Cities Index.
Agenda packet

Palo Alto City Council
March 4, 2024

Document
Agenda packet
Meeting
March 4, 2024
Body
Palo Alto City Council
Pages
24
Original file
32.5 MB
Text extracted from the city's file for reading and search. Open the original on cityofpaloalto.primegov.com. That file is the official record.

CITY COUNCIL
Regular Meeting
Monday, March 04, 2024
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.

Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting.

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
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 5:45 PM)
Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 ‐ 5:50 PM) Members of the public may not speak to the item(s).

STUDY SESSION (5:50 ‐ 6:50 PM)

1. Study Session to provide early feedback about the proposed redevelopment of Buena Vista Mobile Home Park at 3980 El Camino Real.

CONSENT CALENDAR (6:50 ‐ 6:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of a Purchase Order with Mobile Modular Management Corporation in the Amount of $244,850, including $222,591 for Basic Services and $22,259 for Contingency, to Provide and Install a Modular Building at 4000 Middlefield Road to Serve as a Temporary Fire Station During Construction of the Fire Station 4 Replacement Capital Project (PE‐18004); CEQA Status ‐ Exempt under CEQA Guidelines Section 15303

3. Approval of Office of the City Auditor FY2024 Task 4 Task Orders (CEQA Status ‐ Not a Project)

4. Acceptance of the Office of the City Auditor's Quarterly Status Report for the Period of October ‐ December 2023

5. Approval of Professional Services Contract Number C24189371 with Kimley Horn and Associates in an Amount Not to Exceed $178,559 for the Quiet Zone Study Services for railroad crossings at Churchill Avenue, Meadow Drive, and Charleston Road for a term ending December 31, 2025; CEQA – not a project.

CITY MANAGER COMMENTS (6:55 ‐ 7:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 6: 7:20 ‐ 7:40 PM, Item 7: 7:40 ‐ 8:25 PM, Item 8: 8:25 ‐ 10:25 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

6. Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status ‐ not a project.

7. Public Hearing: Second Reading Planned Community Ordinances for 2901 Middlefield Road and 702 Ellsworth Place. CEQA Status – Categorically Exempt

8. Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans

ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

9. Accessory Dwelling Unit (ADU) Year End Report (Quarter 1 through 4 of CY 2023) OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee March 5, 2024 CANCELED
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 March 04, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas.

CITY COUNCIL
Regular Meeting
Monday, March 04, 2024
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.

Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting.

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
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 5:45 PM)
Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 ‐ 5:50 PM) Members of the public may not speak to the item(s).

STUDY SESSION (5:50 ‐ 6:50 PM)

1. Study Session to provide early feedback about the proposed redevelopment of Buena Vista Mobile Home Park at 3980 El Camino Real.

CONSENT CALENDAR (6:50 ‐ 6:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of a Purchase Order with Mobile Modular Management Corporation in the Amount of $244,850, including $222,591 for Basic Services and $22,259 for Contingency, to Provide and Install a Modular Building at 4000 Middlefield Road to Serve as a Temporary Fire Station During Construction of the Fire Station 4 Replacement Capital Project (PE‐18004); CEQA Status ‐ Exempt under CEQA Guidelines Section 15303

3. Approval of Office of the City Auditor FY2024 Task 4 Task Orders (CEQA Status ‐ Not a Project)

4. Acceptance of the Office of the City Auditor's Quarterly Status Report for the Period of October ‐ December 2023

5. Approval of Professional Services Contract Number C24189371 with Kimley Horn and Associates in an Amount Not to Exceed $178,559 for the Quiet Zone Study Services for railroad crossings at Churchill Avenue, Meadow Drive, and Charleston Road for a term ending December 31, 2025; CEQA – not a project.

CITY MANAGER COMMENTS (6:55 ‐ 7:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 6: 7:20 ‐ 7:40 PM, Item 7: 7:40 ‐ 8:25 PM, Item 8: 8:25 ‐ 10:25 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

6. Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status ‐ not a project.

7. Public Hearing: Second Reading Planned Community Ordinances for 2901 Middlefield Road and 702 Ellsworth Place. CEQA Status – Categorically Exempt

8. Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans

ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

9. Accessory Dwelling Unit (ADU) Year End Report (Quarter 1 through 4 of CY 2023) OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee March 5, 2024 CANCELED
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 March 04, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CITY COUNCIL
Regular Meeting
Monday, March 04, 2024
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.

Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting.

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
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 5:45 PM)
Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 ‐ 5:50 PM) Members of the public may not speak to the item(s).

STUDY SESSION (5:50 ‐ 6:50 PM)

1. Study Session to provide early feedback about the proposed redevelopment of Buena Vista Mobile Home Park at 3980 El Camino Real.

CONSENT CALENDAR (6:50 ‐ 6:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of a Purchase Order with Mobile Modular Management Corporation in the Amount of $244,850, including $222,591 for Basic Services and $22,259 for Contingency, to Provide and Install a Modular Building at 4000 Middlefield Road to Serve as a Temporary Fire Station During Construction of the Fire Station 4 Replacement Capital Project (PE‐18004); CEQA Status ‐ Exempt under CEQA Guidelines Section 15303

3. Approval of Office of the City Auditor FY2024 Task 4 Task Orders (CEQA Status ‐ Not a Project)

4. Acceptance of the Office of the City Auditor's Quarterly Status Report for the Period of October ‐ December 2023

5. Approval of Professional Services Contract Number C24189371 with Kimley Horn and Associates in an Amount Not to Exceed $178,559 for the Quiet Zone Study Services for railroad crossings at Churchill Avenue, Meadow Drive, and Charleston Road for a term ending December 31, 2025; CEQA – not a project.

CITY MANAGER COMMENTS (6:55 ‐ 7:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 6: 7:20 ‐ 7:40 PM, Item 7: 7:40 ‐ 8:25 PM, Item 8: 8:25 ‐ 10:25 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

6. Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status ‐ not a project.

7. Public Hearing: Second Reading Planned Community Ordinances for 2901 Middlefield Road and 702 Ellsworth Place. CEQA Status – Categorically Exempt

8. Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans

ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

9. Accessory Dwelling Unit (ADU) Year End Report (Quarter 1 through 4 of CY 2023) OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee March 5, 2024 CANCELED
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 March 04, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

CITY COUNCIL
Regular Meeting
Monday, March 04, 2024
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.

Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting.

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
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:30 ‐ 5:45 PM)
Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 ‐ 5:50 PM) Members of the public may not speak to the item(s).

STUDY SESSION (5:50 ‐ 6:50 PM)

1. Study Session to provide early feedback about the proposed redevelopment of Buena Vista Mobile Home Park at 3980 El Camino Real.

CONSENT CALENDAR (6:50 ‐ 6:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. Approval of a Purchase Order with Mobile Modular Management Corporation in the Amount of $244,850, including $222,591 for Basic Services and $22,259 for Contingency, to Provide and Install a Modular Building at 4000 Middlefield Road to Serve as a Temporary Fire Station During Construction of the Fire Station 4 Replacement Capital Project (PE‐18004); CEQA Status ‐ Exempt under CEQA Guidelines Section 15303

3. Approval of Office of the City Auditor FY2024 Task 4 Task Orders (CEQA Status ‐ Not a Project)

4. Acceptance of the Office of the City Auditor's Quarterly Status Report for the Period of October ‐ December 2023

5. Approval of Professional Services Contract Number C24189371 with Kimley Horn and Associates in an Amount Not to Exceed $178,559 for the Quiet Zone Study Services for railroad crossings at Churchill Avenue, Meadow Drive, and Charleston Road for a term ending December 31, 2025; CEQA – not a project.

CITY MANAGER COMMENTS (6:55 ‐ 7:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item 6: 7:20 ‐ 7:40 PM, Item 7: 7:40 ‐ 8:25 PM, Item 8: 8:25 ‐ 10:25 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

6. Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status ‐ not a project.

7. Public Hearing: Second Reading Planned Community Ordinances for 2901 Middlefield Road and 702 Ellsworth Place. CEQA Status – Categorically Exempt

8. Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans

ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

9. Accessory Dwelling Unit (ADU) Year End Report (Quarter 1 through 4 of CY 2023) OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee March 5, 2024 CANCELED
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 March 04, 2024
Materials submitted after distribution of the agenda packet are available for public inspection at
www.CityofPaloAlto.org/agendas
.

City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Planning and Development Services
Meeting Date: March 4, 2024
Report #:2402-2616
TITLE
Study Session to provide early feedback about the proposed redevelopment of Buena Vista Mobile Home Park at 3980 El Camino Real.

RECOMMENDATION
Recommend that City Council hold a study session to provide early feedback on the proposed redevelopment of Buena Vista Mobile Home Park

EXECUTIVE SUMMARY
On February 15, 2024, the Santa Clara County Housing Authority (SCCHA) submitted an application for Streamlined Housing Development review. The proposed project includes an affordable 61-unit apartment development on a portion of the subject parcel located at 3980 El Camino Real (see Attachment A, Location Map). The applicant intends to file a separate Vesting Tentative Map Application with the City to subdivide the existing lot into two parcels.

The second parcel would be redeveloped as mobile homes, which is processed through the State Department of Housing and Community Development (HCD). The total development would be 105 units; 40% of units will be provided at a rate affordable to 30% AMI, 40% of the units would be provided at a rate affordable to 50% AMI and the remaining 20% would be provided at a rate affordable to 80% AMI.

Although a prescreening is not required for this type of application, due to the City’s $14.5 million investment in funds toward the purchase of this property for its redevelopment, and as a party to a regulatory agreement assuring its permanent affordability (see Attachment B, Existing Regulatory Agreement), it is in the City’s interest to provide early feedback. The regulatory agreement will need to be reopened and revised to, at minimum, accommodate the inclusion of an apartment building. Staff intends to return to Council for authorization to amend the Development Agreement. Additionally, as part of the Vesting Tentative Map process, the project will ultimately be brought forward to Council for a final decision on the subdivision map.

This study session provides an opportunity for early feedback from Council on the proposed project and associated actions.

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BACKGROUND
In June 2016, Council approved a Memorandum of Understanding (MOU) Between the SCCHA, the County of Santa Clara, and the City of Palo Alto to provide up to $14.5 million in City affordable housing funds in support of the Housing Authority’s potential acquisition of the Buena Vista Mobile Home Park for deed restricted affordable housing. The SCCHA purchased the park in 2017 with the support of these funds.

After an assessment of the park’s conditions, it was found that the park contained an array of hazards such as: failing utilities, many coaches near their end-of-life with structural and health issues, and lack of code-compliance. With the purchase, SCCHA agreed with the City and County to improve and protect the park as affordable housing through a tri-party regulatory agreement which focused on maintaining affordable housing, enhancing the habitability of the property, avoiding resident displacement, and investing in rehabilitation and improvements. The tri-party agreement includes an improvements timeline and some expected outcomes. Since the onset of the agreement, the Housing Authority has:
• Relocated Park residents as needed (e.g., to new mobile homes), • Removed trash and abandoned cars,
• Conducted necessary home repairs,
• Installed new utilities,
• Replaced aged sewer and water lines,
• Replaced paving,
• Demolished abandoned coaches (i.e., mobile homes),
• Capped unused utilities for safety,
• Provided spaces for services and an afterschool program, and • Worked to bring the Park into compliance with various laws.

Council held a study session on February 13, 2023 in which SCHAA provided an update on these ongoing efforts at the site.1
Project Description
On February 15, 2024, the SCCHA submitted a formal application for Streamlined Housing Development review for a 61-unit apartment development on a portion of the site. Attachment C shows the project plans for this development. The SCCHA intends to submit a subsequent application for a Vesting Tentative Map to subdivide the existing parcel into two parcels and to redevelop one of the parcels with a 61-unit apartment complex and the other parcel with a 44- unit mobile home development. This subdivision accommodates the addition of an apartment 1 Study Session Staff Report:
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building to the site. Under the existing Regulatory Agreement, the property must maintain, at minimum, 100 affordable units. However, the existing spacing of mobile homes does not meet current state rules regarding spacing and setbacks. The introduction of an apartment building allows the property to both maintain the minimum number of affordable units, while allowing enough space for the retention of 44 mobile homes. The map would also include a condominium subdivision of the mobile home parcel. The project would be processed and streamlined in accordance with Senate Bill 330 (the Housing Crisis Act) and Assembly Bill 1763 (State Density Bonus Law).

DISCUSSION
Staff from all relevant departments will review the Streamlined Housing Development Review application for consistency with the municipal code and all other relevant state and federal regulations. As detailed in the executive summary, this site is unique in that the proposed Vesting Tentative Map and entitlement for the apartment complex will be processed through the City, but the mobile home redevelopment will be processed through HCD. Because this project involves federal programs, it must be evaluated under both the California Environmental Quality Act (CEQA) and the National Environmental Protection Act (NEPA).

Under CEQA and NEPA, the project must be considered as a whole, so the City will serve as the lead agency for CEQA, and the Responsible Entity for NEPA for all aspects of the project (including the mobile homes).

Surrounding Uses
Adjacent uses and zoning include single family residential uses within the R-1 Zone District to the north, retail and eating and drinking services within the RM-20 zone district to the west along El Camino Real, Los Robles Avenue and a PC Zone District with residential uses to the south, and a multi-family residential use within the RM-30 Zone District the east.

Comprehensive Plan
The project site has a multi-family land use designation. The Land Use and Community Design Element of the Comprehensive Plan states for this land use that:
“The permitted number of housing units will vary by area, depending on existing land use, proximity to major streets and public transit, distance to shopping and environmental problems. Net densities will range from 8 to 40 units and 8 to 90 persons per acre. Density should be on the lower end of the scale next to single-family residential areas. Densities higher than what is permitted may be allowed where measurable community benefits will be derived, services and facilities are available, and the net effect will be consistent with the Comprehensive Plan. Population densities will range up to 2.25 persons per unit by 2030.”
The density of the proposed 61-unit development would be 60 dwelling units per acre based on the proposed parcel boundaries in accordance with the planned subdivision map. However, staff notes that overall, the development of the two parcels would equate to a density of 23 Item 1
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dwelling units per acre if both the mobile home development and apartment complex are considered.

