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City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 11
FOOD PRODUCTS,
8.3% CHANGE, $93,308 ,
61.2% TOTAL
GENERAL RETAIL,
-26.4% CHANGE, $16,628 ,
10.9% TOTAL
ALL OTHER,
1.5% CHANGE, $42,438 ,
27.9% TOTAL
California Avenue 2023Q4 SALES TAX AMOUNTS
FOOD PRODUCTS, $86,121 ,
57.2% TOTAL
GENERAL RETAIL,
$22,601 , 15.0%TOTAL
ALL OTHER, $41,826 ,
27.8% TOTAL
California Avenue 2022Q4 SALES TAX AMOUNTS
FOOD PRODUCTS,
3.4% CHANGE, $162,711 ,
28.6% TOTAL
GENERAL RETAIL,
6.1% CHANGE, $41,645 ,
7.3% TOTAL
ALL OTHER,
13.3% CHANGE,
$364,182 ,
64.1% TOTAL
El Camino Real and Midtown 2023Q4 SALES TAX AMOUNTS
FOOD PRODUCTS, $157,368 ,
30.4% TOTAL
GENERAL RETAIL,
$39,239, 7.6% TOTAL
ALL OTHER, $321,518
62.1% TOTAL
El Camino Real and Midtown 2022Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
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City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 12
FOOD PRODUCTS,
7.9% CHANGE, $533,070 ,
60.4% TOTAL
GENERAL RETAIL,
-29.8% CHANGE,
$271,697 ,
30.8% TOTAL
CONSTRUCTION,
283.3% CHANGE, $40,615 ,
4.6% TOTAL
BUSINESS TO BUSINESS,
-44.9% CHANGE, $25,303 ,
2.9% TOTAL
MISCELLANEOUS,
25.8% CHANGE, $8,034 ,
0.9% TOTAL
TRANSPORTATION,
-13.6% CHANGE, $3,240 ,
0.4% TOTAL
Greater Downtown 2023Q4 SALES TAX AMOUNTS
FOOD PRODUCTS,
$493,949 , 52.1% TOTAL
GENERAL RETAIL,
$386,928 , 40.8% TOTAL
CONSTRUCTION,
$10,597 , 1.1% TOTAL
BUSINESS TO BUSINESS,
$45,910 , 4.8% TOTAL
MISCELLANEOUS, $6,386 ,
0.7% TOTAL TRANSPORTATION, $3,750 ,
0.4% TOTAL
Greater Downtown 2022Q4 SALES TAX AMOUNTS
GENERAL RETAIL
$1,603,759 ,
78.1% TOTAL
FOOD PRODUCTS, $178,551 ,
8.7% TOTAL
ALL OTHER, $270,413 ,
13.2% TOTAL
Stanford Shopping Center 2022Q4 SALES TAX AMOUNTS
GENERAL RETAIL,
10.8% CHANGE, $1,777,249 ,
76.1% TOTAL
FOOD PRODUCTS,
-7.6% CHANGE,
$164,915 ,
7.1% TOTAL
ALL OTHER, 45.8% CHANGE,
$394,298 , 16.9% TOTAL
Stanford Shopping Center 2023Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Areas Pie Charts
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City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 13
FOOD PRODUCTS,
6.5% CHANGE, $112,570 ,
55.8% TOTAL
GENERAL RETAIL,
15.6% CHANGE, $81,893 ,
40.6% TOTAL
ALL OTHER, -1.9% CHANGE, $7,326 , 3.6% TOTAL
T own And Country Shopping Center 2023Q4 SALES TAX AMOUNTS
FOOD PRODUCTS,
$105,723 ,
57.4% TOTAL
GENERAL RETAIL,
$70,852 ,
38.5% TOTAL
ALL OTHER, $7,466 , 4.1% TOTAL
T own And Country Shopping Center2022Q4 SALES TAX AMOUNTS
GENERAL RETAIL,
2.8% CHANGE,
$2,249,091 ,
30.8% TOTAL
BUSINESS TO BUSINESS,
-18.1% CHANGE, $2,151,367,
29.4% TOTAL
TRANSPORTATION,
27.7% CHANGE,
$1,656,983,
22.7% TOTAL
FOOD PRODUCTS,
5.0% CHANGE, $1,154,648 ,
15.8% TOTAL
CONSTRUCTION, 72.8% CHANGE,
$57,220 , 0.8% TOTAL
MISCELLANEOUS,
-31.9% CHANGE, $43,779 ,
0.6% TOTAL
All Other Geos combined with Balance of Jurisdiction 2023Q4
SALES TAX AMOUNTS
GENERAL RETAIL,
$2,187,385 ,
29.9% TOTAL
BUSINESS TO BUSINESS,
$2,626,836, 35.9% TOTAL
TRANSPORTATION,
$1,297,935
17.8% TOTAL
FOOD PRODUCTS,
$1,099,310 ,
15.0% TOTAL
