcurran.com
T 800.426.4262
T 415.321.3400
MEMORANDUM
TO: Diego Martinez Garcia, City of Palo Alto
CC: Karin North, City of Palo Alto
Lisa Au, City of Mountain View
FROM: Alex Handlers, Bartle Wells Associates
Ethan Wilson, Woodard & Curran
Greg Sands, Woodard & Curran
REVIEWED BY: Carrie Del Boccio, Woodard & Curran
Taylor Lynn, Woodard & Curran
DATE: July 27, 2023
RE: Preliminary Finance Plan for the Advanced Water Purification System Phase 1 Regional Water Quality Control Plant, City of Palo Alto
Contents
1. INTRODUCTION ................................ ................................ ................................ ............. 2
2. BACKGROUND ................................ ................................ ................................ ................ 3
2.1 Capital Project Costs .................................................................................................................. 3
2.2 Operating and Maintenance Expenses ............................................................................... 3
2.3 Sources of Funding ..................................................................................................................... 4
2.4 Projected Water Supply ............................................................................................................ 4
3. CAPITAL COST ALLOCATION ................................ ................................ ........................ 5
3.1 Capital Cost Allocation to Palo Alto ................................................................................... 5
3.2 Capital Cost Allocation to Mountain View ....................................................................... 5
3.2.1 Anticipated Funding Contributions ........................................................................ 5
3.2.2 Estimated Debt Service Costs ................................................................................... 5
4. OPERATING & MAINTENANCE COST ALLOCATION ................................ ................... 6
4.1 Operating & Maintenance Charge or Fee Schedule .................................................... 6
4.2 Palo Alto Projected Use & AWPS Operating Expenses ............................................... 8
4.3 Mountain View Projected Use & AWPS Operating Expenses .................................. 8
5. SUMMARY ................................ ................................ ................................ ...................... 9
5.1 Total Costs (Scenario A) ........................................................................................................... 9
5.2 Total Costs (Alternative Scenario A) .................................................................................12
5.3 Total Costs (Scenario B) .........................................................................................................15
5.4 Other Considerations .............................................................................................................18
6. ATTACHMENTS ................................ ................................ ................................ ............ 19 Item 10
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7. REFERENCES ................................ ................................ ................................ ................. 20
1. INTRODUCTION
The City of Palo Alto own s and operates the Regional Water Quality Control Plant (RWQCP, Plant), which treats wastewater from six partner communities. The RWQCP produces a filtered and disinfected secondary effluent . The majority of the effluent is discharged to the San Francisco Bay and a portion of the effluent is further treated to produce disinfected tertiary recycled water (Title 22 unrestricted non -potable uses, “existing recycled water” ). To improve the recycled water quality from the RWQCP, the City of Palo and the City of Mountain View , supported by the Santa Clara Valley Water District (Valley Water) , are planning to construct a local salt removal facility, known as the Advanced Water Purification System (AWPS). The AWPS will improve the recycled water quality by reducing its average concentration of total dissolved solids (TDS) from 810 milligrams per liter (mg/L) to 450 ± 50 mg/L by blending of reverse osmosis permeate (ROP) with the existing recycled water to produce enhanced recycled water with a lower salt content. The City of Palo Alto has contracted with Black & Veatch to design a phased implementation of the AWPS. Phase 1 construction would create a 1.125 million gallons per day (MGD) capacity facility with equipment sized, spaced, and configured for a future capacity expansion, known as Phase 2. Phase 2 construction would add equipment to double the capacity (double the ROP output), for a total AWPS production of 2.25 MGD. The blending station that creates the enhanced recycled water was designed for a maximum flow of 2.55 MGD Phase 1 and 5.1 MGD Phase 2.
Woodard & Curran (W&C) was directed by the City of Palo Alto to develop a preliminary financing plan (PFP, task) for the AWPS , Phase 1 under the existing Program Management contract between the City of Palo Alto and W&C. W&C subcontracted with Bartle Wells Associates to contribute public finance expertise to the PFP . The development of the PFP included several workshop sessions with the City of Palo Alto, the City of Mountain View, and a combination of both Cities to present findings and receive input. This plan details the relevant components of the PFP for the Cities’ review and comment.
The PFP is based upon the best available data and forecasts available. The AWPS assumptions regarding estimated construction costs, construction schedules, and facility operations are based on the AWPS consulting engineer’s 90% design milestone deliverables. Future enhanced recycled water demand forecasts are based upon the individual forecasts provided by each City.
The City of Mountain View has an existing demand for enhanced recycled water 1 and has estimated additional demand based upon assumed development. The City of Palo Alto has two potential sources of enhanced recycled water demand: the Phase 3 expansion of the Recycled Water System (an expansion to the Stanford Research Center) or a direct potable water reuse system. Palo Alto’s existing recycled water demand is 0.4 MGD. A key basis of this PFP is Palo Alto’s Phase 3 expansion, creating a total enhanced recycled water demand of 0.8 MGD (annual average) from 2031-2040 and 1.2 MGD from 2041 to 2052(“Scenario A”). A second alternative
1 There are existing entities in Mountain View that are exempt from using recycled water because of the current water quality and that would no longer be exempt if enhanced recycled water was available.
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scenario (“Alternative Scenario A”), where Palo Alto’s enhanced recycled water demand is level throughout the forecast at 0.4 MGD while Mountain View increases demand to their full 3 MGD contract amount, is provided in the Appendix 1, Tables PA -8, PA-9, and PA -10. An additional scenario (“Scenario B”), where enhanced recycled water demand is level at 0.4 MGD until the implementation of a direct potable reuse project in 20401, is provided in the Appendix 1, Tables 6B-11B. Both additional scenarios are discussed in Section 5 (Summary).
2. BACKGROUND
2.1 Capital Project Costs
The most recent estimated AWPS capital cost is $56,302,667 (rounded to $56M), which includes Phase 1 construction (including the odor control project), design, change order contingency, and program & construction management. Total project costs for Phase 1 assume a 1.125 MGD capacity with equipment sized, spaced, and configured for a potential Phase 2 expansion to
2.25 MGD. For the purposes of this plan, construction of Phase 2 expansion is not considered.
The estimated cost assumes an approximately 18-month construction duration from June 2023 to January 2025, with an estimated 6 month start up period and project commissioning between January 2025 and June 20 25. Costs and schedule are based upon the design deliverables provided by the consulting engineer, Black and Veatch. The cost detail is included in Appendix 1, Table 1, and a summary is provided in Table 1.
Table 1. Estimated Project Costs
Project Component Amount ($)
Construction (AWPS Phase 1) 42,997,303
Construction (Odor Control) 620,000
Design and Engineering Services 3,182,960
Change Order Contingency 4,299,730
Project Management 472,970
Construction Management 4,729,703
Total: 56,302,667
2.2 Operating and Maintenance Expenses
There will be new operating & maintenance (O&M) expenses following the AWPS construction completion. Black & Veatch prepared O&M cost estimates based on the projected operating expenses for four ROP production rates (Black and Veatch, AWPS OPEX 8 -15-22, 2022). The production rates are based on the design configuration of the equipment. O&M costs will vary based upon the facility’s actual production rate. Black & Veatch also confirmed with Plant staff that the AWPS co uld be taken offline for a prolonged period . The Plant staff is interested in taking the facility offline when recycled water demand is minimal for an extended period ( i.e.,
1 A direct potable reuse (DPR) project is currently being evaluated as part of Palo Alto’s “One Water Plan,” by Palo Alto’s Utilities Department and Carollo Engineers, Inc.
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a portion of the wet season) . Further discussion of ROP production and associated O&M expenses are presented later in this plan, and O&M assumptions and cost estimating details are provided in Appendix 2.
2.3 Sources of Funding
Funding for the AWPS is projected to come from several sources. Prior to allocati on of the $56M total project cost, external funding sources are used first to reduce the overall cost.
External funding sources include a $16M 1 credit per agreement with Valley Water and a $12,867,875 USBR grant2, leaving a remaining funding requirement of $27,434,792.
Given the City of Mountain View’s significant need and anticipated demand for enhanced recycled water, Mountain View is considering the obligation of 100% of the remaining capital balance. Appendix 1, Table 2 provides a complete breakdown of the potential funding sources described in this section. If the AWPS is to be constructed, a new agreement (with ter ms currently unknown) between Palo Alto and Mountain View would be needed to approve the AWPS funding and construction. Figure 1 shows the assumed sources of funding.
Figure 1. Sources of AWPS (Phase 1) Funding
2.4 Projected Water Supply
The design capacity of the AWPS Phase 1 totals 1.125 MGD (ROP), prior to any blending with the existing recycled water production . Ultimately, ROP would be blended with the existing recycled water to create enhanced recycled water. Assuming the allocation of capacity before
1 The Valley Water credit accumulates interest, which was assumed to be marginal and not considered in the PFP.
2 To be eligible for USBR grand funds, NEPA/CEQA+ requirements need to be met. The Plant is actively coordinating with USBR to meet the minimum requirements of a future grant funding agreement. The grant amount shown does not account for potential USBR administrative fees.
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blending is split 25% / 75%, Palo Alto’s AWPS allocation is 0.281 MGD ROP and Mountain View’s AWPS allocation is 0.844 MGD ROP.
The total production of enhanced recycled water varies based upon the blending ratio of existing recycled water production to AWPS ROP. Black & Veatch e stimated the enhanced recycled water production in the AWPS Basis of Design Report (2021, Table 4-5) while achieving the design criteria (TDS +/ - 450 mg/L). A summary table of their blending ratios is shown in Table 2.
Table 2. Projected Blending Ratio Ranges to Reach Variable Enhanced Recycled Water TDS (Table 4-5, Black and Veatch 2021)
It is estimated that annual enhanced recycled water use in 2026 ( first full year of production) will total 1.27 MGD. At this time, Palo Alto is estimated to use 0.40 MGD of enhanced recycled water, representing approximately 31.5% of the total enhanced recycled water production.
Mountain View is estimated to use 0.87 MGD of enhanced recycled water, representing approximately 68.5% o f the total enhanced recycled water production. Full detail s of this breakdown are provided in Appendix 1, Tables 6-9.
3. CAPITAL COST ALLOCATION
3.1 Capital Cost Allocation to Palo Alto
As previously discussed in Section 2.3, Palo Alto’s share of remaining capital costs for the AWPS is 0% of the approximate $56M total project cost, as Mountain View will be responsible for all debt service expenses.
3.2 Capital Cost Allocation to Mountain View
As previously mentioned, Mountain View’s share of remaining capital costs for the AWPS is 100%, or $2 7,434,792 of the $56M total project cost. Considering external funding sources, Mountain View’s allocation reflects approximately 48.7% of total project costs.
3.2.1 Anticipated Funding Contributions
Mentioned in Section 2.3, several funding contributions are anticipated for the AWPS. External funding sources include the $16M credit with Valley Water and the $12.8M USBR grant, leaving a remaining funding requirement of $27,434,792 to be allocated to Mountain View.
3.2.2 Estimated Debt Service Costs
The costs allocated to Mountain View are assumed to be debt financed through the Clean Water State Revolving Fund (CWSRF) program. The loan amount includes the project cost Item 10
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referenced in previous sections in addition to estimated capitalized interest during construction of $617,000 and estimated other costs or contingency of $100,000. Including the estimates for capitalized interest and contingency, the total loan amount is $28,151,792. Financing terms for this loan assume a 30-year repayment term at an estimated interest rate of 3.00%1. Under these terms, the annual debt service repayment totals $1,436,000 . This annual debt service is then allocated 100% to Mountain View, corresponding to an annual debt service allocation of $1,436,000. It is also worth noting that the SRF program has a debt service reserve requirement; if Palo Alto is the loan guarantor it must set aside 1 year of debt service at least 90 days prior to project completion. A breakdown of the SRF loan and debt service estimates are presented in Appendix 1, Tables 3 and 4.
4. OPERATING & MAINTENANCE COST ALLOCATION
4.1 Operating & Maintenance Charge or Fee Schedule
Utilizing the blending ratio ranges in the Black & Veatch’s report (Table 2) and incorporating the Plant’s preference to minimize AWPS operations during low demand months, AWPS production levels were calculated to meet forecasted enhanced recycled water demand, as best possible. The AWPS will run for the shortest periods of time possible during low demand periods to maintain system performance while minimizing operational expenses and to avoid the complexities associated with taking the system offline . The PFP does not assume any new labor expenses throughout the year and other operational costs will be minimal because of reduced operation s in low demand months. Linear extrapolation from historical monthly recycled water production was used to forecast the monthly enhanced recycled water demand.
Enhanced recycled water demand is projected to stabilize in the 2030’s, where forecasted annual average demand is 2.06 MGD (752 million gallons (MG) per year). A theoretical summary of AWPS operations (production and blending scenarios) is presented below to meet the 2.06 MGD annual average demand (up to 774 MG). However, even at the lowest blending ratio, there are several months where there is not enough AWPS capacity to meet the enhanced recycled water demand (May, June, July, and August based on historical data) and more production than demand is needed during other months to meet the average annu al amount.
Additional detail of the operations and maintenance assumptions is provided in Appendix 2 .
Table 3 shows the operational scenario that was used to generate O&M costs.
1 CWSRF loan interest rate is at 2.60% as of 11/14/2022 and is subject to change.
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Table 3. AWPS Operational Scenario to Approximately
Meet Enhanced Recycled Water Demand
Month Days Blend Scenario
AWPS Production
Rate (as % of
Capacity)
(per
month)
Target
TDS
(mg/L)
Ratio
(existing
RW : ROP)
(Assumed
Production as %
of Capacity)
January 31 n/a n/a 0%
February 28 450 1.0 : 0.95 50%
March 31 500 1.0 : 0.52 80%
April 30 500 1.0 : 0.52 100%
May 31 500 1.0 : 0.52 100%
June 30 500 1.0 : 0.52 100%
July 31 500 1.0 : 0.52 100%
August 31 500 1.0 : 0.52 100%
September 30 500 1.0 : 0.52 100%
October 31 450 1.0 : 0.95 80%
November 30 n/a n/a 0%
December 31 n/a n/a 0%
The allocation of O&M expenses is based on the estimated percentage of total enhanced recycled water use by Palo Alto and Mountain View. While enhanced recycled water flow is a function of both the AWPS and the existing recycled water facility, O&M costs presented in this report only consider expenses for the AWPS 1. The estimated percentage of total enhanced recycled water production for 2026 -2035 are shown in Table 4, the full table is located in Appendix 1, Table 6.
The O&M expenses were modified from the design consultant’s estimates to account for seasonal production variations. Appendix 1, Table 5, shows the O&M expenses, Appendix 1, Table 10 shows the operating costs for the first twenty years of operations , and Appendix 2 details the O&M assumptions.
1 O&M expenses for the existing recycled water facilities are part of the overall Plant operations and are excluded from this analysis.
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Table 4. Estimated Enhanced Recycled Water Use1
Year
Estimated Recycled Water Use
(MGD)
% of Total
Palo Alto Mountain
View
Total Palo Alto Mountain
View
2026 0.40 0.87 1.27 31.5% 68.5%
2027 0.40 0.87 1.27 31.5% 68.5%
2028 0.40 0.96 1.36 29.4% 70.6%
2029 0.40 1.04 1.44 27.8% 72.2%
2030 0.60 1.15 1.75 34.3% 65.7%
2031 0.80 1.26 2.06 38.8% 61.2%
2032 0.80 1.26 2.06 38.8% 61.2%
2033 0.80 1.26 2.06 38.8% 61.2%
2034 0.80 1.26 2.06 38.8% 61.2%
2035 0.80 1.26 2.06 38.8% 61.2%
4.2 Palo Alto Projected Use & AWPS Operating Expenses
Palo Alto’s projected demand for enhanced recycled water production can be seen in Appendix 1, Tables 6-8. Palo Alto is estimated to use approximately 0.4 MGD of enhanced recycled water in 2026. Under the lowest cost O&M estimate (seasonal operations), Palo Alto would be responsible for $188,000, representing 31.5% of the operational costs in 2026 . In 2031, Palo Alto is assumed to increase their enhanced recycled water use to 0.80 MGD (which is also the median value between no Phase III recycled water expansion (0.40 MGD) and the full Phase III recycled water expansion (1.20 MGD)). The future expansion of recycled water use in Palo Alto -- either Phase III recycled water expansion or DPR -- will depend on the recommendations and implementation of the City’s One Water Plan. Under this level of use, Palo Alto’s operating cost allocation would increase to $379,900 for 2031, as their share of total use increases. Appendix 1, Table 10 summarizes the operating costs for Palo Alto by year for the first twenty years of operations.
4.3 Mountain View Projected Use & AWPS Operating Expenses Mountain View’s projected demand for enhanced recycled water production can be seen in Appendix 1, Tables 6-8. Mountain View is estimated to use approximately 0.87 MGD of enhanced recycled water in 2026. Under the lowest cost O&M estimate (seasonal operations), Mountain View would be responsible for $408,900 representing 68.5% of the operational costs in 2026. In 2031, Mountain View is assumed to increase their enhanced recycled water use to
1 The basis for estimated enhanced recycled water use is from a 2017 Feasibility Study prepared by MNS Engineers, Inc., which was developed in collaboration with representatives from both Cities’ Staff.
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1.26 MGD, as they already have recycled water demand from customers ready to connect once the recycled water quality impr oves. Under this level of use, Mountain View ’s operating cost allocation would be 61.2%, or $598,400 for 2031 . Appendix 1, Table 10 summarizes the operating costs for Mountain View by year for the first twenty years of operations.
5. SUMMARY
5.1 Total Costs (Scenario A)
Appendix 1, Table 11 summarizes the estimated recycled water use and all the considered costs in the PFP , including the debt service allocation, the operating cost allocation , and the total costs, from Year 1 (CY2025/2026, FY 2026) to Year 20 (CY 2044/2045). Appendix 1, Table 11 is included within this plan as Table 5.
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Table 5. AWPS Phase 1 Total Cost Allocations by Year (Scenario A)
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5.2 Total Costs (Alternative Scenario A)
The recycled water demand for Alternative Scenario A considers that Palo Alto does not move forward with Phase III recycled water expansion and has no change in recycled water demand from the cur rent 0.40 MGD ( Appendix 1 , Table PA -10). Additionally, Alternative Scenario A assumes Mountain View increases recycled water use to their full 3 MGD amount . Total operating and maintenance expenses remain the same as the original scenario in 2026 but decrease to $204,800 in 2031, as seen in Appendix 1, Table PA -10. Similarly, full costs remain the same as the original scenario in 2026 but decrease to $2 04,800 in 2031, lower than the original scenario. A full breakdown of projected use and total costs alloc ated to each City is presented in Appendix 1, Table PA-10. Appendix 1, Table PA-10 is included in this Plan as Table
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Table 6. AWPS Phase 1 Total Cost Allocations by Year (Alternative Scenario A)
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5.3 Total Costs (Scenario B)
The recycled water demand for Scenario B considers that Palo Alto does not move forward with Phase III recycled water expansion, but does have an increase in recycled water demand for a direct potable reuse (DPR) project starting in 2041 (Appendix 1, Table 6B ). The alternative recycled water demand is shown in Table 7. Total operating and maintenance expenses remain the same as the original scenario in 2026 but decrease to $175,000 in 2031, as seen in Appendix 1, Table 10B. Similarly, full costs remain the same as the original scenario in 2026 but decrease to $175,000 in 2031, lower than the original scenario (Scenario A). Annual O&M expenses are a function of actual use and therefore Palo Alto’s demand Scenario B impacts Mountain View’s forecasted O&M expenses. Palo Alto’s total cost allocation in 2031 is $175,000 and Mountain View’s is $1,987,300. A full breakdown of projected use and total costs allocated to each City is presented in Appendix 1, Table 11B. Appendix 1, Table 11B is included within this plan as Table .
Table 7. Estimated Enhanced Recycled Water Use (Scenario B) Year
Estimated Recycled Water Use
(MGD)
% of Total
Palo Alto Mountain
View
Total Palo Alto Mountain
View
2026 0.40 0.87 1.27 31.5% 68.5%
2027 0.40 0.87 1.27 31.5% 68.5%
2028 0.40 0.96 1.36 29.4% 70.6%
2029 0.40 1.04 1.44 27.8% 72.2%
2030 0.40 1.15 1.55 25.8% 74.2%
2031 0.40 1.26 1.66 24.1% 75.9%
2032 0.40 1.26 1.66 24.1% 75.9%
2033 0.40 1.26 1.66 24.1% 75.9%
2034 0.40 1.26 1.66 24.1% 75.9%
2035 0.40 1.26 1.66 24.1% 75.9%
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Table 8. AWPS Phase 1 Total Cost Allocations by Year (Scenario B)
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5.4 Other Considerations
The primary focus of this Preliminary Finance Plan is to quantify the added cost of the AWPS/ROP to existing expenses based on forecasted conditions . The total costs discussed in this Section 5 do not include the costs associated with the e xisting tertiary recycled water facility1. An analysis of the total cost of future recycled water should also incorporate the existing tertiary recycled water expense. The enhanced recycled water costs do not account for recycled water distribution costs (e.g., the capital and O&M of the recycled water pumps and pipelines).
Additionally, the option to pursue Direct Potable Reuse (DPR) is currently being evaluated under the City of Palo Alto’s One Water Plan. The AWPS could be used as part of the treatment to supply enhanced recycled water, however the current PFP quantifies costs related to non - potable recycled water use.2
1 The O&M costs for the existing recycled water was estimated by Plant staff. This estimate assumes 0.75 MGD production level and 2022 costs escalated forward 3% annually. The per unit cost in 2023 is estimated to be approximately $3.31/ccf (hundred cubic feet). The per unit cost estimate is slightly higher in 2026 at $3.58/ccf. Additionally, there are likely future capital/debt expenses associated with the existing recycled water facility; the infrastructure of the existing facility is reaching the end of its useful life. Future capital/debt costs associated with its replacement or rehabilitation are not known. 2 Note that the siting capacity of a DPR process, utilizing the AWPS facility, has not yet been conceptually developed.
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6. ATTACHMENTS
Appendix 1 – Advanced Water Purification System Preliminary Financing Plan Tables Appendix 2 – Assumed Operations and Maintenance and Related Expense Estimates
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7. REFERENCES
Black & Veatch, City of Palo Alto Advanced Water Purification System (AWPS), Basis of Design Report, Project 408520. November 8, 2021
Black & Veatch, City of Palo Alto AWPS Cost Estimate, The Opinion of Probable Construction Cost (OPCC), Project 408520. October 5, 2022.
Black & Veatch, City of Palo Alto AWPS, Operations & Maintenance Cost Estimate (“AWPS OPEX 8-15-22”)– All Alternatives, Project 408520. August 15, 2022 City of Palo Alto, et al., Amendment No. 1 To the First Amended and Restated Contract NO.
C059999 Between the City of Palo Alto and the City of Mountain View, August 28, 2017 City of Palo Alto, et al., Partnership Agreement Between the S anta Clara Valley Water District, the City of Palo Alto and the City of Mountain View to Advance Resilient Water Reuse Programs in Santa Clara County, Agreement A4308X, Approved December 10, 2019
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Appendix 1
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Revised 7/26/23With Mountain View Funding 100% of AWPS Debt ServiceAssumes No New Labor O&M Expenses Advanced Water Purification SystemPreliminary Financing Plan Item 10
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AWPS Phase 1 Capital & Operating Costs & Allocations
Table 1 Project Cost Estimates
Table 2 Projected Funding Sources
Table 3 SRF Loan Debt Service Estimates
Table 4 SRF Debt Service Allocation
Table 5 Operating & Maintenance Expenses
Table 6 Estimated Enhanced (Blended AWPS) Recycled Water Use (MGD) Table 7 Estimated Enhanced (Blended AWPS) Recycled Water Use (AF) Table 8 Estimated Enhanced (Blended AWPS) Recycled Water Use (ccf) Table 9 Summary of AWPS Capacity & Recycled Water Use
Table 10 AWPS Phase 1 Operating Costs & Allocations by Year Table 11 AWPS Phase 1 Total Cost Allocations by Year
Palo Alto Recycled Water Use & Costs
Table PA-1 Palo Alto Enhanced Recycled Water Use (Blended) Table PA-2 Palo Alto Cost per Unit of Recycled Water
Table PA-3 Palo Alto Projected Enhanced Recycled Water Costs & Impacts Table PA-4 Projection of Recycled Water Impacts to Palo Alto General Fund Table PA-5 Net Annual Impacts to City of Palo Alto
With No Changes in PA & MV Future Recycled Water Use
Table PA-6 Projection of Recycled Water Impacts to Palo Alto General Fund Table PA-7 Net Annual Impacts to City of Palo Alto
With No Changes in PA Recycled Water Use but
Table PA-8 Projection of Recycled Water Impacts to Palo Alto General Fund Table PA-9 Net Annual Impacts to City of Palo Alto
Table PA-10 AWPS Phase 1 Total Cost Allocations by Year Scenario B: No Phase III with DPR Starting 2041
Table 6B Estimated Enhanced (Blended AWPS) Recycled Water Use (MGD) Table 7B Estimated Enhanced (Blended AWPS) Recycled Water Use (AF) Table 8B Estimated Enhanced (Blended AWPS) Recycled Water Use (ccf) Table 9B Summary of AWPS Capacity & Recycled Water Use
Table 10B AWPS Phase 1 Operating Costs & Allocations by Year Table 11B AWPS Phase 1 Total Cost Allocations by Year
Scenario B: Palo Alto Recycled Water Use & Costs
Table PA-4B Projection of Recycled Water Impacts to Palo Alto General Fund Table PA-5B Net Annual Impacts to City of Palo Alto
List of Tables
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AWPS Phase 1 Capital & Operating Costs & Allocations
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Table 1
AWPS Preliminary Financial Plan
Project Cost Estimates
Project Component Cost % of Ttl Cost Basis
AWPS Project Costs
Construction, Phase I: 90% Estimate $42,997,303 76.4% 90% OPCC Est. by Black & Veatch dated 10/05/22 Design 3,182,960 5.7% Black & Veatch Contract
Owner Controlled Change Order Contingency 4,299,730 7.6% 10% of Construction Program Management 472,970 0.8% 1% of Construction + CO Contingency Construction Management 4,729,704 8.4% 10% of Construction + CO Contingency Odor Control Construction 620,000 1.1% Class 2 Estimate by Black & Veatch dated 11/6/21________________ Total Project Costs 56,302,667 100.0%
Phase 1 assumes 1.125 mgd capacity with facilities sized, spaced, and configured for Phase 2 build-out.
Roughly 18 month construction schedule from June 2023 - January 2025 with roughly 6 month start up and commissioning between January 2025 - June 2025.
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Table 2
AWPS Preliminary Financial Plan
Projected Funding Sources
Amount % of Total
Projected Funding Sources
Total AWPS Project Cost $56,302,667
External Funding Sources
Valley Water Contribution [1] 16,000,000 28.4%
USBR Grant [2] [3] 12,867,875 22.9% __________ _______
Subtotal 28,867,875 51.3%
Remaining Funding Requirement 27,434,792
Cost Allocation of Remaining Funding Requirement [4]
Palo Alto Cost Allocation 0% 0 0.0%
Mountain View Cost Allocation 100% 27,434,792 48.7%__________ _______ Subtotal 27,434,792 48.7%
Total Sources of Funding 56,302,667 100.0%
1 Source: 2019 Partnership Agreement, Section 5; Valley Water Contribution will be escalated annually based on Valley Water's Yield-to-Maturity Rate as published in Valley Water's Quarterly Performance Reports to the Board for the fourth quarter of each fiscal year. 2 Agreement needed to finalize (NEPA / CEQA+).
3 Does not account for potential USBR administrative fee. 4 Assumes Mountain View funds 100% of remaining AWPS capital costs.
Assumes GP5 Funds are not used to help fund AWPS Project.
Mountain View$27,434,792USBR Grant$12,867,875Valley Water Credit$16,000,000 Item 10
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Table 3
AWPS Preliminary Financial Plan
SRF Loan Debt Service Estimates
Loan Amount
Palo Alto Project Cost Allocation $0 0.0%
Mountain View Project Cost Allocation 27,434,792 100.0% Capitalized Interest estimated 617,000
Other Costs/Contingency estimated 100,000____________
Total 28,151,792
Financing Terms
Repayment Term (Years) 30
Interest Rate estimated 3.00%
Annual Debt Service $1,436,000
Annual Debt Allocation
Palo Alto Share $0 0.0%
Mountain View Share 1,436,000 100.0%____________
Total 1,436,000
SRF Reserve Requirement: Must set aside 1 year of debt service at least 90 days prior to project completion date.
CWSRF Interest Rate is currently 2.90% as of 4/6/23, but is subject to change.