Zoning Compliance
Staff has not yet completed a formal review of the proposed plans for consistency with the RM- 20 Zone District development standards. However, SCCHA has indicated its intent to request waivers and concessions from the following development standards:

Concession 1: Height of 36 feet where 30 feet is allowed Concession 2: Parking, 70 spaces where 78 would otherwise be required Waiver 1: Floor Area Ratio of .89:1 where .5:1 is allowed Waiver 2: Private Open Space-No private open space provided where 50 sf per unit is required Waiver 3: Site Open Space of 34.1% where 35% is required Regulatory Agreement
There is an existing tri-party Regulatory Agreement recorded on the property from 2017. For consistency with the redevelopment plans, the Regulatory Agreement will need to be amended. The Housing Authority has expressed its commitment to delivering the same number of required housing units at the same affordability levels in the new agreements. City staff and Housing Authority staff will discuss the amendments and anticipate returning to Council for approval to draft and execute an agreement based on the revised terms approval.

FISCAL/RESOURCE IMPACT
In June 2016 Council authorized the expenditure of $14.5 million in City affordable housing funds to support the Housing Authority’s potential acquisition of the Buena Vista Mobile Home Park for deed restricted affordable housing. The money was utilized to acquire the site in 2017.

The redeveloped Buena Vista Community will have two separate development budgets: one for the mobile home park and one for the proposed apartments. With the State's award of nearly $25 million in Manufactured Housing Opportunity and Revitalization funds, the mobile home park is fully funded. The Housing Authority is continuing to work on the financing plan and funding applications for the apartment building. Most immediately, the Housing Authority intends to apply to the State for funding under the Multifamily Finance Super NOFA (notice of funding availability). The application dates have not been released, but in previous funding rounds, the application is typically available in late May/early June and due in early July. The Housing Authority intends to apply for approximately $10 million in State funding. If the application is successful, the Housing Authority would next apply for tax credits. If the application is not successful, the Housing Authority will work to identify an alternative financing source prior to applying for tax credits.

No additional funding is requested from the City at this time. The formal application is a cost recovery project and the SCCHA has paid the required deposit fee in accordance with the municipal fee schedule for processing of this application.

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STAKEHOLDER ENGAGEMENT
Van Meter Williams Pollack (VMWP) on behalf of the Santa Clara County Housing Authority (SCCHA) began the community engagement process in early 2019 but was disrupted by the COVID pandemic. In the Fall of 2022, Santa Clara County Housing Authority (SCCHA), Van Meter Williams Pollack (VMWP), and Associated Right of Way Services, Inc. (AR/WS) worked with Engage FORA to resume the community engagement process for the redevelopment of the Buena Vista Mobile Home Park (BVMHP). The engagement process included:
•4 interactive workshops •resident advisor 1-on-1s
•3 property tours •monthly newsletters
•on-site tours of a new coach •frequent FAQs
•3 resident education sessions •website updates
•3 community-building events •
The Buena Vista residents value their community and want to preserve its affordability. From a development perspective, resident priorities included the questions of timeline, process, choices for their future homes, renter versus owner options, and costs associated. However, input from residents also influenced several aspects of the design, including:
•Colors, material, and architectural style
•Massing and orientation of the apartment building
•The size of the new mobile homes
Residents also stressed the importance of amenities like play areas, a place for a homework club with computers, indoor and outdoor community gathering and event spaces, a dog run, and garden beds.

ENVIRONMENTAL REVIEW
The City will serve as the lead agency in accordance with the California Environmental Quality Act. The project is anticipated to be exempt from the provisions of CEQA in accordance with CEQA Guidelines Section 15332 (infill exemption). The CEQA analysis will assess the whole of the action, including the subdivision and the 44-unit mobile home development. The County Housing Authority is also seeking federal funding from Housing and Urban Development (HUD); therefore, HUD will serve as the lead agency for NEPA. The City will serve as the responsible entity preparing the Environmental Analysis in accordance with federal regulations.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Existing Regulatory Agreement
Attachment C: Project Plans
APPROVED BY:

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

Item 1: Staff Report
Pg.
5 Packet Pg. 9 of 198

10 9 8 7 6 5 4 3 2 1CottagesShop11511410782838414851131121111101091081061051041036365524635453644371920222310868792425821 22Cottages89726529131302347778798081615759Office &_Home The Nest Hotel
54645351343818131221118823Cottage27628Laundry &_Restrooms4042395662102101 Glass Slipper Hotel3248706867667372716949Comfort_Inn75
Goodwill_Industries
Palo Alto _Commons
74766050585543413347
B2
B1
B3
B4
161715

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208.8'150.0'70.0'178.0'50.0'178.0'178.0'100.0'60.0'100.0'60.0'50.0'120.0'50.0'120.0'120.0'50.0'120.0'50.0'120.0'50.0'120.0'50.0'120.0'50.0'120.0'50.0'30.9'109.3'52.5'89.2'31.4'32.4'113.9'50.0'109.3'50.3'119.5'50.0'113.9'6.0'44.4'119.6'52.1'119.5'52.1'119.7'119.6'50.0'119.7'50.0'120.0'52.1'120.0'52.1'1.6'1.3'30.7'26.8'100.0'60.0'105.0'105.0'19.1'165.6'55.7'284.1'284.1'169.2'284.1'169.2'194.1'37.2'110.0'162.1'15.7'130.0' 57.7'99.9'231.2'100.3'209.9'165.6'19.1'135.0'115.0'125.0'15.7'105.0' 120.0'55.0'55.0' 31.5'120.0'50.0'120.0'50.0'120.0'50.0'120.0'50.0'100.0'31.4'30.9'120.0'50.9'203.0'51.8'203.0'203.0'51.8'203.0'203.0'51.8'203.0' 220.0'269.1'220.4'268.9' 142.6'162.6'177.4'19.6'18.8'145.9'67.8'34.8'67.9'34.9'67.7'22.8'67.8'22.8'22.8'67.7'22.8'67.7'22.7'67.6'22.8'67.6'67.6'34.8'67.5'34.8'67.6'22.8'67.7'22.8'70.3'31.1'57.3'20.4'18.1'22.7'70.3'22.8'70.3'22.8'70.3'22.8'70.3'22.8'70.3'22.8'70.4'22.8'82.9'24.7'92.9'24.7'92.9'22.8'102.9'13.9'102.9'21.8'3.1'16.0'26.7'99.0'117.2'3.1'16.0'26.7'43.6'255.8'21.0'9.5'14.3'6.4'16.6'.8'15.7'15.7'17.2'1.7'11.0'3.8'16.3'20.5'2.2'6.5'5.6'1.3'133.0'20.4'57.3'20.0'160.7'20.0'57.4'20.4'145.8'4.0'2.2'8.1'61.9'16.7'40.9'69.5'22.7'70.4'22.8'70.4'5.6'1.3'23.9'70.4'26.5'31.6'4.2'31.9'31.6'62.2'9.5'14.3'6.4'16.6'73.7'4.2'31.9'73.7'.8'15.7'15.7'17.2'1.7'11.1'3.8'16.3'20.5'2.2'6.5'27.1'70.4'14.1'20.4'57.4'22.7'70.4'22.7'70.4'22.7'70.4'22.8'70.4'22.7'70.4'22.7'70.4'22.8'70.4'22.7'70.4'22.7'70.4'22.8'70.4'27.1'70.4'18.0'4.0'2.2'8.1'61.9'29.4'69.5'27.1'81.4'22.7'81.4'11.5'7.9'9.9'82.9'107.1'30.3'45.0'8.5'37.0'10.0'5.0'64.0'48.0'8.0'69.0'38.7'12.6'81.2'85.8'74.0'74.0'100.0'100.0'100.0'100.0'64.0'64.0'64.6'64.6'75.5'138.0'173.6'116.0'116.0'35.5'10.0'151.0'72.6'49.2'49.2'138.0'138.0'138.0'91.8'91.8'45.8'48.0'50.2'72.5' 113.4'113.4'113.4'113.4'113.4'56.5'56.5'61.5'62.0'62.0'42.1'18.2'113.2'90.0'54.4'113.8'61.0'113.2'61.5'61.5'113.0'113.0'113.0'113.0'113.0'113.0'60.0'60.0'61.5'61.5' 245.0'245.0'90.0'90.0'57.2'52.0'11.0'35.5'24.0'20.7'7.9'48.6'48.6'7.9'20.7'31.6'20.5'8.0'8.0'53.2'53.2'20.5'31.2'20.0'20.0'9.1'9.1'58.0'58.0'31.5'31.4'31.0'20.3'20.3'8.4'8.4'59.7'59.7'31.8'31.2'30.9'31.9'21.3'21.3'21.0'21.0'75.3'7.8'7.8'9.8'9.8'55.6'55.6'47.1'47.1'30.9'26.5'16.1'16.7'4.8'117.2'30.0'39.3'92.2'81.8'89.0'89.0'89.0'81.8'36.5'53.7'53.7'42.4'30.8'30.4'24.4'24.4'6.8'6.8'54.0'54.0'31.2'

5.6'

5.6'

26.0'26.0'54.9'54.9'87.5'54.5'54.5'27.9'32.8'31.1'32.5'24.8'24.8'24.0'24.0'

7.2'7.2'

6.8'

6.8'

18.8'11.4'5.2'45.0'8.5'8.0'54.4'10.0'11.9'68.9'49.2'47.7'119.2'107.1'19.0'124.7'57.4'57.4'57.4'57.4'52.0'52.0'116.8'116.8'63.9'117.0'126.2'49.7'20.0'49.0'33.0'7.6'31.0'52.9'78.3'61.4'36.2'76.3'76.3'28.8'28.8'23.0'23.0'77.0'128.0'18.2'52.9'31.0'142.4'51.1'23.8'23.8'87.9'87.9'94.3'94.3'33.0'169.0' 106.0'135.0'106.0'67.5'67.5'67.5'67.5'106.0'106.0'106.0'106.0'75.0'75.5'119.0'119.0'110.5'240.0'184.0'126.0'42.6'76.6'52.5' 100.5'155.0'100.3'388.0'392.6'392.6'100.5'100.0'128.0'24.5'357.0'179.5'29.8'179.3'519.6'74.2' 59.60.8326.1

47.3'47.3'2.2'2.2'60.0'135.0'60.0'135.0'60.0'135.0'60.0'135.0' 130.0'208.9'82.6'108.7'60.7'50.35'48.9'21.5'221.7'581.2'581.3'338.9'338.6'3948701730736709399438913925386038683874386238703895 384950851051252038473837
4032402070340526896776726844021403339894050412141684134410240854060407140616184121413340104012401440164022402640424015401140074008400557040105744009397567839596303898389539724020598 3945
402540234021575573569404154841714113411140734065405940854060407240544040407539393929387038763878388639413943443 393383420449-465483487456 55055255459459656858051051451852653053453854254655055455856256141094102 390139803990 502506
399938013824 399839113933
404440254054060
491
3967 522
3864
7403935388538813879387558157156355354338803850386637903804 716709708717725399868569340654070407541456174161402366365963740514041403540295784017401840433960394439243924B38873890388838863884388238783880389938913889 5674054406240804094409140754061405540314040405039814604784037404541154020403038903892389438983916388339033885387751338973839 3633433233803603403203003103996390303 522502
410430470473480407417427437457450475477
55655856056256456657057257457657858258458658859059255755354954554153753352952552141014105411741214125412641104113412241184114 542
57741064100
38963872 40624068504506508510512514516524526528

MACLANEWILKIE WAYEL CAMINO WAYEL CAMINO REAL

VENTURA AVENUEEL CAMINO REALEL CAMINO REALEL CAMINO REALLA SELVA DRIVEMAGNOLIA DRIVE SOUTHVILLA VERAVILLA REAL (PRIVATE)VILLA VISTA (PRIVATE)LOS ROBLES AVENUELA DONNA AVENUECAMPANA DRIVEENCINA GRANDE DRIVEVERDOSA DRIVEVISTA AVENUEWISTERIA LANEVILLA VISTA (PRIVATE)DRISCOLL PLACECAMPANA DRIVEVERDOSA DRIVE

CYPRESS LANE JACOBS COURT (PRIVATE)A DRIVEEL CAMINO REALEL CAMINO REALEL CAMINO REAL RM-20
CS
PF
RM-30
RM-20
RM-20
RM-30
PC-2930
RM-30
PC-5116
PC-4511
CommunityCenter
Tennis Court

KEYS SCHOOL MIDDLE CAMPUS
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Project Site
0' 219'
Attachment A:Location Map

CITY OF PALO ALTOINCORPORATEDCALIFORNIA
P a l o A l t o
T h e C i t y o f
APRIL 16 1894
The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto chodgki, 2024-02-20 08:18:49
(\\cc-maps\Encompass\Admin\Personal\Planning.mdb)
Item 1
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Regulatory Agreement

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

Directions to review Project plans online

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “3980 El Camino Real” and click the address link

3. On this project specific webpage you will find a link to the project plans and other important information
Direct Link to Project Webpage
3980 El Camino Real – City of Palo Alto, CA
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: March 4, 2024
Report #:2311-2277
TITLE
Approval of a Purchase Order with Mobile Modular Management Corporation in the Amount of $244,850, including $222,591 for Basic Services and $22,259 for Contingency, to Provide and Install a Modular Building at 4000 Middlefield Road to Serve as a Temporary Fire Station During Construction of the Fire Station 4 Replacement Capital Project (PE-18004); CEQA Status - Exempt under CEQA Guidelines Section 15303

RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute a Purchase Order with Mobile Modular Management Corporation to procure a modular building under a two-year agreement to be used as a temporary Fire Station No. 4, to be located at the Cubberley Community Center, 4000 Middlefield Road, for an amount not to exceed $244,850, including $222,591 for basic services and $22,259 for contingency, for the Fire Station No. 4 Replacement Project (PE-18004).

EXECUTIVE SUMMARY
The Fire Station No. 4 Replacement Project is part of the 2014 Council Infrastructure Plan. A modular temporary fire station is needed for approximately 24 months while the new fire station is constructed. The temporary Fire Station No. 4 is needed to accommodate the station’s two on-duty personnel, one ambulance, and the essential equipment for its operations. Staff analyzed three potential sites and determined the temporary relocation of Fire Station No. 4 to the Cubberley Community Center Parking Lot, 0.4 miles south of its current location, ensures effective emergency response within its district. The site features a two-way traffic driveway and an additional (last resort) fire access gate on Nelson Drive, providing redundancy for emergency access. This site selection maintains the department’s response standards during the construction of the new Fire Station No. 4. Staff proposes using a Sourcewell Cooperative Contract to procure a 24-month lease for a modular building to be used as the temporary Fire Station 4 facility.