CONSTRUCTION,
$33,117 , 0.5% TOTAL
MISCELLANEOUS,
$64,270 , 0.9% TOTAL
All Other Geos combined with Balance of Jurisdiction 2022Q4
SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
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City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 14
Balance of Jurisdiction,
-8.2% CHANGE,
$3,171,966 ,
43.4% TOTAL
Stanford Shopping Center,
-6.9% CHANGE, $881,959 ,
12.1% TOTAL
Greater Downtown,
13.8% CHANGE,
$2,336,462 , 31.9% TOTAL
El Camino Real and Midtown,
9.7% CHANGE, $568,538 ,
7.8% TOTAL
Town And Country Shopping Center,
9.6% CHANGE, $201,789 , 2.8% TOTAL California Avenue, 1.2% CHANGE, $152,375 , 2.1% TOTAL
All Geo Area Totals 2023Q4 SALES TAX AMOUNTS
Balance of Jurisdiction,
$3,455,895 , 47.3% TOTAL
Stanford Shopping Center,
$947,519 , 13.0% TOTAL
Greater Downtown,
$2,052,723 , 28.1% TOTAL
El Camino Real and Midtown,
$518,125 , 7.1% TOTAL
Town And Country Shopping Center,
$184,041 , 2.5% TOTAL
California Avenue,
$150,549 , 2.1% TOTAL
All Geo Area Totals 2022Q4 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
-19.2%CHANGE, $2,341,984 ,
29.4% TOTAL
GENERAL RETAIL,
2.1% CHANGE, $2,315,882 ,
29.1% TOTAL
TRANSPORTATION,
27.4% CHANGE,
$1,659,937 ,
20.8% TOTAL
FOOD PRODUCTS,
6.1% CHANGE, $1,348,051 ,
16.9% TOTAL
MISCELLANEOUS, 0.0% CHANGE,
$232,629 , 2.9% TOTAL
CONSTRUCTION,
52.7% CHANGE, $64,138 ,
0.8% TOTAL
Palo Alto citywide 2023Q4 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
$2,897,154 , 36.2% TOTAL
GENERAL RETAIL,
$2,267,515 ,
28.3% TOTAL
TRANSPORTATION,
$1,303,260 ,
16.3% TOTAL
FOOD PRODUCTS, $1,270,193
15.9% TOTAL
MISCELLANEOUS, $232,569 ,
2.9% TOTAL CONSTRUCTION, $42,015 ,
0.5% TOTAL
Palo Alto citywide 2022Q4 SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts
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California Legislative
Update March 11, 2024
The February bill introduction deadline for the 2024
legislative year has passed, with a summary of the salient legislation provided in this report. We will continue to keep you abreast of all pertinent discussions, including updates on the increasingly pressing budget situation, in future communications.
The Legislative Analyst’s Office has revised its estimate of the state’s revenue shortfall from $68 billion in November to $73 billion in February. This continued downward
trajectory is anticipated to influence legislation, particularly bills entailing substantial fiscal implications. The evolving revenue situation is also poised to significantly impact both the governor's May budget revision and the legislature's response. Consequently, state agencies have been advised to remain vigilant of the deficit while prioritizing funding in the forthcoming months and years.
Meanwhile, budget subcommittees have commenced their
hearings, scrutinizing each of the governor’s budget
proposals while actively engaging with stakeholders and legislators for feedback. Concurrently, legislative policy committees are convening legislative hearings this month to address policy bills.