SRF Loan
Estimates
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Table 4
AWPS Preliminary Financial Plan Annual Debt Service
SRF Debt Service Allocation $1,436,000
Fiscal Year Palo Alto Mountain View Total
Ending 6/30 0% 100% Debt Service
2026 $0 $1,436,000 $1,436,000
2027 0 1,436,000 1,436,000
2028 0 1,436,000 1,436,000
2029 0 1,436,000 1,436,000
2030 0 1,436,000 1,436,000
2031 0 1,436,000 1,436,000
2032 0 1,436,000 1,436,000
2033 0 1,436,000 1,436,000
2034 0 1,436,000 1,436,000
2035 0 1,436,000 1,436,000
2036 0 1,436,000 1,436,000
2037 0 1,436,000 1,436,000
2038 0 1,436,000 1,436,000
2039 0 1,436,000 1,436,000
2040 0 1,436,000 1,436,000
2041 0 1,436,000 1,436,000
2042 0 1,436,000 1,436,000
2043 0 1,436,000 1,436,000
2044 0 1,436,000 1,436,000
2045 0 1,436,000 1,436,000
2046 0 1,436,000 1,436,000
2047 0 1,436,000 1,436,000
2048 0 1,436,000 1,436,000
2049 0 1,436,000 1,436,000
2050 0 1,436,000 1,436,000
2051 0 1,436,000 1,436,000
2052 0 1,436,000 1,436,000
2053 0 1,436,000 1,436,000
2054 0 1,436,000 1,436,000
2055 0 1,436,000 1,436,000
Total 0 43,080,000 43,080,000
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Table 5
AWPS Preliminary Financial Plan
Operating & Maintenance Expenses
2026 2031
Annual AWPS O&M Expenses (2023 $) Costs in 2023 $ Costs in 2023 $ O&M Labor $0 $0
Maintenance & Repairs 260,400 351,600
Energy 142,800 186,500
Chemicals 101,100 136,400
Membrane Consumables 26,400 40,300 _________ _________
Total 530,700 714,800
Annual O&M With Cost Escalation to Startup Cost Escalation Cost Escalation to 2026 $ to 2031 $
Cost Escalation at 4% per Year 12.5% 36.9%
O&M Labor (Assumes No New Labor) $0 $0
Maintenance & Repairs 292,900 481,200
Energy 160,600 255,200
Chemicals 113,700 186,700
Membrane Consumables 29,700 55,200 _________ _________
Total First Year Operations (FY2026) 596,900 978,300
Notes:
O&M cost estimates developed by Woodard & Curran based on Black & Veatch AWPS OPEX 8-15-22 adjusted to account for seasonal variation in operations; costs assume no new labor expenses.
Woodard & Curran operating cost estimates are based on historical demand and planned operation and assume seasonal variation of the AWPS operations as follows:
Black & Veatch AWPS OPEX 8-15-22 operating cost estimates assumed 2.5 new FTEs for annual operations including 1 FTE Operator II, 1 FTE Maintenance/Electrician, and 1/2 FTE Lab Tech WQC.
Costs shown are for AWPS Phase 1 recycled water production and exclude:
b) Costs for operation of and administration of each agency's recycled water distribution system.
Estimated Annual O&M Expenses
Assumes Seasonal Operations with no New Labor
a) Capital and operating expenses for Title 22 recycled water production at the RWQCP. The Title 22 recycled water facilities are a legacy system that have been maintained as part of the Plant’s NPDES permit compliance and therefore paid for by all Partners. The Plant will continue to produce Title 22 effluent, irrespective of the AWPS project implementation.
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Table 6
AWPS Preliminary Financial Plan
Estimated Enhanced (Blended AWPS) Recycled Water Use (MGD) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 0.33 0.33 0.66 50.0% 50.0%
2021 0.25 0.37 0.62 40.3% 59.7%
2022 0.40 0.40 0.80 50.0% 50.0%
2023 0.40 0.40 0.80 50.0% 50.0%
2024 0.40 0.40 0.80 50.0% 50.0%
2025 0.40 0.55 0.95 42.1% 57.9%
2026 [2] 0.40 0.87 1.27 31.5% 68.5%
2027 0.40 0.87 1.27 31.5% 68.5%
2028 0.40 0.96 1.36 29.4% 70.6%
2029 0.40 1.04 1.44 27.8% 72.2%
2030 [3] 0.60 1.15 1.75 34.3% 65.7%
2031 0.80 1.26 2.06 38.8% 61.2%
2032 0.80 1.26 2.06 38.8% 61.2%
2033 0.80 1.26 2.06 38.8% 61.2%
2034 0.80 1.26 2.06 38.8% 61.2%
2035 0.80 1.26 2.06 38.8% 61.2%
2036 0.80 1.26 2.06 38.8% 61.2%
2037 0.80 1.26 2.06 38.8% 61.2%
2038 0.80 1.26 2.06 38.8% 61.2%
2039 0.80 1.26 2.06 38.8% 61.2%
2040 [4] 0.80 1.26 2.06 38.8% 61.2%
2041 [5] 1.20 1.75 2.95 40.7% 59.3%
2042 1.20 2.25 3.45 34.8% 65.2%
2043 1.20 2.75 3.95 30.4% 69.6%
2044 1.20 3.00 4.20 28.6% 71.4%
2045 1.20 3.00 4.20 28.6% 71.4%
2046 1.20 3.00 4.20 28.6% 71.4%
2047 1.20 3.00 4.20 28.6% 71.4%
2048 1.20 3.00 4.20 28.6% 71.4%
2049 1.20 3.00 4.20 28.6% 71.4%
2050 1.20 3.00 4.20 28.6% 71.4%
2051 1.20 3.00 4.20 28.6% 71.4%
2052 1.20 3.00 4.20 28.6% 71.4%
Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto's recycled water use increases to 0.80 mgd which is the middle value between no Phase III recycled water expansion (0.40 mgd) and full Phase III expansion (1.20 mgd). 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. 5 Assumes Palo Alto's moves forward with Phase III expansion of recycled water system and increases recycled water use to 1.20 mgd.
% of TotalEstimated Recycled Water Use (MGD)
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Table 7
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Estimated Enhanced (Blended AWPS) Recycled Water Use (AF) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 370 370 739 50.0% 50.0%
2021 280 414 694 40.3% 59.7%
2022 448 448 896 50.0% 50.0%
2023 448 448 896 50.0% 50.0%
2024 448 448 896 50.0% 50.0%
2025 448 616 1,064 42.1% 57.9%
2026 [2] 448 975 1,423 31.5% 68.5%
2027 448 975 1,423 31.5% 68.5%
2028 448 1,075 1,523 29.4% 70.6%
2029 448 1,165 1,613 27.8% 72.2%
2030 [3] 672 1,288 1,960 34.3% 65.7%
2031 896 1,411 2,307 38.8% 61.2%
2032 896 1,411 2,307 38.8% 61.2%
2033 896 1,411 2,307 38.8% 61.2%
2034 896 1,411 2,307 38.8% 61.2%
2035 896 1,411 2,307 38.8% 61.2%
2036 896 1,411 2,307 38.8% 61.2%
2037 896 1,411 2,307 38.8% 61.2%
2038 896 1,411 2,307 38.8% 61.2%
2039 896 1,411 2,307 38.8% 61.2%
2040 [4] 896 1,411 2,307 38.8% 61.2%
2041 [5] 1,344 1,960 3,304 40.7% 59.3%
2042 1,344 2,520 3,865 34.8% 65.2%
2043 1,344 3,080 4,425 30.4% 69.6%
2044 1,344 3,360 4,705 28.6% 71.4%
2045 1,344 3,360 4,705 28.6% 71.4%
2046 1,344 3,360 4,705 28.6% 71.4%
2047 1,344 3,360 4,705 28.6% 71.4%
2048 1,344 3,360 4,705 28.6% 71.4%
2049 1,344 3,360 4,705 28.6% 71.4%
2050 1,344 3,360 4,705 28.6% 71.4%
2051 1,344 3,360 4,705 28.6% 71.4%
2052 1,344 3,360 4,705 28.6% 71.4%
Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto's recycled water use increases to 0.80 mgd which is the middle value between no Phase III recycled water expansion (0.40 mgd) and full Phase III expansion (1.20 mgd). 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. 5 Assumes Palo Alto's moves forward with Phase III expansion of recycled water system and increases recycled water use to 1.20 mgd.
% of TotalEstimated Recycled Water Use (AF)
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Table 8
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Estimated Enhanced (Blended AWPS) Recycled Water Use (ccf) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 161,019 161,019 322,037 50.0% 50.0%
2021 121,984 180,536 302,520 40.3% 59.7%
2022 195,174 195,174 390,348 50.0% 50.0%
2023 195,174 195,174 390,348 50.0% 50.0%
2024 195,174 195,174 390,348 50.0% 50.0%
2025 195,174 268,364 463,539 42.1% 57.9%
2026 [2] 195,174 424,504 619,678 31.5% 68.5%
2027 195,174 424,504 619,678 31.5% 68.5%
2028 195,174 468,418 663,592 29.4% 70.6%
2029 195,174 507,453 702,627 27.8% 72.2%
2030 [3] 292,761 561,126 853,887 34.3% 65.7%
2031 390,348 614,798 1,005,147 38.8% 61.2%
2032 390,348 614,798 1,005,147 38.8% 61.2%
2033 390,348 614,798 1,005,147 38.8% 61.2%
2034 390,348 614,798 1,005,147 38.8% 61.2%
2035 390,348 614,798 1,005,147 38.8% 61.2%
2036 390,348 614,798 1,005,147 38.8% 61.2%
2037 390,348 614,798 1,005,147 38.8% 61.2%
2038 390,348 614,798 1,005,147 38.8% 61.2%
2039 390,348 614,798 1,005,147 38.8% 61.2%
2040 [4] 390,348 614,798 1,005,147 38.8% 61.2%
2041 [5] 585,522 853,887 1,439,409 40.7% 59.3%
2042 585,522 1,097,854 1,683,377 34.8% 65.2%
2043 585,522 1,341,822 1,927,344 30.4% 69.6%
2044 585,522 1,463,806 2,049,328 28.6% 71.4%
2045 585,522 1,463,806 2,049,328 28.6% 71.4%
2046 585,522 1,463,806 2,049,328 28.6% 71.4%
2047 585,522 1,463,806 2,049,328 28.6% 71.4%
2048 585,522 1,463,806 2,049,328 28.6% 71.4%
2049 585,522 1,463,806 2,049,328 28.6% 71.4%
2050 585,522 1,463,806 2,049,328 28.6% 71.4%
2051 585,522 1,463,806 2,049,328 28.6% 71.4%
2052 585,522 1,463,806 2,049,328 28.6% 71.4%
Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto's recycled water use increases to 0.80 mgd which is the middle value between no Phase III recycled water expansion (0.40 mgd) and full Phase III expansion (1.20 mgd). 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. 5 Assumes Palo Alto's moves forward with Phase III expansion of recycled water system and increases recycled water use to 1.20 mgd.
Estimated Recycled Water Use (ccf) % of Total
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Table 9
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Summary of AWPS Capacity & Recycled Water Use
Total Palo Alto Mountain View
AWPS Phase 1 Capacity
Phase 1 Capacity 1.125 mgd 0.281 mgd 0.844 mgd
(Reverse osmosis permeate)
% Allocation of Capacity 25% 75%
Enhanced Recycled Water Production, AWPS at 1.25 mgd [1] Enhanced RW Range 2.06 - 2.65 mgd 0.52 - 0.66 mgd 1.55 - 1.98 mgd Average 2.35 mgd 0.59 mgd 1.76 mgd
% Allocation of Production 25% 75%
AWPS Phase 1 Estimated Annual Enhanced Recycled Water Use 2026 Phase 1 Demand in 2026
mgd 1.27 mgd 0.40 mgd 0.87 mgd
AF 1,423 AF 448 AF 975 AF
ccf 849,007 ccf 424,504 ccf 424,504 ccf
% of Total Enhanced RW Use 31.5% 68.5%
AWPS Phase 1 Estimated Annual Enhanced Recycled Water Use 2031 Phase 1 Demand in 2031
mgd 2.06 mgd 0.80 mgd 1.26 mgd
AF 2,307 AF 896 AF 1,411 AF
ccf 1,005,147 ccf 390,348 ccf 614,798 ccf
% of Total Enhanced RW Use 38.8% 61.2%
[1] Based on Black & Veatch's AWPS Basis of Design Report (2021) Table 4-5, the average blending ratio of recycled water to reverse osmosis permeate to maintain between 400 mg/L - 500 gm/L total dissolved solids is 1:0.74 to 1:1.20
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Table 10
AWPS Preliminary Financial Plan
AWPS Phase 1 Operating Costs & Allocations by Year
1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only
Palo Alto 78,070 195,174 195,174 195,174 195,174 292,761 390,348 390,348 390,348 390,348 Mountain View 169,801 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 247,871 619,678 619,678 663,592 702,627 853,887 1,005,147 1,005,147 1,005,147 1,005,147 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 37.8% 62.2% 62.2% 62.2% 62.2% Cost Escalator (Base Year = 2023 + 4% Escalation) 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 AWPS Phase 1 O&M
Fixed Operating Expenses
O&M Labor (Assumes No New Labor) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable Operating Expenses Assumes 50%
Maintenance & Repairs 146,500 292,900 304,600 329,500 354,300 415,600 481,200 500,400 520,500 541,300 Energy 80,300 160,600 167,100 179,800 192,600 222,900 255,200 265,400 276,100 287,100 Chemicals 56,900 113,700 118,300 127,900 137,500 161,300 186,700 194,100 201,900 210,000 Membrane Consumables 14,900 29,700 30,900 34,000 37,200 45,900 55,200 57,400 59,700 62,000__________________________________________________________________________________________ Total Annual O&M 298,600 596,900 620,900 $671,200 $721,600 $845,700 $978,300 $1,017,300 $1,058,200 $1,100,400 AWPS O&M Cost per Unit ($/ccf) $1.20 $0.96 $1.00 $1.01 $1.03 $0.99 $0.97 $1.01 $1.05 $1.09 Share of Annual Recycled Water Use
Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 34.3% 38.8% 38.8% 38.8% 38.8% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 65.7% 61.2% 61.2% 61.2% 61.2%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% AWPS O&M Cost Allocation
Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $290,000 $379,900 $395,100 $411,000 $427,300 Mountain View 204,600 408,900 425,300 473,800 521,200 555,700 598,400 622,200 647,200 673,100__________________________________________________________________________________________ Total 298,600 596,900 620,900 671,200 721,600 845,700 978,300 1,017,300 1,058,200 1,100,400 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
41 Packet Pg. 113 of 228
Table 10
AWPS Preliminary Financial Plan
AWPS Phase 1 Operating Costs & Allocations by Year
11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)
Palo Alto 390,348 390,348 390,348 390,348 390,348 390,348 585,522 585,522 585,522 585,522 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 1,005,147 1,005,147 1,005,147 1,005,147 1,005,147 1,005,147 1,439,409 1,683,377 1,927,344 2,049,328 Cumulative Change in Use % 62.2% 62.2% 62.2% 62.2% 62.2% 62.2% 132.3% 171.7% 211.0% 230.7% Cost Escalator (Base Year = 2023 + 4% Escalation)1.601 1.665 1.732 1.801 1.873 1.948 2.026 2.107 2.191 2.279 AWPS Phase 1 O&M
Fixed Operating Expenses
O&M Labor (Assumes No New Labor) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable Operating Expenses Preliminary Estimates>>>
Maintenance & Repairs 562,900 585,400 608,900 633,200 658,500 684,900 1,020,000 1,240,600 1,477,200 1,633,500 Energy 298,600 310,500 323,000 335,900 349,300 363,300 541,000 658,100 783,600 866,500 Chemicals 218,400 227,100 236,200 245,600 255,500 265,700 395,700 481,300 573,100 633,700 Membrane Consumables 64,500 67,100 69,800 72,600 75,500 78,500 116,900 142,200 169,300 187,200__________________________________________________________________________________________ Total Annual O&M $1,144,400 $1,190,100 $1,237,900 $1,287,300 $1,338,800 $1,392,400 $2,073,600 $2,522,200 $3,003,200 $3,320,900 AWPS O&M Cost per Unit ($/ccf) $1.14 $1.18 $1.23 $1.28 $1.33 $1.39 $1.44 $1.50 $1.56 $1.62 Share of Annual Recycled Water Use
Palo Alto 38.8% 38.8% 38.8% 38.8% 38.8% 38.8% 40.7% 34.8% 30.4% 28.6% Mountain View 61.2% 61.2% 61.2% 61.2% 61.2% 61.2% 59.3% 65.2% 69.6% 71.4%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% AWPS O&M Cost Allocation
Palo Alto $444,400 $462,200 $480,700 $499,900 $519,900 $540,700 $843,500 $877,300 $912,400 $948,800 Mountain View 700,000 727,900 757,200 787,400 818,900 851,700 1,230,100 1,644,900 2,090,800 2,372,100__________________________________________________________________________________________ Total 1,144,400 1,190,100 1,237,900 1,287,300 1,338,800 1,392,400 2,073,600 2,522,200 3,003,200 3,320,900 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
42 Packet Pg. 114 of 228
Table 11
AWPS Preliminary Financial Plan
AWPS Phase 1 Total Cost Allocations by Year
1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only
Palo Alto 97,587 195,174 195,174 195,174 195,174 292,761 390,348 390,348 390,348 390,348 Mountain View 212,252 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 309,839 619,678 619,678 663,592 702,627 853,887 1,005,147 1,005,147 1,005,147 1,005,147 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 37.8% 62.2% 62.2% 62.2% 62.2% Share of Annual Enhnaced Recycled Water Use
Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 34.3% 38.8% 38.8% 38.8% 38.8% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 65.7% 61.2% 61.2% 61.2% 61.2%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation
Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation
Based on each agency's % share of total annual enhanced recycled water use.
Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $290,000 $379,900 $395,100 $411,000 $427,300 Mountain View 204,600 408,900 425,300 473,800 521,200 555,700 598,400 622,200 647,200 673,100__________________________________________________________________________________________ Total 298,600 596,900 620,900 671,200 721,600 845,700 978,300 1,017,300 1,058,200 1,100,400 Total Cost Allocation
Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $290,000 $379,900 $395,100 $411,000 $427,300 Mountain View 1,640,600 1,844,900 1,861,300 1,909,800 1,957,200 1,991,700 2,034,400 2,058,200 2,083,200 2,109,100__________________________________________________________________________________________ Total 1,734,600 2,032,900 2,056,900 2,107,200 2,157,600 2,281,700 2,414,300 2,453,300 2,494,200 2,536,400 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
43 Packet Pg. 115 of 228
Table 11
AWPS Preliminary Financial Plan
AWPS Phase 1 Total Cost Allocations by Year
11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)
Palo Alto 390,348 390,348 390,348 390,348 390,348 390,348 585,522 585,522 585,522 585,522 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 1,005,147 1,005,147 1,005,147 1,005,147 1,005,147 1,005,147 1,439,409 1,683,377 1,927,344 2,049,328 Cumulative Change in Use % 62.2% 62.2% 62.2% 62.2% 62.2% 62.2% 132.3% 171.7% 211.0% 230.7% Share of Annual Enhnaced Recycled Water Use
Palo Alto 38.8% 38.8% 38.8% 38.8% 38.8% 38.8% 40.7% 34.8% 30.4% 28.6% Mountain View 61.2% 61.2% 61.2% 61.2% 61.2% 61.2% 59.3% 65.2% 69.6% 71.4%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation
Palo Alto $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mountain View 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation
Based on each agency's % share of total annual enhanced recycled water use.
Palo Alto $444,400 $462,200 $480,700 $499,900 $519,900 $540,700 $843,500 $877,300 $912,400 $948,800 Mountain View 700,000 727,900 757,200 787,400 818,900 851,700 1,230,100 1,644,900 2,090,800 2,372,100__________________________________________________________________________________________ Total 1,144,400 1,190,100 1,237,900 1,287,300 1,338,800 1,392,400 2,073,600 2,522,200 3,003,200 3,320,900 Total Cost Allocation
Palo Alto $444,400 $462,200 $480,700 $499,900 $519,900 $540,700 $843,500 $877,300 $912,400 $948,800 Mountain View 2,136,000 2,163,900 2,193,200 2,223,400 2,254,900 2,287,700 2,666,100 3,080,900 3,526,800 3,808,100__________________________________________________________________________________________ Total 2,580,400 2,626,100 2,673,900 2,723,300 2,774,800 2,828,400 3,509,600 3,958,200 4,439,200 4,756,900 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
44 Packet Pg. 116 of 228
Palo Alto Recycled Water Use & Costs
Assumes AWPS Phase 1 Only
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
Pg.
45 Packet Pg. 117 of 228
Table PA-1
AWPS Preliminary Financial Plan
Palo Alto Enhanced Recycled Water Use (Blended)
City Estimates Adjusted for
From Nov 2022 Projected Use 2026
Palo Alto Recycled Water Use (ccf)
Palo Alto Golf Course & Baylands Athletic Ctr
Golf Course Irrig & Baylands Athletic Ctr [1] 121,500 138,112 Golf Course Greens [2] 0 0_________ _________
Subtotal 121,500 138,112
Palo Alto Parks [3] 35,000 39,785
Other City Uses [4] 8,000 9,094
Truck Standpipe 5,000 5,684
CalTrans [5] 0 2,500_________ _________
Total (ccf) 169,500 195,174
Total (mgd) 0.347 0.400
1 Increase accounts for both a) an adjustment to match the City's 2026 recycled water use projections, and b) an estimated 5,000 ccf of new enhanced recycled water to replace potable water periodically used to irrigate fairways due to current recycled water salinity. 2 Assumes greens will continue to be irrigated with potable water due to salinity issues with recycled water. 3 Includes recycle water use at Greer Park, Duck Pond, Animal Svcs, Adobe Creek Bike Bridge.
Current recycled water supply is periodically blended with potable water to reduce salinity. 4 Includes MSC standpipe & hydrant, Greer Park hydrant, and RWQCP landscaping. 5 Based on Caltrans historical recycled water use; Caltrans anticipates reconnecting in 2024.
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
Pg.
46 Packet Pg. 118 of 228
Table PA-2
AWPS Preliminary Financial Plan
Palo Alto Cost per Unit of Recycled Water
2026 2031
Projected Recycled Water Use (ccf) 195,174 390,348
AWPS Phase 1 Cost Allocation to Palo Alto
SRF Loan Debt Service [1] 25.0% 25.0%
AWPS Phase 1 Operating Expenses [2] 31.5% 38.8%
Palo Alto Share of AWPS Phase 1 Expenses
SRF Loan Debt Service $0 $0
AWPS Phase 1 Operating Expenses [3][4] 188,000 379,900_________ _________ Subtotal 188,000 379,900
Enhanced RW Cost per Unit ($/ccf) $0.96 $0.97
1 Assumes debt Service allocated 25% to Palo Alto and 75% to Mountain View. 2 Assumes operating expenses would be allocated proportionately based on each agency's share of total enhanced recycled water use and would be adjusted annually based on actual use. 3 Excludes costs related to existing Title 22 recycled water facilities at RWQCP and City's recycled water distribution system.
Blended Recycled Water Cost per Unit
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
Pg.
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Table PA-3
AWPS Preliminary Financial Plan
Palo Alto Projected Enhanced Recycled Water Costs & ImpactsBase Year 2026 RW Use (ccf) RW Costs & Impacts
RW Cost per Unit ($/ccf) $0.96
Recycled Water Use & Costs
Palo Alto Golf Course & Bay Athletic Ctr 138,112 $133,035 Palo Alto Parks [3] 39,785 38,323
Other City Uses [4] 9,094 8,759
Truck Standpipe 5,684 5,475
CalTrans [5] 2,500 2,408_________ _________
Total 195,174 188,000
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
Pg.