BACKGROUND
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In June 2014, City Council approved the 2014 Council Infrastructure Plan, which included the replacement of Fire Station No. 4, located at 3600 Middlefield Road, with a new station that will serve the immediate and future needs of the Fire Department.

In May 2022, the City contracted with Brown Reynolds Watford Architects (BRW) to provide Architectural Design Services for the Fire Station No. 4 Replacement.1 BRW started design in June 2022 and is expected to finalize construction documents and obtain building permit approvals by Spring 2024.

During the construction of the new Fire Station No. 4, the station must be relocated to an interim facility to ensure continued emergency response to the neighborhood served by Fire Station No. 4.

ANALYSIS
To meet the construction timeline for the new Fire Station No.4, expedited measures were necessary to locate a feasible interim fire station site that would ensure continued fire, rescue, and emergency medical services to the district served by Fire Station No 4.

The temporary site will provide living/office quarters, a carport for an ambulance (Medic 64), and an equipment structure. Infrastructure will also need to be present for various service hookups such as electric, water, sanitary, and communication linkages.

To maintain emergency response times within Fire Station No. 4’s district, staff evaluated three potential options for an interim station that were within the Fire Station No. 4 boundary district. See Attachment A.
•Nearby Hotels
•Mitchell Park Library Parking Lot
•Cubberley Community Center Parking Lot
The sites were evaluated on the following elements: parcel size, community impact, and station operations. An analysis of these three sites is discussed below.

1. Nearby Hotels
The hotel option, while initially considered for its ready living quarters, presented significant logistical challenges for fire department operations. It lacked adequate storage for essential items like extra medical supplies, turnout gear, and other equipment, which need to be securely stored near Medic 64. Additionally, the absence of a nearby charging station for critical equipment such as gurneys, radios, and heart monitors was a major drawback. Moreover, the hotel structure could hinder quick access to the ambulance, which is crucial for maintaining turnout time goals. The potential of navigating through stairs, elevators, and hotel lobbies in emergency 1 City Council, May 23,2022; Agenda Item #2; SR #11691, https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/cip-contracts/id.-11691- approval-of-fire-station-no.-4-design-contract.pdf
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situations would add unnecessary delays. Given these factors, along with the limited space for apparatus and the lengthy negotiation process with hotel providers, the hotel option was deemed less favorable for maintaining efficient and effective fire and emergency services.

2. Mitchell Park Library Parking Lot
Located 0.2 miles from Fire Station No. 4, the Mitchell Park Library is a populated site and facility. The site includes a library, café, tennis courts, and other outside areas such as the Magical Bridge Playground which is heavily frequented by the surrounding community. While this location would have minimal effects on the Fire Department operations due to its proximity to the existing station, the interim site would displace an estimated 30 parking stalls to accommodate a modular trailer and apparatus structure.

The effects would greatly impact the library’s circulation, add to an already congested site, and displace occupant vehicles to street parking.

3. Cubberley Community Center
The Cubberley Community Center, located 0.4 miles southeast of Fire Station No. 4, emerged as the optimal choice for the interim site, see Attachment B. This location enables the Fire Department to maintain its ambulance (Medic 64) within its response district, with minimal disruption to community emergency service. The Fire Department would have access to two exit routes, if necessary, to help mitigate impacts to response times. The recommended site for the temporary station within the Center's southwest parking lot was carefully selected to minimize impact on Cubberley staff and guests while still accommodating the Fire Department operational needs. Multiple parking lots are available throughout the site to accommodate the displaced parking spaces and the proposed temporary location would maintain community access and circulation to the existing buildings. Additionally, on-site utilities are available for connection.

After multiple interdepartmental meetings were held to discuss the potential impact of the three temporary site locations listed above, the Mitchell Park Library and Hotel options were eliminated. The Cubberley Community Center site was determined to have the smallest impact on the community, be large enough to accommodate a modular trailer, department vehicle, and equipment and, importantly, to meet the fire response area requirements. The interim site will have one ambulance and will be used exclusively to respond to medical calls. Consistent with current practice at Fire Station No. 4, the ambulance will leave the station site with lights on only for awareness, and the siren will then be turned on once the ambulance turns onto Middlefield Road. Public outreach was performed in the neighborhood adjacent to the project site, along Nelson Drive and Middlefield Road. Residences were notified door to door by City staff and informational flyer about the proposed temporary Fire Station No. 4, the potential impacts during construction, and Fire Department operations.

Staff recommends authorization to contract with Mobile Modular Management Corporation (Mobile Modular), to lease, for a 24-month period, a double wide modular trailer to be used as the fire personnel’s living quarters and station operations. Mobile Modular, previously known Item 2
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as Design Space Modular, has a reputable standing with the City, as their services were previously used to purchase a triple wide modular office building for the Palo Alto Animal Shelter in 2019.

Per Palo Alto Municipal code 2.30.360(j), the City can take advantage of cooperative purchasing agreements provided: (i) the services are solicited using methods substantially similar to those required under the Municipal Code, as determined by the Procurement Officer; and (ii) the contract is consistent with the requirements under the Municipal Code. Sourcewell offers cooperative procurement solutions to government entities to provide equipment, product, or services that access Sourcewell’s cooperative purchasing contracts. The cooperative purchasing agreement contracts were competitively solicited and publicly awarded through the cooperating purchasing organizations and the contracts are consistent with the requirements of the Municipal Code. Cooperative purchasing programs allow government organizations to use a single solicitation with the best value and favorable terms and conditions.

The Mobile Modular cooperative purchasing lease agreement (Attachment C) includes equipment and accessories, delivery, installation, and removal of the 24x60 (1,440 sq. ft) modular trailer. The trailer will be modified to meet fire-life-safety requirements and have an electrical system that meets the Fire Department’s needs. The temporary building will be furnished with three sleeping quarters, an office, two accessible restrooms, kitchen, an open living area, and accessible ramp and stairs. The agreement will be for a 24-month lease period, during which time the new Fire Station No. 4 will be constructed. Council approval would include a 10% contingency on the agreement amount, recommended for minor changes, additions, and/or unforeseen conditions that could prevent delays in the fabrication, delivery, and installation of the modular building. Fabrication of the temporary facility would have a lead time of 2 months, and a delivery/installation timeline of 3 weeks.

Project Timeline
The construction of the new Fire Station No. 4 is scheduled to begin in the fall of 2024. Site design and preparations for the interim facility at the Cubberley Community Center are underway in order to receive the modular building by May 2024 and complete construction of the temporary station in summer 2024. Staff will return to Council for approval of a construction contract for the infrastructure connections at the interim site in spring 2024. The approval of the lease agreement with Mobile Modular would start the fabrication period and secure a delivery date of May 2024 to the interim site, providing sufficient time to complete construction, move-in fire personnel, and test the Fire Department operations.

Table #1 Mobile Modular Lease Cost Breakdown
Monthly Rent $2,029.38 @ 24months $48,705
Drawings, Modifications, Installation and Delivery $156,344 Return, Cleaning and Removal $17,542
Subtotal $222,591
10% Contingency $22,259
Total $244,850
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FISCAL/RESOURCE IMPACT
Funding for this contract is available in the Fiscal Year 2024 Capital Improvement Program Fire Station No. 4 Replacement project (PE-18004).

STAKEHOLDER ENGAGEMENT
Public Works has coordinated the temporary Fire Station No. 4 with key staff from departments whose operations will be dependent on and affected by the temporary facility.

ENVIRONMENTAL REVIEW
This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15303 of the CEQA Guidelines as a new, small facility.

ATTACHMENTS
Attachment A: Temporary Fire Station 4 Site Location Options Attachment B: Temporary Fire Station 4 Cubberley Community Center Attachment C: Purchase Order and Mobile Modular Agreement APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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411
412
416
418
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418
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120
130
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4074
3704
3706
3708
3710
3712
3712
3722
3724
3726
3728
3730
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564
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1105
1107
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1113
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1114
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3765 3767
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3760 3762
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292
300
429
447
863A
160A
3130A
3309A
3852A
836A
Bldg A
Bldg B
4224A
4123
4103
4121
4168
4178
4188
900
3721
995
3350
3735
3194
647B
3389A
725A
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528A
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758A
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933
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392
390
386
387
389
384
382
380
378
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439A
1560
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536
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2323A
2262
2264
2266
2268
137
139
146-152
239
241
243
1951A
335A
404
534A
295A
295B
305A
305B
220A
978A
2290A
877A
893A
948A
984A
570A
333A
1540A
710A
698A
375
916A
916B
1241A
883A
32A
2470A
2931A
575A
742A
1690A
1176A
4208A
720A
3100
3641A
3851A
1905A
419A
916
3180
3200
4049A
3337A
541A
843A
719A
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156A
780A
3181A
1998A
650A
431A
2491A
1465A
1219A
2742A
950A
965A
3421A
869A
580A
138A
4247A
686A
420
230A
801
644A
3560A
1969A
182A
4366A
2743A
230A
4328
2712A
746A
67A
471A
2046A
259A
259B
795A
1656A
1505A
290A
4133A
150A
1118A
173A
985A
3202A
1071A
4161A
This map is a product of
the City of Palo Alto GIS
This document is a graphic representation only of best available sources.

T h e C i t y o f

COMPREHENS I VE P LAN
1 9 9 8 2 0 1 0
Map
Palo Alto
0' 2124'
Temporary Firestation No.4
Location Options
The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto bmedved, 2023-09-18 13:26:12
(\\cc-maps\Encompass\Admin\Meta\View.mdb)
Item 2
Attachment A -
Temporary Fire Station 4
Site Location Options

Item 2: Staff Report
Pg.
6 Packet Pg. 41 of 198

Nelson Dr.

Item 2
Attachment B - Temporary Fire
Station 4 Cubberley

Item 2: Staff Report
Pg.
7 Packet Pg. 42 of 198

This City of Palo Alto (City) Purchase Order agreement (PO) Mobile Modular is made pursuant and subject to Sourcewell Contract No. 120822.

This PO is governed by California law without regard to conflict of law principles. The venue for any dispute under this PO is Santa Clara County, California.

Palo Alto City Council Staff Report No. 2311-2277 dated 2/5/24 0010 Monthly Lease Payments for 24 mnths 48,705 USD 1.00 48,705.12 0020 Modfctns,Accessrs, Delv & Intall 156,344 USD 1.00 156,344.13 0030 Return 17,542 USD 1.00 17,542.00
0040 10% Standard Contingency 22,259 USD 1.00 22,259.00 -------------------------
Sub-Total 244,850.25
*** ORDERING VIA EMAIL ***
**** PRICE HAS BEEN QUOTED ****
Vendor Address

MOBILE MODULAR MANAGEMENT CORP

MCGRATH RENTCORP AND SUBSIDARIES
5700 LAS POSITAS RD
LIVERMORE CA 94551
Tel: 800-944-3442 Fax: 925-453-3201
Bill To:

City of Palo Alto
Account Payable
P.O.Box 10250
Palo Alto, CA 94303
Ship To:

Public Works Engineering
City of Palo Alto
250 Hamilton Ave., 6th Floor
Palo Alto CA 94301
Item Material/Description Quantity UM Net Price Net Amount ______________________________________
Interim Chief Procurement Officer
THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.

DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment.

INVOICE - A separate invoice is required for each order. Send to address indicated above.

City of Palo Alto
Purchasing and Contract Administration
P.O.Box 10250
Palo Alto CA 94303
Tel:(650)329-2271 Fax:(650)329-2468
Service Order
P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING

PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER
PO Number S24189920
Date 01/22/2024
Vendor No. 102127
Payment Terms Payable immediately
FOB Point Services Only
Ship via Vendor to ship best method
Term 03/15/2024 - 03/14/2026
Buyer/Phone Saira Cardoza / 650-329-2327
Email [email protected]
DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER

ARRANGEMENTS ARE INDICATED HEREIN

Page 1 of 2 ends

Item 2
Attachment C - Purchase
Order and Mobile
Modular Agreement

Item 2: Staff Report
Pg.
8 Packet Pg. 43 of 198

Vendor Address

MOBILE MODULAR MANAGEMENT CORP

MCGRATH RENTCORP AND SUBSIDARIES
5700 LAS POSITAS RD
LIVERMORE CA 94551
Tel: 800-944-3442 Fax: 925-453-3201
Bill To:

City of Palo Alto
Account Payable
P.O.Box 10250
Palo Alto, CA 94303
Ship To:

Public Works Engineering
City of Palo Alto
250 Hamilton Ave., 6th Floor
Palo Alto CA 94301
Item Material/Description Quantity UM Net Price Net Amount ______________________________________
Interim Chief Procurement Officer
Total 244,850.25
THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.

DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment.

INVOICE - A separate invoice is required for each order. Send to address indicated above.

City of Palo Alto
Purchasing and Contract Administration
P.O.Box 10250
Palo Alto CA 94303
Tel:(650)329-2271 Fax:(650)329-2468
Service Order
P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING

PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER
PO Number S24189920
Date 01/22/2024
Vendor No. 102127
Payment Terms Payable immediately
FOB Point Services Only
Ship via Vendor to ship best method
Term 03/15/2024 - 03/14/2026
Buyer/Phone Saira Cardoza / 650-329-2327
Email [email protected]
DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER

ARRANGEMENTS ARE INDICATED HEREIN

Page 2 of 2 ends

Item 2
Attachment C - Purchase
Order and Mobile
Modular Agreement

Item 2: Staff Report
Pg.
9 Packet Pg. 44 of 198

PURCHASE ORDER TERMS AND CONDITIONS

CITY OF PALO ALTO Page 1 of 3
SVS Rev. 04/14/2021
AGREEMENT. THIS AGREEMENT CONSISTS OF THE FOLLOWING AGREEMENT DOCUMENTS: (i) THE CITY’S P.O., (ii) THESE P.O. TERMS AND CONDITIONS, AND (iii) ANY EXHIBITS REFERENCED IN AND ATTACHED TO THE CITY’S P.O. IN THE EVENT

OF AN INCONSISTENCY BETWEEN OR AMONG THE PROVISIONS OF THIS

AGREEMENT, THE AGREEMENT DOCUMENTS SHALL HAVE THE ORDER OF PRECEDENCE AS SET FORTH IN THE PRECEDING SENTENCE.

GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICT OF LAW PRO VISIONS.

VENUE FOR ANY DISPUTE SHALL BE IN SANTA CLARA COUNTY, CALIFORNIA. THE

PARTIES SHALL COMPLY WITH ALL APPLICABLE LAWS AND REGULATIONS IN THE PERFORMANCE OF THIS AGREEMENT.

INDEPENDENT CONTRACTOR. THE PARTIES UNDERSTAND AND AGREE THAT IN

PERFORMING THIS AGREEMENT, CONTRACTOR AND ANY PERSON EMPLOYED OR

CONTRACTED WITH BY CONTRACTOR TO FURNISH LABOR AND/OR MATERIALS

UNDER THIS AGREEMENT, SHALL ACT AS AND BE AN INDEPENDENT CONTRACTOR AND NOT AN AGENT OR EMPLOYEE OF CITY . IN ACCEPTING THIS AGREEMENT,

CONTRACTOR AFFIRMS THAT NO ONE WHO HAS OR WILL HAVE ANY FINANCIAL INTEREST UNDER THIS AGREEMENT IS AN OFFICER OR EMPLOYEE OF CITY.

INSURANCE. CONTRACTOR AGREES TO PROVIDE THE INSURANCE SPECIFIED IN THE “INSURANCE REQUIREMENTS” FORM ISSUED HEREWITH. I N THE EVENT

CONTRACTOR IS UNABLE TO SECURE A POLICY ENDORSEMENT NAMING THE CITY

OF PALO ALTO AS AN ADDITIONAL INSURED UNDER ANY COMPREHENSIVE

GENERAL LIABILITY OR COMPREHENSIVE AUTOMOBILE POLICY OR POLICIES ,

CONTRACTOR SHALL AT A MINIMUM, AND ONLY WITH THE WRITTEN APPROVAL OF CITY’S RISK MANAGER OR DESIGNEE, CAUSE EACH SUCH INSURANCE POLICY

OBTAINED BY IT TO CONTAIN AN ENDORSEMENT PROVIDING THAT THE INSURER

WAIVES ALL RIGHT OF RECOVERY BY WAY OF SUBROGATION AGAINST CITY, ITS

OFFICERS, AGENTS, AND EMPLOYEES IN CONNECTION WITH ANY DAMAGE, CLAIM,

LIABILITY PERSONAL INJURY, OR WRONGFUL DEATH COVERED BY ANY SUCH POLICY. CONTRACTOR SHALL PROVIDE THIRTY (30) DAYS WRITTEN NOTICE TO

CITY BEFORE ANY CANCELLATION OR CHANGE IN THE REQUIRED COVERAGE, SCOPE OR AMOUNT OF ANY SUCH POLICY/POLICIES/ENDORSEMENT(S).

CONTRACTOR SHALL PROVIDE CERTIFICATES OF SUCH POLICIES OR OTHER EVIDENCE OF COVERAGE SATISFACTORY TO CITY’S RISK MANAGER, TO CITY AT THE

COMMENCEMENT OF THIS AGREEMENT, AND ON RENEWAL OF THE POLICY, OR POLICIES, NOT LATER THAN TWENTY (20) DAYS BEFORE EXPIRATION OF THE TERMS OF ANY SUCH POLICY.

TERMINATION. THIS AGREEMENT MAY BE TERMINATED BY CITY UPON TEN (10) DAYS WRITTEN NOTICE TO CONTRACTOR. MONIES THEN OWING BASED UPON WORK SATISFACTORILY ACCOMPLISHED SHALL BE PAID TO CONTRACTOR.

CHANGES. THIS AGREEMENT SHALL NOT BE ASSIGNED OR TRANSFERRED WITHOUT THE WRITTEN CONSENT OF THE CITY. NO CHANGES OR VARIATIONS TO

THIS AGREEMENT OF ANY KIND ARE AUTHORIZED WITHOUT THE WRITTEN CONSENT OF THE CITY’S PURCHASING MANAGER.

AUDITS. CONTRACTOR AGREES TO PERMIT CITY TO AUDIT, AT ANY REASONABLE TIME DURING THE TERM OF THIS AGREEMENT AND FOR THREE (3) YEARS THEREAFTER, CONTRACTOR’S RECORDS PERTAINING TO MATTERS COVERED BY THIS AGREEMENT. CONTRACTOR FURTHER AGREES TO MAINTAIN SUCH RECORDS FOR AT LEAST THREE (3) YEARS AFTER THE TERM OF THIS AGREEMENT.

NO IMPLIED WAIVER. NO PAYMENT, PARTIAL PAYMENT, ACCEPTANCE, OR

PARTIAL ACCEPTANCE BY CITY SHALL OPERATE AS A WAIVER ON THE PART OF CITY OF ANY OF ITS RIGHTS UNDER THIS AGREEMENT.

CITY’S PROPERTY. TITLE TO CITY’S PROPERTY FURNISHED TO CONTRACTOR SHALL REMAIN IN THE CITY. CONTRACTOR SHALL NOT ALTER OR USE PROPERTY FOR ANY

PURPOSE, OTHER THAN THAT SPECIFIED BY CITY, OR FOR ANY OTHER PARTY WITHOUT THE PRIOR WRITTEN CONSENT OF CITY. CONTRACTOR SHALL STORE,

PROTECT, PRESERVE, REPAIR AND MAINTAIN SUCH PROPERTY IN ACCORDANCE WITH SOUND PROFESSIONAL PRACTICE, AT CONTRACTOR’S EXPENSE.

NON-DISCRIMINATION. CONTRACTOR SHALL NOT DISCRIMINATE IN

EMPLOYMENT OF ANY PERSON BASED ON RACE, SKIN COLOR, GENDER, GENDER

IDENTITY, AGE, RELIGION, DISABILITY, NATIONAL ORIGIN, ANCESTRY, SEXUAL

ORIENTATION, PREGNANCY, GENETIC INFORMATION OR CONDITION, HOUSING STATUS, MARITAL OR FAMILIAL STATUS, WEIGHT OR HEIGHT OF SUCH PERSON.

WARRANTY. CONTRACTOR EXPRESSLY WARRANTS THAT ALL MATERIALS AND

SERVICES COVERED BY THIS AGREEMENT SHALL CONFORM TO THE

SPECIFICATIONS, REQUIREMENTS, INSTRUCTIONS, OR OTHER DESCRIPTIONS UPON

WHICH THIS AGREEMENT IS BASED, SHALL BE FIT AND SUFFICIENT FOR THE

PURPOSE INTENDED, OF GOOD MATERIAL AND WORKMANSHIP AND FREE FROM DEFECT AND THAT MATERIALS AND SERVICE OF CONTRACTOR’S DESIGN WILL BE

FREE FROM DEFECT IN DESIGN, INSPECTION, TEST, ACCEPTANCE, PAYMENT OR

USE OF THE GOODS FURNISHED HEREUNDER SHALL NOT AFFECT THE CONTRACTOR’S OBLIGATION UNDER THIS WARRANTY, AND SUCH WARRANTIES SHALL SURVIVE INSPECTION, TEST ACCEPTANCE AND USE. CONTRACTOR AGREES

TO REPLACE, RESTORE, OR CORRECT DEFECTS OF ANY MATERIALS OR SERVICES

NOT CONFORMING TO THE FOREGOING WARRANTY PROMPTLY, WITHOUT EXPENSE TO CITY, WHEN NOTIFIED OF SUCH NONCONFORMITY BY CITY. IN THE

EVENT OF FAILURE BY CONTRACTOR TO CORRECT DEFECTS IN OR REPLACE NONCONFORMING GOOD OR SERVICES PROMPTLY. CITY , AFTER REASONABLE

NOTICE TO CONTRACTOR, MAY MAKE SUCH CORRECTIONS OR REPLACE SUCH

MATERIALS OR SERVICES AND CHARGE CONTRACTOR FOR THE COST INCURRED BY THE CITY THEREBY.

WORKERS’ COMPENSATION. CONTRACTOR, BY ACCEPTING THIS AGREEMENT,

CERTIFIES THAT IT IS AWARE OF THE PROVISIONS OF THE CALIFORNIA LABOR CODE

WHICH REQUIRE EVERY EMPLOYER T O BE INSURED AGAINST LIABILITY FOR WORKERS’ COMPENSATION OR TO UNDERTAKE SELF-INSURANCE IN ACCORDANCE

WITH THAT CODE, AND CERTIFIES THAT IT WILL COMPLY WITH SUCH PROVISIONS BEFORE COMMENCING THE PERFORMANCE OF THE WORK OF THIS AGREEMENT.

PRICE TERMS.
(a) EXTRA CHARGES, INVOICES AND PAYMENT. NO EXTRA CHARGES

OF ANY KIND WILL BE ALLOWED UNLESS SPECIFICALLY AGREED TO IN WRITING BY CITY.; ALL STATE AND FEDERAL EXCISE, SALES, AND USE TAXES SHALL BE STATED SEPARATELY ON THE INVOICES.
(b) TRANSPORTATION CHARGES. ANY TRANSPORTATION CHARGES

WITH RESPECT TO WHICH CONTRACTOR IS ENTITLED TO RECEIVE REIMBURSEMENT SHALL BE ADDED TO CONTRACTOR’S’ INVOICE AS A SEPARATE ITEM, WITH THE RECEIPTED FREIGHT BILL ATTACHED THERETO. (c) CONTRACTOR WARRANTS THAT THE PRICES FOR MAT ERIALS OR

SERVICES SOLD TO CITY UNDER THIS AGREEMENT ARE NOT LESS FAVORABLE THAN

THOSE CURRENTLY EXTENDED TO ANY OTHER CUSTOMERS OF THE SAME OR LIKE ARTICLES OR SERVICES IN EQUAL OR LESS QUANTITIES. IN EVENT CONTRACTOR

REDUCES ITS PRICE FOR SUCH MATERIALS OR SERVICES DURING THE TERM OF THIS

AGREEMENT, CONTRACTOR AGREES TO REDUCE THE PRICES OR RATES HEREOF CORRESPONDINGLY.

SCHEDULES OR DELIVERY. TIME IS OF THE ESSENCE OF THIS AGREEMENT.

CONTRACTOR AGREES TO COMPLY WITH THE SPECIFIC SCHEDULE PROVIDED BY

THE CITY OR AGREED UPON HEREIN WITHOUT DELAY AND WITHOUT ANTICIPATING CITY’S REQUIREMENTS. CONTRACTOR ALSO AGREES NOT TO MAKE

MATERIAL COMMITMENTS OR SCHEDULING ARRANGEMENTS IN EXCESS OF THE

REQUIRED AMOUNT OR IN ADVANCE OF THE TIME NECESSARY TO MEET THE SCHEDULE(S) OF THIS AGREEMENT, IF ANY.

PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR SHALL COMPLY WITH ALL REQUIREMENTS OF THE PALO ALTO MUNICIPAL CODE CHAPTER 4.62 (CITYWIDE MINIMUM WAGE), AS AMENDED FROM TIME TO TIME. IN

PARTICULAR, FOR ANY EMPLOYEE OTHERWISE ENTITLED TO THE STATE MINIMUM WAGE, WHO PERFORMS AT LEAST TWO (2) HOURS OF WORK IN A CALENDAR

WEEK WITHIN THE GEOGRAPHIC BOUNDARIES OF THE CITY, CONTRACTOR SHALL

PAY SUCH EMPLOYEES NO LESS THAN THE MINIMUM WAGE SET FORTH IN PALO ALTO MUNICIPAL CODE SECTION 4.62.030 FOR EACH HOUR WORKED WITHIN THE GEOGRAPHIC BOUNDARIES OF THE CITY. IN ADDITION, CONTRACTOR SHALL POST

NOTICES REGARDING THE PALO ALTO MINIMUM WAGE ORDINANCE IN ACCORDANCE WITH PALO ALTO MUNICIPAL CODE SECTION 4.62.060.

Item 2
Attachment C - Purchase
Order and Mobile
Modular Agreement

Item 2: Staff Report
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PURCHASE ORDER TERMS AND CONDITIONS

CITY OF PALO ALTO Page 2 of 3
SVS Rev. 04/14/2021
TRANSPORTATION, PACKAGING & LABELING. ALL MATERIALS OR SERVICES ARE TO BE PROVIDED (a) F.O.B. PALO ALTO UNLESS OTHERWISE SPECIFIED; (b) WITH A

PACKING LIST ENCLOSED IN CARTONS, WHICH INDICATE THE AGREEMENT

NUMBER, EXACT QUANTITY AND DESCRIPTIONS, CONCERNING ANY MATERIAL SHIPMENTS; (c) AND COMPLY WITH CURRENT PACKAGING AND LABELING REQUIREMENTS PRESCRIBED BY D.O.T.

ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS. Contractor agrees to comply with the City’s Environmentally Preferred Purchasing Requirements.

(1) Hazardous Waste:

Contractor shall take-back all spent or otherwise discarded hazardous products sold to the City by the Contractor if the spent or discarded products are classified as hazardous or universal wastes by State or Federal regulations. Contra ctor shall provide convenient collection and recycling services (or disposal services if recycling technology is unavailable) for all universal wastes, which originate from the Vendor. Hazardous waste manifests or bills of lading must be provided to City s taff upon request. Recycling and reuse of hazardous wastes must occur within the United States. Universal waste lists and information are available www.dtsc.ca.gov/HazardousWaste/UniversalWaste/. A hazardous waste list is available at
http://www.calrecycle.ca.gov/LEA/Training/wasteclass/yep.htm. Additional information can be obtained by contacting the City of Palo Alto Hazardous Waste Department at (650) 496-6980.