Bonds
AB 1567 (Garcia) Safe Drinking Water, Wildfire
Prevention, Drought Preparation, Flood Protection,
Extreme Heat Mitigation, Clean Energy, and
Workforce Development Bond Act of 2024. If approved
by voters, would authorize the issuance of bonds in the amount of $16 billion to finance projects for safe drinking water, wildfire prevention, drought preparation, flood
protection, extreme heat mitigation, clean energy, and
workforce development programs.
Status: Referred to the Senate committees on Natural
Resources & Water and Governance & Finance.
Cal Cities Position: Support if Amended
SB 638 (Eggman) Climate Resiliency and Flood
Protection Bond Act of 2024. If approved by voters,
would authorize the issuance of bonds in the amount of $6 billion for flood protection and climate resiliency projects.
Status: Awaiting hearing in the Assembly Water, Parks, & Wildlife Committee.
Cal Cities Position: Support if Amended
SB 867 (Allen) Drought, Flood, and Water Resilience,
Wildfire and Forest Resilience, Coastal Resilience,
Extreme Heat Mitigation, Biodiversity and Nature-
Based Climate Solutions, Climate Smart Agriculture,
Park Creation and Outdoor Access, and Clean Energy
Bond Act of 2024. If approved by voters, would authorize the issuance of bonds in the amount of $15.5 billion to finance projects for drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate
solutions, climate smart agriculture, park creation and outdoor access, and clean energy programs.
Status: Awaiting hearing in the Assembly Natural
Resources Committee.
Cal Cities Position: Support if Amended
SB 986 (Seyarto) Ballot label: bond measure fiscal
impact. This bill would require, for state bond measures and for local measures to approve the issuance of bonds that will be secured by an ad valorem tax, the ballot label to include a summary of the measure’s fiscal impact in a specified form.
Status: Scheduled to be heard in the Senate Elections & Constitutional Amendments Committee on March 19.
Cal Cities Position: Watch
Broadband
AB 1588 (Wilson) Affordable Internet and Net
Equality Act of 2024. Would, under the Affordable
Internet and Net Equality Act of 2024, require the
Department of Technology, in coordination with the
Public Utilities Commission and the Department of
General Services, to develop and establish the Net
Equality Program. The bill would require the state and
state agencies to only enter into a procurement contract with an internet service provider offering affordable home internet service, which costs no more than $40 per month and meets specified minimum speed requirements, to
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2 households participating in certain public assistance programs, or with an internet service provider participating in the federal Affordable Connectivity Program, or any
other state or federal program that offers broadband
affordability assistance for households that qualify for that program, and that offers to households that qualify for those programs internet service that costs no more than $40 per month and meets specified minimum speed
requirements.
Status: Awaiting referral to a policy committee in the
Senate.
Cal Cities Position: Watch
AB 1826 (Holden) Digital Equity in Video
Franchising Act of 2024. Would revise and recast the
Digital Infrastructure and Video Competition Act of 2006 to, among other things, rename the act as the Digital
Equity in Video Franchising Act of 2024, provide that the act does not authorize the California Public Utilities
Commission (CPUC) to regulate the rates of video
services, and authorize the CPUC to exercise the authority, jurisdiction, and powers authorized to be exercised by a franchise authority pursuant to certain federal law. The bill would require the CPUC to hold a public hearing related to each application for renewal of a state franchise, require the commission to issue a state franchise or a reject each application for a state franchise not more than 90 days after the public hearing, if required, or after the application is deemed complete, require a franchise applicant to
submit a description of the households that are known to be unserved in the video service area footprint that the applicant proposes to serve, and extend deadlines related to the commission’s review of applications for state
franchises.
Status: Referred to the Assembly Committee on
Communications & Conveyance.
Cal Cities Position: Watch
AB 2369 (Patterson, Jim) Broadband: fixed wireless
study: Little Hoover Commission. Would require the
Little Hoover Commission to conduct a study on the use
of fixed wireless and other technologies to bridge the
digital divide. The bill would require the Little Hoover Commission, on or before January 1, 2027, to submit a
report to the legislature with the commission’s
recommendations based on the study.