48 Packet Pg. 120 of 228
Table PA-4 New RW sales could be a source of substantial future revenues AWPS Preliminary Financial Plan But also would be a transition from potable sales to recycled sales Projection of Recycled Water Impacts to Palo Alto General Fund Impact would vary depending on RW rate Cost 1 2 3 4 5 6 7 8 9 10
Esc 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only
City Use for Golf Course & Parks 86,450 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 4,550 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 2,840 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 97,587 195,174 195,174 195,174 195,174__________________________________________________________________________________________ Total 97,590 195,174 195,174 195,174 195,174 292,761 390,348 390,348 390,348 390,348 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 29.4% 27.8% 34.3% 38.8% 38.8% 38.8% 38.8% Proj Potable Irrig Water Rate (W7)3.0% $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 RW Rate as % of Potable Rate 50% 50% 50% 50% 50%
Projected Recycled Water Rate [1] $0.96 $0.96 $1.00 $1.01 $1.03 $6.63 $6.83 $7.04 $7.25 $7.46 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $2,700 $5,500 $5,700 $5,700 $5,800 $37,700 $38,800 $40,000 $41,200 $42,400 MSC & Other Billed City Use 4,400 8,800 9,100 9,200 9,300 60,300 62,100 64,000 65,900 67,800 Caltrans RW Sales 1,200 2,400 2,500 2,500 2,600 16,600 17,100 17,600 18,100 18,700 Other RW Sales 0 0 0 0 0 647,000 1,333,000 1,374,000 1,415,000 1,456,000 Valley Water Annual Option Pymt3.0% 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0 Valley Water Annual Effluent Purchase - - - - - - - - tbd tbd Reduced Potable Water Purchases 28,500 58,900 60,700 62,500 64,400 66,300 68,300 70,400 72,500 74,600__________________________________________________________________________________________ Subtotal 95,000 135,500 139,700 143,500 147,600 895,400 1,588,800 1,637,600 1,612,700 1,659,500 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] $94,000 $188,000 $195,600 $197,400 $200,400 $290,000 $379,900 $395,100 $411,000 $427,300 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 94,000 188,000 195,600 197,400 200,400 290,000 379,900 395,100 411,000 427,300 Revenues Less Expenses $1,000 ($52,500) ($55,900) ($53,900) ($52,800) $605,400$1,208,900$1,242,500$1,201,700$1,232,200 Cumulative Net Expenses $1,000 ($51,500) ($107,400)($161,300)($214,100) $391,300$1,600,200$2,842,700$4,044,400$5,276,600 Projected RW Cost per Unit ($/ccf) $0.96 $0.96 $1.00 $1.01 $1.03 $0.99 $0.97 $1.01 $1.05 $1.09 Net RW Unit Cost After Offsets ($/ccf) ($0.01) $0.27 $0.29 $0.28 $0.27 ($2.07) ($3.10) ($3.18) ($3.08) ($3.16) 1 Assumes recycled water sold at cost through 2029/30 and at 50% of the projected potable water rate (W7) thereafter corresponding with expansion of recycled water deliveries. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
49 Packet Pg. 121 of 228
Table PA-4 New RW sales could be a source of substantial future revenues AWPS Preliminary Financial Plan But also would be a transition from potable sales to recycled sales Projection of Recycled Water Impacts to Palo Alto General Fund Impact would vary depending on RW rate Cost 11 12 13 14 15 16 17 18 19 20
Esc 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)
City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 195,174 195,174 195,174 195,174 195,174 195,174 390,348 390,348 390,348 390,348_______________________________________________________________ _________ _________ _________ Total 390,348 390,348 390,348 390,348 390,348 390,348 585,522 585,522 585,522 585,522 Palo Alto Share of Projected RW Use 38.8% 38.8% 38.8% 38.8% 38.8% 38.8% 40.7% 34.8% 30.4% 28.6% Proj Potable Irrig Water Rate (W7)3.0% $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 RW Rate as % of Potable Rate 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% Projected Recycled Water Rate [1] $7.69 $7.92 $8.16 $8.40 $8.65 $8.91 $9.18 $9.45 $9.74 $10.03 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $43,700 $45,000 $46,400 $47,700 $49,200 $50,600 $52,200 $53,700 $55,400 $57,000 MSC & Other Billed City Use 69,900 72,000 74,200 76,400 78,700 81,000 83,500 85,900 88,600 91,200 Caltrans RW Sales 19,200 19,800 20,400 21,000 21,600 22,300 23,000 23,600 24,400 25,100 Other RW Sales 1,500,900 1,545,800 1,592,600 1,639,500 1,688,300 1,739,000 3,583,400 3,688,800 3,802,000 3,915,200 Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases 76,900 79,200 81,600 84,000 86,500 89,100 91,800 94,500 97,400 100,300_______________________________________________________________ _________ _________ _________ Subtotal 1,710,600 1,761,800 1,815,200 1,868,600 1,924,300 1,982,000 3,833,900 3,946,500 4,067,800 4,188,800 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] $444,400 $462,200 $480,700 $499,900 $519,900 $540,700 $843,500 $877,300 $912,400 $948,800 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0_______________________________________________________________ _________ _________ _________ Subtotal 444,400 462,200 480,700 499,900 519,900 540,700 843,500 877,300 912,400 948,800 Revenues Less Expenses $1,266,200$1,299,600$1,334,500$1,368,700$1,404,400$1,441,300$2,990,400$3,069,200$3,155,400 $3,240,000 Cumulative Net Expenses $6,542,800$7,842,400$9,176,900$10,545,600$11,950,000$13,391,300$16,381,700$19,450,900$22,606,300$25,846,300 Projected RW Cost per Unit ($/ccf) $1.14 $1.18 $1.23 $1.28 $1.33 $1.39 $1.44 $1.50 $1.56 $1.62 Net RW Unit Cost After Offsets ($/ccf) ($3.24) ($3.33) ($3.42) ($3.51) ($3.60) ($3.69) ($5.11) ($5.24) ($5.39) ($5.53) 1 Assumes recycled water sold at cost through 2029/30 and at 50% of the projected potable water rate (W7) thereafter corresponding with expansion of recycled water deliveries. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
50 Packet Pg. 122 of 228
Table PA-5
AWPS Preliminary Financial Plan
Net Annual Impacts to City of Palo Alto
1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 97,587 195,174 195,174 195,174 195,174_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 97,587 195,174 195,174 195,174 195,174 292,761 390,348 390,348 390,348 390,348 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($94,000) ($188,000) ($195,600) ($197,400) ($200,400) ($290,000) ($379,900) ($395,100) ($411,000) ($427,300) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)50% Jan-Jun Transition from Potable to RW Use 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Irrig Water Rate (W7) with 3% Escalation $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Cost of Potable City Water Purchases $28,600 $58,900 $60,700 $62,500 $64,400 $66,300 $68,300 $70,400 $72,500 $74,600 B) Recycled Water Sales Revenues
Truck RW Sales $2,700 $5,500 $5,700 $5,700 $5,800 $37,700 $38,800 $40,000 $41,200 $42,400 MSC & Other Billed City Use 4,400 8,800 9,100 9,200 9,300 60,300 62,100 64,000 65,900 67,800 Caltrans RW Sales 1,200 2,400 2,500 2,500 2,600 16,600 17,100 17,600 18,100 18,700 Other RW Sales 0 0 0 0 0 647,000 1,333,000 1,374,000 1,415,000 1,456,000_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $8,300 $16,700 $17,300 $17,400 $17,700 $761,600 $1,451,000 $1,495,600 $1,540,200 $1,584,900 Net Annual Impact to General Fund ($57,100) ($112,400) ($117,600) ($117,500) ($118,300) $537,900 $1,139,400 $1,170,900 $1,201,700 $1,232,200 AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($28,600) ($58,900) ($60,700) ($62,500) ($64,400) ($1,360,605) ($2,734,569) ($2,816,657) ($2,901,145) ($2,988,104) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 2,500 5,000 5,000 5,000 5,000 102,587 200,174 200,174 200,174 200,174 SFPUC Wholesale Rate w/ 5% Esc + BAWSCA Bond Surchg $6.48 $6.78 $7.10 $7.44 $7.79 $8.16 $8.54 $8.95 $9.38 $9.83_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 16,200 33,900 35,500 37,200 38,900 836,800 1,710,400 1,791,900 1,877,500 1,967,400 Net Annual Revenue Loss to Water Enterprise ($12,400) ($25,000) ($25,200) ($25,300) ($25,500) ($523,805)($1,024,169)($1,024,757)($1,023,645)($1,020,704) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $58,200 $59,900 $61,700 $63,600 $65,500 $67,500 $69,500 $71,600 $0 $0 Valley Water Annual Effluent Purchase Payment - - - - - - - - tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($57,100) ($112,400) ($117,600) ($117,500) ($118,300) $537,900 $1,139,400 $1,170,900 $1,201,700 $1,232,200 Net Revenue Loss Water Enterprise (12,400) (25,000) (25,200) (25,300) (25,500) (523,805) (1,024,169) (1,024,757) (1,023,645) (1,020,704) Valley Water Annual Option Payment to Wastewater Fund 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($11,300) ($77,500) ($81,100) ($79,200) ($78,300) $81,595 $184,731 $217,743 $178,055 $211,496 Cumulative Impact to City ($11,300) ($88,800) ($169,900) ($249,100) ($327,400) ($245,805) ($61,074) $156,669 $334,724 $546,221 Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
51 Packet Pg. 123 of 228
Table PA-5
AWPS Preliminary Financial Plan
Net Annual Impacts to City of Palo Alto
11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 390,348 390,348 390,348 390,348_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 390,348 390,348 390,348 390,348 390,348 390,348 585,522 585,522 585,522 585,522 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($444,400) ($462,200) ($480,700) ($499,900) ($519,900) ($540,700) ($843,500) ($877,300) ($912,400) ($948,800) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)
Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Irrig Water Rate (W7) with 3% Escalation $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Cost of Potable City Water Purchases $76,900 $79,200 $81,600 $84,000 $86,500 $89,100 $91,800 $94,500 $97,400 $100,300 B) Recycled Water Sales Revenues
Truck RW Sales $43,700 $45,000 $46,400 $47,700 $49,200 $50,600 $52,200 $53,700 $55,400 $57,000 MSC & Other Billed City Use 69,900 72,000 74,200 76,400 78,700 81,000 83,500 85,900 88,600 91,200 Caltrans RW Sales 19,200 19,800 20,400 21,000 21,600 22,300 23,000 23,600 24,400 25,100 Other RW Sales 1,500,900 1,545,800 1,592,600 1,639,500 1,688,300 1,739,000 3,583,400 3,688,800 3,802,000 3,915,200_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $1,633,700 $1,682,600 $1,733,600 $1,784,600 $1,837,800 $1,892,900 $3,742,100 $3,852,000 $3,970,400 $4,088,500 Net Annual Impact to General Fund $1,266,200 $1,299,600 $1,334,500 $1,368,700 $1,404,400 $1,441,300 $2,990,400 $3,069,200 $3,155,400 $3,240,000 AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($3,077,809) ($3,170,136) ($3,265,264) ($3,363,174) ($3,464,050) ($3,567,976) ($7,258,285) ($7,475,979) ($7,700,324) ($7,931,311) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 200,174 200,174 200,174 200,174 200,174 200,174 395,348 395,348 395,348 395,348 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg) $9.71 $10.00 $10.30 $10.61 $10.93 $11.26 $11.60 $11.94 $12.30 $12.67_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 1,943,900 2,002,200 2,062,300 2,124,200 2,187,900 2,253,500 4,584,300 4,721,800 4,863,500 5,009,400 Net Annual Revenue Loss to Water Enterprise($1,133,909)($1,167,936)($1,202,964)($1,238,974)($1,276,150)($1,314,476)($2,673,985)($2,754,179)($2,836,824)($2,921,911) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund $1,266,200 $1,299,600 $1,334,500 $1,368,700 $1,404,400 $1,441,300 $2,990,400 $3,069,200 $3,155,400 $3,240,000 Net Revenue Loss Water Enterprise (1,133,909) (1,167,936) (1,202,964) (1,238,974) (1,276,150) (1,314,476) (2,673,985) (2,754,179) (2,836,824) (2,921,911) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City $132,291 $131,664 $131,536 $129,726 $128,250 $126,824 $316,415 $315,021 $318,576 $318,089 Cumulative Impact to City $678,512 $810,175 $941,711 $1,071,436 $1,199,687 $1,326,511 $1,642,926 $1,957,947 $2,276,523 $2,594,612 Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
52 Packet Pg. 124 of 228
Table PA-6 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: No Increases in Recycled Water Use from Base Year 2026 Cost 1 2 3 4 5 6 7 8 9 10
Esc 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf) Jan-June Only
City Use for Golf Course & Parks 86,450 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 4,550 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 2,840 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 97,590 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% Proj Potable Irrig Water Rate (W7)3.0% $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Projected Recycled Water Rate [1] $0.96 $0.96 $1.00 $1.04 $1.08 $1.13 $1.17 $1.22 $1.27 $1.32 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $2,700 $5,500 $5,700 $5,900 $6,200 $6,400 $6,700 $6,900 $7,200 $7,500 MSC & Other Billed City Use 4,400 8,800 9,100 9,500 9,800 10,200 10,700 11,100 11,500 12,000 Caltrans RW Sales 1,200 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,200 3,300 Other RW Sales 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Option Pymt3.0% 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0 Valley Water Annual Effluent Purchase - - - - - - - - tbd tbd Reduced Potable Water Purchases3.0% 28,600 58,900 60,700 62,500 64,400 66,300 68,300 70,400 72,500 74,600_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 95,100 135,500 139,700 144,100 148,600 153,200 158,100 163,000 94,400 97,400 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5]4.0% $94,000 $188,000 $195,500 $203,300 $211,400 $219,900 $228,700 $237,800 $247,300 $257,200 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 94,000 188,000 195,500 203,300 211,400 219,900 228,700 237,800 247,300 257,200 Revenues Less Expenses $1,100 ($52,500) ($55,800) ($59,200) ($62,800) ($66,700) ($70,600) ($74,800) ($152,900) ($159,800) Cumulative Net Expenses $1,100 ($51,400) ($107,200) ($166,400) ($229,200) ($295,900) ($366,500) ($441,300) ($594,200) ($754,000) Projected RW Cost per Unit ($/ccf) $0.96 $0.96 $1.00 $1.04 $1.08 $1.13 $1.17 $1.22 $1.27 $1.32 Net RW Unit Cost After Offsets ($/ccf) ($0.01) $0.27 $0.29 $0.30 $0.32 $0.34 $0.36 $0.38 $0.78 $0.82 1 Assumes recycled water sold at cost.
2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with 1.25 FTEs new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
53 Packet Pg. 125 of 228
Table PA-6 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: No Increases in Recycled Water Use from Base Year 2026 Cost 11 12 13 14 15 16 17 18 19 20
Esc 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)
City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% Proj Potable Irrig Water Rate (W7)3.0% $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Projected Recycled Water Rate [1] $1.37 $1.43 $1.48 $1.54 $1.60 $1.67 $1.73 $1.80 $1.88 $1.95 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $7,800 $8,100 $8,400 $8,800 $9,100 $9,500 $9,900 $10,200 $10,700 $11,100 MSC & Other Billed City Use 12,500 13,000 13,500 14,000 14,600 15,200 15,800 16,400 17,100 17,700 Caltrans RW Sales 3,400 3,600 3,700 3,900 4,000 4,200 4,300 4,500 4,700 4,900 Other RW Sales 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases4.0% 76,900 79,200 81,600 84,000 86,500 89,100 91,800 94,500 97,400 100,300_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 100,600 103,900 107,200 110,700 114,200 118,000 121,800 125,600 129,900 134,000 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] $267,500 $278,200 $289,300 $300,900 $312,900 $325,400 $338,400 $351,900 $366,000 $380,600 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 267,500 278,200 289,300 300,900 312,900 325,400 338,400 351,900 366,000 380,600 Revenues Less Expenses ($166,900) ($174,300) ($182,100) ($190,200) ($198,700) ($207,400) ($216,600) ($226,300) ($236,100) ($246,600) Cumulative Net Expenses ($920,900)($1,095,200)($1,277,300)($1,467,500)($1,666,200)($1,873,600)($2,090,200)($2,316,500)($2,552,600)($2,799,200) Projected RW Cost per Unit ($/ccf) $1.37 $1.43 $1.48 $1.54 $1.60 $1.67 $1.73 $1.80 $1.88 $1.95 Net RW Unit Cost After Offsets ($/ccf) $0.86 $0.89 $0.93 $0.97 $1.02 $1.06 $1.11 $1.16 $1.21 $1.26 1 Assumes recycled water sold at cost.
2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with 1.25 FTEs new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
54 Packet Pg. 126 of 228
Table PA-6 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: No Increases in Recycled Water Use from Base Year 2026 Cost 21 22 23 24 25 26 27 28 29 30
Esc 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2051/52 2052/53 2053/54 2054/55 Enhanced Recycled Water Use (ccf)
City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% Proj Potable Irrig Water Rate (W7)3.0% $20.66 $21.28 $21.92 $22.58 $23.26 $23.95 $24.67 $25.41 $26.18 $26.96 Projected Recycled Water Rate [1] $2.03 $2.11 $2.19 $2.28 $2.37 $2.47 $2.57 $2.67 $2.77 $2.89 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $11,500 $12,000 $12,500 $13,000 $13,500 $14,000 $14,600 $15,200 $15,800 $16,400 MSC & Other Billed City Use 18,400 19,200 19,900 20,700 21,600 22,400 23,300 24,300 25,200 26,200 Caltrans RW Sales 5,100 5,300 5,500 5,700 5,900 6,200 6,400 6,700 6,900 7,200 Other RW Sales 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases4.0% 103,300 106,400 109,600 112,900 116,300 119,800 123,400 127,100 130,900 134,800_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 138,300 142,900 147,500 152,300 157,300 162,400 167,700 173,300 178,800 184,600 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] $395,800 $411,600 $428,100 $445,200 $463,000 $481,500 $500,800 $520,800 $541,600 $563,300 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 395,800 411,600 428,100 445,200 463,000 481,500 500,800 520,800 541,600 563,300 Revenues Less Expenses ($257,500) ($268,700) ($280,600) ($292,900) ($305,700) ($319,100) ($333,100) ($347,500) ($362,800) ($378,700) Cumulative Net Expenses ($3,056,700)($3,325,400)($3,606,000)($3,898,900)($4,204,600)($4,523,700)($4,856,800)($5,204,300)($5,567,100)($5,945,800) Projected RW Cost per Unit ($/ccf) $2.03 $2.11 $2.19 $2.28 $2.37 $2.47 $2.57 $2.67 $2.77 $2.89 Net RW Unit Cost After Offsets ($/ccf) $1.32 $1.38 $1.44 $1.50 $1.57 $1.63 $1.71 $1.78 $1.86 $1.94 1 Assumes recycled water sold at cost.
2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with 1.25 FTEs new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
55 Packet Pg. 127 of 228
Table PA-7 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: No Increases in Recycled Water Use from Base Year 2026 1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($94,000) ($188,000) ($195,500) ($203,300) ($211,400) ($219,900) ($228,700) ($237,800) ($247,300) ($257,200) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)50% Jan-Jun Transition from Potable to RW Use 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Cost of Potable City Water Purchases $28,600 $58,900 $60,700 $62,500 $64,400 $66,300 $68,300 $70,400 $72,500 $74,600 B) Recycled Water Sales Revenues
Truck RW Sales $2,700 $5,500 $5,700 $5,900 $6,200 $6,400 $6,700 $6,900 $7,200 $7,500 MSC & Other Billed City Use 4,400 8,800 9,100 9,500 9,800 10,200 10,700 11,100 11,500 12,000 Caltrans RW Sales 1,200 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,200 3,300 Other RW Sales 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $8,300 $16,700 $17,300 $18,000 $18,700 $19,400 $20,300 $21,000 $21,900 $22,800 Net Annual Impact to General Fund ($57,100) ($112,400) ($117,500) ($122,800) ($128,300) ($134,200) ($140,100) ($146,400) ($152,900) ($159,800) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($28,600) ($58,900) ($60,700) ($62,500) ($64,400) ($66,300) ($68,300) ($70,400) ($72,500) ($74,600) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 5% Esc + BAWSCA Bond Surchg $6.48 $6.78 $7.10 $7.44 $7.79 $8.16 $8.54 $8.95 $9.38 $9.83_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 16,200 33,900 35,500 37,200 38,900 40,800 42,700 44,800 46,900 49,100 Net Annual Revenue Loss to Water Enterprise ($12,400) ($25,000) ($25,200) ($25,300) ($25,500) ($25,500) ($25,600) ($25,600) ($25,600) ($25,500) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $58,200 $59,900 $61,700 $63,600 $65,500 $67,500 $69,500 $71,600 $0 $0 Valley Water Annual Effluent Purchase Payment - - - - - - - - tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($57,100) ($112,400) ($117,500) ($122,800) ($128,300) ($134,200) ($140,100) ($146,400) ($152,900) ($159,800) Net Revenue Loss Water Enterprise (12,400) (25,000) (25,200) (25,300) (25,500) (25,500) (25,600) (25,600) (25,600) (25,500) Valley Water Annual Option Payment to Wastewater Fund 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($11,300) ($77,500) ($81,000) ($84,500) ($88,300) ($92,200) ($96,200) ($100,400) ($178,500) ($185,300) Cumulative Impact to City ($11,300) ($88,800) ($169,800) ($254,300) ($342,600) ($434,800) ($531,000) ($631,400) ($809,900) ($995,200) Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
56 Packet Pg. 128 of 228
Table PA-7 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: No Increases in Recycled Water Use from Base Year 2026 11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($267,500) ($278,200) ($289,300) ($300,900) ($312,900) ($325,400) ($338,400) ($351,900) ($366,000) ($380,600) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)
Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Cost of Potable City Water Purchases $76,900 $79,200 $81,600 $84,000 $86,500 $89,100 $91,800 $94,500 $97,400 $100,300 B) Recycled Water Sales Revenues
Truck RW Sales $7,800 $8,100 $8,400 $8,800 $9,100 $9,500 $9,900 $10,200 $10,700 $11,100 MSC & Other Billed City Use 12,500 13,000 13,500 14,000 14,600 15,200 15,800 16,400 17,100 17,700 Caltrans RW Sales 3,400 3,600 3,700 3,900 4,000 4,200 4,300 4,500 4,700 4,900 Other RW Sales 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $23,700 $24,700 $25,600 $26,700 $27,700 $28,900 $30,000 $31,100 $32,500 $33,700 Net Annual Impact to General Fund ($166,900) ($174,300) ($182,100) ($190,200) ($198,700) ($207,400) ($216,600) ($226,300) ($236,100) ($246,600) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($76,900) ($79,200) ($81,600) ($84,000) ($86,500) ($89,100) ($91,800) ($94,500) ($97,400) ($100,300) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg) $9.71 $10.00 $10.30 $10.61 $10.93 $11.26 $11.60 $11.94 $12.30 $12.67_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 48,600 50,000 51,500 53,100 54,600 56,300 58,000 59,700 61,500 63,400 Net Annual Revenue Loss to Water Enterprise ($28,300) ($29,200) ($30,100) ($30,900) ($31,900) ($32,800) ($33,800) ($34,800) ($35,900) ($36,900) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($166,900) ($174,300) ($182,100) ($190,200) ($198,700) ($207,400) ($216,600) ($226,300) ($236,100) ($246,600) Net Revenue Loss Water Enterprise (28,300) (29,200) (30,100) (30,900) (31,900) (32,800) (33,800) (34,800) (35,900) (36,900) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($195,200) ($203,500) ($212,200) ($221,100) ($230,600) ($240,200) ($250,400) ($261,100) ($272,000) ($283,500) Cumulative Impact to City ($1,190,400) ($1,393,900) ($1,606,100) ($1,827,200) ($2,057,800) ($2,298,000) ($2,548,400) ($2,809,500) ($3,081,500) ($3,365,000) Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
57 Packet Pg. 129 of 228
Table PA-7 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: No Increases in Recycled Water Use from Base Year 2026 21 22 23 24 25 26 27 28 29 30
2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2051/52 2052/53 2053/54 2054/55 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($395,800) ($411,600) ($428,100) ($445,200) ($463,000) ($481,500) ($500,800) ($520,800) ($541,600) ($563,300) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)
Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $20.66 $21.28 $21.92 $22.58 $23.26 $23.95 $24.67 $25.41 $26.18 $26.96 Cost of Potable City Water Purchases $103,300 $106,400 $109,600 $112,900 $116,300 $119,800 $123,400 $127,100 $130,900 $134,800 B) Recycled Water Sales Revenues
Truck RW Sales $11,500 $12,000 $12,500 $13,000 $13,500 $14,000 $14,600 $15,200 $15,800 $16,400 MSC & Other Billed City Use 18,400 19,200 19,900 20,700 21,600 22,400 23,300 24,300 25,200 26,200 Caltrans RW Sales 5,100 5,300 5,500 5,700 5,900 6,200 6,400 6,700 6,900 7,200 Other RW Sales 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $35,000 $36,500 $37,900 $39,400 $41,000 $42,600 $44,300 $46,200 $47,900 $49,800 Net Annual Impact to General Fund ($257,500) ($268,700) ($280,600) ($292,900) ($305,700) ($319,100) ($333,100) ($347,500) ($362,800) ($378,700) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($103,300) ($106,400) ($109,600) ($112,900) ($116,300) ($119,800) ($123,400) ($127,100) ($130,900) ($134,800) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg) $13.05 $13.44 $13.85 $14.26 $14.69 $15.13 $15.58 $16.05 $16.53 $17.03_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 65,300 67,200 69,200 71,300 73,400 75,600 77,900 80,300 82,700 85,100 Net Annual Revenue Loss to Water Enterprise ($38,000) ($39,200) ($40,400) ($41,600) ($42,900) ($44,200) ($45,500) ($46,800) ($48,200) ($49,700) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($257,500) ($268,700) ($280,600) ($292,900) ($305,700) ($319,100) ($333,100) ($347,500) ($362,800) ($378,700) Net Revenue Loss Water Enterprise (38,000) (39,200) (40,400) (41,600) (42,900) (44,200) (45,500) (46,800) (48,200) (49,700) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($295,500) ($307,900) ($321,000) ($334,500) ($348,600) ($363,300) ($378,600) ($394,300) ($411,000) ($428,400) Cumulative Impact to City ($3,660,500) ($3,968,400) ($4,289,400) ($4,623,900) ($4,972,500) ($5,335,800) ($5,714,400) ($6,108,700) ($6,519,700) ($6,948,100) Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
58 Packet Pg. 130 of 228
Table PA-8 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount Cost 1 2 3 4 5 6 7 8 9 10
Esc 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf) Jan-June Only
City Use for Golf Course & Parks 86,450 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 4,550 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 2,840 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 97,590 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% 24.1% Proj Potable Irrig Water Rate (W7)3.0% $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Projected Recycled Water Rate [1] $0.96 $0.96 $0.94 $0.96 $0.95 $0.97 $1.05 $1.09 $1.13 $1.18 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $2,700 $5,500 $5,300 $5,400 $5,400 $5,500 $6,000 $6,200 $6,500 $6,700 MSC & Other Billed City Use 4,400 8,800 8,500 8,700 8,700 8,800 9,500 9,900 10,300 10,700 Caltrans RW Sales 1,200 2,400 2,300 2,400 2,400 2,400 2,600 2,700 2,800 3,000 Other RW Sales 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Option Pymt3.0% 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0 Valley Water Annual Effluent Purchase - - - - - - - - tbd tbd Reduced Potable Water Purchases3.0% 28,600 58,900 60,700 62,500 64,400 66,300 68,300 70,400 72,500 74,600_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 95,100 135,500 138,500 142,600 146,400 150,500 155,900 160,800 92,100 95,000 AWPS Total O&M Expenses 298,600 596,900 620,900 671,200 721,600 785,800 850,000 884,000 919,360 956,134 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] 4.0% $94,000 $188,000 $182,600 $186,400 $186,200 $189,300 $204,800 $213,000 $221,500 $230,400 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 94,000 188,000 182,600 186,400 186,200 189,300 204,800 213,000 221,500 230,400 Revenues Less Expenses $1,100 ($52,500) ($44,100) ($43,800) ($39,800) ($38,800) ($48,900) ($52,200) ($129,400) ($135,400) Cumulative Net Expenses $1,100 ($51,400) ($95,500) ($139,300) ($179,100) ($217,900) ($266,800) ($319,000) ($448,400) ($583,800) Projected RW Cost per Unit ($/ccf) $0.96 $0.96 $0.94 $0.96 $0.95 $0.97 $1.05 $1.09 $1.13 $1.18 Net RW Unit Cost After Offsets ($/ccf) ($0.01) $0.27 $0.23 $0.22 $0.20 $0.20 $0.25 $0.27 $0.66 $0.69 1 Assumes recycled water sold at cost.
2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
59 Packet Pg. 131 of 228
Table PA-8 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount Cost 11 12 13 14 15 16 17 18 19 20
Esc 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)
City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 24.1% 24.1% 24.1% 24.1% 24.1% 18.6% 15.1% 12.7% 11.8% 11.8% Proj Potable Irrig Water Rate (W7)3.0% $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Projected Recycled Water Rate [1] $1.23 $1.28 $1.33 $1.38 $1.44 $1.15 $1.25 $1.33 $1.51 $1.65 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $7,000 $7,300 $7,500 $7,800 $8,200 $6,600 $7,100 $7,600 $8,600 $9,400 MSC & Other Billed City Use 11,200 11,600 12,100 12,600 13,100 10,500 11,400 12,100 13,700 15,000 Caltrans RW Sales 3,100 3,200 3,300 3,500 3,600 2,900 3,100 3,300 3,800 4,100 Other RW Sales 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases4.0% 76,900 79,200 81,600 84,000 86,500 89,100 91,800 94,500 97,400 100,300_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 98,200 101,300 104,500 107,900 111,400 109,100 113,400 117,500 123,500 128,800 AWPS Total O&M Expenses 994,400 1,034,200 1,075,500 1,118,500 1,163,300 1,209,800 1,616,300 2,048,100 2,499,400 2,736,100 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] $239,600 $249,200 $259,200 $269,500 $280,300 $225,100 $244,000 $260,100 $294,000 $321,900 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 239,600 249,200 259,200 269,500 280,300 225,100 244,000 260,100 294,000 321,900 Revenues Less Expenses ($141,400) ($147,900) ($154,700) ($161,600) ($168,900) ($116,000) ($130,600) ($142,600) ($170,500) ($193,100) Cumulative Net Expenses ($725,200) ($873,100)($1,027,800)($1,189,400)($1,358,300)($1,474,300)($1,604,900)($1,747,500)($1,918,000)($2,111,100) Projected RW Cost per Unit ($/ccf) $1.23 $1.28 $1.33 $1.38 $1.44 $1.15 $1.25 $1.33 $1.51 $1.65 Net RW Unit Cost After Offsets ($/ccf) $0.72 $0.76 $0.79 $0.83 $0.87 $0.59 $0.67 $0.73 $0.87 $0.99 1 Assumes recycled water sold at cost.
2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
60 Packet Pg. 132 of 228
Table PA-8 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount Cost 21 22 23 24 25 26 27 28 29 30
Esc 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2051/52 2052/53 2053/54 2054/55 Enhanced Recycled Water Use (ccf)
City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% Proj Potable Irrig Water Rate (W7)3.0% $20.66 $21.28 $21.92 $22.58 $23.26 $23.95 $24.67 $25.41 $26.18 $26.96 Projected Recycled Water Rate [1] $1.72 $1.78 $1.86 $1.93 $2.01 $2.09 $2.17 $2.26 $2.35 $2.44 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $9,700 $10,100 $10,500 $11,000 $11,400 $11,900 $12,300 $12,800 $13,300 $13,900 MSC & Other Billed City Use 15,600 16,200 16,900 17,500 18,200 19,000 19,700 20,500 21,300 22,200 Caltrans RW Sales 4,300 4,500 4,600 4,800 5,000 5,200 5,400 5,600 5,900 6,100 Other RW Sales 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases4.0% 103,300 106,400 109,600 112,900 116,300 119,800 123,400 127,100 130,900 134,800_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 132,900 137,200 141,600 146,200 150,900 155,900 160,800 166,000 171,400 177,000 AWPS Total O&M Expenses 2,845,500 2,959,300 3,077,700 3,200,800 3,328,900 3,462,000 3,600,500 3,744,500 3,894,300 4,050,100 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] $334,800 $348,200 $362,100 $376,600 $391,600 $407,300 $423,600 $440,500 $458,200 $476,500 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal 334,800 348,200 362,100 376,600 391,600 407,300 423,600 440,500 458,200 476,500 Revenues Less Expenses ($201,900) ($211,000) ($220,500) ($230,400) ($240,700) ($251,400) ($262,800) ($274,500) ($286,800) ($299,500) Cumulative Net Expenses ($2,313,000)($2,524,000)($2,744,500)($2,974,900)($3,215,600)($3,467,000)($3,729,800)($4,004,300)($4,291,100)($4,590,600) Projected RW Cost per Unit ($/ccf) $1.72 $1.78 $1.86 $1.93 $2.01 $2.09 $2.17 $2.26 $2.35 $2.44 Net RW Unit Cost After Offsets ($/ccf) $1.03 $1.08 $1.13 $1.18 $1.23 $1.29 $1.35 $1.41 $1.47 $1.53 1 Assumes recycled water sold at cost.