(2) Zero Waste and Pollution Prevention:

Per Palo Alto City Council policy, the City is targeting to achieve Zero Waste by 2021. The City must also meet Municipal Regional Stormwater Permit requirements requiring no visible impact from litter via stormdrains by 2022. To that end the vendor, manufacturer and or contractor must individually or col laboratively comply with the waste reduction, reuse and recycling requirements of the City’s Zero Waste and Pollution Prevention Programs. Seller acknowledges and agrees that if Seller fails to fully and satisfactorily comply with these requirements, the C ity will suffer, as a result of Seller’s failure, substantial damages which are both extremely difficult and impracticable to ascertain.

Therefore, the Seller agrees that in addition to all other damages to which the City may be entitled, in the event Seller fails to comply with the below requirements Seller shall pay City as liquidated damages the amounts specified below. The liquidated damage amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer as a result of such non-compliance.
• Sellers shall adhere to the standard that all printed materials provided to the City that are generated from a personal computer and printer including, proposals, quotes, invoices, reports, and public education materials sha ll be double -sided, printed on a minimum of 30% post -consumer content paper or greater unless otherwise approved by the City’s Environmental Services Division (650) 329 -2117.

Materials printed by a professional printing company shall be a minimum of 30% post-consumer material or greater and printed with vegetable-based inks. Liquidated damages of $30 per document will be assessed by City for failure to adhere to this requirement;
• All paper packaging must be Forest Stewardship Council (FSC) Certified. • All primary, secondary and shipping (tertiary) packaging be minimized to the maximum extent feasible while protecting the product being shipped; • All primary, secondary and shipping packaging shall be recyclable in the City’s recycling program. A complete list of items accepted for recycling are found at www.zerowastepaloalto.org or by calling (650) 496-5910. If any portion is received that does not meet this requirement, liquidated damages of $235 or a minimum of $50 if the combined product and shipping cost is $235 or less will be assessed by City for failure to adhere to this requirement. • Expanded foam plastics (e.g., foam or cushion blocks, trays, packing “peanuts”), such as but not limited to polystyrene (aka Styrofoam™), polypropylene, or polyurethane shall not be used as primary, secondary or tertiary/shipping packaging with the following exceptions:
o Primary packaging made from these materials may be used if the vendor, manufacturer, contractor individuall y or collaboratively does one of the following:
 takes the material back at the City’s convenience and at no cost to the City, or
 pays the City of Palo Alto’s disposal costs via payment of liquidated damages of $235, or a minimum of $50 if the
combined product and shipping cost is $235 or less;
o Bioplastics that meet ASTM D6400 standards for compostability may be accepted with approval from the City’s Environmental Services Division subject to local municipal compost facility requirements;

o if approved by th e City’s Environmental Services Division, a packaging requirement may be waived if no other viable
packaging alternative exists;

(3) Energy and Water Efficiency:

Contractor shall provide products with an ENERGY STAR, Water Sense or State of California sta ndard rating, whichever is more efficient, when ratings exist for those products. A life cycle cost analysis shall be provided to the City upon request and shall at minimum include: first cost, operating costs, maintenance costs, and disposal costs.

Contacts for additional information about City of Palo Alto Hazardous Waste, Zero Waste and Utilities programs:

Hazardous Waste Program (Public Works)
(650) 496-6980

Zero Waste Program (Public Works)
(650) 496-5910

Watershed Protection
(650) 329-2117

Energy Efficiency
(650) 496-2244

(4) Liquidated Damages:

Contractor agrees that failure to comply with the City’s Environmentally Preferred Purchasing Requirements will result in Liquidated Damages, according to the table marked Liquidated Damages on page 3 of these P.O.

Terms and Conditions.

Item 2
Attachment C - Purchase
Order and Mobile
Modular Agreement

Item 2: Staff Report
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PURCHASE ORDER TERMS AND CONDITIONS

CITY OF PALO ALTO Page 3 of 3
SVS Rev. 04/14/2021

NONCOMPLIANCE WITH EVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS, LIQUIDATED DAMAGES:

The following table lists the events that constitute breaches of the Agreement’s standard of performance warranting the imposition of liquidated damages; the acceptable performance level, and the amount of liquidated damages for failure to meet the contractually required standards of performance.

Event of Non-Performance

Acceptable
Performance Level
(Allowed events per
Fiscal Year)

Liquidated Damages
Amount

Recycled Paper Use
Failure to use 50% recycled content paper 1 $30 per each document

Recyclable Packaging Materials
Failure of Contractor to Use secondary and shipping packaging that is recyclable in the City’s recycling program.
1 $235 or a minimum of $50 if the combined
product and shipping cost is $250 or less will
be incurred if this is not adhered to.

Expanded Foam Plastics
Unapproved use of expanded foam plastics for secondary or shipping packaging
0 $235 or a minimum of $50 if the combined
product and shipping cost is $235 or less

Pallet Use
Failure of Contractor to take-back and reuse pallets, recycling only broken pallets, at no additional cost to the City. 1 $262 or a minimum of $50 if the combined
product and shipping cost is $2 or less

Item 2
Attachment C - Purchase
Order and Mobile
Modular Agreement

Item 2: Staff Report
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Quote # Q-417768
1/9/2024 12:30:59 PM
a Division of McGrath Rentcorp
Corporate Address:
5700 Las Positas Road
Livermore, CA 94551
www.mgrc.com
Lease Quotation and Agreement
Quote # Q-417768
Date of Quote 01/09/2024
Quote Expiration Date:

Lease Term: 24 Months
Estimate Del Date: 03/15/2024
Lessee PO#:

Lessee Name and Billing Address Site Information Lessor Name City of Palo Alto (“Lessee”)
250 Hamilton Avenue
Palo Alto, CA 94301
Bridgette Medved Perez
Phone #: 1 (650) 329-2530

Bridgette Medved Perez
4000 Middlefield Road
Palo Alto, CA 94303
Cell: 1 (650) 329-2530
Mobile Modular Management Corporation
("Lessor")
Questions?
Contact: Alex Sufi
[email protected]
Direct Phone: 1 (510) 690-7350

Equipment and Accessories Qty Monthly Rent Extended Rent Taxable Office, 24x60 HCD (Item1601W) (4 Offices
withHandicap Accessible Restroom.Size excludes
3' towbar.Vinyl wrap panel interior.) 1 $1,354.00 $1,354.00 Y Steps, Adjustable 1 $64.00 $64.00 Y
Filter Replacement Program 2 $27.00 $54.00 Y
RNT, Ramp 1 $375.00 $375.00 Y

Equipment and Accessories Monthly Subtotal: $1,847.00

Charges Upon Delivery Qty Charge Each Total One Time Taxable Office, 24x60 HCD (Item1601W) (4 Offices
withHandicap Accessible Restroom.Size excludes
3' towbar.Vinyl wrap panel interior.)
Delivery 2 $784.00 $1,568.00 N
Delivery Pilot 2 $565.00 $1,130.00 N
Delivery Permit 2 $177.00 $354.00 N
Block and Level Building 1 $7,174.00 $7,174.00 N
Foundation, Installation 16 $238.00 $3,808.00 Y
Drawings 1 $875.00 $875.00 N
Essential Material Handling Fee 2 $75.00 $150.00 N
Delivery Haulage Fuel 2 $112.00 $224.00 N
Installation, Fire Sprinkler 1 $23,690.00 $23,690.00 Y
Skirting, Install 168 $30.00 $5,040.00 Y
RNT, Install 1 $1,560.00 $1,560.00 N

Modifications $97,890.00
Charges Upon Delivery Subtotal: $143,463.00

Charges Upon Return Qty Charge Each Total One Time Taxable Office, 24x60 HCD (Item1601W) (4 Offices
withHandicap Accessible Restroom.Size excludes
3' towbar.Vinyl wrap panel interior.)
Return 2 $784.00 $1,568.00 N
Return Pilot 2 $565.00 $1,130.00 N
Return Permit 2 $177.00 $354.00 N
Prepare Equipment For Removal 1 $7,174.00 $7,174.00 N
Foundation, Removal 16 $90.00 $1,440.00 N
MOBILE MODULAR SOURCEWELL CONTRACT ID: 120822-MMR
Sourcewell building rental price @ $1,354.00
Item 2
Attachment C - Purchase
Order and Mobile
Modular Agreement

Item 2: Staff Report
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Quote # Q-417768
1/9/2024 12:30:59 PM
a Division of McGrath Rentcorp
Corporate Address:
5700 Las Positas Road
Livermore, CA 94551
www.mgrc.com
Lease Quotation and Agreement
Quote # Q-417768
Date of Quote 01/09/2024
Quote Expiration Date:

Lease Term: 24 Months
Estimate Del Date: 03/15/2024
Lessee PO#:

Cleaning Fee 2 $450.00 $900.00 N
Return Haulage Fuel 2 $112.00 $224.00 N
Skirting, Removal 168 $19.00 $3,192.00 N
RNT, Removal 1 $1,560.00 $1,560.00 N

Estimated Charges Upon Return Subtotal: $17,542.00

Total Estimated Charges
Subtotal of Monthly Rent $1,847.00
Personal Property Expense $0.00
Taxes on Monthly Charges $182.38
Total Charges per Month (including tax) $2,029.38
Charges Upon Delivery (including tax) $156,344.13
Estimated Charges Upon Return (including tax) $17,542.00 Estimated Initial Invoice $158,373.51

Special Notes
General: Customer's site must be dry, compacted, level and accessible by normal truck delivery. Pricing does not include any clearing or grading of sites, obstruction removal, site or final building clean up , any asphalt transitions, dolly, crane, forklift, electrical or plumbing connections, window coverings, furniture, casework, appliances, doorstops, phone or data lines, gutters, downspouts or tie-in, temporary power, temporary fencing, traffic control, flagmen, soil and/or pull test, custom engineering, fees associated with inspections, city or county submittals and/or us e permits, security screens, door bars and any item not specifically listed as being included.

Additional Information
 Quote is valid for 30 days.
 Lessee's site must be dry, compacted, level and accessible by normal truck delivery. Costs to dolly, crane, forklift, etc. will be paid by Lessee. Unless noted, prices do not include permits, ramp removal, stairs, foundation systems, foundation system removal, temporary power, skirting, skirting removal, engineering, taxes or utility hookups.  Subject to equipment availability. Unless noted, equipment and related furnishings, finishes, accessories and appliances provided are previously leased and materials, dimensions, and specifications vary. Detailed specifications may be available upon request.  For lease transactions, Lessor reserves the right to substitute equal or better equipment prior to delivery without notice.  This transaction is subject to prior credit approval. Security deposit and payment in advance may be required.  Sales Tax will be calculated based on the tax rate at the time of invoicing.  Unless otherwise noted, prices do not include prevailing wages, Davis-Bacon wages, or other special or certified wages.

Estimated Equipment Value
The Estimated Equipment Value is listed below. Lessee is solely responsible for complying with all insurance requirements set forth in the Lease Terms and Conditions attached hereto.

Equipment Description Qty Estimated Equipment Value (each) Office, 24x60 HCD (Item1601W) 1 $183,600.00

MOBILE MODULAR SOURCEWELL CONTRACT ID: 120822-MMR
Item 2
Attachment C - Purchase
Order and Mobile
Modular Agreement

Item 2: Staff Report
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Quote # Q-417768
1/9/2024 12:30:59 PM
a Division of McGrath Rentcorp
Corporate Address:
5700 Las Positas Road
Livermore, CA 94551
www.mgrc.com
Lease Quotation and Agreement
Quote # Q-417768
Date of Quote 01/09/2024
Quote Expiration Date:

Lease Term: 24 Months
Estimate Del Date: 03/15/2024
Lessee PO#:

LESSOR: LESSEE:

Mobile Modular Management Corporation
a division of McGrath RentCorp

City of Palo Alto

Signature: /InternalSigner/ Signature: /CustomerSigner/

Name:
/InternalSignerName/
Name:
/CustomerSignerName/

Title:
/InternalSignerTitle/
Title:
/CustomerSignerTitle/

Date:
/InternalDateSigned/
Date:
/CustomerDateSigned/

MOBILE MODULAR SOURCEWELL CONTRACT ID: 120822-MMR
This Lease Quotation and Agreement is entered into by and between Lessor and Lessee effective as of the date signed by Lessee. This Lease Quotation and Agreement includes the terms and conditions set forth in the following two documents (collectively, the “Agreement”), each of which is incorporated herein by this reference:

1. Lease Terms and Conditions attached hereto; and

2. Supplemental Lease Terms and Conditions located at (https://www.mobilemodular.com/contractterms), as the same may be updated from time to time in the sole and absolute discretion of Lessor.

3. Mobile Modular Sourcewell Contract (ID# 120822-MMR)
In the event of any conflict between the terms of the Lease Terms and Conditions,the Supplemental Terms and Conditions, and the Mobile Modular Sourcewell Contract, the order of precedence shall be the order listed above.

By signing below, Lessee: (1) acknowledges and agrees that it has received, read and understands the terms of this Agreement and agrees to be bound by the terms of this Agreement, including prices and specifications, and (2) instructs Lessor to make appropriate arrangements for the preparation and delivery of the Equipment identified herein. This Agreement may be executed in one or more counterparts (including through the use of electronic signatures), each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Upon execution of this Agreement, Lessor shall generate a Lease Agreement Number, which shall be referenced on all Lessor invoices.

No document provided by Lessee, including, without limitation, Lessee’s purchase orders, work orders, bills of la ding, or forms for receipt or acknowledgment or authorization (“ Lessee Forms”), nor the terms and conditions associated with such Lessee Forms, shall amend, modify, supplement, waive, or release any term or condition of this Agreement even if such Lessee Forms are signed by an agent or representative of Lessor. The terms and conditions of this Agreement shall prevail over any Lessee Forms, and any inconsistent or additional terms and conditions in Lessee Forms shall be deemed void ab initio and of no force or effect.

The individuals signing this Agreement affirm that they are duly authorized to execute this Agreement by and on behalf of the parties hereto.

Item 2
Attachment C - Purchase
Order and Mobile
Modular Agreement

Item 2: Staff Report
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Page 4 of 6 ends

Quote # Q-417768
1/9/2024 12:30:59 PM
a Division of McGrath Rentcorp
Corporate Address:
5700 Las Positas Road
Livermore, CA 94551
www.mgrc.com
Lease Quotation and Agreement
Quote # Q-417768
Date of Quote 01/09/2024
Quote Expiration Date:

Lease Term: 24 Months
Estimate Del Date: 03/15/2024
Lessee PO#:

LEASE TERMS AND CONDITIONS

1. LEASE. Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, the Equipment (as defined below). The lease of any Equipment is governed by the terms of this Agreement. The Equipment is and shall remain the personal property of Seller.