Status: Referred to the Assembly Committee on
Communications & Conveyance.
Cal Cities Position: Support in Concept
AB 2708 (Patterson, Jim) Office of Broadband and
Digital Literacy: reports. Would require additional
information to be included in the annual report from the Office of Broadband and Digital Literacy to the budget
committees of the legislature, including the total cost to complete the statewide open-access middle-mile
broadband network, the total available funding for the
statewide open-access middle-mile broadband network,
and the projected completion date for the statewide open- access middle-mile broadband network.
Status: Referred to the Assembly Committee on
Communications & Conveyance.
Cal Cities Position: Support in Concept
SB 1383 (Bradford) California Advanced Services
Fund: Broadband Public Housing Account. Would
make funds in the Broadband Public Housing Account in
the California Advanced Services Fund available for grants and loans to finance projects to connect broadband
networks that offer broadband service for residents of
low-income communities and would eliminate the
requirement that the broadband service be free.
Status: Referred to the Senate Committee on Energy,
Utilities, & Communications.
Cal Cities Position: Track
Government Finance and
Administration
SB 908 (Cortese) Public records: legislative records:
electronic messages. Would prohibit an elected or
appointed official or employee of a public agency from
creating or sending a public record using a nonofficial electronic messaging system unless the official or employee sends a copy of the public record to an official electronic messaging system.
Status: Awaiting referral to a policy committee in the
Senate.
Cal Cities Position: Watch
Economic Development
AB 2922 (Garcia) Economic development: capital
investment incentive programs. Prior law, until January 1, 2024, authorized a county, city and county, or city to establish a capital investment incentive program, pursuant to which the county, city and county, or city was
authorized to pay, upon request, a capital investment
incentive amount that does not exceed the amount of
property tax derived from that portion of the assessed
value of a qualified manufacturing facility, that exceeds $150 million to a proponent of a qualified manufacturing facility for up to 15 years. This bill would reestablish the Item 33
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3 authorization for capital investment incentive programs until January 1, 2035, and make conforming changes.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: Support
SB 517 (Gonzalez) Economic development:
movement of freight. Would authorize the Governor’s
Office of Business and Economic Development (GO-Biz)
to serve as the coordinating entity to steer the growth, competitiveness, and sustainability for freight and the supply chain across the state and to promote and assess the continued economic vitality, economic
competitiveness, and sustainability of the freight sector.
Would also authorize GO-Biz to provide freight and
supply chain economic competitiveness information.
Status: Awaiting hearing in the Assembly Jobs, Economic Development, & the Economy Committee.
Cal Cities Position: Watch
SB 720 (Stern) Aviation: airports: report: emissions:
GO-Biz. Would require GO-Biz to create a stakeholder
group to identify and pursue opportunities to attract and develop sustainable aviation fuel production and
infrastructure in the state to help reach the goal of net-zero greenhouse gas emissions in California.
Status: Awaiting hearing in the Assembly Natural
Resources Committee.
Cal Cities Position: None
SB 864 (Smallwood-Cuevas) Workforce development:
workplace rights curriculum. Would require the
California Workforce Development Board to assist the
governor with partnering with the labor commissioner and other subject matter experts in developing a workplace
rights curriculum to be provided to all individuals receiving individualized career services, supportive services, or training services through the California workforce system.
Would require each local workforce development board to ensure the provision of workplace rights training
consistent with that workplace rights curriculum. The bill would require the comprehensive 4-year local plan to
include a description of how the local board plans to
comply with this requirement.
Status: Awaiting hearing in the Assembly Appropriations Committee.
Cal Cities Position: Watch
SB 1140 (Caballero) Enhanced infrastructure
financing district. Would authorize a city or county
official, as applicable, to electronically submit a copy of a city or county’s resolution of intention to establish an infrastructure financing district to each affected taxing entity, rather than mailing a physical copy.
Status: Referred to the Senate committees on Local
Government and Environmental Quality. Scheduled to be
heard in the Senate Local Government Committee on
March 20.