2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
61 Packet Pg. 133 of 228
Table PA-9 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($94,000) ($188,000) ($182,600) ($186,400) ($186,200) ($189,300) ($204,800) ($213,000) ($221,500) ($230,400) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)50% Jan-Jun Transition from Potable to RW Use 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Cost of Potable City Water Purchases $28,600 $58,900 $60,700 $62,500 $64,400 $66,300 $68,300 $70,400 $72,500 $74,600 B) Recycled Water Sales Revenues
Truck RW Sales $2,700 $5,500 $5,300 $5,400 $5,400 $5,500 $6,000 $6,200 $6,500 $6,700 MSC & Other Billed City Use 4,400 8,800 8,500 8,700 8,700 8,800 9,500 9,900 10,300 10,700 Caltrans RW Sales 1,200 2,400 2,300 2,400 2,400 2,400 2,600 2,700 2,800 3,000 Other RW Sales 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $8,300 $16,700 $16,100 $16,500 $16,500 $16,700 $18,100 $18,800 $19,600 $20,400 Net Annual Impact to General Fund ($57,100) ($112,400) ($105,800) ($107,400) ($105,300) ($106,300) ($118,400) ($123,800) ($129,400) ($135,400) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($28,600) ($58,900) ($60,700) ($62,500) ($64,400) ($66,300) ($68,300) ($70,400) ($72,500) ($74,600) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 5% Esc + BAWSCA Bond Surchg $6.48 $6.78 $7.10 $7.44 $7.79 $8.16 $8.54 $8.95 $9.38 $9.83_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 16,200 33,900 35,500 37,200 38,900 40,800 42,700 44,800 46,900 49,100 Net Annual Revenue Loss to Water Enterprise ($12,400) ($25,000) ($25,200) ($25,300) ($25,500) ($25,500) ($25,600) ($25,600) ($25,600) ($25,500) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $58,200 $59,900 $61,700 $63,600 $65,500 $67,500 $69,500 $71,600 $0 $0 Valley Water Annual Effluent Purchase Payment - - - - - - - - tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($57,100) ($112,400) ($105,800) ($107,400) ($105,300) ($106,300) ($118,400) ($123,800) ($129,400) ($135,400) Net Revenue Loss Water Enterprise (12,400) (25,000) (25,200) (25,300) (25,500) (25,500) (25,600) (25,600) (25,600) (25,500) Valley Water Annual Option Payment to Wastewater Fund 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($11,300) ($77,500) ($69,300) ($69,100) ($65,300) ($64,300) ($74,500) ($77,800) ($155,000) ($160,900) Cumulative Impact to City ($11,300) ($88,800) ($158,100) ($227,200) ($292,500) ($356,800) ($431,300) ($509,100) ($664,100) ($825,000) Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
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Table PA-9 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($239,600) ($249,200) ($259,200) ($269,500) ($280,300) ($225,100) ($244,000) ($260,100) ($294,000) ($321,900) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)
Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Cost of Potable City Water Purchases $76,900 $79,200 $81,600 $84,000 $86,500 $89,100 $91,800 $94,500 $97,400 $100,300 B) Recycled Water Sales Revenues
Truck RW Sales $7,000 $7,300 $7,500 $7,800 $8,200 $6,600 $7,100 $7,600 $8,600 $9,400 MSC & Other Billed City Use 11,200 11,600 12,100 12,600 13,100 10,500 11,400 12,100 13,700 15,000 Caltrans RW Sales 3,100 3,200 3,300 3,500 3,600 2,900 3,100 3,300 3,800 4,100 Other RW Sales 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $21,300 $22,100 $22,900 $23,900 $24,900 $20,000 $21,600 $23,000 $26,100 $28,500 Net Annual Impact to General Fund ($141,400) ($147,900) ($154,700) ($161,600) ($168,900) ($116,000) ($130,600) ($142,600) ($170,500) ($193,100) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($76,900) ($79,200) ($81,600) ($84,000) ($86,500) ($89,100) ($91,800) ($94,500) ($97,400) ($100,300) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg) $9.71 $10.00 $10.30 $10.61 $10.93 $11.26 $11.60 $11.94 $12.30 $12.67_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 48,600 50,000 51,500 53,100 54,600 56,300 58,000 59,700 61,500 63,400 Net Annual Revenue Loss to Water Enterprise ($28,300) ($29,200) ($30,100) ($30,900) ($31,900) ($32,800) ($33,800) ($34,800) ($35,900) ($36,900) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($141,400) ($147,900) ($154,700) ($161,600) ($168,900) ($116,000) ($130,600) ($142,600) ($170,500) ($193,100) Net Revenue Loss Water Enterprise (28,300) (29,200) (30,100) (30,900) (31,900) (32,800) (33,800) (34,800) (35,900) (36,900) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($169,700) ($177,100) ($184,800) ($192,500) ($200,800) ($148,800) ($164,400) ($177,400) ($206,400) ($230,000) Cumulative Impact to City ($994,700) ($1,171,800) ($1,356,600) ($1,549,100) ($1,749,900) ($1,898,700) ($2,063,100) ($2,240,500) ($2,446,900) ($2,676,900) Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
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Table PA-9 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 21 22 23 24 25 26 27 28 29 30
2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2051/52 2052/53 2053/54 2054/55 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($334,800) ($348,200) ($362,100) ($376,600) ($391,600) ($407,300) ($423,600) ($440,500) ($458,200) ($476,500) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)
Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $20.66 $21.28 $21.92 $22.58 $23.26 $23.95 $24.67 $25.41 $26.18 $26.96 Cost of Potable City Water Purchases $103,300 $106,400 $109,600 $112,900 $116,300 $119,800 $123,400 $127,100 $130,900 $134,800 B) Recycled Water Sales Revenues
Truck RW Sales $9,700 $10,100 $10,500 $11,000 $11,400 $11,900 $12,300 $12,800 $13,300 $13,900 MSC & Other Billed City Use 15,600 16,200 16,900 17,500 18,200 19,000 19,700 20,500 21,300 22,200 Caltrans RW Sales 4,300 4,500 4,600 4,800 5,000 5,200 5,400 5,600 5,900 6,100 Other RW Sales 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $29,600 $30,800 $32,000 $33,300 $34,600 $36,100 $37,400 $38,900 $40,500 $42,200 Net Annual Impact to General Fund ($201,900) ($211,000) ($220,500) ($230,400) ($240,700) ($251,400) ($262,800) ($274,500) ($286,800) ($299,500) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($103,300) ($106,400) ($109,600) ($112,900) ($116,300) ($119,800) ($123,400) ($127,100) ($130,900) ($134,800) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg) $13.05 $13.44 $13.85 $14.26 $14.69 $15.13 $15.58 $16.05 $16.53 $17.03_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 65,300 67,200 69,200 71,300 73,400 75,600 77,900 80,300 82,700 85,100 Net Annual Revenue Loss to Water Enterprise ($38,000) ($39,200) ($40,400) ($41,600) ($42,900) ($44,200) ($45,500) ($46,800) ($48,200) ($49,700) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($201,900) ($211,000) ($220,500) ($230,400) ($240,700) ($251,400) ($262,800) ($274,500) ($286,800) ($299,500) Net Revenue Loss Water Enterprise (38,000) (39,200) (40,400) (41,600) (42,900) (44,200) (45,500) (46,800) (48,200) (49,700) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($239,900) ($250,200) ($260,900) ($272,000) ($283,600) ($295,600) ($308,300) ($321,300) ($335,000) ($349,200) Cumulative Impact to City ($2,916,800) ($3,167,000) ($3,427,900) ($3,699,900) ($3,983,500) ($4,279,100) ($4,587,400) ($4,908,700) ($5,243,700) ($5,592,900) Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
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Table PA-10 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 AWPS Phase 1 Total Cost Allocations by Year Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only
Palo Alto 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Mountain View 212,252 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 309,839 619,678 619,678 663,592 702,627 756,300 809,973 809,973 809,973 809,973 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 22.0% 30.7% 30.7% 30.7% 30.7% Share of Annual Enhnaced Recycled Water Use
Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 74.2% 75.9% 75.9% 75.9% 75.9%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation
Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation
Based on each agency's % share of total annual enhanced recycled water use.
Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $202,800 $204,800 $213,000 $221,500 $230,400 Mountain View 204,600 $408,900 $425,300 $473,800 $521,200 583,000 645,200 671,000 697,800 725,700__________________________________________________________________________________________ Total 298,600 596,900 620,900 671,200 721,600 785,800 850,000 884,000 919,360 956,134 Total Cost Allocation
Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $202,800 $204,800 $213,000 $221,500 $230,400 Mountain View 1,640,600 1,844,900 1,861,300 1,909,800 1,957,200 2,019,000 2,081,200 2,107,000 2,133,800 2,161,700__________________________________________________________________________________________ Total 1,734,600 2,032,900 2,056,900 2,107,200 2,157,600 2,221,800 2,286,000 2,320,000 2,355,300 2,392,100 All-In Cost per Unit ($/ccf)
Palo Alto $0.96 $0.96 $1.00 $1.01 $1.03 $1.04 $1.05 $1.09 $1.13 $1.18 Mountain View 7.73 4.35 4.38 4.08 3.86 3.60 3.39 3.43 3.47 3.52__________________________________________________________________________________________ Total 5.60 3.28 3.32 3.18 3.07 2.94 2.82 2.86 2.91 2.95 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
65 Packet Pg. 137 of 228
Table PA-10 Recycled Water Use Assumptions
AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 AWPS Phase 1 Total Cost Allocations by Year Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)
Palo Alto 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 809,973 809,973 809,973 809,973 809,973 809,973 1,049,061 1,293,029 1,536,996 1,658,980 Cumulative Change in Use % 30.7% 30.7% 30.7% 30.7% 30.7% 30.7% 69.3% 108.7% 148.0% 167.7% Share of Annual Enhnaced Recycled Water Use
Palo Alto 24.1% 24.1% 24.1% 24.1% 24.1% 24.1% 18.6% 15.1% 12.7% 11.8% Mountain View 75.9% 75.9% 75.9% 75.9% 75.9% 75.9% 81.4% 84.9% 87.3% 88.2%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation
Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation
Based on each agency's % share of total annual enhanced recycled water use.
Palo Alto $239,600 $249,200 $259,200 $269,500 $280,300 $291,500 $300,700 $309,100 $317,400 $321,900 Mountain View 754,800 785,000 816,400 849,000 883,000 918,300 1,315,600 1,738,900 2,182,000 2,414,200__________________________________________________________________________________________ Total 994,379 1,034,154 1,075,520 1,118,541 1,163,283 1,209,814 1,616,264 2,048,087 2,499,427 2,736,076 Total Cost Allocation
Palo Alto $239,600 $249,200 $259,200 $269,500 $280,300 $291,500 $300,700 $309,100 $317,400 $321,900 Mountain View 2,190,800 2,221,000 2,252,400 2,285,000 2,319,000 2,354,300 2,751,600 3,174,900 3,618,000 3,850,200__________________________________________________________________________________________ Total 2,430,400 2,470,200 2,511,600 2,554,500 2,599,300 2,645,800 3,052,300 3,484,000 3,935,400 4,172,100 All-In Cost per Unit ($/ccf)
Palo Alto $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 $1.54 $1.58 $1.63 $1.65 Mountain View 3.56 3.61 3.66 3.72 3.77 3.83 3.22 2.89 2.70 2.63__________________________________________________________________________________________ Total 3.00 3.05 3.10 3.15 3.21 3.27 2.91 2.69 2.56 2.51 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
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Scenario B
No Phase III Recycled Water Expansion
with Direct Potable Reuse Starting 2041
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
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Table 6B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan
Estimated Enhanced (Blended AWPS) Recycled Water Use (MGD) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 0.33 0.33 0.66 50.0% 50.0%
2021 0.25 0.37 0.62 40.3% 59.7%
2022 0.40 0.40 0.80 50.0% 50.0%
2023 0.40 0.40 0.80 50.0% 50.0%
2024 0.40 0.40 0.80 50.0% 50.0%
2025 0.40 0.55 0.95 42.1% 57.9%
2026 [2] 0.40 0.87 1.27 31.5% 68.5%
2027 0.40 0.87 1.27 31.5% 68.5%
2028 0.40 0.96 1.36 29.4% 70.6%
2029 0.40 1.04 1.44 27.8% 72.2%
2030 0.40 1.15 1.55 25.8% 74.2%
2031 0.40 1.26 1.66 24.1% 75.9%
2032 0.40 1.26 1.66 24.1% 75.9%
2033 0.40 1.26 1.66 24.1% 75.9%
2034 0.40 1.26 1.66 24.1% 75.9%
2035 0.40 1.26 1.66 24.1% 75.9%
2036 0.40 1.26 1.66 24.1% 75.9%
2037 0.40 1.26 1.66 24.1% 75.9%
2038 0.40 1.26 1.66 24.1% 75.9%
2039 0.40 1.26 1.66 24.1% 75.9%
2040 [3,4] 0.40 1.26 1.66 24.1% 75.9%
2041 1.20 1.75 2.95 40.7% 59.3%
2042 1.20 2.25 3.45 34.8% 65.2%
2043 1.20 2.75 3.95 30.4% 69.6%
2044 1.20 3.00 4.20 28.6% 71.4%
2045 1.20 3.00 4.20 28.6% 71.4%
2046 1.20 3.00 4.20 28.6% 71.4%
2047 1.20 3.00 4.20 28.6% 71.4%
2048 1.20 3.00 4.20 28.6% 71.4%
2049 1.20 3.00 4.20 28.6% 71.4%
2050 1.20 3.00 4.20 28.6% 71.4%
2051 1.20 3.00 4.20 28.6% 71.4%
2052 1.20 3.00 4.20 28.6% 71.4%
Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto does not move forward with Phase III recycled water expansion and subsequently increases recycled water use for Direct Potable Reuse (DPR) 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD.
Estimated Recycled Water Use (MGD) % of Total
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
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Table 7B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan
Estimated Enhanced (Blended AWPS) Recycled Water Use (AF) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 370 370 739 50.0% 50.0%
2021 280 414 694 40.3% 59.7%
2022 448 448 896 50.0% 50.0%
2023 448 448 896 50.0% 50.0%
2024 448 448 896 50.0% 50.0%
2025 448 616 1,064 42.1% 57.9%
2026 [2] 448 975 1,423 31.5% 68.5%
2027 448 975 1,423 31.5% 68.5%
2028 448 1,075 1,523 29.4% 70.6%
2029 448 1,165 1,613 27.8% 72.2%
2030 448 1,288 1,736 25.8% 74.2%
2031 448 1,411 1,859 24.1% 75.9%
2032 448 1,411 1,859 24.1% 75.9%
2033 448 1,411 1,859 24.1% 75.9%
2034 448 1,411 1,859 24.1% 75.9%
2035 448 1,411 1,859 24.1% 75.9%
2036 448 1,411 1,859 24.1% 75.9%
2037 448 1,411 1,859 24.1% 75.9%
2038 448 1,411 1,859 24.1% 75.9%
2039 448 1,411 1,859 24.1% 75.9%
2040 [3,4] 448 1,411 1,859 24.1% 75.9%
2041 1,344 1,960 3,304 40.7% 59.3%
2042 1,344 2,520 3,865 34.8% 65.2%
2043 1,344 3,080 4,425 30.4% 69.6%
2044 1,344 3,360 4,705 28.6% 71.4%
2045 1,344 3,360 4,705 28.6% 71.4%
2046 1,344 3,360 4,705 28.6% 71.4%
2047 1,344 3,360 4,705 28.6% 71.4%
2048 1,344 3,360 4,705 28.6% 71.4%
2049 1,344 3,360 4,705 28.6% 71.4%
2050 1,344 3,360 4,705 28.6% 71.4%
2051 1,344 3,360 4,705 28.6% 71.4%
2052 1,344 3,360 4,705 28.6% 71.4%
Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto does not move forward with Phase III recycled water expansion and subsequently increases recycled water use for Direct Potable Reuse (DPR) 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD.
Estimated Recycled Water Use (AF) % of Total
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
Pg.
69 Packet Pg. 141 of 228
Table 8B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan
Estimated Enhanced (Blended AWPS) Recycled Water Use (ccf) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 161,019 161,019 322,037 50.0% 50.0%
2021 121,984 180,536 302,520 40.3% 59.7%
2022 195,174 195,174 390,348 50.0% 50.0%
2023 195,174 195,174 390,348 50.0% 50.0%
2024 195,174 195,174 390,348 50.0% 50.0%
2025 195,174 268,364 463,539 42.1% 57.9%
2026 [2] 195,174 424,504 619,678 31.5% 68.5%
2027 195,174 424,504 619,678 31.5% 68.5%
2028 195,174 468,418 663,592 29.4% 70.6%
2029 195,174 507,453 702,627 27.8% 72.2%
2030 195,174 561,126 756,300 25.8% 74.2%
2031 195,174 614,798 809,973 24.1% 75.9%
2032 195,174 614,798 809,973 24.1% 75.9%
2033 195,174 614,798 809,973 24.1% 75.9%
2034 195,174 614,798 809,973 24.1% 75.9%
2035 195,174 614,798 809,973 24.1% 75.9%
2036 195,174 614,798 809,973 24.1% 75.9%
2037 195,174 614,798 809,973 24.1% 75.9%
2038 195,174 614,798 809,973 24.1% 75.9%
2039 195,174 614,798 809,973 24.1% 75.9%
2040 [3,4] 195,174 614,798 809,973 24.1% 75.9%
2041 585,522 853,887 1,439,409 40.7% 59.3%
2042 585,522 1,097,854 1,683,377 34.8% 65.2%
2043 585,522 1,341,822 1,927,344 30.4% 69.6%
2044 585,522 1,463,806 2,049,328 28.6% 71.4%
2045 585,522 1,463,806 2,049,328 28.6% 71.4%
2046 585,522 1,463,806 2,049,328 28.6% 71.4%
2047 585,522 1,463,806 2,049,328 28.6% 71.4%
2048 585,522 1,463,806 2,049,328 28.6% 71.4%
2049 585,522 1,463,806 2,049,328 28.6% 71.4%
2050 585,522 1,463,806 2,049,328 28.6% 71.4%
2051 585,522 1,463,806 2,049,328 28.6% 71.4%
2052 585,522 1,463,806 2,049,328 28.6% 71.4%
Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto does not move forward with Phase III recycled water expansion and subsequently increases recycled water use for Direct Potable Reuse (DPR) 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD.
Estimated Recycled Water Use (ccf) % of Total
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
Pg.
70 Packet Pg. 142 of 228
Table 9B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan
Summary of AWPS Capacity & Recycled Water Use
Total Palo Alto Mountain View
AWPS Phase 1 Capacity
Phase 1 Capacity 1.125 mgd 0.281 mgd 0.844 mgd
(Reverse osmosis permeate)
% Allocation of Capacity 25% 75%
Enhanced Recycled Water Production, AWPS at 1.25 mgd [1] Enhanced RW Range 2.06 - 2.65 mgd 0.52 - 0.66 mgd 1.55 - 1.98 mgd Average 2.35 mgd 0.59 mgd 1.76 mgd
% Allocation of Production 25% 75%
AWPS Phase 1 Estimated Annual Enhanced Recycled Water Use 2026 Phase 1 Demand in 2026
mgd 1.27 mgd 0.40 mgd 0.87 mgd
AF 1,423 AF 448 AF 975 AF
ccf 849,007 ccf 424,504 ccf 424,504 ccf
% of Total Enhanced RW Use 31.5% 68.5%
AWPS Phase 1 Estimated Annual Enhanced Recycled Water Use 2031 - 2040 Phase 1 Demand in 2031
mgd 1.66 mgd 0.40 mgd 1.26 mgd
AF 1,859 AF 448 AF 1,411 AF
ccf 809,973 ccf 195,174 ccf 614,798 ccf
% of Total Enhanced RW Use 24.1% 75.9%
[1] Based on Black & Veatch's AWPS Basis of Design Report (2021) Table 4-5, the average blending ratio of recycled water to reverse osmosis permeate to maintain between 400 mg/L - 500 gm/L total dissolved solids is 1:0.74 to 1:1.20
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
Pg.
71 Packet Pg. 143 of 228
Table 10B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan Assumes O&M increase is about half of what was calculated for increased base case demand AWPS Phase 1 Operating Costs & Allocations by Year Under the new scenario, the increase in total RW use is 49.4% of the increase under the base case 1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only
Palo Alto 78,070 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Mountain View 169,801 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 247,871 619,678 619,678 663,592 702,627 756,300 809,973 809,973 809,973 809,973 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 22.0% 30.7% 30.7% 30.7% 30.7% Cost Escalator (Base Year = 2023 + 4% Escalation) 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 AWPS Phase 1 O&M
Fixed Operating Expenses
O&M Labor (Assumes No New Labor) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable Operating Expenses Assumes 50%
Maintenance & Repairs 146,500 292,900 304,600 316,800 329,500 342,700 356,400 370,600 385,500 400,900 Energy 80,300 160,600 167,100 173,700 180,700 187,900 195,400 203,200 211,400 219,800 Chemicals 56,900 113,700 118,300 123,000 127,900 133,000 138,400 143,900 149,700 155,600 Membrane Consumables 14,900 29,700 30,900 32,100 33,400 34,700 36,100 37,600 39,100 40,600__________________________________________________________________________________________ Total Annual O&M 298,600 596,900 620,900 $645,600 $671,500 $698,300 $726,300 $755,300 $785,700 $816,900 AWPS O&M Cost per Unit ($/ccf) $1.20 $0.96 $1.00 $0.97 $0.96 $0.92 $0.90 $0.93 $0.97 $1.01 Share of Annual Recycled Water Use
Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 74.2% 75.9% 75.9% 75.9% 75.9%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% AWPS O&M Cost Allocation
Palo Alto $94,000 $188,000 $195,600 $189,900 $186,500 $180,200 $175,000 $182,000 $189,300 $196,800 Mountain View 204,600 408,900 425,300 455,700 485,000 518,100 551,300 573,300 596,400 620,100__________________________________________________________________________________________ Total 298,600 596,900 620,900 645,600 671,500 698,300 726,300 755,300 785,700 816,900 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
72 Packet Pg. 144 of 228
Table 10B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan
AWPS Phase 1 Operating Costs & Allocations by Year
11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) Start DPR
Palo Alto 195,174 195,174 195,174 195,174 195,174 195,174 585,522 585,522 585,522 585,522 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 809,973 809,973 809,973 809,973 809,973 809,973 1,439,409 1,683,377 1,927,344 2,049,328 Cumulative Change in Use % 30.7% 30.7% 30.7% 30.7% 30.7% 30.7% 132.3% 171.7% 211.0% 230.7% Cost Escalator (Base Year = 2023 + 4% Escalation)1.601 1.665 1.732 1.801 1.873 1.948 2.026 2.107 2.191 2.279 AWPS Phase 1 O&M
Fixed Operating Expenses
O&M Labor (Assumes No New Labor) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable Operating Expenses Prelim Est ?
Maintenance & Repairs 416,900 433,600 450,900 469,000 487,700 507,200 937,500 1,140,200 1,357,700 1,501,400 Energy 228,600 237,800 247,300 257,200 267,500 278,200 514,100 625,300 744,500 823,300 Chemicals 161,900 168,300 175,100 182,100 189,400 196,900 364,000 442,700 527,100 582,900 Membrane Consumables 42,300 44,000 45,700 47,500 49,400 51,400 95,000 115,600 137,600 152,200__________________________________________________________________________________________ Total Annual O&M $849,700 $883,700 $919,000 $955,800 $994,000 $1,033,700 $1,910,600 $2,323,800 $2,766,900 $3,059,800 AWPS O&M Cost per Unit ($/ccf) $1.05 $1.09 $1.13 $1.18 $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 Share of Annual Recycled Water Use
Palo Alto 24.1% 24.1% 24.1% 24.1% 24.1% 24.1% 40.7% 34.8% 30.4% 28.6% Mountain View 75.9% 75.9% 75.9% 75.9% 75.9% 75.9% 59.3% 65.2% 69.6% 71.4%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% AWPS O&M Cost Allocation
Palo Alto $204,700 $212,900 $221,400 $230,300 $239,500 $249,100 $777,200 $808,300 $840,600 $874,200 Mountain View 645,000 670,800 697,600 725,500 754,500 784,600 1,133,400 1,515,500 1,926,300 2,185,600__________________________________________________________________________________________ Total 849,700 883,700 919,000 955,800 994,000 1,033,700 1,910,600 2,323,800 2,766,900 3,059,800 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
73 Packet Pg. 145 of 228
Table 11B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan DPR Starting 2041
AWPS Phase 1 Total Cost Allocations by Year
1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only
Palo Alto 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Mountain View 212,252 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 309,839 619,678 619,678 663,592 702,627 756,300 809,973 809,973 809,973 809,973 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 22.0% 30.7% 30.7% 30.7% 30.7% Share of Annual Enhnaced Recycled Water Use
Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 74.2% 75.9% 75.9% 75.9% 75.9%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation
Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation
Based on each agency's % share of total annual enhanced recycled water use.
Palo Alto $94,000 $188,000 $195,600 $189,900 $186,500 $180,200 $175,000 $182,000 $189,300 $196,800 Mountain View 204,600 408,900 425,300 455,700 485,000 518,100 551,300 573,300 596,400 620,100__________________________________________________________________________________________ Total 298,600 596,900 620,900 645,600 671,500 698,300 726,300 755,300 785,700 816,900 Total Cost Allocation
Palo Alto $94,000 $188,000 $195,600 $189,900 $186,500 $180,200 $175,000 $182,000 $189,300 $196,800 Mountain View 1,640,600 1,844,900 1,861,300 1,891,700 1,921,000 1,954,100 1,987,300 2,009,300 2,032,400 2,056,100__________________________________________________________________________________________ Total 1,734,600 2,032,900 2,056,900 2,081,600 2,107,500 2,134,300 2,162,300 2,191,300 2,221,700 2,252,900 All-In Cost per Unit ($/ccf)
Palo Alto $0.96 $0.96 $1.00 $0.97 $0.96 $0.92 $0.90 $0.93 $0.97 $1.01 Mountain View 7.73 4.35 4.38 4.04 3.79 3.48 3.23 3.27 3.31 3.34__________________________________________________________________________________________ Total 5.60 3.28 3.32 3.14 3.00 2.82 2.67 2.71 2.74 2.78 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
74 Packet Pg. 146 of 228
Table 11B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan DPR Starting 2041
AWPS Phase 1 Total Cost Allocations by Year
11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) Start DPR
Palo Alto 195,174 195,174 195,174 195,174 195,174 195,174 585,522 585,522 585,522 585,522 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 809,973 809,973 809,973 809,973 809,973 809,973 1,439,409 1,683,377 1,927,344 2,049,328 Cumulative Change in Use %
Share of Annual Enhnaced Recycled Water Use
Palo Alto 24.1% 24.1% 24.1% 24.1% 24.1% 24.1% 40.7% 34.8% 30.4% 28.6% Mountain View 75.9% 75.9% 75.9% 75.9% 75.9% 75.9% 59.3% 65.2% 69.6% 71.4%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation
Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation
Based on each agency's % share of total annual enhanced recycled water use.
Palo Alto $204,700 $212,900 $221,400 $230,300 $239,500 $249,100 $777,200 $808,300 $840,600 $874,200 Mountain View 645,000 670,800 697,600 725,500 754,500 784,600 1,133,400 1,515,500 1,926,300 2,185,600__________________________________________________________________________________________ Total 849,700 883,700 919,000 955,800 994,000 1,033,700 1,910,600 2,323,800 2,766,900 3,059,800 Total Cost Allocation
Palo Alto $204,700 $212,900 $221,400 $230,300 $239,500 $249,100 $777,200 $808,300 $840,600 $874,200 Mountain View 2,081,000 2,106,800 2,133,600 2,161,500 2,190,500 2,220,600 2,569,400 2,951,500 3,362,300 3,621,600__________________________________________________________________________________________ Total 2,285,700 2,319,700 2,355,000 2,391,800 2,430,000 2,469,700 3,346,600 3,759,800 4,202,900 4,495,800 All-In Cost per Unit ($/ccf)
Palo Alto $1.05 $1.09 $1.13 $1.18 $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 Mountain View 3.38 3.43 3.47 3.52 3.56 3.61 3.01 2.69 2.51 2.47__________________________________________________________________________________________ Total 2.82 2.86 2.91 2.95 3.00 3.05 2.32 2.23 2.18 2.19 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
75 Packet Pg. 147 of 228
Palo Alto Recycled Water Use & Costs
Assumes AWPS Phase 1 Only
Scenario B
with Direct Potable Reuse Starting 2041
No Phase III Recycled Water Expansion
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
Pg.
76 Packet Pg. 148 of 228
Table PA-4B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan DPR Starting 2041
Projection of Recycled Water Impacts to Palo Alto General Fund Assumes RW provided at cost of production Cost 1 2 3 4 5 6 7 8 9 10
Esc 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only
City Use for Golf Course & Parks 86,450 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 4,550 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 2,840 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 97,590 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% Proj Potable Irrig Water Rate (W7)3.0% $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Projected Recycled Water Rate [1] $0.96 $0.96 $1.00 $0.97 $0.96 $0.92 $0.90 $0.93 $0.97 $1.01 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $2,700 $5,500 $5,700 $5,500 $5,400 $5,200 $5,100 $5,300 $5,500 $5,700 MSC & Other Billed City Use 4,400 8,800 9,100 8,800 8,700 8,400 8,200 8,500 8,800 9,200 Caltrans RW Sales 1,200 2,400 2,500 2,400 2,400 2,300 2,200 2,300 2,400 2,500 Other RW Sales 0 0 0 0 0 0 0 0 0 0
Valley Water Annual Option Pymt3.0% 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0 Valley Water Annual Effluent Purchase - - - - - - - - tbd tbd Reduced Potable Water Purchases 28,600 58,900 60,700 62,500 64,400 66,300 68,300 70,400 72,500 74,600__________________________________________________________________________________________ Subtotal 95,100 135,500 139,700 142,800 146,400 149,700 153,300 158,100 89,200 92,000 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] $94,000 $188,000 $195,600 $189,900 $186,500 $180,200 $175,000 $182,000 $189,300 $196,800 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 94,000 188,000 195,600 189,900 186,500 180,200 175,000 182,000 189,300 196,800 Revenues Less Expenses $1,100 ($52,500) ($55,900) ($47,100) ($40,100) ($30,500) ($21,700) ($23,900) ($100,100)($104,800) Cumulative Net Expenses $1,100 ($51,400) ($107,300)($154,400)($194,500)($225,000)($246,700)($270,600)($370,700)($475,500) Projected RW Cost per Unit ($/ccf) $0.96 $0.96 $1.00 $0.97 $0.96 $0.92 $0.90 $0.93 $0.97 $1.01 Net RW Unit Cost After Offsets ($/ccf) ($0.01) $0.27 $0.29 $0.24 $0.21 $0.16 $0.11 $0.12 $0.51 $0.54 1 Assumes recycled water is sold at cost.
2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
Pg.
77 Packet Pg. 149 of 228
Table PA-4B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan DPR Starting 2041
Projection of Recycled Water Impacts to Palo Alto General Fund Assumes RW provided at cost of production Cost 11 12 13 14 15 16 17 18 19 20
Esc 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) Start DPR
City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig) 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 390,348 390,348 390,348 390,348_________________________________________________________________________________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 585,522 585,522 585,522 585,522 Palo Alto Share of Projected RW Use 24.1% 24.1% 24.1% 24.1% 24.1% 24.1% 40.7% 34.8% 30.4% 28.6% Proj Potable Irrig Water Rate (W7)3.0% $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Projected Recycled Water Rate [1] $1.05 $1.09 $1.13 $1.18 $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 Recycled Water Sales Revenues & Expense Offsets
Truck RW Sales $6,000 $6,200 $6,400 $6,700 $7,000 $7,300 $7,500 $7,800 $8,200 $8,500 MSC & Other Billed City Use 9,500 9,900 10,300 10,700 11,200 11,600 12,100 12,600 13,100 13,600 Caltrans RW Sales 2,600 2,700 2,800 2,900 3,100 3,200 3,300 3,500 3,600 3,700 Other RW Sales 0 0 0 0 0 0 518,100 538,900 560,400 582,800 Valley Water Annual Option Pymt3.0% 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases 76,900 79,200 81,600 84,000 86,500 89,100 91,800 94,500 97,400 100,300_________________________________________________________________________________ _________ Subtotal 95,000 98,000 101,100 104,300 107,800 111,200 632,800 657,300 682,700 708,900 Recycled Water Expenses
AWPS O&M Allocation [2,3,4,5] $204,700 $212,900 $221,400 $230,300 $239,500 $249,100 $777,200 $808,300 $840,600 $874,200 AWPS SRF Debt Service Allocation [6] 0 0 0 0 0 0 0 0 0 0_________________________________________________________________________________ _________ Subtotal 204,700 212,900 221,400 230,300 239,500 249,100 777,200 808,300 840,600 874,200 Revenues Less Expenses ($109,700)($114,900)($120,300)($126,000)($131,700)($137,900)($144,400)($151,000)($157,900) ($165,300) Cumulative Net Expenses ($585,200)($700,100)($820,400)($946,400)($1,078,100)($1,216,000)($1,360,400)($1,511,400)($1,669,300)($1,834,600) Projected RW Cost per Unit ($/ccf) $1.05 $1.09 $1.13 $1.18 $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 Net RW Unit Cost After Offsets ($/ccf) $0.56 $0.59 $0.62 $0.65 $0.67 $0.71 $0.25 $0.26 $0.27 $0.28 1 Assumes recycled water is sold at cost.