2. TERMS. All capitalized terms used and not otherwise defined herein, will have the meanings set forth in this Agreement. As used in this Agreement, the following definitions shall apply: “Accessories” shall mean any additions, attachments, or accessories to the modular buildings, or ancillary services, provided by Lessor to Lessee and identified in this Agreement; “Equipment” shall mean the modular buildings, Accessories, and/or Services identified in this Agreement, together with any replacements, repairs, additions, attachments or accessories hereafter rented to Lessee under this Agreement.

3. PAYMENTS AND PRICE ADJUSTMENTS. Lessee agrees to pay to Lessor each payment specified herein on a net invoice basis.

Payment terms are net due upon receipt unless otherwise agreed upon in writing. All payments due from Lessee pursuant to this Agreement shall be made by Lessee without any abatement or setoff of any kind whatsoever arising from any cause whatsoever. Prices will be increased by Lessor for unknown circumstances or conditions, including, but not limited to, driver waiting time, special transport permits, difficult site conditions and/or increases in fuel prices.

4. LEASE TERM; EARLY TERMINATION. The Lease Term and Monthly Rent, each of which are specified in this Agreement, shall commence on the date the Equipment is delivered to the Site (the "Start Rent Date”), unless a different date is mutually agreed upon in writing, and shall continue thereafter for the number of months specified in this Agreement as the Lease Term. Lessee agrees to pay the Total Charges per Month specified in this Agreement (as may be adjusted pursuant to Section 5 below) for each month during the Lease Term and any extensions thereof. A month is defined as thirty (30) calendar days; rent will be billed monthly unless otherwise specified in this Agreement (but rent shall be due and owing even in the absence of actual receipt by Lessee of an invoice or bill). In the event that Le ssee terminates this Agreement prior to the expiration of the Lease Term, Lessor shall be entitled to charge an early termination fee, even if such termination occurs prior to delivery of the Equipment. Such fee shall be determined by Lessor, in its sole discretion, following the receipt of the termination request.

Such early termination fee may include, but shall not be limited to, charges related to the preparation of the Equipment for delivery and/or the rental value of this Agreement. In no event shall any such early termination fee exceed the total value of this Agreement. Lessor shall not be liable to Lessee for any failure or delay in obtaining, delivering or setting up the Equipment. If Lessee delays delivery of the Equipment for any reason for thirty (30) days or longer from the original delivery date mutually agreed upon between both parties, Lessor may, in Lessor’s sole discretion, charge Lessee a monthly storage fee equal to the Monthly Rent starting on the original delivery date, and/or terminate this Agreement, subject to the early termination provisions set forth above.

5. EXTENSION OF LEASE TERM. Upon expiration of the initial Lease Term set forth in this Agreement, the lease of the Equipment shall automatically be extended on a month-to-month basis until the Equipment is returned to Lessor. This Agreement does not expire and the terms and conditions hereof shall remain in full force and effect for any extension of the Lease Term, unless otherwise agreed upon by Lessor and Lessee in writing. Lessor may periodically revise the Total Charges per Month from those reflected in this Agreement if the lease of the Equipment is extended beyond the initial Lease Term. If the lease of the Equipment is extended beyond the initial Lease Term, Lessor may revise the charges for the Charges Upon Return from those specified in this Agreement to reflect Lessor’s then-current market rates for such services.

6. PREPARATION FOR REMOVAL OF THE EQUIPMENT. Prior to the scheduled removal of the Equipment, Lessee shall, at a minimum:
(a) provide clear access to the Equipment for Lessor to dismantle and remove the Equipment from the Site by industry -standard trucking methods; (b) disconnect all utilities; (c) remove all personal property of Lessee’s from the Equipment; and (d) in the case of Equipment that includes plumbing, flush the plumbing lines clean and ensure that no foreign m atter remains in any fixtures. Plumbing must be properly disconnected by Lessee at its sole cost and expense. Lessee will be responsible for costs of repair required by improper plum bing disconnection to the extent that the Equipment is damaged. Any components, parts or accessories supplied by Lessor must be returned with the Equipment. In the event that Lessee fails to meet the requirements herein, additional charges may be incurred by Lessee for additional labor, waiting time, or dry-runs in the event that Lessor is unable to return the Equipment as scheduled.

7. RETURN OF EQUIPMENT. Lessee must provide a minimum of thirty (30) days prior, written notice to Lessor when requesting to return the Equipment. Lessee is responsible for complying with the requirements set forth in the “Preparation for Removal of the Equipment” section of these Lease Terms and Conditions. Unless otherwise agreed upon by Lessor in writing, Lessee shall continue to be responsible for payment of the Total Charges per Month set forth in this Agreement (as may be adjusted pursuant to Section 5 hereto) until return of the Equipment to Lessor is completed. The Total Charges per Month will be prorated in one-half (1/2) month increments only. If the Equipment is returned within the first fifteen (15) days of the billing period, Lessee shall be responsible for paying half of the Total Charges per Month ; if Equipment is returned between the sixteenth (16th) and thirtieth (30th) days of the billing period, Lessee shall be responsible for paying the entire amount of the Total Charges per Month. The charges reflected in this Agreement for Charges Upon Return will be adjusted for any Lease Term longer than twelve (12) months or if the Lease is extended beyond the initial Lease Term, pursuant to Section 5.

8. WARRANTIES; DISCLAIMER. Lessor warrants to Lessee that the Equipment, when delivered and set up and under normal use and regular service and maintenance by Lessee, shall be free from major defects in materials and workmanship that prevent any normal use and operation. Accessories supplied by Lessor pursuant to this Agreement but not owned by Lessor shall not be subject to the foregoing warranty, but shall carry the applicable warranty of the Accessory owner, which Lessor hereby assigns to Lessee to the extent transferable.

Lessor’s liability under this warranty shall be limited to the replacement or repair of the defective Equipment (during Lessor’s normal working hours), at Lessor’s option; provided, however, that Lessee shall provide written notice of any failure or defect to Lessor within four (4) days after discovery, and within the applicable warranty period, and failure to provide such notice in a timely manner may result in a limitation of this warranty at Lessor’s sole option. If Lessee does not grant clear, unobstructed access for any such repairs between 8:00 a.m. and 5:00 p.m., Monday through Friday, Lessee shall bear the cost of repair rates for labor at the applicable overtime rates. This warranty does not MOBILE MODULAR SOURCEWELL CONTRACT ID: 120822-MMR
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Order and Mobile
Modular Agreement

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Quote # Q-417768
1/9/2024 12:30:59 PM
a Division of McGrath Rentcorp
Corporate Address:
5700 Las Positas Road
Livermore, CA 94551
www.mgrc.com
Lease Quotation and Agreement
Quote # Q-417768
Date of Quote 01/09/2024
Quote Expiration Date:

Lease Term: 24 Months
Estimate Del Date: 03/15/2024
Lessee PO#:

10. 11.

12. extend to any Equipment subjected to improper application, damaged by accident or abuse, or repaired or altered outside of Lessor’s facilities without prior written authorization from Lessor. THE EXPRESS WARRANTIES CONTAINED IN THIS AGREEMENT ARE LESSOR’S SOLE AND EXCLUSIVE WARRANTIES WITH RESPECT TO THE EQUIPMENT AND SERVICES, AND ARE IN LIEU

OF AND EXCLUDE ALL OTHER WARRANTIES, GUARANTEES, PROMISES, AFFIRMATION OR REPRESENTATIONS OF

ANY KIND, EXPRESSED OR IMPLIED, WHICH MAY BE DEEMED APPLICABLE TO THE EQUIPMENT OR SERVICES,

INCLUDING WITHOUT LIMITATION, THE CONDITION OF THE EQUIPMENT, ITS MERCHANTABILITY OR ITS FITNESS

FOR ANY PARTICULAR PURPOSE, ANY WARRANTY AGAINST INFRINGEMENT OR AS TO TITLE, WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OR TRADE OR ANY OTHER MATTER. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, ALL EQUIPMENT AND SERVICES ARE BEING PROVIDED “AS IS”, “WHERE IS, WITH ALL FAULTS”. LESSOR

SPECIFICALLY DISCLAIMS ANY WARRANTY, GUARANTY OR REPRESENTATION, ORAL OR WRITTEN, PAST OR PRESENT, THERETO. LESSEE HAS SELECTED ALL EQUIPMENT FOR LESSEE’S INTENDED USE AND RECOGNIZES THAT LESSOR IS NOT A DESIGNER OR MANUFACTURER OF ANY EQUIPMENT.

9. TAXES. Lessee agrees to be responsible for all charges, fees and taxes (local, state and federal) levied or assessed upon Lessee o Lessor relating to the ownership, leasing, rental, sale, possession, use or operation of the Equipment (including, without limitation, sales, us and personal property taxes); provided, however, that the foregoing obligation shall not apply to any local, state or federal income tax assessed against the Lessor as a result of this Agreement which shall continue to be the obligation of Lessor. Lessee shall pay all such taxes for which it is responsible to the appropriate taxing authorities or, if directed or invoiced by Lessor, pay such amounts to Lessor for remittance by Lessor to the appropriate taxing authorities.

LOSS OR DAMAGE. Upon delivery and until the Equipment is removed from the Site by Lessor or its authorized agent, Lessee assumes all risk of loss or damage to the Equipment. Should any Equipment damaged be capable of repair, the Equipment shall be repaired and restored to its condition existing prior to such damage, at Lessee’s sole cost and expense. In the event any of the Equipment is damaged beyond repair or is lost, stolen or wholly destroyed, this Agreement shall cease and terminate as to such Equipment as of the date of the event, accident or occurrence causing such loss or destruction, and Lessee shall pay Lessor within forty-five (45) days thereafter, an amount equal to the full replacement value of the Equipment, which payment obligation shall survive the termination of this Agreement.

INSURANCE. Lessee shall procure and maintain, at its sole expense (including all premiums, deductibles and self-insured retentions), (i) property insurance covering the loss, theft, destruction, or damage to the Equipment in an amount not less than the full replacement value thereof (and with a deductible no higher than $25,000), naming Lessor as loss payee of the proceeds, and (ii) commercial general liability insurance (minimum of $1,000,000 per occurrence and $2,000,000 in the aggregate) (and with a deductible no higher than $25,000), naming Lessor and its designees as additional named insureds. Lessee's insurance shall be primary and non-contributory to any insurance maintained by Lessor or any other additional insureds or additional named insureds. The liability insurance policy shall contain coverage for all contractual indemnity obligations of Lessee set forth in this Agreement, cross-liability and waiver of subrogation provisions in favor of Lessor and any other additional insureds. All evidence of all required insurance shall be in a form reasonably acceptable to Lessor and with a company having an A.M. Best rating of A- (VII) or better, and shall not be subject to cancellation without thirty (30) days’ prior written notice to Lessor. Lessee shall provide to Lessor insurance certificates and endorsements (including without limitation, additional insured and loss payee endorsements) evidencing compliance with the insurance requirements of this Agreement (including without limitation, the deductible amounts and waiver of subrogation) prior to delivery of the Equipment and shall maintain all required insurance coverage until the Equipment is returned to Lessee. Lessor will not and does not provide insurance for any of Lessee’s personal property that may be in or on any Equipment.

RESERVED
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Order and Mobile
Modular Agreement

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Quote # Q-417768
1/9/2024 12:30:59 PM
a Division of McGrath Rentcorp
Corporate Address:
5700 Las Positas Road
Livermore, CA 94551
www.mgrc.com
Lease Quotation and Agreement
Quote # Q-417768
Date of Quote 01/09/2024
Quote Expiration Date:

Lease Term: 24 Months
Estimate Del Date: 03/15/2024
Lessee PO#:

13. EVENTS OF DEFAULT; REMEDIES. Each of the following shall constitute an "Event of Default": (1) failure by Lessee to make any payment within ten (10) days after its due date; (2) failure by Lessee to perform any other obligation under this Agreement, and the continuance of such default for ten (10) days after written notice thereof by Lessor to Lessee; (3) any material misrepresentation or false statement of fact by Lessee; (4) the loss, theft, damage, destruction or the attempted sale or encumbrance by Lessee of any of the Equipment; or (5) Lessee’s dissolution, termination of existence, discontinuance of business, insolvency, or the commencement of any bankruptcy proceedings by or against, Lessee. Lessee acknowledges that any Event of Default will substantially impair the lease value of the Equipment hereof. Upon the occurrence of any Event of Default, Lessor may, without notice, exercise one or more of the following remedies: (1) declare all unpaid payments under this Agreement to be immediately due and payable; (2) terminate this Agreement as to any or all items of the Equipment; (3) take possession of the Equipment wherever found, and for this purpose enter upon any premises of Lessee and remove the Equipment, without any liability to Lessee; (4) direct Lessee at its expense to promptly prepare the Equipment for pickup by Lessor; (5) proceed by appropriate action either in law or in equity to enforce performance by Lessee of the terms of this Agreement or to recover damages for the breach hereof, including attorneys’ fees and any other expenses paid or incurred by Lessor in connection with the repossession of the Equipment; (6) apply the security deposit specified in this Agreement (“Security Deposit”) to payment of Lessor’s costs, expenses and attorney fees in enforcing the terms of this Agreement and to indemnify Lessor against any damages sustained by Lessor; and/or (7) recover the replacement cost of any Equipment which Lessor is unable to repossess.. Lessor’s waiver of any Event of Default shall not constitute a waiver of any other Event of Default or of any term or condition of this Agreement. No right or remedy referred to herein is intended to be exclusive and each may be exercised concurrently or separately and from time to time. In the event of repossession, Lessee waives any bond posting requirement.