Cal Cities Position: Watch
Infrastructure
AB 2403 (Bonta) Enhanced infrastructure financing
districts: allowable projects. Current law authorizes the legislative body of a city or a county to establish an
enhanced infrastructure financing district to finance public capital facilities or other specified projects of
communitywide significance, including projects that
implement a sustainable communities strategy. AB 2403
would additionally include, in the list of facilities and projects enhanced infrastructure financing district may fund, community food and climate resilience projects that increase local food production in and for disadvantaged communities, and are powered by renewable energy,
including community gardens.
Status: Referred to the Assembly Committee on Local
Government.
Cal Cities Position: None
SB 955 (Seyarto) Office of Planning and Research:
Infrastructure Gap-Fund Program. Would require the
Office of Planning and Research, upon appropriation by
the legislature, to establish the Infrastructure Gap-Fund Program to provide grants to assist local agencies in
developing and constructing infrastructure projects.
Status: Scheduled to be heard in the Senate Committee on Local Government on March 20.
Cal Cities Position: Support
Telecommunications
AB 2512 (Patterson, Jim) Telecommunications:
automatic dialing-announcing devices: artificial
voices. This bill would expand the definition of
“automatic dialing-announcing device” under the Public
Utilities Commission, to include calls made using an
artificial voice.
Status: Referred to the Assembly Committee on
Communications & Conveyance.
Cal Cities Position: Track
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4 Revenue and Taxation
AB 1781 (Waldron) State mandates: claims. The
California Constitution, whenever the Legislature or a state agency mandates a new program or higher level of service on any local government, including school districts,
requires the state to provide a subvention of funds to
reimburse the local government, unless an exception
applies. Statutory provisions that establish procedures for making that reimbursement include a requirement that no claim shall be made or paid unless it exceeds $1,000. This bill would change the minimum claim amount to $800.
Status: Referred to the Assembly Committee on Local
Government.
Cal Cities Position: Pending
AB 2813 (Aguiar-Curry) Government Investment Act.
Would authorize a local government that imposes a tax
under ACA 1 to commit revenues to affordable housing
programs, including down payment assistance, first-time home buyer programs, and owner-occupied affordable
housing rehabilitation programs. Would require a local
government to ensure that any project that is funded with ACA 1 bonded indebtedness or ACA 1 special taxes to
have an estimated useful life of at least 15 years or 5 years if the funds are for specified public safety buildings, facilities, and equipment.
Status: Awaiting assignment to a policy committee in the Assembly.
Cal Cities Position: Pending
AB 3005 (Wallis) Motor Vehicle Fuel Tax Law:
adjustment suspension. Would authorize the governor
to suspend an adjustment to the motor vehicle fuel tax, scheduled on or after July 1, 2025, upon determining that increasing the rate would impose an undue burden on low- income and middle-class families. Would require the
governor to notify the legislature of an intent to suspend the rate adjustment on or before January 10 of that year and would require the Department of Finance to submit to the legislature a proposal by January 10 that would
maintain the same level of funding for transportation
purposes as would have been generated had the scheduled adjustment not been suspended.
Status: Awaiting assignment to a policy committee in the Assembly.
Cal Cities Position: Oppose
ABX1 2 (Fong, Vince) Motor Vehicle Fuel Tax Law:
suspension of tax. Would suspend the imposition of the
tax on motor vehicle fuels for one year. The bill would require that all savings realized based on the suspension of the motor vehicle fuels tax by a person other than an end consumer, be passed on to the end consumer, and would
make the violation of this requirement an unfair business practice, in violation of unfair competition laws. The bill would require a seller of motor vehicle fuels to provide a receipt to a purchaser that indicates the amount of tax that would have otherwise applied to the transaction.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: None
Sales and Use Taxes
AB 2006 (Mathis) Sales and Use Tax Law: exemption:
over-the-counter medication. This bill would, until
January 1, 2030, provide an exemption for the state
portion of the sales and use tax imposed on the sale of, and the storage, use, or other consumption in this state of, over-the-counter medication.
Status: Scheduled to be heard in the Assembly Revenue & Taxation Committee on March 11.