2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service.
Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
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Table PA-5B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan DPR Starting 2041
Net Annual Impacts to City of Palo Alto
1 2 3 4 5 6 7 8 9 10
2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($94,000) ($188,000) ($195,600) ($189,900) ($186,500) ($180,200) ($175,000) ($182,000) ($189,300) ($196,800) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)50% Jan-Jun Transition from Potable to RW Use 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Cost of Potable City Water Purchases $28,600 $58,900 $60,700 $62,500 $64,400 $66,300 $68,300 $70,400 $72,500 $74,600 B) Recycled Water Sales Revenues
Truck RW Sales $2,700 $5,500 $5,700 $5,500 $5,400 $5,200 $5,100 $5,300 $5,500 $5,700 MSC & Other Billed City Use 4,400 8,800 9,100 8,800 8,700 8,400 8,200 8,500 8,800 9,200 Caltrans RW Sales 1,200 2,400 2,500 2,400 2,400 2,300 2,200 2,300 2,400 2,500 Other RW Sales 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $8,300 $16,700 $17,300 $16,700 $16,500 $15,900 $15,500 $16,100 $16,700 $17,400 Net Annual Impact to General Fund ($57,100) ($112,400) ($117,600) ($110,700) ($105,600) ($98,000) ($91,200) ($95,500) ($100,100) ($104,800) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($28,600) ($58,900) ($60,700) ($62,500) ($64,400) ($66,300) ($68,300) ($70,400) ($72,500) ($74,600) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 5% Esc + BAWSCA Bond Surchg$6.48 $6.78 $7.10 $7.44 $7.79 $8.16 $8.54 $8.95 $9.38 $9.83_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 16,200 33,900 35,500 37,200 38,900 40,800 42,700 44,800 46,900 49,100 Net Annual Revenue Loss to Water Enterprise ($12,400) ($25,000) ($25,200) ($25,300) ($25,500) ($25,500) ($25,600) ($25,600) ($25,600) ($25,500) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $58,200 $59,900 $61,700 $63,600 $65,500 $67,500 $69,500 $71,600 $0 $0 Valley Water Annual Effluent Purchase Payment - - - - - - - - tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($57,100) ($112,400) ($117,600) ($110,700) ($105,600) ($98,000) ($91,200) ($95,500) ($100,100) ($104,800) Net Revenue Loss Water Enterprise (12,400) (25,000) (25,200) (25,300) (25,500) (25,500) (25,600) (25,600) (25,600) (25,500) Valley Water Annual Option Payment to Wastewater Fund 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($11,300) ($77,500) ($81,100) ($72,400) ($65,600) ($56,000) ($47,300) ($49,500) ($125,700) ($130,300) Cumulative Impact to City ($11,300) ($88,800) ($169,900) ($242,300) ($307,900) ($363,900) ($411,200) ($460,700) ($586,400) ($716,700) Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
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Table PA-5B No Palo Alto Phase III Scenario
AWPS Preliminary Financial Plan DPR Starting 2041
Net Annual Impacts to City of Palo Alto
11 12 13 14 15 16 17 18 19 20
2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Palo Alto Recycled Water Use (ccf)
Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 390,348 390,348 390,348 390,348_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total 195,174 195,174 195,174 195,174 195,174 195,174 585,522 585,522 585,522 585,522 Palo Alto General Fund: Palo Alto Golf Course & Parks
Recycled Water Expenses ($204,700) ($212,900) ($221,400) ($230,300) ($239,500) ($249,100) ($777,200) ($808,300) ($840,600) ($874,200) Less Expense Offsets
A) Potable Water Purchases for GC Fairway Irrig (ccf)
Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Cost of Potable City Water Purchases $76,900 $79,200 $81,600 $84,000 $86,500 $89,100 $91,800 $94,500 $97,400 $100,300 B) Recycled Water Sales Revenues
Truck RW Sales $6,000 $6,200 $6,400 $6,700 $7,000 $7,300 $7,500 $7,800 $8,200 $8,500 MSC & Other Billed City Use 9,500 9,900 10,300 10,700 11,200 11,600 12,100 12,600 13,100 13,600 Caltrans RW Sales 2,600 2,700 2,800 2,900 3,100 3,200 3,300 3,500 3,600 3,700 Other RW Sales 0 0 0 0 0 0 518,100 538,900 560,400 582,800_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Subtotal $18,100 $18,800 $19,500 $20,300 $21,300 $22,100 $541,000 $562,800 $585,300 $608,600 Net Annual Impact to General Fund ($109,700) ($114,900) ($120,300) ($126,000) ($131,700) ($137,900) ($144,400) ($151,000) ($157,900) ($165,300) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund
Loss of Potable Water Sales ($76,900) ($79,200) ($81,600) ($84,000) ($86,500) ($89,100) ($91,800) ($94,500) ($97,400) ($100,300) Offset by Reduction in SFPUC Potable Water Purchases
Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg) $9.71 $10.00 $10.30 $10.61 $10.93 $11.26 $11.60 $11.94 $12.30 $12.67_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Est. Annual Potable City Water Purchases 48,600 50,000 51,500 53,100 54,600 56,300 58,000 59,700 61,500 63,354 Net Annual Revenue Loss to Water Enterprise ($28,300) ($29,200) ($30,100) ($30,900) ($31,900) ($32,800) ($33,800) ($34,800) ($35,900) ($36,946) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund
Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto
Net Impact to General Fund ($109,700) ($114,900) ($120,300) ($126,000) ($131,700) ($137,900) ($144,400) ($151,000) ($157,900) ($165,300) Net Revenue Loss Water Enterprise (28,300) (29,200) (30,100) (30,900) (31,900) (32,800) (33,800) (34,800) (35,900) (36,946) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Total Net Annual Impact to City ($138,000) ($144,100) ($150,400) ($156,900) ($163,600) ($170,700) ($178,200) ($185,800) ($193,800) ($202,246) Cumulative Impact to City ($854,700) ($998,800) ($1,149,200) ($1,306,100) ($1,469,700) ($1,640,400) ($1,818,600) ($2,004,400) ($2,198,200) ($2,400,446) Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
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City of Palo Alto (0038014.03) 22 Woodard & Curran, Inc.
Preliminary Finance Plan July 27, 2023
Appendix 2
Item 10
Attachment A -
Preliminary Finance Plan
for the Advanced Water
Purification System -
Phase I
Item 10: Staff Report
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Appendix 2: Assumed Operations and Maintenance and Related Expense Estimates Column Designation A B C D E F G H I J K L M N O P Q R S T U Column Title Month Days
2019 Reported Use,
Monthly Average
(MGD)1
2020 Reported Use,
Monthly Average
(MGD)1
2019-2020
Average (MGD)
2031 Estimated
Recycled Water
Demand (MGD)2
2031 Calculated
Monthly Average
Demand (MGD)
2031 Calculated
Monthly Average
Demand (MG)
Assumed Operational
Scenario: Blend Ratio
(RW:ROP)3
Max. Enhanced Recycled
Water Production, Based
on Blend Ratio
Assumed Operational
Scenario: Production Rate
4 Enhanced Recycled Water
Production, Based on
Operational Scenario
(MGD)
Enhanced Recycled Water
Production, Based on
Operational Scenario
(MG)
Over/(Under)
Production Based on
Historic Monthly
Demand (MG)
O&M
Expense:
Repairs &
Replacements
O&M
Expense:
Energy
O&M
Expense:
Chemicals
O&M
Expense:
Membrane
Consumables
O&M
Expense:
Labor
O&M Expense: Total
Calculation (if applicable) = AVG ( C, D ) = B * H = K * L = B * K * L = K * L = SUM ( P , Q , R , S , T ) January 31 0.18 0.14 0.16 0.50 [B] 16 n/a 0.00 0 0.00 0 -16 $0 $0 $0 $0 $0 $0 February 28 0.16 0.36 0.26 0.80 22 1.0 : 0.95 2.31 50% 1.15 32 10 $21,703 $13,052 $8,423 $1,338 $0 $44,515 March 31 0.14 0.31 0.22 0.69 21 1.0 : 0.52 3.29 80% 2.63 82 60 $34,724 $18,801 $13,476 $3,426 $0 $70,428 April 30 0.65 0.55 0.60 1.86 56 1.0 : 0.52 3.29 100% 3.29 99 43 $43,405 $22,634 $16,845 $5,353 $0 $88,238 May 31 0.71 1.01 0.86 2.67 83 1.0 : 0.52 3.29 100% 3.29 102 19 $43,405 $22,634 $16,845 $5,353 $0 $88,238 June 30 1.14 1.17 1.16 3.59 [A] 108 1.0 : 0.52 3.29 100% 3.29 99 -9 $43,405 $22,634 $16,845 $5,353 $0 $88,238 July 31 1.22 1.31 1.26 3.92 [A] 122 1.0 : 0.52 3.29 100% 3.29 102 -20 $43,405 $22,634 $16,845 $5,353 $0 $88,238 August 31 1.38 1.10 1.24 3.84 [A] 119 1.0 : 0.52 3.29 100% 3.29 102 -17 $43,405 $22,634 $16,845 $5,353 $0 $88,238 September 30 0.95 0.79 0.87 2.70 81 1.0 : 0.52 3.29 100% 3.29 99 18 $43,405 $22,634 $16,845 $5,353 $0 $88,238 October 31 0.69 0.62 0.65 2.03 63 1.0 : 0.95 2.31 80% 1.85 57 -6 $34,724 $18,801 $13,476 $3,426 $0 $70,428 November 30 0.47 0.47 0.47 1.46 [B] 44 n/a 0.00 0 0.00 0 -44 $0 $0 $0 $0 $0 $0 December 31 0.11 0.26 0.19 0.59 [B] 18 n/a 0.00 0 0.00 0 -18 $0 $0 $0 $0 $0 $0 Days/
Year:
Approx. Annual
Average Use
(MGD): 0.65
Approx. Annual
Average Use
(MGD): 0.68
Approx. Annual
Average Use
(MGD): 0.66
Estimated Annual
Average Use
(MGD): 2.06
Annual Average
Check (MGD):
2.06 Approx. Annual Average
Production (MGD): 2.12
Estimated Annual Net
(MG): 21
Estimated Annual
Amount: $714,797
365
Approx. Annual
Total Use (MG):
238
Approx. Annual
Total Use (MG):
247
Approx. Annual
Total Use (MG):
242
Calculated
Monthly Increase:
3.1 Calculated Annual
Total Use (MG):
752
Calculated Annual
Total Use (MG):
752
Calculated Annual Total
Production (MG): 773
Notes: [A] Calculated monthly average demand (based on historical monthly usage) is greater than AWPS Capacity [B] Assumed month when AWPS is taken offline because flows are relatively low. Several offline scenarios are possible and justifiable. 1 Letter to Mr. Blair Allen (RWQCB) from James Allen (RWQCP), 2020 2 Appendix 1 - Table
3 Blending Ratios are based on Black & Veatch, City of Palo Alto Advanced Water Purification System (AWPS), Basis of Design Report , Project 408520. November 8, 2021 4 Assumed production rates, as a percentage of overall capacity. Many scenarios are possible and justifiable. 5 Operations and Maintenance Expenses based on Black & Veatch, City of Palo Alto AWPS, Operations & Maintenance Cost Estimate (“AWPS OPEX Ranges8-15-22”)– All Alternatives , Project 408520. August 15, 2022, with Labor adjusted to 0.00 FTE based upon RWQCP staff input Item 10
Attachment A - Preliminary Finance
Plan for the Advanced Water
Purification System - Phase I
Item 10: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: October 16, 2023
Report #:2309-2073
TITLE
Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On-Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager or their designee to negotiate and execute a change order (Attachment A) to the contract with Bear Electrical Services to extend the contract duration through March 1, 2024, with no change in contract amount.
BACKGROUND
In 2019, the City conducted a formal Invitation for Bids (IFB) for the On-Call Traffic Signal and Electrical Services and on February 3, 2020, (CMR 10966). The Council approved a contract with Bear Electrical Services for a term of 36 Months with a Maximum Total Compensation Not-to- Exceed Amount of $375,000. 1 This contract 2 supports traffic signal and other electrical service work related to the traffic signal and transportation system within Palo Alto. The services supplement implementation, maintenance, and/or repair efforts that cannot be completed by Electric Utilities Department staff and are generally used for the implementation of services and/or technologies that current City Staff has limited capabilities or capacity to conduct. This 1 Staff report available at https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2020/id- 10966.pdf?t=64302.61
2 Current Contract No. C20177344 with Bear Electrical
https://www.cityofpaloalto.org/files/assets/public/v/1/transportation/city-council- docs/c20177344-bear-electrical-contract_final.pdf
Item 11
Item 11 Staff Report
Item 11: Staff Report
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contract was previously extended by six months in Change Order No. 1 3. Staff is recommending extending this contract to March 1, 2024.
ANALYSIS
Supply chain issues are causing delays in procuring the necessary parts and materials used to repair and maintain traffic signals. The contract extension will allow pre-planned and emergency work to be conducted around the City as needed. The department is also currently working with the Administrative Services Department to release a new Invitation for Bid for On-Call Traffic Signal and Electrical Services for future needs. This contract extension will allow the City to complete in-progress equipment procurement and repairs that have not yet been delivered and/or finalized. If necessary, this extension will also enable emergency repairs while the formal solicitation takes place.
FISCAL/RESOURCE IMPACT
Staff is requesting a contract extension without any additional funding. The Fiscal Year 2024 Adopted Capital Budget Project Traffic Signal and Intelligent Transportation Systems (PL-05030) has sufficient funding to cover the remaining amount of funds left on the contract, approximately $103,000, with no additional budgetary action required.
STAKEHOLDER ENGAGEMENT
This change order has been coordinated with internal partners including the City Attorney’s Office and Administrative Services Department.
ENVIRONMENTAL REVIEW
This contract is categorically exempt under CEQA regulations 15301 (existing facilities) and 15302 (replacement or reconstruction).
ATTACHMENTS
Attachment A: Change Order No. 2. to Contract No. C20177344 between the City of Palo Alto and Bear Electric
APPROVED BY:
Philip Kamhi, Chief Transportation Official
3 Change Order No. 1 with Bear Electrical
https://www.cityofpaloalto.org/files/assets/public/v/1/transportation/city-council-docs/bear-change-order_may- 2023.pdf
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Invit
ation for Bids (IFB) Package 1 Rev. Jan. 2023
PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER
FIELD ORDER
CITY OF
PALO ALTO
DEPARTMENT OF
_____________________________ Project
This Field Order, issued pursuant to Article 7 of the Contract General Conditions directs and authorizes Contractor to proceed with the Work described below. Upon receipt of this Field Order, Contractor shall execute the Field Order to acknowledge receipt and, within a reasonable time, proceed with the Work described in the Field Order. Contractor ’s acknowledgment of the Field Order will not operate to impair its rights to dispute the Field Order as specified in the General Conditions. Unless otherwise stated below, this Field Order shall not be construed as an acknowledgment by City that the Work described constitutes a Change or Extra Work. If Contractor disputes the proposed basis or amount of adjustment to the Contract Sum or Contract Time, it may request to change the disputed portions of this Field Order by submitting a Change Order Request within ten (10) Days following issuance of this Field Order. Failure by Contractor to submit a timely Change Order Request seeking modification of the terms of this Field Order shall be deemed full acceptance of and agreement to all of the terms herein, and a release and waiver of any right to subsequently dispute any or all of the terms of this Field Order.
Project Number: PL-05030-080
Contract Number: C20177344
Contractor's Name: Bear Electric, Inc.
Field Order Number: XXX
Issuance Date:
_09_/_01_/_2023___
Prepared by: Rafael Rius, Sr. Engineer, City of Palo Alto Description of Work:
Title: _ On-Call Traffic Signal and Electrical Services_________ Ref:
2. City has determined that the above Work:
___ is Extra Work
_X_ is not Extra Work
City h
as determined that Contractor is:
__not entitled to an extension of time
Currently, multiple tasks began prior to Sept 1st, 2023 and are still in progress. This extension will allow for completion of tasks currently underway as
well as emergency repair services through the duration of this extension of contract time. No additional costs/budget will be added to the
contract as part of this Field Order. Bear Electric provides on-call support for minor traffic signal and electrical modification projects
. Bear Electric assists the City with miscellaneous improvements identified as part of operations improvements or as part of infrastructure upgrades.
__ requesting an additional extension of 182 days*
*Include all information and documentation required by Section 8.5 of the Contract General Conditions. Unless Section 6.3 of the
Construction Contract specifies that the Project is to be completed based on working days, any time adjustment will be based on calendar days.
DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8 DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A Item 11
Attachment A - Change
Order No. 2. to Contract
No. C20177344 Bear
Electric
Item 11: Staff Report
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Invitation fo
r Bids (IFB) Package 2 Rev. Jan. 2023
PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Basis of Extra Work Cost:
Unit Cost*
Lump Sum: $ _______________
Time and Mater ials*
Other*
*The Contract Sum will be [increased][decreased] by an amount not to exceed: $____0.00_______________________
1. Consultant shall sign prior to Contractor and return to City. Indicate N/A if no Consultant assigned on Project.
Consultant Approval: N/A
Tit
le: Senior Engineer (Project Manager), Office of Transportation Date:
2. Project Manager signature required for Field Orders.
City Approval: Rafael Rius
Title: Senior Engineer (Project Manager)
3. Division Manager signature required for Field Orders exceeding $5,000. Indicate N/A if not applicable.
City Appro
val:________________________
Title: Engineering Manager of Department/Division
Date: ___ Date:________________________________
4. Division Head signature required for Field Orders exceeding $15,000.
City Approval:
Title: Assistant Director of Department/Division
5. Department Head signature required for Field Orders exceeding $25,000.
City Approval
Title: Chief Tranportation Official
Date:________________________________ Date:__
6. Contractor acknowledges receipt of FO.
Contractor Signature:
Title: Project Manager
Date:
DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8 10/5/2023
DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A 10/5/2023
10/5/2023
Item 11
Attachment A - Change
Order No. 2. to Contract
No. C20177344 Bear
Electric
Item 11: Staff Report
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Invitat
ion for Bids (IFB) Package 3 Rev. Jan. 2023
PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER
CHANGE ORDER REQUEST
CITY OF PALO ALTO
DEPARTMENT OF
_On-Call Traffic Signal and Electrical Services_ Project Contract Change Order Request
Project Title: On-Call Traffic Signal and Electrical Project No.:
Contract Number: Date: 9/01/23
Contractor: Bear Electric, Inc. Change Order Request No.: 2 Description of Change Order Request (Attach additional sheets as needed) Reason for Change Order Request: Extension of contract expiration Description of Work to be Performed: Continuation of on-going task orders and services Requested Change to Contract Sum:
No cost change: N/A
Increase cost by $ __________
Decrease cost by $ __________
Request for Extension of Contract Time (check
one):
No Change to Contract Time
Time Extension Requested for _182___
days*
o _180 days Excusable Delay
o ___ days Compensable Delay
Decrease time by ____ days
* Include all information and documentation required by Section
8.5 of the Contract General Conditions. Unless Section 6.3 of the Construction Contract specifies that the Project is to be completed based on working days, any time adjustment will be based on calendar days.
Basis for requested change in cost:
Unit pricing
Lump sum: $_____________________________
Time and Materials not to exceed: * $_________
Compensable Delay Costs: $________________
Other:__________________________________
* Final value shall not exceed amount shown without additional written CO authorization. Complete Time and Materials Breakdown on following page.
Reference Documents:*
RFI:
ASI:
Field Order:
Specifi
cations:
Plans:
Other: (sp
ecify):
* Provide spec
ific number/section/sheet references as
applicable
X
C20177344
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Line
Time and Materials Breakdown
(Reference General Conditions, e.g. Sections 1 and 7.2, for Allowable Costs and markup)
Added Credit
All lines shall be filled in (zero values acceptable)
CONTRACTOR’S WORK
1. Material (attach itemized quantity and unit cost)
2. Labor (attached itemized hours and rates)
3. Equipment (attach invoices)
4. Royalties and Permits
5. Additional insurance and bond costs, not to exceed two percent (2%) of lines 1-4
6. Subtotal (sum of lines 1 through 5)
7. Contractor Markup (Section 1.1.31 of the General Conditions) by Contractor on Extra Work performed by Contactor’s forces, not to exceed ten percent (10%) of line 6
8. Subtotal for Contractor’s Work (sum of lines 6 and 7) SUBCONTRA CTED WORK (Provide separate breakdown for each subcontract)1
9. Material (attach itemized quantity and unit cost)
10. Labor (attach itemized hours and rates)
11. Equipment (attach invoices)
12. Royalties and Permits
13. Additional insurance and bond costs, not to exceed two percent (2%) of lines 9-12
14. Subtotal (sum of lines 9 through 13)
15. Contractor Markup (Section 1.1.31 of the General Conditions) by Subcontractor on Extra Work performed by Subcontractor’s forces, not to exceed ten percent (10%) of line 14
16. Subcontractor Markup (Section 1.1.65 of General Conditions) by Contractor on Subcontractor’s Allowable Costs, not to exceed fifteen percent (15%) of line 14
17. Subtotal for Subcontracted Work (sum of lines 14, 15 and 16)
18. TOTAL (sum of lines 8 and 17) $0.00 $0.00
1 Attach additional copies of this page as required to summarize additional subcontracts.
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PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Contract Change Order Request – continued
CONTRACTOR CERTIFICATION: By signing below, the undersigned Contractor certifies under penalty of perjury that its statements and representations in this Change Order Request are true and correct.
Contractor warrants that this Change Order Request is comprehensive and complete with respect to the Change in the Work described herein, and agrees that any costs, expenses, or time extension request, including, but not limited to, compensation for delay, lost productivity, inefficiency, or disruption, which is not included with this Change Order Request, shall be deemed waived. Contractor understands that submission of claims which have no basis in fact or which Contractor knows to be false may violate the False Claims Act, as set forth in Government Code Sections 12650 et seq.
Submitted by Contractor:
Signature:
By:
Title:
Date:
Construction Manager Recommendation
By:
Title: Senior Engineer (Project Manager)
Date:
Recommendation:
City Approval – Division Head – Signature required on all Change Order Requests By:
Title: Name
Chief Transportation Official, Department/Division Office of Transportation Date:
Design Consultant Recommendation (If Project has a Design Consultant) By:
Title:
Date:
Recommendation:
City Approval – Department Head – Signature required when any individual Change Order Request exceeds $10,000.
By:
Title: Name
Director of Department
Date:
Approve time extension
Brent Paulson
VP of Operations
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PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER
CONTRACT CHANGE ORDER
CITY OF
PALO ALTO
DEPARTMENTOF
_____________________________ Project
Contract Change Order #
Project Title: On-Call Traffic Signal and Electrical Project No.:
Contract Number: C20177344 Date: 9/01/23
Contractor: Bear Electrical, Inc. Change Order No.:
Description of Change Order
Background Information: Time Extension only
Change Order Justification: Need to complete tasks currently in progress and emergency work Description of Work to be Performed: Traffic signal and electrical repair services Incorporates Field Order Number(s):
Cost Time
This Change Order will:
No cos
t change: N/A
Increa
se cost by $ 0.00
Decreas
e cost by $ N/A
This Change Order will:
Not change time
Increase time by _182___ days
o ___ days E
xcusable Delay
o ___ days Compensable Delay
Decrease time by
____ days
Note:
Unless Section 6.3 of the Construction Contract specifies that the Project is to be completed based on working days, any time adjustment will be based on calendar days.
The dat
e of completion as of this Change Order is:
______________________________________________
G/L account number (s):
Basis for change in cost:
Unit p
rice(s)
Lump sum
Time an
d Materials
Comp
ensation for Compensable Delay
Other:
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PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Contract Change Order – continued
CONTRACTOR CERTIFICATION : By signing below, Contractor agrees that this Change Order constitutes full resolution, settlement, accord and satisfaction with respect to any and all pending or future Claims for cost and extensions of time that were asserted, or that could have been asserted, in connection with the Work covered by this Change Order, as more fully set forth in Article 7 of the Contract General Conditions.
FAIL
URE TO EXECUTE: If Contractor fails to execute this Change Order within ten (10) days after it has been submitted for Contractor’s signature or refuses, in writing, to execute the Change Order , the City may unilaterally approve this Change Order as set forth in Article 7 of the Contract General Conditions. Contractor may dispute the terms of a unilaterally -approved Change Order, in whole or in part, by submitting a Claim in accordance with the Dispute Resolution Procedures set forth herein within fourteen (14) days after the Change Order is approved by the City. If Contractor fails to submit a Claim within that 14 -day period, with respect to all or part of the unilaterally -approved Change Order, those portions of the Change Order which have not been disputed by timely submission of a Claim shall be deemed to have the same effect as if the Change Order was fully executed by both parties as set forth above.
Accepted for Contractor: Accepted for City of Palo Alto (pending City signature(s) on next page):
By: By:
Title: Title: Department/Division – Senior Engineer (Project Manager), Office of Transportation
Date: Date:
PCO No.
ASI
FO
COR
CO
Description Amount Reason for Change
Total for this Change Order $ 0.00
Scope of Work
VP of Operations
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PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Document Preparation
By:
Title: Senior Engineer (Project Manager), Office of Transportation Date:
City Approval – Division Head
Signature required on all Change Orders
By :
Title : Name
Chief Transportation Official, Department Office of Transportation Date:
City Approval – Department Head
Signature required when any individual Change Order exceeds $10,000.
By:
Title: Name
Director of Department
Date:
Contract Change Order – continued
Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Sum: $ 375,000.00
Previous Change Orders $ 0.00
This Change Order $ 0.00
Revised Contract Sum: $ 0.00
Compare to:
Original Contract
Authorization: $ 375,000.00 Contingency: 0.00
Contract Amendment
Authorizations $ 0.00 Contingency added: 0.00
Contingency Authorizations: $ 0.00 Used to date (272,000.00) Total Authorized Funding: $ 375,000.00 Balance remaining 103,000.00 Change Orders shall not be initiated for Council-approved contracts if the revised Contract Sum exceeds the total authorized funding amount.
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Certificate Of Completion
Envelope Id: 774C9D3A24DF4D90AAE0A3F9679059E8
Status: Completed
Subject: Complete with DocuSign: Attachment A Change Order No (1) to Bear Electric Revised.pdf Source Envelope:
Document Pages: 9
Signatures: 3
Envelope Originator:
Certificate Pages: 2
Initials: 0
Joseph Shin
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 104.57.69.102
Record Tracking
Status: Original
10/4/2023 12:40:36 PM
Holder: Joseph Shin
[email protected]
Location: DocuSign
Security Appliance Status: Connected
Pool: StateLocal
Storage Appliance Status: Connected
Pool: City of Palo Alto
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Signer Events
Signature
Timestamp
Brent Paulson
[email protected]
VP of Operations
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 104.33.22.20
Sent: 10/4/2023 12:46:11 PM
Resent: 10/4/2023 2:42:00 PM
Viewed: 10/5/2023 10:51:10 AM
Signed: 10/5/2023 10:51:51 AM
Electronic Record and Signature Disclosure:
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Andria Sumpter
[email protected]
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Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Rafeal Ruis
[email protected]
Int. Sr. Engineer
City of Palo Alto
Security Level: Email, Account Authentication
(None)
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Viewed: 10/4/2023 2:19:15 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
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Certificate Of Completion
Envelope Id: 8B18933BBB3E403FB99AF77657618E8A
Status: Completed
Subject: Complete with DocuSign: Bear Change Order_Sept 23.pdf Source Envelope:
Document Pages: 11
Signatures: 7
Envelope Originator:
Certificate Pages: 2
Initials: 0
Sumpter, Andria
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 199.33.32.254
Record Tracking
Status: Original
10/5/2023 11:05:01 AM
Holder: Sumpter, Andria
[email protected]
Location: DocuSign
Security Appliance Status: Connected
Pool: StateLocal
Storage Appliance Status: Connected
Pool: City of Palo Alto
Location: DocuSign
Signer Events
Signature
Timestamp
Rafael Rius
[email protected]
Int. Sr. Engineer
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 199.33.32.254
Sent: 10/5/2023 11:14:17 AM
Viewed: 10/5/2023 11:15:09 AM
Signed: 10/5/2023 11:16:37 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Philip Kamhi
[email protected]
Chief Transportation Official
City of Palo Alto
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Signed using mobile
Sent: 10/5/2023 11:16:39 AM
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Signed: 10/5/2023 11:17:25 AM
Electronic Record and Signature Disclosure:
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Signing Complete
Security Checked
10/5/2023 11:17:25 AM
Completed
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10/5/2023 11:17:25 AM
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Status
Timestamps
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: October 16, 2023
Report #:2309-2092
TITLE
340 Portage Avenue and 3201-3225 Ash Street [23PLN-00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200-404 Portage Avenue as well as the Office Building at 3201-3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION
Staff recommends that Council:
1. Deny the resident’s request for designation of the Cannery Building at 340 Portage and Office Building at 3201-3225 Ash Street on the City’s Local Historic Inventory.