Lease Terms and Conditions, Rev. 07/01/2022
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Attachment C - Purchase
Order and Mobile
Modular Agreement

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: March 4, 2024
Report #:2402-2639
TITLE
Approval of Office of the City Auditor FY2024 Task 4 Task Orders (CEQA Status - Not a Project)

RECOMMENDATION
The Policy and Services Committee and the Office of the City Auditor recommend that the City Council approve the following Task 4 Task Orders identified in the FY 2024 Audit Plan Report:
•TASK ORDER FY24-4.23 Recruitment and Succession Planning •TASK ORDER FY24-4.24 Grant Management
•TASK ORDER FY24-4.25 Emergency Preparedness
•TASK ORDER FY24-4.26 Utility Billing
•TASK ORDER FY24-4.27 Payment Card Industry Data Security Standard (PCI/DSS)

EXECUTIVE SUMMARY
The committee members approved the attached five task orders at the Policy and Services Committee meeting on February 13, 20241.

MOTION: Council Member Lythcott-Haims moved, seconded by Chair Kou to recommend the City Council approve the following Task 4 Task Orders:
a) TASK ORDER FY24-4.23 Recruitment and Succession Planning b) TASK ORDER FY24-4.24 Grant Management
c) TASK ORDER FY24-4.25 Emergency Preparedness
d) TASK ORDER FY24-4.26 Utility Billing
e) TASK ORDER FY24-4.27 Payment Card Industry Data Security Standard (PCI/DSS) MOTION PASSED: 2-0
1 Policy & Services Committee, February 13, 2024, Agenda Item #1, SR #2312-2460, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14868 Item 3
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BACKGROUND
Task 4, Execute Annual Audit Plan, in the agreement between the City of Palo Alto (City) and Baker Tilly US, LLP (Baker Tilly)2 states, “Conduct a minimum number of internal audits in accordance with each approved annual audit plan based on the risk assessments. Each internal audit will commence only upon the City’s approval of a Task Order (which may be at the task or sub-task level) as required by this Agreement. Each internal audit requires the preparation of a written report for review by the City Manager, City Attorney and appropriate Council committee, and review/approval by the City Council as required.”

ANALYSIS
The Office of the City Auditor (OCA) is seeking approval from the Policy and Services Committee of the following Task Orders for internal audits listed in the Fiscal Year 2024 audit plan that was approved by the City Council on January 22, 20243:
•TASK ORDER FY24-4.23 Recruitment and Succession Planning The preliminary audit objectives include:
•Determine the efficiency and effectiveness of the recruitment and hiring process •Determine whether a formal succession plan and related policies procedures are in place
•TASK ORDER FY24-4.24 Grant Management
The preliminary audit objective is to determine whether the City has adequate internal controls to manage the grant lifecycle efficiently and effectively •TASK ORDER FY24-4.25 Emergency Preparedness
The preliminary audit objective is to determine whether the City is working to prevent wildfire and adequately prepared to respond to wildfire as part of the City’s emergency management plan
•TASK ORDER FY24-4.26 Utility Billing
The preliminary audit objectives include:
2 Baker Tilly US, LLP, Agreement for Professional Services, C21179340; https://www.cityofpaloalto.org/files/assets/public/v/5/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220509/20220509pccsmamended-linked.pdf 3 City Council, January 22, 2024, Agenda Item #9, SR # 2311-2304 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13333 Item 3
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•Determine whether the internal controls over the utility billing process are adequate and working effectively to ensure billing is accurate and in compliance with the City's policy and regulations
•Determine whether billing adjustments are properly supported and approved •TASK ORDER FY24-4.27 Payment Card Industry Data Security Standard (PCI/DSS) The preliminary audit objective is to determine whether the internal controls over the payment card processing are adequate and working effectively for the City and any third party service provider
Each of these task orders begins March 1, 2024 and ends December 2024. Audit work will commence in alignment with the identification and appointment of a new City Auditor.

FISCAL/RESOURCE IMPACT
Work recommended in these tasks is within both the approved scope and compensation of the agreement with Baker Tilly and funding levels in the Fiscal Year 2024 operating budget for the OCA.

STAKEHOLDER ENGAGEMENT
No stakeholder outreach was necessary to create task orders for the tasks described in the signed contract.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the Auditor task orders are administrative activities that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).

ATTACHMENTS
Attachment A: TASK ORDER FY24-4.23 Recruitment and Succession Planning Attachment B: TASK ORDER FY24-4.24 Grant Management
Attachment C: TASK ORDER FY24-4.25 Emergency Preparedness Attachment D: TASK ORDER FY24-4.26 Utility Billing
Attachment E: TASK ORDER FY24-4.27 Payment Card Industry Data Security Standard (PCI/DSS) APPROVED BY:

Kate Crowley, Baker Tilly
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.23 Recruitment and Succession Planning Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referencedFY24 in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY23-4.23

2. CONSULTANT NAME: Baker Tilly US, LLP

3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $58,890

BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:

Lydia Kou, Chair of the City Council’s Policy and Services Committee

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

Item 3
Attachment A - TASK
ORDER FY24-4.23
Recruitment and
Succession Planning

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Attachment A

DESCRIPTION OF SCOPE OF SERVICES

Introduction

Attachment A, the Description of Scope of Services, contains the following four (4) elements:

 Services and Deliverables To Be Provided
 Schedule of Performance
 Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables

Baker Tilly’s approach to conducting an internal audit of Recruitment and Succession Planning involves three (3) primary steps:

 Step 1: Audit Planning
 Step 2: Control Review and Testing
 Step 3: Reporting

Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include:
 Gather information to understand the environment under review o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary  Assess the audit risk
 Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
 Announce the initiation of the audit and conduct kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit

Item 3
Attachment A - TASK
ORDER FY24-4.23
Recruitment and
Succession Planning

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Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to (1) determine the efficiency and effectiveness of the recruitment and hiring process; (2) determine whether a formal succession plan and related policies and procedures are in place. Procedures include, but not limited to:

 Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to recruitment and succession planning.  Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control design and effectiveness.  Select a sample of the recruitment activities for documentation review  Review the existing succession plan
 Compare the process and controls against the best practices.

Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks include:
 Develop findings, conclusions, and recommendations based on the supporting evidence gathered
 Validate findings with the appropriate individuals and discuss the root cause of the identified findings
 Complete supervisory review of working papers and a draft audit report  Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, finings, conclusions, and recommendations o Discuss management responses
 Obtain written management responses and finalize a report  Review report with members of City Council and/or the appropriate Council Committee

Deliverables:

The following deliverable will be prepared as part of this engagement:
 Audit Report
Schedule of Performance

Anticipated Start Date: March 1, 2024
Anticipated End Date: December 31, 2024

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Attachment A - TASK
ORDER FY24-4.23
Recruitment and
Succession Planning

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Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $58,890. The not-to-exceed budget is based on an estimate of 290 total project hours, of which 20 are estimated to be completed by the City Auditor.

Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. If at any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to Palo Alto.

Item 3
Attachment A - TASK
ORDER FY24-4.23
Recruitment and
Succession Planning

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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.24 Grant Management
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referencedFY24 in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY23-4.24

2. CONSULTANT NAME: Baker Tilly US, LLP

3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $60,330

BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:

Lydia Kou, Chair of the City Council’s Policy and Services Committee

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

Item 3
Attachment B - TASK
ORDER FY24-4.24 Grant
Management

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Attachment A

DESCRIPTION OF SCOPE OF SERVICES

Introduction

Attachment A, the Description of Scope of Services, contains the following four (4) elements:

 Services and Deliverables To Be Provided
 Schedule of Performance
 Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables

Baker Tilly’s approach to conducting an internal audit of Grant Management involves three (3) primary steps:

 Step 1: Audit Planning
 Step 2: Control Review and Testing
 Step 3: Reporting

Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include:
 Gather information to understand the environment under review o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary  Assess the audit risk
 Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
 Announce the initiation of the audit and conduct kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit

Item 3
Attachment B - TASK
ORDER FY24-4.24 Grant
Management

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Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to determine whether the City has adequate internal controls to manage the grant lifecycle efficiently and effectively.

Procedures include, but not limited to:

 Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to grant management.  Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control design and effectiveness.  Select a sample of grants for documentation review.
 Compare the process and controls against the best practices.

Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks include:
 Develop findings, conclusions, and recommendations based on the supporting evidence gathered
 Validate findings with the appropriate individuals and discuss the root cause of the identified findings
 Complete supervisory review of working papers and a draft audit report  Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, finings, conclusions, and recommendations o Discuss management responses
 Obtain written management responses and finalize a report  Review report with members of City Council and/or the appropriate Council Committee

Deliverables:

The following deliverable will be prepared as part of this engagement:
 Audit Report
Schedule of Performance

Anticipated Start Date: March 1, 2024
Anticipated End Date: December 31, 2024

Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Item 3
Attachment B - TASK
ORDER FY24-4.24 Grant
Management

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Task is $60,330. The not-to-exceed budget is based on an estimate of 315 total project hours, of which 23 are estimated to be completed by the City Auditor.

Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. If at any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to Palo Alto.

Item 3
Attachment B - TASK
ORDER FY24-4.24 Grant
Management

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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.25 Emergency Preparedness
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referencedFY24 in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY23-4.25

2. CONSULTANT NAME: Baker Tilly US, LLP

3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $73,110

BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:

Lydia Kou, Chair of the City Council’s Policy and Services Committee

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

Item 3
Attachment C - TASK
ORDER FY24-4.25
Emergency Preparedness

Item 3: Staff Report
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Attachment A

DESCRIPTION OF SCOPE OF SERVICES

Introduction

Attachment A, the Description of Scope of Services, contains the following four (4) elements:

 Services and Deliverables To Be Provided
 Schedule of Performance
 Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables

Baker Tilly’s approach to conducting an internal audit of Emergency Preparedness involves three (3) primary steps:

 Step 1: Audit Planning
 Step 2: Control Review and Testing
 Step 3: Reporting

Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include:
 Gather information to understand the environment under review o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary  Assess the audit risk
 Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
 Announce the initiation of the audit and conduct kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit

Item 3
Attachment C - TASK
ORDER FY24-4.25
Emergency Preparedness

Item 3: Staff Report
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Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to determine whether the City is working to prevent wildfire and adequately prepared to respond to wildfire as part of the City’s emergency management plan. Procedures include, but not limited to:

 Interview the appropriate individuals in all relevant departments to gain an understanding of the organizational structure, processes, and controls related to wildfire prevention and response as well as the City’s overall emergency preparedness.
 Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control design and effectiveness.  Review the existing emergency management plan and other related documents such as prevention activities, training and exercises, equipment, and service contracts.  Compare the process and controls against the best practices.

Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks include:
 Develop findings, conclusions, and recommendations based on the supporting evidence gathered
 Validate findings with the appropriate individuals and discuss the root cause of the identified findings
 Complete supervisory review of working papers and a draft audit report  Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, finings, conclusions, and recommendations o Discuss management responses
 Obtain written management responses and finalize a report  Review report with members of City Council and/or the appropriate Council Committee

Deliverables:

The following deliverable will be prepared as part of this engagement:
 Audit Report
Schedule of Performance

Anticipated Start Date: March 1, 2024
Anticipated End Date: December 31, 2024

Item 3
Attachment C - TASK
ORDER FY24-4.25
Emergency Preparedness

Item 3: Staff Report
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Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $73,110. The not-to-exceed budget is based on an estimate of 385 total project hours, of which 25 are estimated to be completed by the City Auditor.

Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review.

However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to perform a portion of the work on-site. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task.

The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.

The following summarizes anticipated reimbursable expenses:
 Round-trip Airfare – $2,000 (1 round trip flights x 2 auditors)  Ground Transportation (car rental or Uber/taxi) - $800  Hotel accommodation - $3,000 (2 rooms x 4 nights)
 Food and incidentals – $700

Item 3
Attachment C - TASK
ORDER FY24-4.25
Emergency Preparedness

Item 3: Staff Report
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.26 Utility Billing
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referencedFY24 in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY23-4.26

2. CONSULTANT NAME: Baker Tilly US, LLP

3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $72,010

BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:

Lydia Kou, Chair of the City Council’s Policy and Services Committee

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

Item 3
Attachment D - TASK
ORDER FY24-4.26 Utility
Billing

Item 3: Staff Report
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Attachment A

DESCRIPTION OF SCOPE OF SERVICES

Introduction

Attachment A, the Description of Scope of Services, contains the following four (4) elements:

 Services and Deliverables To Be Provided
 Schedule of Performance
 Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables

Baker Tilly’s approach to conducting an internal audit of Utility Billing involves three (3) primary steps:

 Step 1: Audit Planning
 Step 2: Control Review and Testing
 Step 3: Reporting

Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include:
 Gather information to understand the environment under review o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary  Assess the audit risk
 Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
 Announce the initiation of the audit and conduct kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit

Item 3
Attachment D - TASK
ORDER FY24-4.26 Utility
Billing

Item 3: Staff Report
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Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to (1) determine whether the internal controls over the utility billing process are adequate and working effectively to ensure billing is accurate and in compliance with the City's policy and regulations; (2) determine whether billing adjustments are properly supported and approved. Procedures include, but not limited to:

 Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to utility billing.  Review policies and procedures as well as the legislative and regulatory requirements to identify the criteria to be used for evaluation of control design and effectiveness.  Select a sample of utility invoices and a sample of billing adjustments for testing.  Compare the process and controls against the best practices.

Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks include:
 Develop findings, conclusions, and recommendations based on the supporting evidence gathered
 Validate findings with the appropriate individuals and discuss the root cause of the identified findings
 Complete supervisory review of working papers and a draft audit report  Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, finings, conclusions, and recommendations o Discuss management responses
 Obtain written management responses and finalize a report  Review report with members of City Council and/or the appropriate Council Committee

Deliverables:

The following deliverable will be prepared as part of this engagement:
 Audit Report
Schedule of Performance

Anticipated Start Date: March 1, 2024
Anticipated End Date: December 31, 2024

Item 3
Attachment D - TASK
ORDER FY24-4.26 Utility
Billing

Item 3: Staff Report
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Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $72,010. The not-to-exceed budget is based on an estimate of 385 total project hours, of which 24 are estimated to be completed by the City Auditor.

Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. If at any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to Palo Alto.