Cal Cities Position: Watch
AB 2061 (Wilson) Sales and Use Tax: exemptions:
zero-emission public transportation ferries. This bill, beginning January 1, 2025, and until January 1, 2030,
provides an exemption for the state portion of the sales and use tax imposed on a zero-emission public
transportation ferry. This bill intends to offset the cost to eligible public transportation providers associated with purchasing zero-emission public transportation ferries.
Status: Scheduled to be heard in the Assembly Revenue & Taxation Committee on March 11.
Cal Cities Position: Support
AB 2274 (Dixon) Taxation: sales and use taxes:
exemption: tax holiday. Would, on and after January 1,
2025, exempt from sales and use taxes the gross receipts from the sale of, and the storage, use, or other
consumption of, any tangible personal property purchased during the first weekend in August, beginning at 12:01 a.m. on Saturday and ending at 11:59 p.m. on Sunday.
Status: Scheduled to be heard in the Assembly Revenue & Taxation Committee on March 11.
Cal Cities Position: Pending Opposition
AB 2366 (Ta) Sales and use tax: administration:
settlements. Would decrease the number of days in which the California Department of Tax and Fee Administration director is required to either approve or disapprove a
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5 recommendation for settlement to 30 days, down from 45 days.
Status: Scheduled to be heard in the Assembly Revenue & Taxation Committee on April 1.
Cal Cities Position: Watch
AB 2400 (Rivas, Luz) California Alternative Energy
and Advanced Transportation Financing Authority
Act. The California Alternative Energy and Advanced
Transportation Financing Authority Act authorizes, until January 1, 2026, the authority to provide financial
assistance to a participating party in the form of specified sales and use tax exclusions for projects, including those that promote California-based manufacturing, California- based jobs, advanced manufacturing, reduction of
greenhouse gases, or reduction in air and water pollution or energy consumption. This bill would extend the
authorization to provide financial assistance in the form of a sales and use tax exclusion for qualifying projects to January 1, 2031, and would extend the sales and use tax exclusion to January 1, 2031.
Status: Referred to the Assembly committees on Revenue
& Taxation and Transportation.
Cal Cities Position: Watch
AB 2647 (Low) State of emergency: extensions. Under
the Sales and Use Tax Law, if the governor issues a state of emergency proclamation, the California Department of
Tax and Fee Administration (CDTFA) is authorized to
extend the time, for making any report or return or paying any tax required under its provisions for any person in an area identified in the state of emergency proclamation. The Sales and Use Tax Law authorizes CDTFA to make the
extension only during the first 12 months following the issuance of the state of emergency proclamation or the
duration of the state of emergency, whichever is less.
This bill would expand the authorization for the CDFTA
to make the extension to the first 12 months and one day following the issuance of the state of emergency
proclamation or the duration of the state of emergency, whichever is less.
Status: Referred to the Assembly Revenue & Taxation
Committee.
Cal Cities Position: None
SB 1086 (Seyarto) Sales and Use Tax Law: motor
vehicle fuel tax: sales price: gross receipts. The Motor Vehicle Fuel Tax Law imposes a tax upon each gallon of
motor vehicle fuel removed from a refinery or terminal
rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing sales and use tax laws provide a partial exemption from the taxes
imposed by those laws for motor vehicle fuel that is
subject to the taxes imposed by the Motor Vehicle Fuel
Tax Law. This bill, beginning January 1, 2025, would
exclude from the terms “gross receipts” and “sales price” under the Sales and Use Tax Law the amount of any
motor vehicle fuel tax imposed pursuant to the Motor
Vehicle Fuel Tax Law.
Status: Referred to the Senate Committee on Revenue &
Taxation.