EXECUTIVE SUMMARY
On August 23, 2023, a local resident filed an application to designate the cannery building located at 200-404 Portage Avenue as well as the adjacent building at 3201- 3225 Ash Street as Category I or Category II historic resources on the City of Palo Alto’s local Historic Inventory pursuant to the procedures set forth in Palo Alto Municipal Code Section 16.49.040. The site was previously evaluated and determined to be eligible for the California Historic Register.
In accordance with the procedures set forth in Chapter 16.49 (Historic Preservation), because there was a pending application on file that affected the exterior of the building at 200-404 Portage, this hearing was scheduled for the first HRB meeting following the receipt of the application, which was held September 14, 2023. The HRB recommended denial of the proposed application. In accordance with the code, the HRB’s recommendation on the proposed application is forwarded to the City Council for a decision within 30 days.
On September 5 and September 12, 2023, the Council held a hearing on a proposed redevelopment of the property that includes the buildings the resident seeks listed as a local resource. After deliberating on the matter, the City Council unanimously adopted of a Item 12
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resolution certifying an Environmental Impact Report (EIR) and making overriding considerations for the significant and unavoidable impact identified on the subject historic resource located at 200-404 Portage Avenue (herein referred to as 340 Portage).
PROJECT DESCRIPTION
The proposed project is a request to designate the former cannery building located at 340 Portage and the adjacent office building at 3201-3225 Ash Street as Category I or Category II historic resources on the City’s Local Historic Inventory. Applications for such requests are referred to the HRB for recommendation and then placed on the Council consent agenda for action. A location map is included in Attachment A. The applicant’s request letter is included in Attachment B.
BACKGROUND
This background section summarizes the historic resources evaluation prepared for the site, the historic designation process and the hearings and applications that have been filed related to 340 Portage and 3201-3225 Ash Street since 2021.
Historic Resource Evaluation
The City, in coordination with its consultant, Page & Turnbull, prepared a Historic Resources Evaluation (HRE) in 2019 to evaluate the former cannery site to determine if it would be eligible for listing on the California Register of Historic Resources (CRHR). The evaluation concluded that the cannery site, including 340 Portage and 3201-3225 Ash, is eligible for the CRHR.
The Historic Resources Evaluation for this site included the cannery building (340 Portage) and the 3201-3225 Ash Street building.1 The HRE evaluated the project for its eligibility for the California Register and does not speak to its eligibility for the local register. It is unclear from the HRE under what category of the local register it may be eligible for. However, given its eligibility for the California Register it would certainly be eligible as a Category 3 or 4 resource.
Designation Process
In accordance with PAMC Section 16.49.040, any individual or group may propose designation as a historic structure. Such proposals are reviewed by the Historic Resources Board (HRB), which will make its recommendation to the Council. Proposed designations shall be considered within 60 days of the receipt of the proposal. In a case where an application for a planning or building permit affecting the exterior of a building is pending concurrently with a proposal for designation, the recommendation of the HRB is to be made within twenty days of receipt of the proposal. The City Council may approve, disapprove, or modify a recommendation for designation, and their decision is final.
If Council designates a structure Category I or II, and the building is proposed for demolition, Section 16.49.070 would be in effect. This Section states the Chief Building Official may not take 1 The Historic Resources Evaluation is available online at the following link:
https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/current- planning/uploads-for-website/historic-resources-evaluation-340-portage.pdf Item 12
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action on the demolition permit for 60 days following receipt of a complete application. During the 60 days, the CBO shall refer the demolition permit to the Architectural Review Board (ARB).
The ARB shall refer the application to the HRB. The ARB, the HRB, or any interested person may recommend that Council extend the 60-day moratorium. Council shall review these recommendations and may extend the 60-day moratorium for a period of up to one year.
Outside of the downtown area, however, any recommendations by the HRB are not binding on the property owner.
Council Hearings and Redevelopment Applications for the Subject Site On April 7, 2021, the Sobrato Organization (Sobrato) submitted a formal application to construct 91 townhomes on the site (“200 Portage Townhome Project” or “SB 330 Housing Project”). At approximately the same time, the City and Sobrato were engaged in a dispute regarding permitted commercial uses on the site. The June 14, 2021 and September 13, 2021 staff reports to Council2 provide a history of zoning of the property and details of the code section that currently governs nonconforming uses at this property.
On September 10, 2021, Sobrato submitted a letter3 asserting that the City’s proposed interpretation regarding the permitted commercial uses on the site would subject the City to significant litigation risk. To facilitate the resolution of the dispute, and in light of the pending housing application, on October 25, 2021, City Council established an ad hoc committee (committee). The purpose of the committee, consisting of then Vice Mayor Kou and former Councilmember DuBois, was to negotiate with Sobrato on potential terms to guide future development at Sobrato’s 14.65-acre property located at 200-404 Portage Avenue, 3040-3250 Park Boulevard, 3201-3225 Ash Street & 278 Lambert Avenue.4 In a closed session on June 20 and 21, 2022 the City Council voted 7-0 to direct staff to prepare a tolling agreement that would suspend the processing of the pending SB 330 housing application. The suspension was to allow Sobrato to pursue a development agreement, based on general terms negotiated with the committee, for the redevelopment of the 14.65-acre property. The City and Sobrato executed a tolling agreement in July 2022.5
2 September 13, 2021, Council report ID#13411:
https://www.cityofpaloalto.org/files/assets/public/agendasminutes-reports/agendas-minutes/city- councilagendas-minutes/2021/09-september/20210913/20210913pccsmamended-linked-final-council-qa.pdf; June 14, 2021, Council report ID#12271: https://www.cityofpaloalto.org/files/assets/public/agendas- minutesreports/reports/city-manager-reportscmrs/year-archive/2021/id-12271.pdf 3 September 10, 2021 letter from Tamsen Plume to Jonathan Lait:
https://www.cityofpaloalto.org/files/assets/public/planning-amp-development- services/newdevelopmentprojects/200-portage/letter-to-september-13-2022-city-council.pdf 4 Summary Minutes of the October 25, 2021 Council hearing:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/citycouncilagendas-minutes/2021/10-october/20211025/20211025amccs.pdf 5 The Tolling Agreement is available online on the project website at:
https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current-Planning/Projects/3200- Park-Boulevard
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Council held a study session on August 1, 2022 to allow for public comment as well as Council input on the general terms that resulted from the negotiation.6 The study session served as the prescreening meeting required for a proposed Development Agreement and legislative changes, including Planned Community rezoning, in accordance with PAMC Chapter 18.79.
Following the study session, Sobrato filed project plans associated with the Development Agreement project under the address, 3200 Park Boulevard (File No. 22PLN-00287).
From August 2022 through July 2023 the City held over 15 public hearings and study sessions related to the proposed redevelopment of the site. The Development Agreement included partial demolition of the cannery building at 340 Portage, which had been identified as a CRHR eligible resource. The Development Agreement project included the retention of the 3201-3225 Ash building in its existing condition. Council began proceedings for consideration of the proposed development agreement on September 5th and continued its deliberations to the September 12, 2023 hearing. The staff report for the proposed Development Agreement Project was published on August 24, 2023, the day after the resident filed a request for designation of 340 Portage to the City’s local register.7 On September 12, 2023 Council unanimously approved the proposed redevelopment application, allowing for partial demolition of the proposed cannery. Council held a second reading for the relevant ordinances on October 2, 2023.
HRB Recommendation
The HRB held a public hearing to make a recommendation on the resident’s request for historic designation on September 14, 2023. At the hearing, the HRB made the following motions:
1. To recommend the central part of the cannery building (with the monitor roof) be placed on the local inventory as a Category 2 resource.
2. To not advance the proposed nomination of either 340 Portage as an entire building or 3225 Ash Street as a Category 1 or Category 2 on the local historic inventory.
The first motion passed 3-1. The second motion, which speaks to the resident’s specific request, passed 3-1 to not recommend Council designate the buildings as they exist today on the City’s Historic Inventory.
The central portion of the cannery building is currently not a standalone building. The HRB had previously recommended a historic evaluation of the building after the completion of the redevelopment project and that the remaining structure be nominated to any register for which it is determined to be eligible, including the local historic inventory. 6 August 1, 2022, Council report ID #14548:
https://www.cityofpaloalto.org/files/assets/public/agendasminutesreports/agendas-minutes/city-councilagendas- minutes/2022/20220801/20220801pccsmlinked.pdf
7 September 5, 2023 Council Report ID #2306-1663: https://www.cityofpaloalto.org/Departments/City- Clerk/CitysMeeting-Agendas/Meeting-Agendas-and-Minutes
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ANALYSIS
Due to the timing of the request, Council had been scheduled to deliberate the proposed Development Agreement prior to the filing of the subject application. The Council deliberated the proposed redevelop project on September 5 and September 12, 2023.
Because Council unanimously approved the partial demolition of the existing 340 Portage Building on September 12, 2023, staff and HRB do not recommend designating the building, as it exists today in its entirety, on the local historic inventory. Because the 3201-3225 Ash Street building is not identified as individually eligible for any register, staff would also not recommend designating that building on the local historic inventory at this time.
In accordance with the HRB’s recommendation for the redevelopment of the site and Council’s approval, the record of land use action for the proposed redevelopment includes a condition of approval that requires that the site be evaluate following the completion of work and designated to any of the registers for which it is found to be eligible (including the local historic inventory).
Staff does not recommend that the central part of the cannery building (beneath the monitor rood) be placed as a standalone resource on the City’s local historic register because it is not a standalone building currently. Nominations and designations to a register must be based on the condition in which a resource exists, not based on a future condition in which it may exist.
Further, the redevelopment of the site does not include approval of demolition such that it would become a standalone building.
FISCAL/RESOURCE IMPACT
There is no significant fiscal or budget-related impact associated with the recommendation in this report.
STAKEHOLDER ENGAGEMENT
Several members of the public provided public comment on the proposed historic designation application at the HRB hearing on September 14, 2023. Public comments generally expressed concern that the proposed redevelopment of the site would render the cannery building ineligible for the California Register of Historic Resources and encouraged designation of the building in its existing condition to the local register in order to preserve the cannery and the associated office building on Ash Street.
ENVIRONMENTAL REVIEW
The project has been assessed in accordance with the Authority and Criteria contained in the California Environmental Quality Act (CEQA). Specifically, the project has been determined to be exempt from CEQA in Accordance with CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that designation of the building as a historic resource would not have an impact on the environment. Note that CEQA also does not apply to projects which are denied.
Therefore, if Council chooses to deny the project, CEQA would not apply.
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Because 340 Portage is already protected as a historic resource in accordance with CEQA, the City prepared an Environmental Impact Report (EIR) to evaluate the redevelopment project’s impacts on a historic resource. The EIR evaluated and publicly disclosed the significant and unavoidable impact to this historic resource (evaluated as Alternative 3 within the 200 Portage Townhome Project EIR). City Council, in order to approve the proposed Development Agreement, certified the EIR and made findings of overriding consideration in accordance with CEQA for impacts to this historic resource at its public hearing on September 12, 2023.
ATTACHMENTS
Attachment A: Location Map
Attachment B: Resident’s Request for Historic Designation APPROVED BY:
Jonathan Lait, Planning and Development Services Director Item 12
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LAMBERT AVENUE
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August 21, 2023
Dear Ms. Raybould,
Below is my request to have the Historic Resources Board review and determine the historic designation of the former Fry’s site (known as 340 Portage) and its associated Ash office building (3201-3225 Ash). I understand that any citizen or individual can ask for this historic review, you don’t have to be the property owner of the stated property to request this review.
I have included in the document below (as outlined in the Code 16.49.040) the various steps/details that are requested for this historic review.
A) Official request for a City historic site designation for 340 Portage Avenue and 3201-3225 Ash Avenue (APN 132-38-071) and adding these two existing buildings to the City’s official Historic Inventory, under Categories 1 or 2.
Other storefront addresses, including 200, 210, 220, 230, 336, 360, 370, and 380 Portage use the main cannery building, however, 340 Portage is the largest space in the building, so 340 Portage -- in this document -- refers to the entire building.
B) 340 Portage is the recent, former home of Fry’s Electronics, but was originally built in 1918 by Thomas Foon Chew, one of California’s first Chinese-American minority entrepreneurs. 340 Portage became one of the principle operational sites of the Bayside Canning Company, which became the 3rd largest cannery operation in the world in the early part of the 20th century.
Today, our city, state, and nation still struggle with the consequences of centuries of mistreatment of minorities as well as discrimination that continues to this day. The significance of Thomas Foon Chew’s extraordinary accomplishments in face of the enormous obstacles of his time can not be overstated. For a city such as Palo Alto, which prides itself on equality for all, to lend its hand to the destruction of one of last surviving and most impressive monument to Chew’s achievements is wrong, Item 12
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especially because it completely unnecessary. No legal nor financial obstacle exists to the preservation of this extraordinary building, 340 Portage. We should designate it as historic so that we and generations to come can truly honor Chew and his legacy.
C) Requested by the City, details on the building’s significance and its historic resource evaluation were officially done by Page & Turnbull in early 2019 and the Page and Turnbull Report was issued on April 11th, 2019. As outlined in that report, 340 Portage and its associated former office building, 3201-3225 Ash Street were found to be both eligible for listing in the California State Register of Historical Resources at the local level of significance under Criterion 1 (Events) for its association with the history of the canning industry in Santa Clara County.
City Staff and the HRB should review the April 11th 2019 Page & Turnbull report for specific details.
D) The current condition of 340 Portage is now under threat of a significant demolition of the site (over 40%), which will directly impact its historical value as outlined in the 200 Portage Townhome Project Environmental Impact Report (EIR). As the EIR clearly indicated, destroying 40% of this historic structure will also end its historic significance. Quoting the EIR, “The most substantial impact would occur through the demolition of 89,639 square-feet of the eastern portion of the building, constituting a loss of approximately 40 percent of the building. The proposed demolition would result in the removal of distinctive materials like the removal of canning platforms and cooling porches, the loss of several character-defining features, such as the form and massing and varied roof forms and structures and would, therefore constitute material impairment to the historical resource. The proposed demolition would significantly diminish those characteristics of the historical resource that convey its historical significance and justify its eligibility for listing in the CRHR”. In addition, the proposed permanent modifications to the remaining “monitor roofs” section of the 340 Portage/cannery building will be so significant that its historic value will also be lost forever, if allowed to Item 12
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be done by the developer. This was clearly outlined in the May 25th Staff Report to the HRB.
E) Restoration and adaptive reuse of 340 Portage is possible and needs further study and planning by both the developer and City staff.
Destroying an important historic resource that gave hope to thousands of local migrants and impacted the lives of everyone in the Bay Area in the 20th century should not be considered nor tolerated.
F) All sketches, drawings, photographs, and other descriptive materials can be found in the Page & Turnbull Report, April 11, 2019. I encourage HRB members and City staff to be read this P&T report and become familiar with its analysis and conclusions.
G) Supporting documents (in addition to the Page & Turnbull report) include: “Historic Bay Area Visionaries”, by Robin Chapman, 2018, The History Press – a full length chapter on Thomas Foon Chew is included, pp. 91-108. In addition, another Chapman book, “The Valley of Heart’s Delight”, 2022, The History Press. Includes an update on Thomas Foon Chew and the Bayside Canning Company.
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Community Services
Meeting Date: October 16, 2023
Report #:2308-1949
TITLE
Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project.
RECOMMENDATION
Staff recommends that Council approve development of a proposal for a 55-year ground lease for improvement and community use of the Cubberley campus to be submitted to Palo Alto Unified School District (PAUSD), in conjunction with the Cubberley Ad Hoc Committee. Upon finalization of a proposal, staff will agendize an open Council session to review proposal specifics and next steps. Alternatively, Council may direct staff to develop a proposal based on a different structure.
EXECUTIVE SUMMARY
On March 13, 2023, the PAUSD Board of Education provided a letter to the Palo Alto City Council inviting the City to submit one or more proposals to transfer a portion of PAUSD-owned land at Cubberley to the City (Attachment A). The Council discussed the invitation at a Study Session on May 15, 2023. A closed session discussion was scheduled for August 2023; however, the Council chose to schedule an open discussion in lieu of the closed session.
Staff have reviewed the methods by which the City could acquire land from PAUSD at Cubberley and recommends the Council direct staff to develop a proposal for a 55-year ground lease of the Cubberley site to expedite improvement of the site for community use and benefit. Staff would engage with the Cubberley Ad Hoc Committee to develop a proposal and then return to the Council for further direction and next steps. While there are other means by which the City could acquire land at Cubberley, e.g., land trade or purchase, a ground lease appears to provide the greatest benefit to the City because it allows the City to proceed quickly to assume primary responsibility to improve areas of the Cubberley site without first negotiating new ownership boundaries and land purchase. A ground lease is the most expedient way to begin the public Item 13
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planning process for improvements of greatest interest to the community. Additionally, a ground lease would not require the City to relinquish ownership of other properties within the City that provide community value.
BACKGROUND
In March 2023, the PAUSD Board of Education provided a letter (Attachment A) to the Palo Alto City Council inviting the City to submit one or more proposals to transfer a portion of PAUSD- owned land at Cubberley to the City. The letter states the Board of Education is “…open to a deal that transfers ownership or development control over at least 7 additional acres to the City…” so the School District can retain 20 acres for development of a future school. However, the letter also states that they would be open to a proposal that transfers more than 7 acres to the City and expressed flexibility around the exact location of the City’s acquired acreage. The School District would like to reserve their acreage for a future school site as they determine necessary.
Following receipt of the March 2023 letter, the City Council held a Study Session on May 15, 2023 to provide feedback to staff and discuss next steps. The study session staff report 1 and presentation2 provide detailed history and background information on the Cubberley site. A full history of the Cubberley site and summary of previous master planning efforts can be found in Attachment B. Staff suggested the following questions be discussed:
1. What is the process the City Council would like to use for discussions and communications with the School District?
2. What would the City Council like to include in a proposal to the School District?
3. Would the City Council like to designate a committee to work with staff on proposal development?
Much of the discussion was focused on the order in which a plan for Cubberley should be developed. For example, should a development plan drive how much land the City should acquire, or should the land transaction precede land planning efforts? There was some discussion on Cubberley finances, which was presented by staff with the caveat that the financials were preliminary since Cubberley expenses are included in several department budgets and cost centers and are difficult to track. Following the study session, staff refined the budget numbers, and a summary is included in the Fiscal/Resource Impact section of this report. One outcome of the Study Session was the assignment of an Ad Hoc to work with staff on proposal development consisting of Mayor Kou, and Councilmembers Lythcott-Haims and Burt.
A Closed Session of the City Council was scheduled for August 21, 2023; however, the Council unanimously passed a motion to not go into Closed Session and directed staff to bring the item 1 City Council, May 15, 2023, Agenda Item # 2, SR#2304-1339, https://cityofpaloalto.primegov.com/Portal/viewer?id=1610&type=2 2 City Council, May 15, 2023, Agenda Item #2, https://cityofpaloalto.primegov.com/Portal/viewer?id=1635&type=2 Item 13
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back to Council in an open session. Council members said that an open session should be sequenced first to allow for greater transparency. Since the Closed Session can only include discussions on price and terms of payment, the Council first wanted to review the different real estate methods to acquire land and discuss how much land to acquire before going into a Closed Session.
ANALYSIS
Of the 35-acre Cubberley site, currently the City owns eight acres and PAUSD owns 27 acres. The City leases a portion of the 27 acres including the athletic fields, gyms, pavilion, theater, and several smaller rooms. The City currently pays PAUSD $2.5 million per year to lease the Cubberley space and allocates $1.8 million per year for facility capital improvements. In addition, the City’s budgeted costs to operate Cubberley in FY 2024 is $2.6 million, which includes costs incurred by Community Services, Public Works, and Real Estate for day-to-day operations, customer service, upkeep, and tenant/renter relations.
Land transfer options
There are several methods by which the City could acquire land from PAUSD at Cubberley – purchase, land trade, or ground lease.
Purchase – A direct purchase would transfer ownership of a portion of the Cubberley property from PAUSD to the City, also known as fee title acquisition. A land acquisition would give the City full control of the acquired property and allow the City to use the property in any manner consistent with federal, state, and local laws and ordinances. A purchase agreement would require a formal land appraisal, a public discussion and Council decision on the amount of land to purchase, and the portion of the Cubberley property to acquire (within the Cubberley site). A funding source would need to be identified.
Benefits: City has full control of the acquired property indefinitely.
Reduced costs associated with leasing PAUSD facilities.
Constraints: Aging utilities infrastructure would be difficult to replace if the City only has control of a portion of the property.
The public process to determine the amount and location of land to acquire within the Cubberley site could be lengthy and would likely occur before the actual purchase took place.
Securing a funding source could result in delays to site planning and improvement.
Land trade – A land trade, or swap, would transfer ownership of a portion of the Cubberley property from PAUSD to the City in exchange for an equivalent property owned by the City.
Ownership of the traded property would then be transferred from the City to PAUSD. A land trade would require a lengthy public discussion and a Council and Board of Education decision Item 13
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on the amount of acreage at Cubberley that would be acquired. Both parties would need to agree on the city-owned land to be traded. Additionally, the parties would need to agree on whether an even swap would be based on acreage or the appraised value of the properties. A land swap was how the City previously acquired approximately 8 acres at Cubberley.
If the property to be traded is dedicated parkland, it must be undedicated prior to ownership transfer to PAUSD. Article VIII of the City Charter requires that any land dedicated for the use of park, playground, recreation, or conservation purposes cannot be sold or otherwise disposed of without a majority vote of the electorate. The Council could decide to put a measure on an upcoming ballot, such as the General Election in November 2024.
Benefits: City has full control of the acquired property indefinitely.
Reduced costs associated with leasing PAUSD facilities.
A one-to-one land exchange would have no direct land acquisition costs.
Constraints: Aging utilities infrastructure would be difficult to replace if the City only has control of a portion of the property.
The public process to determine the amount and location of land to acquire within the Cubberley site and the land to trade could be lengthy and would likely occur before the actual land swap could go forward.
Time and expense to place an item on a general or a special election ballot if the traded land is dedicated parkland.
Loss of dedicated parkland if the traded land is parkland.
Ground lease – A ground lease is typically a long-term lease agreement of unimproved land or previously developed property where the tenant constructs new improvements. Lease terms customarily run from 30 to 100 years or longer. The tenant typically holds ownership of improvements during the ground lease term and is obligated to pay all expenses attributable to the property. Commercial ground lease pricing commonly runs 5-10% of the value of the land. Long-term ground leases are a very common means to enable capital investment in a property while the property owner retains title to the property. As examples, this approach has been used for the Avenidas building, as well as Stanford Shopping Center, Stanford Research Park, and Google development in Mountain View. Under this arrangement, as the end of the term approaches, the parties engage in negotiations over extension of the lease, additional investments, or return of some or all of the property to the owner.
Benefits: City controls land and can develop the land it leases without the purchase costs.
The public process to plan the future of the site can begin as soon as a lease is executed.
Replacement or upgrades to utility infrastructure can be considered for the entire site.
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Constraints: City would need to relinquish a portion or all of the leased land when PAUSD determines it has a need for an additional school or other purpose in the future.
Key Cubberley Site Considerations
While the PAUSD letter suggests interest in releasing more of the site, the determination of which portion(s) of the site to pursue in advance of another master planning effort would be very challenging. This is due to several factors:
•Existing buildings are served by an interconnected system of utilities (power, water, sewer, storm drainage), much of which is deteriorated beyond its intended lifespan. Improvement of major systems should include all buildings intended for near-term use; alternatively, investment in selected buildings would require significant coordination to ensure no negative effect on buildings retained by PAUSD.
•All building uses are dependent on parking and access through the site, which are primarily located on PAUSD property. This makes redevelopment of a City portion likely dependent on continued availability and use of PAUSD property.
•In order to redevelop a new community center at Cubberley, a significant planning effort is required to determine which existing buildings should be replaced, as well as address parking, access, and sequencing. Such planning would need to be undertaken before an informed decision could be made on where to draw new boundaries between City and PAUSD- controlled properties.
•There are significant unknowns affecting the City’s timing and ability to plan and implement improvement of the site, including decision-making, financing, and transitioning current uses.
Given this, the City assuming primary responsibility for financial risks associated with such unknowns would relieve PAUSD from participating in these costs.
These considerations lead to the conclusion that the best strategic path forward is for the City to pursue a long-term ground lease to gain primary responsibility for management of the property.
Staff recommended proposal
Staff recommends the City propose a ground lease for the maximum acreage PAUSD is willing to lease for a term of 55 years, while supporting PAUSD use of areas it determines it needs in the near term through a lease-back arrangement. This ground lease amount may be less than PAUSD’s 27 acres due to an approximately 1-acre area that provides access to the Greendell school site and any area with buildings that are considered part of the Greendell school campus, as well as other PAUSD needs over the next few years such as for campus renovations at other schools. Attachment C provides a visual depiction of responsibilities for managing the buildings, fields, and open areas at Cubberley under the current lease and with a long-term ground lease.
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It is assumed that PAUSD will want to lease-back buildings and parking lot areas it currently occupies for educational purposes, though these uses may be relatively short term.
A ground lease allows the City to proceed quickly to assume primary responsibility to improve areas of the Cubberley site without first negotiating new ownership boundaries and land purchase, while also enabling PAUSD to retain its stated interest in retaining ownership. A ground lease is the most expedient way to begin the public planning process for improvements of greatest interest to the community. Additionally, a ground lease would not require the City to relinquish ownership of other properties within the City that provide community value.
A ground lease would not preclude a subsequent land trade; a land trade could be pursued after a ground lease is agreed upon or independently. A ground lease could include terms to define how a land trade would affect the lease, such as simply reducing the amount of land leased.
Conversely, a land trade alone would not be sufficient to enable the City to proceed with site planning independent of PAUSD, given the key site considerations noted above.
FISCAL/RESOURCE IMPACT
Staff recommends that should the City Council wish to proceed with the long-term ground lease approach, staff will work with the Cubberley Ad Hoc to develop a proposal and return to Council in an open session for review and discussion. A closed session could be scheduled as an intermediate or subsequent step to discuss the price and terms of payment. Alternatively, Council could choose to discuss proposed financial terms in open session. It should be noted that compensation to PAUSD for lease payments will not be available for investment in facilities nor programming at the site.
To provide a context for this discussion, staff has prepared the following summary of Cubberley financial considerations.
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Cubberley Financials
The table below contains information about the City funds budgeted for Cubberley in the current FY 2024 Fiscal Year.
FY 2024 Adopted Budget
$ in Thousands
General
Fund -
Ops
Cubberley
Infrastructure
Fund - Ops
Cubberley
Infrastructure
Fund - Capital Total
Revenue
Transfer from General Fund $1,864 $1,864
PAUSD Reimbursement $1,553 $1,553
Rental Income (short & long-term tenants) $2,722 $2,722 Revenue Total $2,722 $- $3,417 $6,139
Expense
Salaries & Benefits $1,427 $260 $47 $1,734
Contract Services $40 $4,866 $4,906
Other Expense $38 $39 $77
Utilities (& allocated charges) $788 $788
Expense Subtotal $2,293 $299 $4,913 $7,505
Cubberley Lease $3,489 $3,489
Transfer to Cubberley Infrastructure Fund $1,864 $1,864 Expense Total $7,646 $299 $4,913 $12,858
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The following chart tracks expenses for the Lease (which includes the Covenant Not to Develop until 2015), Cubberley Infrastructure Operations and Maintenance, Capital Improvement Projects, and Programming from 2004 to 2023 with grand totals for each year. This summary does not include revenue nor recognize the amount that PAUSD pays back to the City for maintenance3 or capital improvements; it is instead a summary of the City’s costs.
Facility Assessment
A Facility Condition Assessment was conducted for Cubberley Community Center in October 2022 by an independent firm to assess the current general physical condition of the developed portion of Cubberley. The area assessed encompasses 18.5 acres and consists of 22 buildings and over 500 parking spaces. The Facility Condition Assessment Report has not been finalized, but the 3 In the current lease agreement that commenced on July 1, 2020, PAUSD is responsible for maintenance and repair costs for buildings not leased to the City. Maintenance costs of common areas (parking lots and walkways) are shared between the City and PAUSD.
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draft findings describe Cubberley Community Center as being in poor condition, with over $45 million of maintenance work recommended over the next 10 years. The report compares the 10- year maintenance cost for each individual building to the building’s estimated replacement cost to develop what is called the Facility Condition Index. This analysis concludes that all but three of the Cubberley buildings have reached the end of their useful or serviceable lives.
The resource impact involved with next steps is dependent on Council direction and the subsequent response by the School District. Cost and terms of payment could vary greatly depending on the method proposed to acquire land (purchase, land swap or ground lease). Staff expect that existing staffing will support this effort; however, timing is uncertain.
STAKEHOLDER ENGAGEMENT
Development of a long-term ground lease proposal and establishing an agreement with PAUSD should be considered foundational steps to reinitiating community engagement on opportunities to improve Cubberley for continued community use.