Item 3
Attachment D - TASK
ORDER FY24-4.26 Utility
Billing

Item 3: Staff Report
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.27 Payment Card Industry Data Security Standard (PCI DSS) Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referencedFY24 in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY23-4.27

2. CONSULTANT NAME: Baker Tilly US, LLP

3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $69,680

BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:

Lydia Kou, Chair of the City Council’s Policy and Services Committee

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
 SERVICES AND DELIVERABLES TO BE PROVIDED
 SCHEDULE OF PERFORMANCE
 MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

Item 3
Attachment E - TASK
ORDER FY24-4.27 PCI DSS

Item 3: Staff Report
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Attachment A

DESCRIPTION OF SCOPE OF SERVICES

Introduction

Attachment A, the Description of Scope of Services, contains the following four (4) elements:

 Services and Deliverables To Be Provided
 Schedule of Performance
 Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables

Baker Tilly’s approach to conducting an internal audit of Payment Card Industry Data Security Standard (PCI DSS) Compliance involves three (3) primary steps:

 Step 1: Audit Planning
 Step 2: Control Review and Testing
 Step 3: Reporting

Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include:
 Gather information to understand the environment under review o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary  Assess the audit risk
 Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
 Announce the initiation of the audit and conduct kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit

Item 3
Attachment E - TASK
ORDER FY24-4.27 PCI DSS

Item 3: Staff Report
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Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to determine whether the internal controls over the payment card processing are adequate and working effectively for the City and any third party service provider. Procedures include, but not limited to:

 Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to compliance with PCI/DSS for payment card processing.
 Review policies and procedures as well as the legislative and regulatory requirements (including PCI/DSS) to identify the criteria to be used for evaluation of control design and effectiveness.
 Review the documentation related to ensuring third party providers’ PCI/DSS compliance
 Compare the process and controls against the best practices.

Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks include:
 Develop findings, conclusions, and recommendations based on the supporting evidence gathered
 Validate findings with the appropriate individuals and discuss the root cause of the identified findings
 Complete supervisory review of working papers and a draft audit report  Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, finings, conclusions, and recommendations o Discuss management responses
 Obtain written management responses and finalize a report  Review report with members of City Council and/or the appropriate Council Committee

Deliverables:

The following deliverable will be prepared as part of this engagement:
 Audit Report
Schedule of Performance

Anticipated Start Date: March 1, 2024
Anticipated End Date: December 31, 2024

Item 3
Attachment E - TASK
ORDER FY24-4.27 PCI DSS

Item 3: Staff Report
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Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $69,680. The not-to-exceed budget is based on an estimate of 370 total project hours, of which 10 hours are estimated to be completed by the City Auditor.

Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review.

However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to perform a portion of the work on-site. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task.

The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.

The following summarizes anticipated reimbursable expenses:
 Round-trip Airfare – $2,000 (1 round trip flights x 2 auditors)  Ground Transportation (car rental or Uber/taxi) - $800  Hotel accommodation - $3,000 (2 rooms x 4 nights)
 Food and incidentals – $700

Item 3
Attachment E - TASK
ORDER FY24-4.27 PCI DSS

Item 3: Staff Report
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4 0
6 6
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: March 4, 2024
Report #:2402-2640
TITLE
Acceptance of the Office of the City Auditor's Quarterly Status Report for the Period of October - December 2023

RECOMMENDATION
The Policy and Services Committee and the Office of the City Auditor recommend the City Council accept the Office of the City Auditor’s Quarterly Status Report covering October – December 2023.

EXECUTIVE SUMMARY
The committee members approved the Quarterly Status Report in the Analysis section below at the Policy and Services Committee meeting on February 13, 20241.

MOTION: Council Member Lythcott-Haims moved, seconded by Chair Kou to recommend the City Council accept the Office of the City Auditor’s Quarterly Status Report covering October – December 2023.

MOTION PASSED: 2-0

BACKGROUND
The Task 5 of the six required internal audit tasks in the agreement between the City of Palo Alto (City) and Baker Tilly US, LLP (Baker Tilly) is to provide a quarterly report of the status and progress toward audit completion as information reports to the City Council.

ANALYSIS
The internal audit activities from October to December 2023 are listed below by task within the 1 Policy & Services Committee, February 13, 2024, Agenda Item #2, SR #2312-2460, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14868 Item 4
Item 4 Staff Report

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4 0
6 6
agreement with the City:
•Task 1 – Citywide Risk Assessment
oPresented to and approved by the Policy and Services Committee on December 12, 2023 (Report# 2310-2174)2
•Task 2 – Preparation of Annual Audit Plan
oFY2024 Audit Plan presented to and approved by the Policy and Services Committee on December 12, 2023 (Report# 2310-2174)²
•Task 3 – Selection of External Financial Auditor and Annual Audit Coordination oFY2023 Audited Financial Statements presented to and approved by Finance Committee on November 28, 2023 (Report# 2309-2041)3
•Task 4 – Execute Annual Audit Plan
oPresented the Wastewater Treatment Plant Agreement Audit report to Policy and services Committee on December 12, 2023 (Report# 2311-2307)4 oPresented the Investment Management Audit report to the Policy and Services Committee on December 12, 2023 (Report# 2311-2308)5
•Task 5 – Periodic Reporting, Hotline Monitoring, and Other Administrative Functions oObtained City Council consent of the proposed changes to the Fraud, Waste, and Abuse Hotline Administration Policy on November 13, 2023 (Report # 2310-2180)6 oNo hotline reports were received during this period
oParticipated in various meetings, including City Council, Executive Leadership, Agenda Planning, and Committee Meetings
•Task 6 – Evaluation and Benchmarking
oNo activity to report in this quarter

FISCAL/RESOURCE IMPACT
This quarterly report does not have resource impact.

STAKEHOLDER ENGAGEMENT
No stakeholder was engaged in preparation of this quarterly report.

ENVIRONMENTAL REVIEW
Environmental review is not applicable to preparation of this quarterly report.

APPROVED BY:
2 Policy and Services Committee, December 12, 2023, Agenda Item #3, SR #2310-2174; https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12186 3 Finance Committee, November 28, 2023, Agenda Item #1, SR #2309-2041; https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13238 4 Policy and Services Committee, December 12, 2023, Agenda Item #4, SR # 2311-2307; https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12186 5 Policy and Services Committee, December 12, 2023, Agenda Item #5, SR # 2311-2308; https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12186 6 City Council, November 13, 2023, Agenda Item #1, SR #2310-2180; https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13056 Item 4
Item 4 Staff Report

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: March 4, 2024
Report #:2311-2269
TITLE
Approval of Professional Services Contract Number C24189371 with Kimley Horn and Associates in an Amount Not to Exceed $178,559 for the Quiet Zone Study Services for railroad crossings at Churchill Avenue, Meadow Drive, and Charleston Road for a term ending December 31, 2025; CEQA – not a project.

RECOMMENDATION
Staff recommends the Council approve and authorize the City Manager or designee to execute Contract No. C24189371 (Attachment A), with Kimley Horn and Associates, to perform the Quiet Zone Study Services for the total amount not-to-exceed of $178,559 which includes $162,359 for basic services and $16,200 as a contingency for additional services.

EXECUTIVE SUMMARY
Over time, the city has received numerous community concerns about train noise along the Caltrain Corridor. In 2022, the City of Palo Alto, in collaboration with the City of Menlo Park, conducted a Quiet Zone study for Palo Alto Avenue crossing. The City Council approved the conceptual plan for proposed improvements at Palo Alto Avenue on June 12, 2023. Currently, Staff is in the process of developing the final design of improvements required for the implementation of the Quiet Zone at Palo Alto Avenue crossing.

As the subsequent phase of the study, the Office of Transportation staff is now progressing with a Quiet Zone Study at the other three crossings namely, Churchill Avenue, Meadow Drive, and Charleston Road. The Quiet Zone will serve as an interim measure until Grade Separation Projects are constructed at these crossings. This staff report provides the findings of the City’s procurement efforts to secure the services of a consultant and seek approval for the award of the Consultant Contract to perform a Study. Staff recommends that the Council authorize the City Manager to execute the contract with Kimley Horn and Associates for performing a Quiet Zone Study which also includes the scope of providing recommendations for improvements necessary at these three crossings to implement Quiet Zone(s) in Palo Alto.

Item 5
Item 5 Staff Report

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BACKGROUND
Federal regulation requires that locomotive horns begin sounding 15–20 seconds before entering public rail grade crossings, no more than one-quarter mile in advance. These horns produce sounds from 96 to 110 decibels for at-grade crossings. The sound noise affects the quality of life of the Palo Alto residents in the vicinity of the railroad crossings and causes significant noise pollution.

Local agencies, however, can implement Quiet Zones where railroads have been directed to cease the routine of sounding their horns when approaching public highway-rail grade crossings. Train horns may still be used in emergencies or to comply with other Federal regulations or railroad operating rules. The Federal Railroad Administration (FRA) Title 49 regulations provide the opportunity for localities nationwide to mitigate the effects of train horn noise by establishing Quiet Zones. The regulations require a quiet zone study to review the Quiet Zone Risk Index (QZRI) qualifying for quiet zone or Supplemental Safety Measures (SSM) at each crossing. Based on the study, the crossings need to be upgraded to be safer without horns than they are in the current state with horns before proceeding with quiet zones.

The City of Palo Alto (City) has received several requests for consideration of Quiet Zone at crossings across the Caltrain Corridor. As the first phase of this project, in early 2022, City of Palo Alto staff, in coordination with the City of Menlo Park conducted a Quiet Zone study that included consideration of a quiet zone at the Palo Alto Avenue/Alma Street crossing. The study was completed with the assistance of the consultant procured through the City of Menlo Park.

The Office of Transportation staff is now working toward designing the required improvements for the implementation of Quiet Zone at Palo Alto Avenue Crossing. The conceptual plan for the proposed improvements at Palo Alto Avenue crossing was approved by the City Council on June 19, 2023 (Staff Report 2305-1414)1
The city has received continued interest from the community for quiet zones at other crossings of Churchill Avenue, Meadow Drive, and Charleston Road along the Caltrain Corridor. The residents are concerned about the volumes, frequency, duration, and time frame of train horns in Palo Alto. Even though the city is considering the Grade Separation at these locations, these large infrastructure projects are highly complex, and generally take a long time to fully construct such facilities. As a result, the Council and Rail Committee had indicated interest in considering quiet zone study at all crossings in Palo Alto. Therefore, this parallel effort has been initiated to review these existing grade crossings for the consideration of quiet zone(s).

ANALYSIS
The Office of Transportation in coordination with the City’s procurement staff requested proposals from qualified engineering consultants to conduct a study for implementing Quiet Zone(s) at the three crossings of Churchill Avenue, Meadow Drive, and Charleston Road. The project scope will include conducting outreach and community feedback in preparing recommendations and conceptual plans for implementation of Quiet Zone(s). 1 https://cityofpaloalto.primegov.com/meeting/document/2145.pdf?name=Item%208%20Staff%20Report Item 5
Item 5 Staff Report

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Solicitation Process
A request for proposals (RFP) for the project was posted on October 10, 2023, on OpenGov, the City’s eProcurement platform. The solicitation period was open for 30 days and only one (1) proposal was received. The solicitation closed on November 9, 2023.

Summary of Request for Proposal
Proposal Description Quiet Zone Study RFP No. 189371
Proposed Length of Project 12 months
Number of Proposal Packages Downloaded 17
Total Days to Respond to Proposal 30
Pre-Proposal Meeting No
Pre-Proposal Meeting Date NA
Number of Proposals Received 1
Proposal Price Range $162,359
Public Link to Solicitation https://procurement.opengov.com/portal/ palo-alto-ca/projects/62941
Staff believes that due to the highly competitive environment and the specialized nature of the study, which requires experience with operating railroads, and working with Federal and State agencies; there are limited consultants available in the market to perform such studies.

Additionally, staff reached out to the potential proposers for feedback; some expressed that due to existing proposal commitments and scheduling constraints, they were unable to submit a proposal for this project and they only propose if they know that their service can deliver and meet the high standards of quality at City of Palo Alto. Consequently, staff believes that the city received a limited number of bids for this Request for Proposal.

The proposals were evaluated and determined to be responsive to the criteria identified in the RFP. Kimley Horn and Associates was selected because of the quality and effectiveness of their services, the experience of their field staff, prior record of performance with the city, and their ability to provide future services. Additionally, Kimley Horn is the consultant working on the Palo Avenue Quiet Zone Project and other crossings in Menlo Park, therefore it will provide continuity to the project. This contract is on the City’s professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the consultant

FISCAL/RESOURCE IMPACT
Funding of $178,559 is available in the FY 2024 Adopted Capital Budget in the Transportation and Parking Improvements project (PL-12000).

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STAKEHOLDER ENGAGEMENT
The project scope includes outreach to the community and various committees involved with transportation-related issues.

ENVIRONMENTAL REVIEW
Conduct a Quiet Zone Study is not a project under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. Any future capital improvements recommended through the study will be subject to CEQA Review at the time of approval.

ATTACHMENTS
Attachment A: Kimley Horn and Associates Contract No. C24189371 APPROVED BY:

Philip Kamhi, Chief Transportation Official
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CITY OF PALO ALTO CONTRACT NO. C24189371

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND KIMLEY-HORN AND ASSOCIATES, INC.

This Agreement for Professional Services (this “Agreement”) is entered into as of the 26th day of February, 2024 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and KIMLEY-HORN AND ASSOCIATES, INC ., a North Carolina Corporation , located at 421 Fayetteville Street Suite 600, Rayleigh, NC 27601 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to implement Quiet Zones at the three crossings of Churchill Avenue, Meadow Drive, and Charleston Road along Caltrain corridor (the “Project”) and desires to engage a consultant to provide professional assistance in conducting Quiet Zone Study in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

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

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)

CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation).

CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1 entitled “PROFESSIONAL SERVICES TASK ORDER”.

DocuSign Envelope ID: 3CB8071D-8F38-40C4-A77A-AE72FB775853 Item 5
Attachment A - Kimley
Horn and Associates
Contract No. C24189371

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Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.

Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.

SECTION 2. TERM.

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

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION . The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Sixty - Two Thousand Three Hundred Fifty-Nine Dollars ($162,359). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)

In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Sixteen Thousand Two Hundred Dollars ($16,200) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified DocuSign Envelope ID: 3CB8071D-8F38-40C4-A77A-AE72FB775853 Item 5
Attachment A - Kimley
Horn and Associates
Contract No. C24189371

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