Cal Cities Position: Watch
SB 1494 (Glazer) Local agencies: Sales and Use Tax:
retailers. This bill would prohibit, on or after January 1, 2024, a local agency from entering into, renewing, or
extending any form of agreement that would result,
directly or indirectly, in the payment, transfer, diversion, or rebate of Bradley-Burns local tax revenues to any retailer, in exchange for the retailer locating or continuing to
maintain a place of business that serves as the place of sale, as defined, within the territorial jurisdiction of the local agency if that place of business would generate revenue, from the sale of tangible property delivered to and
received by the purchaser in the territorial jurisdiction of another local agency, for the local agency under the
Bradley-Burns Uniform Local Sales and Use Tax Law. The
bill would make those forms of agreements existing before January 1, 2024, void and unenforceable on January 1,
2030. The bill would require a local agency to post those forms of agreements existing before January 1, 2024, on the local agency’s internet website until the form of
agreement expires or is made void and unenforceable by
these provisions.
Status: Referred to the Senate committees on Local
Government and Revenue & Taxation.
Cal Cities Position: Taking to Policy Committee
Online Sales
SB 1144 (Skinner) Marketplaces: online marketplaces.
Would revise the types of transactions that qualify a third- party seller as a “high-volume third-party seller.”
Specifically, the bill would remove the conditions that the transactions be made through an online marketplace and
that the online marketplace process the payment and,
instead, would add the condition that the transactions were made utilizing an online marketplace.
Status: Referred to the Senate committees on Judiciary and Public Safety.
Cal Cities Position: Pending
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6 Corporation Tax
AB 1973 (Lackey) Personal Income Tax Law:
Corporation Tax Law: Bobcat Fire: exclusions. Would,
for taxable years beginning on or after January 1, 2020, and before January 1, 2029, provide an exclusion from gross income for any qualified taxpayer, for amounts received in settlement for costs and losses associated with the 2020 Bobcat Fire in the County of Los Angeles.
Status: Referred to the Assembly Committee on Revenue & Taxation.
Cal Cities Position: None
AB 2128 (Ta) Income and corporation taxes: credits:
work opportunity credit. For taxable years beginning on or after January 1, 2024, and before January 1, 2029, would allow a tax credit in an amount equal to 40% of the
qualified wages paid or incurred to a qualified employee employed during the taxable year. The bill would define a qualified employee as an individual that, among other
things, has been convicted of a felony, and has a hiring date not more than one year after the date the individual was convicted or was released from prison.
Status: Scheduled to be heard in the Assembly Revenue & Taxation Committee on April 1.
Cal Cities Position: None
AB 2294 (Schiavo) Personal Income Tax Law:
Corporation Tax Law: New Employment Credit. The
Personal Income Tax Law and the Corporation Tax Law
allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2026, a credit for hiring qualified full-time employees, within a designated census tract or economic development area in an amount
equal to 35% of the qualified wages, defined in part as those wages that exceed 150% of minimum wage but do
not exceed 350% of minimum wage, paid to those
employees multiplied by the applicable percentage for that taxable year. This bill would eliminate the requirement that the new employment be located within a designated census tract or economic development area. The bill would
expand the definition of qualified wages to include the amount of wages that exceeds 100% of minimum wage
but does not exceed 350% of minimum wage. The bill
would expand the definition of qualified employee to
include an employee that is a member of a targeted group, as defined.
Status: Scheduled to be heard in the Assembly Revenue & Taxation Committee on April 1.
Cal Cities Position: None
SB 370 (McGuire) Personal Income Tax Law:
Corporation Tax Law: wildfires: exclusions. Would,
for taxable years beginning on or after January 1, 2020, provide an exclusion from gross income for any qualified taxpayer, for amounts received in settlements associated with the 2019 Kincade Fire in the county of Sonoma.
Status: Awaiting hearing in the Assembly Revenue &
Taxation Committee.
Cal Cities Position: None
SB 542 (Dahle) Personal Income Tax Law:
Corporation Tax Law: wildfires: exclusions. Would,
for taxable years beginning on or after January 1, 2022, and before January 1, 2029, provide an exclusion from gross income for any qualified taxpayer, for amounts received in settlement for costs and losses associated with the 2021 Dixie Fire in the Counties of Butte, Plumas, Lassen,
Shasta, and Tehama, or the 2022 Mill Fire in the county of Siskiyou.
Status: Awaiting hearing in the Assembly Appropriations Committee.