ENVIRONMENTAL REVIEW
Development The recommended action is not defined as a Project by the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A: Invitation for Cubberley Development Proposals Attachment B: History of Cubberley and Site Map
Attachment C: Cubberley Property Responsibilities – Current and Proposed Ground Lease APPROVED BY:
Kristen O'Kane, Community Services Director
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B O A R D O F E D U C A T I O N
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March 10, 2023
Palo Alto City Council
250 Hamilton Ave
Palo Alto, CA 94301
Re: Invitation for Cubberley Development Proposals
Dear Colleagues,
What’s happening with Cubberley?
Within the shared canon of our two governmental bodies, few questions evoke the same wearied engagement as this one. It’s a perennial topic at City/School Liaison Committee meetings (where it is given a light touch) and during election-season candidate forums (where the response is a touch heavy-handed). It has been the subject of meetings, workshops, listening sessions, town halls, and a master plan, all while the site has remained relatively unchanged since the school was closed on February 6, 1979. As the crumbling infrastructure belies the rich panoply of community- oriented programs that now inhabit the site, there is general agreement that Cubberley’s current use is unsustainable without significant capital improvements.
We, the PAUSD Board of Education, shoulder some of the responsibility for the restrained pace of Cubberley’s redevelopment plan. But our caution is well-founded. As fiduciaries of the school district and trustees of students present and future, we have a fundamental duty to ensure we do not prejudice their interests by repeating the mistakes of our past selves—when we gave up land during a period of declining enrollment only to find ourselves in financial dire straits once the need for a new campus inevitably arose years later.
Indeed, we found ourselves with a student-driven need for the site just this past year.
Two of our elementary schools, Palo Verde and Hoover, are undergoing sitewide redevelopment. Accordingly, we designated a temporary school campus on the Cubberley site that will be in use through 2025 to serve those students for the duration of the construction.
Nevertheless, we understand and fully support the City’s desire to move forward on development of a portion of the site to realize the vision of a fully-fledged Cubberley Community Center. The polished incarnation of this community gem will surely benefit our joint stakeholders and serve as a resource for the District’s students and families.
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B O A R D O F E D U C A T I O N
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Our enthusiasm to support the City’s endeavor is caveated by two constraints: (1) we have a desire to retain ownership over roughly 20 of the 35 acres for future school use, the exact nature of which cannot be determined until the need for such a school arises; and (2) we cannot ask the voters to pass a school bond to fund a community center development, as such a bond may only be used to fund school construction as specifically enumerated in Education Code section 15100.
Within those constraints lies a viable path forward. We are open to a deal that transfers ownership or development control over at least 7 additional acres to the City, leaving the City with a total of 15 or more acres to freely develop without the constraints placed upon us. (For reference, the current indoor space at Cubberley amounts to roughly 1.5 acres.) While our preference is to retain 20 acres for future school development, we will not automatically foreclose a deal that might include a transfer of more than 7 acres.
Furthermore, nothing in such a deal would preclude the City from continuing to lease the remaining acreage from the District until such a time as the need arises for a new school. Moreover, we are flexible about the exact location of the City’s acreage based on the needs of the City’s planned development, subject only to a few limited considerations for the future school site like street access and neighborhood proximity.
We are also open to the form of the deal—whether it’s a land swap, ground lease, or some other vehicle for land transfer.
As your neighbor and partner, we therefore formally invite you to submit one or more land transfer proposals for our consideration within the parameters discussed above.
We acknowledge that your process for community feedback and Council consensus may take time, but we eagerly await the next step in Cubberley’s future.
Proposals can be submitted directly to Superintendent Don Austin for placement by the Board’s Agenda Setting Committee on the Board’s agenda.
Respectfully,
Shounak Dharap
Board Trustee
On behalf of the Palo Alto Unified School District Board of Education* *Duly authorized under Board Bylaw 9010 to communicate this letter on behalf of the Board.
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ATTACHMENT B
CUBBERLEY HISTORY AND PLANNING EFFORTS
History of Cubberley
The 35-acre Cubberley site, located at 4000 Middlefield Road in Palo Alto, opened as a public high school in 1956 in the Palo Alto Unified School District (PAUSD or School District). Due to budget constraints resulting from the passage of Proposition 13 in 1978 coupled with declining enrollment, PAUSD closed many of its schools, including Ellen Fletcher Middle School (formerly Terman Middle School) and in 1979, Cubberley High School. During the 1980s, the City of Palo Alto (City) purchased or leased portions of the closed school sites for community uses. In 1981, the City entered into a Lease to Purchase Agreement with PAUSD to lease the Terman Site (both the school and park) for 20 years with the right to acquire the Terman Site in the year 2000.
During that time, the City operated it as the Terman Community Center. The City also purchased Ventura Elementary in 1981, now the Ventura Community Center site.
In 1989, the City and PAUSD entered into a lease agreement in which the City would provide annual revenue to PAUSD in exchange for: 1) a lease of the entire 35-acre Cubberley site; 2) a Covenant Not to Develop five other neighborhood school sites; and 3) an agreement that PAUSD provide space for extended day care at each of the eleven remaining elementary school sites.
The initial lease term was 15 years beginning in 1990, and the lease amount was $2.7 million per year. The Covenant Not to Develop required the City to pay PAUSD an additional $970k per year to not sell or develop the school sites that had been closed. By the early 2000s PAUSD had a need to establish a third middle school and identified Terman School as the best location to open the middle school. As a result, the City exchanged its right to acquire the Terman School site for fee title of an equivalent area of Cubberley. The City retained Terman Park, and it is currently dedicated parkland. Following this transaction, the Cubberley lease was reduced to 27 acres in consideration of the 8 acres now owned by the City. The lease of 27 acres of Cubberley to the City was extended two more times, and in 2015 the Lease was amended by replacing the Covenant Not to Develop with a Cubberley Property Infrastructure Fund of the same amount for long neglected and ongoing maintenance 1,2. At the time of the lease’s expiration in 2019, the annual lease amount was $5.1M and the Covenant Not to Develop was $1.86M. Although that lease expired, the City continues to transfer $1.86 million into the Infrastructure Fund for repairs and maintenance of buildings, facilities, and outdoor spaces. 1 City Council, February 24, 2014, Agenda Item #10, SR#4506, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2014/id-4506-cubberley.pdf
2 City Council, February 24, 2014, Meeting Minutes,
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/00-archive/2014/02-24-14-ccm-final.pdf
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On July 1, 2020, in response to the City’s financial constraints due to the COVID-19 pandemic, a new 54-month lease (expires December 2024) began that reduced the amount of building space leased by the City at Cubberley. The leased premises consists of approximately 52,000 square feet of building space including the theater, pavilion, Gyms A and B, and some additional rooms; and about 16 acres of outdoor recreation area (athletic fields and track). The new lease amount is $2.5 million per year (for approximately 17 acres). The School District occupies or has tenants in rooms and buildings no longer leased by the City. Costs to maintain and repair common areas (walkways and parking lots) are shared between the City and PAUSD.
Current Uses
There are currently 23 tenants and 24 artists who lease space at Cubberley from the City, and dozens of individual groups who rent the theater, pavilion, classrooms, and athletic fields from the City. Combined, these groups provide the community with programs that support health and wellness, childcare, education, and visual and performing arts. The School District uses their spaces for educational purposes, staff offices and has leases with some tenants that were previously leasing space from the City. The parking lot in the southeast corner of the property houses several portable trailers which function as a temporary site for Hoover Elementary School during reconstruction of the school. Hoover Elementary School will be at Cubberley for two years beginning in the 2023-2024 academic year (unless construction timeframes shift). A site map of Cubberley property lines and uses is on the following page.
Master Plans
There have been several master planning efforts over the years to provide a roadmap and framework for redevelopment of the Cubberley site. In 1991, A Cubberley Conceptual Master Plan was completed with community input. In 2013, a Cubberley Community Advisory Committee, consisting of four subcommittees – School Needs, Community Needs, Facilities and Finance – issued their report after working together for nine months and developing recommendations for the future of the Cubberley site. In 2016, the City Manager and PAUSD Superintendent signed the Cubberley Compact to demonstrate a commitment to working together to develop a vision for Cubberley. A Cubberley community co-design process began in 2018. The year-long effort resulted in publication of a Cubberley Concept Plan 3 in November 2019 developed with input from over 400 community participants.
Since the completion of the 2019 Cubberley Concept Plan there has been limited movement on advancing a plan for Cubberley due to several reasons. These include a shift in priorities during the COVID-19 pandemic and the understanding that PAUSD would not be able to support the Concept Plan due to limitations in funding projects that are not strictly for education purposes. 3 Cubberley Concept Plan, 2019, https://www.pausd.org/about-us/committees-task- forces/archivedcommittees/cubberley-master-plan
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Cubberley Current Land Ownership and Facility Uses
City leases the following from PAUSD: Fields, gyms, G5, G8, Pavilion, theatre, S Building, FOPAL (near track).
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Atachment C
Current Cubberley Property Responsibilites
City-owned and operated
City lease from PAUSD
PAUSD-owned and operated
PAUSD portables for Hoover Elementary School
Common areas
Note: Shaded areas are for illustra�ve purposes only, and do not represent actual property lines.
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Atachment C
Proposed Cubberley Property Responsibili�es Under Long-Term Ground Lease
City-owned and operated
City long-term ground lease from PAUSD
PAUSD leases back from City
PAUSD portables for Hoover Elementary School
Note: Shaded areas are for illustra�ve purposes only, and do not represent actual property lines.
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: October 16, 2023
Report #:2309-2022
TITLE
City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project
RECOMMENDATION
Staff recommends the City Council discuss the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County (CASCC) and provide potential direction to staff and to Mayor Kou as the City‘s representative on CASCC, on any feedback to the Cities Association of Santa Clara County (CASCC) regarding the proposed terms.
EXECUTIVE SUMMARY
The Cities Association of Santa Clara County (CASCC) is pursuing a more formal structure, which CASCC Executive Committee members and contract staff state will provide increased clarity relating to tax status and governmental immunities, and limit the potential liability of Member Agencies. CASCC drafted a JPA Agreement and is seeking Member Agencies input and approval of a proposed JPA. Staff is requesting Council review and feedback on the proposed JPA Agreement. Cities and towns throughout Santa Clara County are similarly considering the proposed Agreement, and some are likely to approve the Agreement as drafted. Should Council propose changes to the Agreement, staff will convey this feedback to CASCC. CASCC may then consider revising the draft Agreement in response to this feedback, and the final Agreement will be brought back for Council consideration.
BACKGROUND
The resulting proposed Draft JPA Agreement is provided as Attachment A. Over thirty years ago, the cities and towns in Santa Clara County (“Member Agencies”) established the CASCC to improve cooperation on issues of common interest. The intent was to consolidate and maintain the functions and purposes of the Inter-City Council, the Santa Clara County Mayor’s Conference, and the City Selection Committee for Santa Clara County. The cities and towns entered into an Item 14
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informal agreement to provide some structure and outline the purpose and function of the CASCC, eventually adopting bylaws and operating as an unincorporated association.
In 2017, the CASCC began reviewing its organizational structure. In August 2020, the CASCC Board voted 12 ayes with 3 absences (Los Altos Hills, Monte Sereno, San José) to take the steps necessary to recommend that member cities form a joint powers authority to provide a more formal and recognized structure and clarity regarding tax status and governmental immunities, and limit the potential liability of the Member Agencies. The vote took place after a presentation considering both a JPA and a 501(c)4. The presentation noted that:
•Since CASCC formation, California and federal law has changed. •CASCC was not originally registered as a governmental entity and attempts to do so with the IRS have been unsuccessful.
•CASCC is growing with respect to its responsibilities and involvement in projects of mutual interest (e.g., Planning Collaborative, SCSC Airplane Noise Roundtable, Silicon Valley Clean Energy, City Selection Committee).
Currently, the CASCC appoints members to a variety of regional boards. This function falls under the City Selection Committee established by state statute and will continue whether or not a JPA is formed. The appointments include the Airport Land Use Commission, the Association of Bay Area Governments (ABAG), ABAG Regional Planning Committee, Bay Area Air Quality Management District (BAAQMD), Sourcewise, the Local Agency Formation Commission (LAFCO), Metropolitan Transportation Commission (MTC), Santa Clara County Local Board CAL-ID-RAN, Santa Clara County Emergency Operational Area Council (EOAC), Silicon Valley Regional Interoperability Authority (SVRIA), Recycling Waste & Reduction Commission (RWRC), Redevelopment Dissolution Countywide Oversight Board of Santa Clara County, and Santa Clara County Measure A (Housing Bond) Independent Citizens’ Oversight Committee.
To form a joint powers authority, a JPA must be approved by the CASCC Board of Directors and then executed by each Member Agency that wishes to join.
Over the past two years, the CASCC conducted outreach and sought input from City and Town Attorneys, as well as City Managers. This outreach included circulating the Draft Agreement and attending meetings. There was extensive feedback and input from the City and Town Attorneys and City Managers, some of which was incorporated into the Draft Agreement.
On September 14, 2023 the Draft Agreement was considered by the CASCC Board. In response to various issues raised at the meeting, the CASCC Board directed that the Draft Agreement be revised to clarify that the JPA would not hire employees and to provide some language permitting but not requiring the CASCC Board to appoint a working committee composed of professional staff from the member cities to review new initiatives and provide input to the CASCC Board.
With these changes, the CASCC Board unanimously approved transmittal of the Draft Agreement Item 14
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to the City and Town Councils of the proposed Member Agencies for their consideration. The CASCC Executive Board has expressed a goal of finalizing the JPA in November.
ANALYSIS
Development of the proposed JPA Agreement has been led by CASCC’s Executive Board (to be renamed the Executive Committee with the proposed JPA). Executive Board members have spent significant time and effort, working with their Executive Director and General Counsel to draft the agreement, seek input, and respond to feedback to date.
CASCC has incorporated many suggestions into the draft Agreement, and staff appreciates their effort to address the issues raised. At this point, staff has identified a few remaining issues for Council to consider in determining whether to request changes from CASCC:
1.Alternatives to a JPA - CASCC has indicated it is seeking to become a JPA to ensure governmental immunities and decrease liability for member agencies. There are alternative ways of avoiding liability, such as refraining from hiring employees and avoiding involvement in initiatives without sufficient management or checks and balances. Over time, CASCC has also been challenged to maintain financial and organizational management given limited resource allocation and oversight. At this point, it is unclear whether the JPA will proceed without Palo Alto participation. If Palo Alto were to propose that CASCC continue as an unincorporated association, the City would likely need to be prepared to offer an alternative. Such an alternative could be that cities provide greater in-kind support such as acting as fiscal agent, and/or providing other services to assist with the ongoing functions of the organization. This could be referred to the city managers and city attorneys groups for development.
2.Scope and Purpose – Article 7 of the Draft Agreement outlines activities that the JPA would be prohibited from engaging in, such as purchasing real property, hiring employees, and issuing debt. Beyond these specific functions, the language describing what the JPA can do (Articles 2 and 6) —its purposes and powers —is very broad. Council may wish to discuss whether these activities should be further limited, either by adding prohibited activities or by more tightly defining its purposes and powers. This may also include recommendations on the level of consensus required before the JPA were to represent positions on issues or undertake new initiatives. For example, whether a simple majority or supermajority should be required for action.
3.Fiscal Management –
a.Timing and Ability to Provide Budget Input. Article 8 of the Draft Agreement provides the Board responsibility for developing a budget. However, it does not specify an opportunity for member agencies to review and provide input to budget decisions. The Silicon Valley Regional Interoperability Authority (SVRIA), Item 14
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used as a model for the JPA, established a Working Committee 1 consisting of member agency staff and assigns to the Working Committee responsibility for ensuring preparation and establishes deadlines for distribution of the budget to members. This ensures member agencies can provide timely input to the JPA budget preparation.
b.Cost Allocation Specificity. The Draft Agreement does not specify cost allocations to Member agencies. While CASCC representatives have indicated no plans to change current fees and allocations to individual cities, neither the initial dues structure nor process for future changes are stated. Having clearly defined cost allocations and a process for changes would provide cities and towns greater clarity when making decisions about becoming a JPA member.
4.Undertaking New Initiatives/Programs – In Article 15 of the Draft Agreement, the definition of a significant program assumes the JPA’s ability to determine whether an activity will require $10,000 or more annually. In response to feedback received, the Draft Agreement authorizes the Board to appoint a Working Committee to study a significant activity and provide input to the Board. However, the need to establish a Working Committee when an opportunity has already been presented would likely be a barrier to implementation, versus establishing a Working Committee in advance, responsible for identifying what may constitute a significant program, and advising the Board on issues that may not initially appear to be significant. In its discussions, CASCC has indicated the Executive Committee would serve this function in lieu of a Working Committee.
However, given the breadth of powers proposed for the JPA, staff recommends that a Working Committee comprised of staff from Member agencies be required as advisory to the Board. Some initiatives can appear no-cost or low cost when first suggested, only later becoming clear to require significant time and/or funding to implement. A Working Committee composed of staff would ensure that professional expertise on a range of topics can support decision-making and help ensure focus of JPA resources.
5.Contract/Contractor Oversight and Performance Review – The contractual professional services provided by the Executive Director, General Counsel, Auditor, and potentially other services are described in Article 14. The draft Agreement does not specify, however, the responsibilities of the Board and Executive Committee for the selection, performance evaluation, and potential termination of the contractors providing these services. Absent a member agency staff structure for supporting these duties, this can be a difficult function for the Board and Executive Committee to perform. 1 https://svria.org/wp-content/uploads/2021/09/JPA-Agreement-SVRIA-5-26-16.pdf Item 14
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6.Executive Committee Authority – Decisions other than the annual budget are largely left to the Executive Committee (see Article 11 of the Draft Agreement). This raises that potential that Executive Committee decisions and activities may not align with the Board.
Overall, staff believes that proceeding with a JPA and addressing the issues above would best be undertaken with the expectation that Member agencies will need to devote more time to ensuring appropriate consultation and engagement on CASCC activities and operations.
Staff requests feedback from Council on the above summarized issues, and which among these issues or others should be communicated to CASCC as requested revisions to the draft Agreement.
FISCAL/RESOURCE IMPACT
The primary fiscal impacts are related to the future dues structure and cost allocation that would be associated with the JPA. Since the Draft Agreement does not define this, there is the potential that future costs may vary from current contributions. The City currently contributes $18,314 to CASCC annually. The CASCC reported a budget of $293,403 total revenues and $212,159 total expenses for fiscal year 2024. Future dues will be established after approval of the JPA, and the CASCC has stated that no changes are anticipated. Long-term costs are unknown.
STAKEHOLDER ENGAGEMENT
The CASCC circulated a Draft Agreement to all City and Town Attorneys in the County for their review and input and incorporated significant changes into the agreement. The Acting Executive Director and the General Counsel attended two virtual meetings with most of the Town or City Attorneys or Assistant City Attorneys on September 14 and September 28, 2022. A separate and additional meeting was held by the Santa Clara City Attorneys Roundtable on September 16, 2022.
CASCC representatives presented the Draft Agreement at the Santa Clara County City Managers Association (“SCCCMA”) meeting on October 12, 2022. Following that meeting, the City Managers submitted a list of 17 questions to CASCC representatives. Due to changes in CASCC over the last year, including a new General Counsel and the rotation of new City Council Board representatives, the answers to those questions were not completed until August 2023. These responses (Attachment B) were then circulated to the SCCCMA members. On August 9, 2023, CASCC representatives again met with the SCCCMA to discuss the responses to the October 12, 2022 questions, review the Draft Agreement, and receive additional input. Following that meeting, further edits were made to the Draft Agreement.
On September 14, 2023, the CASCC Board received the updated Draft Agreement that included edits that responded to comments of the City/Town Attorneys and City Managers. At the meeting, the CASCC Board received comments from Board members and city managers in Item 14
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attendance. The CASCC Board directed some additional changes, resulting in the Draft Agreement now under review.
ENVIRONMENTAL REVIEW
Council consideration of and direction on the Draft Agreement will not cause physical changes to the environment and does not constitute a ”project” under the California Environmental Protection Act (CEQA).
ATTACHMENTS
Attachment A: Draft Agreement
Attachment B: City Managers Questions and CASCC Answers APPROVED BY:
Ed Shikada, City Manager
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1 JOINT POWERS AGENCY AGREEMENT FOR CITIES ASSOCIATION OF SANTA CLARA COUNTY This Joint Powers Agreement (“Agreement” or “JPA”) for the Cities Association of Santa Clara County is entered into by and among the cities (“Members”), which are organized and existing under the Constitution and laws of the State of California in which public agencies are located in the County of Santa Clara, and upon approval and full execution of the Agreement, creates the Cities Association of Santa Clara County Joint Powers Agency (“Agency”). RECITALS WHEREAS, Articles 1 and 2, Chapter 5, Division 7, Title 1 of the California Government Code (Section 6500 et seq.) permit two or more public agencies by agreement to jointly exercise powers common to the Members; and WHEREAS, the public agency Members executing this JPA are cities or towns within the jurisdiction of the County of Santa Clara (“County”); and WHEREAS, the Cities Association of Santa Clara County has existed as an unincorporated association since 1990 and desires to formalize the relationship between its City and Town members and form a Joint Powers Agency in order to carry out activities for the good of all its Members; and WHEREAS, the Members executing this Agreement, desire to join together to create a separate Joint Powers Agency for the purpose of promoting cooperation among the Members; advocating for positive action; enhancing the quality of life for the residents of the County and their individual cities; and encouraging other joint and cooperative endeavors among the public agencies for their mutual benefit. NOW, THEREFORE, the Parties agree to the following: AGREEMENT ARTICLE 1 - DEFINITIONS 1.1 “Associate Member” shall mean any non-city local agency, located within jurisdictional authority of the County of Santa Clara, and shall have duly executed and delivered to the Agency an Associate Membership Agreement in the form of and as further provided in the Bylaws of the Agency, as further provided in Article 32 herein. 1.2 “Agency” shall mean the Cities Association of Santa Clara County Joint Powers Agency created by this Agreement. 1.3 “Board of Directors” or “Board” shall mean the governing body of the Agency. 1.4 “Executive Committee” shall mean the Executive Committee of the Board of Directors of the Agency.
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2 1.5 “Fiscal Year” shall mean that period of twelve (12) months which is established by the Board of Directors or the Bylaws as the fiscal year of the Agency, which shall run from July 1 to June 30 of each year. 1.6 “Government Code” shall mean the California Government Code, as amended. 1.7 “Joint Powers Law” shall mean Articles 1 and 2, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code, known as the Joint Exercise of Powers Act, as amended. 1.8 “Legislative Body” shall mean the legislative board of each Public Agency that is a Member of the Agency. 1.9 “Member” shall mean any city which has executed this Agreement and has become a member of the Agency. The complete list of Members is set forth in Exhibit “A” attached hereto and incorporated herein by this reference. 1.10 “Parties” shall mean Members or Associate Members who are party to this Agreement. 1.11 “Public Agency” shall mean public agency as defined in Government Code Section 6500, as amended. 1.12 Unless the context clearly requires otherwise, as used in this Agreement, words of the masculine, feminine or neutral gender shall be construed to include each other gender, when appropriate, and words of the singular number shall be construed to include the plural number, and vice versa, when appropriate. This Agreement and all the terms and provisions herein shall be construed to effectuate the purposes set forth and to sustain the validity of those purposes. ARTICLE 2 - CREATION AND PURPOSES 2.1 This Agreement is entered into by the Members in order to: 2.1.1 Review, study, develop consensus positions, and take action on issues of interest to Members; 2.1.2 Focus on local and regional matters that are important to our future; 2.1.3 Develop a common agenda for Santa Clara County cities; 2.1.4 Serve as a unified voice for Santa Clara County cities in relationship to other agencies, organizations, and levels of government; 2.1.5 Establish and administer the City Selection Committee pursuant to Government Code Section 50270 et seq., as amended and make appointments to regional and local bodies as provided by law; 2.1.6 Serve as a source of education, information, and networking for officials from all cities in Santa Clara County; Item 14
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3 2.1.7 Provide a forum for non-city individuals, groups and organizations and the private sector to address items of interest to Santa Clara County cities; 2.1.8 Reduce duplication of effort by sharing information and provide a unified voice and strong advocacy on legislation and other important issues that affect its Members; 2.1.9 Strengthen the Members’ and Agency’s standing at the regional, State and Federal level; 2.1.10 Strive to respect local control, provide regional perspective, and make a difference to elevate the quality of life throughout the County; 2.1.11 Provide a forum for discussion and study of problems common to the Members and to assist in the development and implementation of solutions to such problems; 2.1.12 Provide a method for the Members to collaborate and jointly develop policies that benefit the region; and 2.1.13 Collaborate in such a way that is efficient, saves the jurisdictions the expense of individual effort, and creates positive outcomes. ARTICLE 3 - PARTIES TO AGREEMENT Each Member, as a Party to this Agreement, intends to and does contract with all other Members as Parties to this Agreement and, with other Public Agencies as may later be added as Parties to this Agreement pursuant to the Joint Powers Law. The withdrawal of any party from this Agreement, pursuant to Article 20, shall not affect this Agreement or the remaining Members’ obligations. ARTICLE 4 – FORMATION; TERM This Agreement shall become effective when fully executed and returned to the Agency by at least eight (8) Members, but only as to those Members that have executed the Agreement. The Agency shall promptly notify all Members in writing of the effective date. After one full year after the initial formation of the Agency, should the membership fall below seven (7) Members due to the withdrawal of Members and the membership level remains at below seven (7) Members for a period of at least one (1) year and a similar joint powers authority, with the same or similar powers and functions is formed containing a majority of cities in the County of Santa Clara, the Agency shall change its name and permit the new organization to take on the name of the Agency. Notwithstanding the name change, this Agreement shall continue in effect until terminated as provided herein. The termination of this Agreement with respect to an individual Member upon its withdrawal from membership in the Agency shall not operate to terminate this Agreement with respect to the remaining Members. ARTICLE 5 - CREATION OF THE AGENCY Pursuant to the Joint Powers Law, there is hereby created a public entity, separate and apart from the Parties hereto, to be known as the “Cities Association of Santa Clara County Joint Powers Item 14
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4 Agency” with powers as are set forth herein. Upon formation of the Agency as described in Article 4, the Cities Association of Santa Clara County, an unincorporated association shall follow the process of dissolution and cease to exist. ARTICLE 6 - POWERS OF THE AGENCY 6.1 Subject to the terms of this agreement, the Agency shall have all of the powers of a public agency as defined in the Government Code Section 6500 as amended and all additional powers set forth in the Joint Powers Law and other statutes applicable to the Joint Powers Agency created hereby and is authorized to do all acts necessary for the exercise of these powers on behalf of its Members. Powers include, but are not limited to, the following, in the Agency’s own name: 6.1.1 To make and enter into contracts; 6.1.2 To incur debts, liabilities, and obligations and to encumber personal property; 6.1.3 To acquire, hold, or dispose of personal property, contributions, and donations of personal property, funds, services, and other forms of assistance from persons, firms, corporations, and government entities; 6.1.4 To sue and be sued in its own name, and to settle any claim against it; 6.1.5 To receive and use contributions and advances from Members as provided in Government Code Section 6504, as amended including contributions or advances of personnel and equipment; 6.1.6 To invest any money in its treasury that is not required for its immediate necessities, pursuant to Government Code Section 6509.5, as amended; 6.1.7 To acquire, construct, manage, maintain, or operate title to personal property, or rights, or any interest therein; 6.1.8 To retain the services of agents, contractors, and consultants; 6.1.9 To receive, collect, and disburse monies; 6.1.10 To conduct studies, tests, evaluations, and similar activities; 6.1.11 To contract for services from Members, including in-kind services; 6.1.12 To conduct public outreach and education; 6.1.13 To participate in pilot and demonstration projects; 6.1.14 To charge for services, programs, and/or systems; 6.1.15 To work with elected officials and local, regional, state, and federal agencies, including other joint powers agencies and unincorporated associations to pursue funding, enter agreements and otherwise carry out the purposes of the Agency; and Item 14
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5 6.1.16 Subject to this Agreement or the Bylaws of the Agency, and only as authorized by the Joint Powers Law, to exercise other reasonable and necessary powers in furtherance or support of any purpose of the Agency. ARTICLE 7 - RESTRICTIONS ON POWERS 7.1 Pursuant to and to the extent required by Government Code Section 6509, as amended, the Agency shall be restricted in the exercise of its powers and shall exercise its powers in the same manner as the Town of Los Gatos is restricted in its exercise of similar powers; provided that, if the Town of Los Gatos shall cease to be a Member, then the Agency shall be restricted in the exercise of its power in the same manner as another Member agreed to by the majority of the Board of Directors. Unless expressly provided for, the Agency does not, by virtue of this Section or this Agreement, subject itself to the internal policies or ordinances of any Member. 7.2 The Agency shall not have the power of eminent domain. 7.3 The Agency shall not have the power of taxation. The Agency may not impose taxes but may receive the proceeds of taxes imposed by other entities or public funds from other entities. 7.4 The Agency shall not have the power to acquire, purchase, hold or dispose of real property. 7.5 The Agency shall not have the power to hire employees. 7.6 The Agency shall not have the power to issue debt. ARTICLE 8 - BOARD OF DIRECTORS 8.1 The Agency shall be governed by the Board of Directors, which shall be composed of one Director representing each Member. Each Member’s Legislative Body, according to its own procedures, shall appoint a Member of the Legislative Body as a Director to represent the Member on the Board of Directors. The Director shall serve at the pleasure of their respective Legislative Body. The Legislative Body of each Member shall also appoint one alternate Director (“Alternate”) who shall participate in and vote at any meeting of the Board when the primary Director is absent. Any vacancy in a Director or Alternate position shall be filled by the appointing Member’s Legislative Body, subject to the provisions of this Article. Immediately upon admission of a new Member, the new Member shall be entitled and required to appoint a Director and one alternate Director. Every Director or Alternate shall be a Council Member or Mayor of their individual Member city. 8.2 A Director and/or Alternate shall be removed from the Board of Directors upon the occurrence of any one of the following events: (1) the Agency receives written notice from the appointing Member of the removal and/or replacement of the Director or Alternate; (2) the withdrawal of the Member from this Agreement; (3) the death or resignation of the Director or Alternate; (4) the Agency receives written notice from the Member that the Director or Alternate is no longer qualified as provided in the first paragraph of this Article 8; or as set forth in Article 21.
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6 8.3 The Board of Directors shall have the following powers and functions: 8.3.1 Except as otherwise provided in this Agreement, the Board shall exercise all powers and conduct all business of the Agency, either directly or by delegation to other bodies or persons; 8.3.2 The Board shall elect an Executive Committee, as provided in Article 11; 8.3.3 The Board shall be the policy setting body of the Agency; 8.3.4 The Board shall appoint or retain the services of necessary agents, consultants, or independent contractors in accordance with Article 14; 8.3.5 The Board shall cause to be prepared, and shall review, modify as necessary, and adopt the annual operating budget of the Agency. Adoption of the budget may not be delegated. The Board shall adopt their budget no later than the first April 30th following formation and then subsequently by April 30th of each successive year. The Board shall review, set, and adopt annual dues to be funded by Agency Members; 8.3.6 The Board shall receive, review and act upon periodic reports and audits of the funds of the Agency, as required under Article 16 of this Agreement; 8.3.7 The Board may adopt policies regarding personnel, conflicts of interest and other matters necessary or convenient for the efficient operation of the Agency; 8.3.8 The Board shall adopt a set of priorities and work plan for each fiscal year; and 8.3.9 Subject to the terms of this Agreement, the Board shall have such other powers and duties as are reasonably necessary to carry out the purposes of the Agency. ARTICLE 9 – MEETINGS OF THE BOARD OF DIRECTORS 9.1 The Board of Directors shall hold at least one regular meeting each year. The Board of Directors shall fix by resolution, or in the Bylaws, the date, time, and location of each regular meeting. The Board or Executive Director, in consultation with the President of the Board as provided in Article 10 below, may call special meetings. 9.2 Each meeting of the Board of Directors, including without limitation, regular, adjourned regular and special meetings shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq., as amended. 9.3 The Agency shall require the Secretary/Treasurer or designee to take and maintain minutes of all regular, adjourned regular and special meetings. As soon as practicable after each meeting, the Secretary/Treasurer or designee shall forward to each Board Member, a copy of the minutes of the meeting. 9.4 A majority of the Members of the Board shall constitute a quorum for the transaction of business. Unless otherwise required by law, a vote of the majority of a quorum of the members Item 14
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7 present at a meeting is sufficient to take any action, unless otherwise specified in this Agreement. However, less than a quorum may adjourn the meeting to a future date. 9.5 Each Member of the Board shall have one vote. ARTICLE 10 - OFFICERS The Board shall elect as Officers of the Agency President, First Vice President, Second Vice President, Secretary/Treasurer, and Immediate Past President at its first meeting. Thereafter, except as may be otherwise provided in the Bylaws of the Agency, the Board shall elect the President, First Vice President, Second Vice President, Secretary/Treasurer, and Immediate Past President, at the November Board of Directors meeting, or the first meeting held on or after November 1 of each year. Of the Officers, the President, and at least two other Officers, must also be members of the Board of Directors. The remaining Officers may be the elected or appointed Mayor or Council Member of any Member of the Agency regardless of whether they are on the Board of Directors. Each Officer shall assume the duties of his or her office upon election. If the President ceases to be a Member of the Board, the resulting vacancy shall be filled at the next meeting of the Board held after the vacancy occurs, or at a special meeting of the Board called to fill the vacancy. The President shall preside at and conduct all meetings of the Board. Should the Board President not be available then the highest-level Officer, who is a member of the Board of Directors, shall preside. If that individual is unavailable, then any Director appointed by the President may preside. The Board may appoint other officers as it considers necessary. The duties of the Secretary/Treasurer are set forth in Articles 16 and 17 of this Agreement. The Secretary/Treasurer shall be appointed by the Board of Directors and shall be eligible to serve as Secretary/Treasurer, as provided in the Joint Powers Law. ARTICLE 11 - EXECUTIVE COMMITTEE At such time as there are nine Members, the Board shall establish and elect an Executive Committee of the Board which shall consist solely of three (3) Officers consisting of the President, First Vice President, and Secretary/Treasurer, which shall exist thereafter. At such time as there are 11 Members, the Board shall establish and elect an Executive Committee of the Board which shall consist solely of five (5) Officers, with the addition of the Immediate Past President, which shall exist thereafter. Should the Immediate Past President no longer hold elected office then a Member at Large may be appointed by the Board to serve on the Executive Committee. The qualifications of the Member at Large are that they must be an elected or appointed Mayor or Council Member of a Member of the Agency but need not be on the Board of Directors. The terms of office of the Members of the Executive Committee shall be one year. The Executive Committee shall conduct the business of the Agency between meetings of the Board, exercising all those powers as provided for in this Article, or as otherwise delegated to it by the Board. The Executive Committee, subject to approval by the Board of Directors, shall exercise all powers or duties of the Board relating to the entering, approval and execution of agreements, leases, and other instruments of or relating to the finances of the Joint Powers Agency within the previously Item 14
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8 approved annual budget or amended budget. The Executive Committee may have additional powers delegated to it by the Board, except for the adoption of the Agency’s annual budget. Any additional powers and duties delegated shall be specified in a Resolution adopted by the Board. The Executive Committee shall obtain approval from the Board before authorizing or conducting any investigations into the business of the Agency and before taking personnel action. These actions must be authorized by a majority vote of the Executive Committee. Each meeting of the Executive Committee shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq., as amended. ARTICLE 12 - COMMITTEES The Board may establish committees, as it deems appropriate to conduct the business of the Agency or it may, in the Bylaws or by resolution, delegate this power to the Executive Committee by Resolution. Members of committees, except as otherwise stated in this Agreement, shall be appointed by the President. Each committee shall have those duties as determined by whichever Agency body created it or as otherwise set forth in the Bylaws. Each committee shall meet on the call of its chairperson and shall report to and be directed by whichever entity created it. No more than one representative from each jurisdiction shall serve on each committee. Membership of any committee may consist in whole or in part of persons who are not members of the Board; provided that the Board may delegate decision-making powers and duties only to a committee, a majority of the members of which are Board Members. Any committee, except the City Selection Committee, in which a majority of the members are not Board Members may function only in an advisory capacity. The Legislative Action Committee shall be a permanent Committee of the Agency chaired by the Second Vice President and whose members shall be appointed by the Agency Members. Should there be no Second Vice President, the Legislative Action Committee shall be chaired by the First Vice President. All standing committees shall abide by the Ralph M. Brown Act, Government Code Section 54950 et seq., as amended. ARTICLE 13 – CITY SELECTION COMMITTEE The City Selection Committee is established pursuant to State law and the Agency shall administer the City Selection Committee as follows: The City Selection Committee shall be a permanent committee of the Agency, consisting of the Mayor of each City or Town, consistent with Government Code 50270, as amended. The Agency shall allow all cities in the County to participate in the City Selection Committee, whether or not they are members of the Agency. ARTICLE 14 – PROFESSIONAL SERVICES 14.1 The Board of Directors may contract with individuals or companies to provide the following services at the pleasure of the Board of Directors:
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9 14.1.1 Executive Director. The Board shall contract with a consultant or independent contractor to fulfill the following duties of an Executive Director: manage the affairs of the Agency, subject to the general supervision and policy direction of the Board and the Executive Committee; oversee the day-to-day activities of the Agency; select and manage the activities of all consultants and independent contractors to the Agency; be responsible for required filings by the Agency with the State of California; prepare or delegate the preparation of all meeting notices, minutes, and required documentation of the Agency; prepare and propose an annual budget; prepare reports and recommendations for consideration by the Executive Committee or Board; be responsible for billing and collection of annual dues; maintain the records of the Agency; assist Local Agencies in the preparation and filing of applications for participation in the financing programs of the Agency; expedite the processing of these applications; pay all invoices, taxes and amounts due; and perform other duties as are assigned by the Board and Executive Committee. The Executive Director may have the authority to sign agreements, applications, and other documents on behalf the Agency, if authorized by the Board or Executive Committee. The Executive Director shall have the Authority to enter into individual Agreements with a single vendor over the course of a fiscal year, on behalf of the Agency, up to the amount set by the Bylaws. 14.1.2 General Counsel. The Board shall contract with a consultant, independent contractor, or law firm to fulfill the duties of General Legal Counsel. The General Counsel shall take direction from the majority of the Board of Directors. The General Counsel shall be a member in good standing of the California State Bar. The General Counsel shall be responsible for the legal affairs of the Agency; 14.1.3 Auditor. The Auditor shall be a Certified Public Accountant licensed to practice in the State of California. The Auditor will conduct annual financial audits of the Agency; 14.1.4 Other services. The Executive Director may hire additional consultants and independent contractors, as appropriate, based upon a previously approved budget; 14.1.5 The Agency shall not contract with or become a member of the California Public Employees Retirement System (“PERS”), nor shall any agent, consultant or independent contractor of the Agency become a member of PERS or be entitled to a pension or retirement from PERS as a result of service to the Agency; and 14.1.6 The consultants and independent contractors fulfilling the duties of Executive Director, the Auditor, the General Counsel and any other consultants or independent contractors who provide services to the Agency shall be compensated in such manner as shall be approved by the Board and as permitted by applicable law. ARTICLE 15 - SIGNIFICANT PROGRAMS If the Board desires to create significant programs or activities which will utilize substantial resources of the Agency, it shall do so by a vote of the Board. If the Board deems it necessary, it may Item 14
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10 appoint a working committee to study the significant program or activity and provide input to the Board. Substantial resources and significant program or activity shall be defined as any program or activity requiring $10,000 or more in annual expenditures; this amount shall be increased by the annual cost of living CPI index. Any new significant program or activity shall require a work plan and a two-thirds vote of the Members in order to be initiated. When a new significant program is intentionally designed to be limited in scope, such that it only provides benefits to particular Members, the Agency may enter into a specific program or project Agreement that includes relevant terms regarding the particular affected Members, and any such Agreement shall be approved by the Board prior to or at the same time as formation of the significant program. These limited scope Agreements shall be subject to approval by the Board by a two-thirds vote of the Members. ARTICLE 16 - ACCOUNTS AND RECORDS 16.1 The Agency shall adopt an operating budget pursuant to Section 8.3.5 of Article 8 of this Agreement. 16.2 The Secretary/Treasurer of the Agency or the Executive Director shall establish and maintain funds and accounts as may be required by good accounting practices and by the Board. Books and records of the Agency shall be open to and made available for inspection at all reasonable times upon request by authorized representatives of the Members. 16.3 The Agency shall adhere to the standard of strict accountability for funds and report all receipts and disbursements as set forth in the Joint Powers Law. 16.4 Auditor’s Report. The Auditor, within one hundred and twenty (120) days after the close of each Fiscal Year, shall give a complete written report of all financial activities for the prior Fiscal Year to the Board. 16.5 The Agency shall either make or contract with a Certified Public Accountant to make an annual Fiscal Year audit of all accounts and records of the Agency, conforming in all respects with the requirements of the Joint Powers Law. A report of the audit shall be filed as a public record and be provided to each of the Members, and with the County Auditor of the County of Santa Clara. Costs of the audit shall be considered a general expense of the Agency. Any costs of the audit shall be borne by the Agency and shall be a charge against any unencumbered funds of the Agency available for this purpose. ARTICLE 17 - RESPONSIBILITIES FOR FUNDS AND PROPERTY 17.1 The Secretary/Treasurer, or his or her designee, shall have the custody of and disburse the Agency’s funds. Proceeds of similar obligations of the Agency may be deposited with a trustee, agent or other depositary and shall not be considered the Agency’s funds for purposes of this Article. The Secretary/Treasurer may delegate disbursements to persons as may be authorized by the Board or the Executive Committee to perform that function, subject to the requirements of Section 17.2 below.
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11 17.2 The Secretary/Treasurer or designee shall perform all functions then required to be performed by the Treasurer under the Joint Powers Law. The Secretary/Treasurer shall review the financial statements and the annual audit of the Agency. 17.3 Pursuant to Government Code Section 6505.1, as amended, the Executive Director, the Secretary/Treasurer, and other persons as the Board may designate, shall have charge of, handle, and have access to the property of the Agency. The Agency shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in a form specified by the Board of Directors, covering any officers or agents of the Agency who are authorized to hold or disburse funds of the Agency and any officers or agents who are authorized to have charge of, handle and have access to property of the Agency. ARTICLE 18 - MEMBER RESPONSIBILITIES 18.1 Each Member shall have the following responsibilities: 18.1.1 To appoint its Director and Alternate to, or remove its Director and Alternate, from the Board, as set forth in Article 8; 18.1.2 To consider proposed amendments to this Agreement as set forth in Article 29; 18.1.3 To make contributions in the form of annual membership assessments and fees, if any, determined by the Board for the purpose of defraying the costs of providing the annual benefits accruing directly to each party from this Agreement; and 18.1.4 If a Member provides written notice to the Agency of its election to relinquish its status as a Member, or if a Member fails to be represented at four (4) or more consecutive regular meetings of the Board of Directors, then that Member may be deemed to be a suspended Member, with all the rights and duties of an Associate Member, upon action of the Board of Directors duly adopted. Prior to the suspension, the President shall contact the Mayor and request that another Council Member be appointed or that reinstatement for the current Member be requested. The suspension shall be approved by the Board of Directors. Promptly following that action by the Board of Directors, the Member may be reinstated by informing the Board of its intent to be reinstated within thirty (30) days and to attend all future meetings either via the Director or Alternate. Removal of a Member for failure of the Director to attend meetings shall not relieve the Member from its obligations under any outstanding agreements relating to the Agency’s financial obligations, except in accordance with this Agreement. ARTICLE 19 - NEW MEMBERS With the approval of the Board, any city located within the County of Santa Clara may become a party as a Member to this Agreement. A city requesting membership shall apply by presenting to the Agency, a resolution of the Legislative Body of the City, evidencing its approval of this Agreement. The date that the applying city will become a Member will be determined by the Board. The Agency shall Item 14
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12 accept new Members upon a majority affirmative vote of the entire Board and upon payment of any Board determined assessments and fees. ARTICLE 20 - WITHDRAWAL A Member may terminate its membership in the Agency at any time upon giving one hundred and eighty (180) days written notice of withdrawal to the Agency. The notice shall be given to the Board of Directors. The effective date shall be the conclusion of the first Board Meeting which occurs after the one hundred and eighty (180) day notice period has passed. Any Member who withdraws shall remain obligated to pay its share of all debts, liabilities, and obligations incurred or accrued through the end of the current fiscal year of the Agency. The withdrawal does not in any way impair any contracts, resolutions, indentures, or other obligations of the Agency then in effect. In the event of a disagreement between the Agency and the withdrawing Member as to whether the withdrawal shall cause the impairment of any contracts, resolutions, indentures, or other obligations of the Agency, the determination shall be made by a majority vote of the Board of Directors. Any Member that withdraws and later seeks reinstatement to the Agency shall provide funds to the Agency, proportionate to their responsibility for the current fiscal year, as if the Member had never left the Agency. A withdrawing Member shall, in all events, remain liable for its proportionate share of: (i) its full amount of its proportionate share of the adopted fiscal year budget; (ii) any call for funds or assessment levied by the Agency prior to the date it provides its notice of withdrawal; (iii) any contribution in existence at the time of the notice of withdrawal. ARTICLE 21 - REMOVAL If the Board of Directors determines that reasonable cause exists to remove a Director from the Board, it can remove the Director and request that the Member who appointed the Director appoint a new Director. The Board may, by two-thirds majority vote of the entire Board, remove a Member based on a Member's breach of any material term of this Agreement, and the failure to cure that breach within sixty (60) days written notice. A terminated Member shall remain liable for any obligation under this Agreement as described above. Failure to pay dues within 60 days following notice shall result in a Member becoming suspended with all the rights of an Associate Member. A suspended Member shall immediately have its voting rights restored upon full payment of dues. ARTICLE 22 - OBLIGATIONS OF AGENCY The debts, liabilities, and obligations of the Agency shall not be the debts, liabilities, and obligations of the Members. Any Member may separately contract for, or assume responsibility for, specific debts, liabilities, or obligations of the Agency. Nothing in this Agreement shall be interpreted to limit the applicability of the provisions of Government Code Section 895.6.
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13 ARTICLE 23 - TERMINATION AND DISTRIBUTION OF ASSETS This Agreement may be terminated at any time that no financial obligations of the Agency are outstanding, with the approval of two-thirds of the Members. Upon termination of this Agreement, all assets of the Agency shall, after payment of all unpaid costs, expenses and charges incurred under this Agreement, be distributed among the parties to this Agreement, in accordance with the respective contributions of each of the Parties. ARTICLE 24 - LIABILITY OF BOARD OF DIRECTORS, OFFICERS, AND COMMITTEE MEMBERS 24.1 The Members of the Board of Directors, Officers, and Committee Members of the Agency shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. They shall not be individually liable for any mistake of judgment, or any other action made, taken, or omitted by them in good faith, nor for any act or omission by any agent, consultant or independent contractor selected with reasonable care, nor for loss incurred, resulting from any action made, taken, or omitted by them in good faith and with reasonable care through investment of Agency funds, or failure to invest. 24.2 No Director, Officer, or Committee Member shall be responsible for any act or omission of any other Director, Officer, or Committee Member. Unless otherwise required by law, no Director, Officer, or Committee Member shall be required to give a bond or other security to guarantee the faithful performance of his or her duties pursuant to this Agreement. 24.3 The funds of the Agency shall be used to defend, indemnify, and hold harmless the Agency for any Director, Officer, or Committee Member, for their actions taken within the scope of the Agency. Nothing herein shall limit the right of the Agency to purchase insurance to provide coverage for these types of losses. 24.4 These indemnification and defense obligations shall survive the termination of the Agreement as to any acts or omissions occurring before such termination. ARTICLE 25 - INDEMNIFICATION To the fullest extent allowed by law, the Agency shall defend, indemnify, and save harmless the Members and their governing bodies, officers, agents and employees from all claims, losses, damages, costs, injury, and liability of every kind, nature, and description directly or indirectly arising from the performance of any of the activities of the Agency or the activities undertaken pursuant to this Agreement.
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14 ARTICLE 26 - BYLAWS The Board shall adopt Bylaws consistent with this Agreement which shall provide for the administration and management of the Agency. The provisions of the Bylaws, as modified from time to time, shall establish the operating procedures and standards for the Agency. ARTICLE 27 - NOTICES The Agency shall address notices, billings, and other communications to a Member as directed by that Member. Each Member shall provide the Agency with the email and physical address to which communications are to be sent. Members shall address notices and other communications to the Agency, at the office address of the Agency, or the email address of the Agency as directed by the Member and as set forth in the Bylaws. ARTICLE 28 - CODES The Agency shall adopt and observe a Code of Conduct and Conflict of Interest Policy. The Agency shall comply with all requirements of the Fair Political Practices Commission as required by law or regulation. ARTICLE 29 - AMENDMENT This Agreement may be amended at any time by vote of the Members, acting through their Legislative Bodies. Any amendment of this Agreement shall become effective upon receipt by the Agency of notice of the approval of the amendment by two thirds of the Legislative Bodies of the Members. ARTICLE 30 - SEVERABILITY Should any portion, term, condition, or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions shall not be affected. ARTICLE 31 - PROHIBITION AGAINST ASSIGNMENT No Member may assign any right, claim, or interest it may have under this Agreement, and no creditor, assignee or third-party beneficiary of any Member shall have any right, claim, or title to any part, share, interest, fund, or asset of the Agency. This Agreement shall be binding upon and shall inure to the benefit of successors of the Members. This Agreement is intended solely for the benefit of the Item 14
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15 Agency and its Members. No third party shall be deemed a beneficiary of this Agreement or have any rights against the Agency or its Members. ARTICLE 32 - ASSOCIATE MEMBERS Any Public Agency located within the jurisdictional authority of the County of Santa Clara may, with the approval of the Board of Directors, become an Associate Member of the Agency by executing and delivering to the Agency an Associate Membership Agreement and providing an Associate Membership fee and as further provided in the Bylaws. An Associate Member shall not be entitled to representation on the Board of Directors, or to vote on any matter coming before the Board of Directors or the Agency, unless a separate written agreement is entered into between the Associate Member and the Agency. ARTICLE 33 - LIBERAL CONSTRUCTION The provisions of this Agreement shall be liberally construed as necessary or reasonably convenient to achieve the purposes of the Agency. ARTICLE 34 - NON-WAIVER No waiver of the breach of default of any of the covenants, agreements, restrictions, or conditions of this Agreement by any Member shall be construed to be a waiver of any succeeding breach of the same or other covenants, restrictions, or conditions of this Agreement. No delay or omission of exercising any right, power, or remedy in the event of a breach or default shall be construed as a waiver or a variation of any of the terms of this Agreement or any applicable agreement. ARTICLE 35 - REMEDIES FOR BREACH If any Member shall default on any obligation contained in this Agreement, the default shall not excuse any other Member from fulfilling its respective obligations under this Agreement. Any Member shall be entitled to pursue all legal and equitable remedies against another Member in response to any alleged default under this Agreement. Any and all of the remedies provided to the Members, hereunder or by law now or hereafter enacted, are cumulative and the exercise of one right or remedy shall not impair the Members to any other remedy. ARTICLE 36 - ARTICLE HEADINGS All article headings are for reference only and are not intended to define or limit the scope of any provision of this Agreement.
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16 ARTICLE 37 - DISPUTE RESOLUTION 37.1 The Members agree that any dispute regarding the enforcement or interpretation of any term, covenant, or condition of this Agreement (“Dispute”) may first, for a period of not less than thirty (30) days, be submitted to mediation before a mutually acceptable mediator prior to initiation of litigation, or any other binding arbitration or adjudicative dispute resolution process. The Members shall: (i) mediate in good faith; (ii) exchange all documents which each believes to be relevant and material to the issue(s) in the Dispute; (iii) exchange written position papers stating their position on the Dispute and outlining the subject matter and substance of the anticipated testimony of persons having personal knowledge of the facts underlying the Dispute; and (iv) engage and cooperate in such further discovery as the Members agree or mediator suggests may be necessary to facilitate effective mediation. 37.2 Each Member shall bear its own costs, attorney’s fees, and expenses of the mediation. Venue of the mediation shall be a mutually agreeable city within Santa Clara County, California. ARTICLE 38 – INSURANCE If available, the Agency shall obtain insurance for all Members, appointed Members, and Committee Members, including, but not limited to, Directors and Officers liability insurance and general liability insurance containing policy limits in such amounts as the Board of Directors shall deem will be necessary to adequately insure against the risks of liability that may be incurred by the Agency. Insurance under this provision may include an insurance pool program. ARTICLE 39 - FILING WITH SECRETARY OF STATE The Executive Director of the Agency shall file a notice of this Agreement with the office of the California Secretary of State within thirty (30) days of its effective date, as required by Government Code Section 6503.5, as amended and within seventy (70) days of its effective date as required by Government Code Section 53051, as amended. ARTICLE 40 - COUNTERPARTS This Agreement may be executed in parts or counterparts, each part or counterpart being an exact duplicate of all other parts or counterparts, and all parts or counterparts shall be considered as constituting one complete original and may be attached together when executed by the Members hereto. Facsimile and electronic signatures shall be binding. ARTICLE 41 - AGREEMENT COMPLETE This Agreement constitutes the full and complete Agreement of the parties and supersedes any prior written Agreement between the Members on the same topic.
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Answers to City Managers Questions re: Cities Association of Santa Clara County (“CASCC”) and Proposed Joint Powers Authority (“JPA”) August 7, 2023 GENERAL Question #1. a.: What do we want this organization to be? Answer #1. a.: The goals and purposes of the organization will not change. Here are the stated goals of the CASCC: • To review, study, develop consensus positions, and recommend on issues of interest to Santa Clara County cities; • To develop a common agenda for Santa Clara County cities; • To serve as a unified voice for Santa Clara County cities in relationship to other agencies, organizations, and levels of government, including the Peninsula Division of the League of California Cities; • To serve as the City Selection Committee pursuant to Government Code section 50270 et seq. and make appointments to regional and local bodies as provided by law; • To assist in the development of state-wide legislative policy through the structure of the League of California Cities; • To serve as a source of education, information, and networking for officials from all cities in Santa Clara County; • To provide a forum for non-city individuals, groups and organizations, and the private sector to address items of interest to Santa Clara County cities. And here are the stated purposes of the proposed JPA: 1. Review, study, develop consensus positions, and take action on issues of interest to Members; 2. Focus on local and regional matters that are important to our future; 3. Develop a common agenda for Santa Clara County cities; 4. Serve as a unified voice for Santa Clara County cities in relationship to other agencies, organizations, and levels of government; 5. Establishthe City Selection Committee pursuant to Government Code Section 50270 et seq., as amended and make appointments to regional and local bodies as provided by law; 6. Serve as a source of education, information, and networking for officials from all cities in Santa Clara County; 7. Provide a forum for non-city individuals, groups and organizations and the private sector to address items of interest to Santa Clara County cities; 8. Reduce duplication of effort by sharing information and provide a unified voice and strong advocacy on legislation and other important issues that affect its Members; 9. Strengthen the Members’ and Agency’s standing at the regional, State and Federal level; 10. Strive to respect local control, provide regional perspective, and make a difference to elevate the quality of life throughout the County; Item 14
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ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 2
11. Provide a forum for discussion and study of problems common to the Members and to assist in the development and implementation of solutions to such problems; 12. Provide a method for the Members to collaborate and jointly develop policies that benefit the region; and 13. Collaborate in such a way that is efficient, saves the jurisdictions the expense of individual effort, and creates positive outcomes. Question #1. b.: What are the goals in forming this separate JPA as opposed to something less structured? Answer #1. b.: Currently, the CASCC is an unincorporated association under the California Corporations Code. Since its creation, the member agencies have executed some agreements to provide a bit more structure to the association. In 1990, the CASCC’s member cities also entered into an agreement governing the operation of the organization, later amended on June 30, 1995. A copy of that Agreement is attached. As authorized by this Agreement, the CASCC has also adopted bylaws, available on the organization’s website. The existing Agreements set forth a structure that is similar to what a Joint Powers Agreement would establish for a JPA. If the Cities Association becomes a JPA, neither the purpose nor the budget process would change. However, the JPA structure addresses concerns that have been raised about the CASCC such as liability and insurance. The JPA would have access to insurance that is not currently available. Governmental immunities would apply to the JPA that do not apply to an unincorporated association. A JPA would also clarify the tax status of the organization. The governance and organizational structure are also familiar to the members. Question #1. c. How is forming the JPA furthering those goals. Answer #1. c.: The most effective CASCC is one that is permanent, has governmental immunities to liabilities and employs an organizational structure that is both equitable and highly functional. Also, it will insulate the individual city/town members from future individual liability that an unincorporated association would arguably not do. The CASCC has accomplished much in the past and can accomplish many of the same programs and should the Board of Directors wish to, additional tasks with the new, permanent structure. In addition, the formation of a JPA eliminates potential tax issues as governmental entities are generally not subject to federal and State tax-related requirements. Question #2: Are there better organizational forms such as public benefits corporation or nonprofit organization? CASCC previously considered both a 501 (c) (4) non-profit social welfare organization and a JPA. In 2020, the Board of Directors chose to pursue a JPA based on factors, such as the time and cost of forming the new entity and the compatibility of the JPA structure and membership of Item 14
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ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 3 the association. Considering the events that have transpired since the Board of Directors made the decision in 2020, we are even more convinced the JPA structure is best suited to the needs of the CASCC for the reasons stated above and the fact that the CASCC members are elected Council members appointed by their respective agencies and the CASCC administers the Cities Selection Committee. Question #3: What models/example joint powers agreements were used to develop the proposed CASCC JPA? Answer #3: The proposed JPA was developed by the two prior General Counsels, including Gary Baum, and he utilized the following examples: Silicon Valley Regional Interoperability Authority JPA (click on JPA document link) https://svria.org/resources/documents/ Silicon Valley Animal Control Authority JPA (click on JPA link) https://www.svaca.com/about-us Question #4: What issues, structural or otherwise, is the association facing that can only or uniquely be solved by the formation of a JPA? The JPA would provide a governmental structure for the CASCC. As a JPA, the CASCC would have governmental immunities and the liability of its members would be clarified. The JPA would have also access to some risk pools that insure governmental entities. The JPA structure itself would create a backbone of organization by clearing setting forth the scope of the JPA’s authority. See answer to Question 1c above. Question #5: Are there examples of issues that the JPA can address, particularly that cannot be accomplished through a less formal structure? See answers to Questions #3 and #4. Collaboration amongst our cities is one of the key advantages of the CASCC, which helps to strengthen our region. It is noteworthy, that in a county as populous and diverse as Santa Clara County, our cities have been able to come together and have some notable successes that could only have happened through CASCC. For example, the work of the CASCC during the COVID-19 pandemic resulted in a stronger partnership with our County, paving the way for greater trust and collaboration in the future. In recognition of their hard work, the CASCC was awarded the President’s Medal for Exemplary Service During the COVID-19 Pandemic by the SCC Board of Supervisors. Also, our cities collectively implemented ordinances to ban single-use plastic bags in each of our cities. Perhaps one of the most timely advantages of the CASCC and JPA membership would be the ability to apply for regional and statewide grants, such as the Item 14
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