Cal Cities Position: None
SB 1102 (Nguyen) Personal Income Tax Law:
Corporation Tax Law: oil spill: exclusions. Would
provide an exclusion from gross income for any qualified taxpayer, for amounts received in settlements associated with the October 2, 2021, oil spill that occurred off the coast of the county of Orange near the City of Huntington Beach. The bill would repeal these provisions on January 1, 2029.
Status: Referred to the Senate Revenue & Taxation
Committee.
Cal Cities Position: None
Property Tax
AB 1868 (Friedman) Property taxation: assessments:
affordable housing. Current law requires the county
assessor to consider, when valuing real property for
property taxation purposes, the effect of any enforceable restrictions to which the use of the land may be subjected.
Under current law, these restrictions include, among other enumerated items, a recorded contract with a nonprofit
corporation that meets prescribed requirements, including requirements that the nonprofit corporation has received a welfare exemption for properties intended to be sold to low-income families who participate in a special no-
interest loan program, and that the contract includes a restriction on the use of the land for at least 30 years to owner-occupied housing available at affordable housing
cost. This bill would, for purposes of valuing property by Item 33
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7 the county assessor, establish a rebuttable presumption that, at the time of purchase, the value of real property subject to a recorded contract that meets the above-
described requirements is no greater than the sum of the value of the first mortgage and any applicable down
payment.
Status: Referred to the Assembly Committee on Revenue & Taxation.
Cal Cities Position: Watch
AB 2353 (Ward) Property taxation: welfare exemption:
delinquent payments: interest and penalties. Would
provide that a taxpayer is not liable for interest or penalties imposed by the county tax collector, and would prohibit the county tax collector from taking or continuing any
collection action, with respect to any delinquent
installments of property taxes levied upon a property for which the taxpayer has submitted to the county assessor an application for an exemption pursuant to a partial welfare exemption, except as provided.
Status: Referred to the Assembly committees on Revenue
& Taxation and Housing & Community Development.
Cal Cities Position: Watch
AB 2506 (Lowenthal) Property taxation: local
exemption: possessory interests: publicly owned
housing. Would authorize a county board of supervisors
to exempt from property taxation any possessory interest held by a tenant of publicly owned housing, with a value so low that the total taxes and applicable subventions on the property would amount to less than the cost of assessing and collecting them. Would provide that there is a
rebuttable presumption that the property taxes and
applicable subventions on a possessory interest held by a tenant in publicly owned housing are less than the costs of assessing and collecting those taxes and applicable
subventions. Would provide that the board shall be
deemed to have agreed with the rebuttable presumption
and the exemption shall be deemed granted if the board
does not take any action, if the board agrees, by a majority vote, to grant the exemption at a public hearing, or if the board fails to reach a majority vote for or against the exemption at the public hearing.
Status: Referred to the Assembly Committees on Revenue
& Taxation and Housing & Community Development.
Cal Cities Position: Watch
AB 2564 (Boerner) Property tax postponement: Senior
Citizens and Disabled Citizens Property Tax
Postponement Fund. Would require money to be
transferred, on June 30, 2025, and on June 30 each year thereafter, from the state General Fund to the Senior
Citizens and Disabled Citizens Property Tax
Postponement Fund when the balance in the latter fund is less than $15 million.
Status: Referred to the Assembly Committee on Revenue & Taxation.
Cal Cities Position: Watch
AB 2897 (Connolly) Property tax: welfare exemption:
community land trusts. Would eliminate specified
requirements of a lease agreement between a lower income household and a community land trust in order for the
unit to continue to be treated as occupied by a lower
income household.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: Watch
AB 3134 (Chen) Property taxation: refunds. Would
require the county auditor, if the cancellation of taxes will result in a refund, to either process the refund to the payor of the tax or notify the payor in writing of the
requirements for obtaining a refund. Would require that a claim for a refund under this provision be deemed timely filed if it is filed within 60 days of the notice. This bill would also authorize an order for refund of taxes or
assessments to be paid to the assessee of a property,
without a claim for refund filed, if certain conditions are met, including, among other requirements, that the
amount of the refund is less than $10,000.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: Watch
AB 3277 (Committee on Local Government) Local
agency formation commission: districts: property tax.
Would require a commission to determine the amount of
property tax revenue to be exchanged by an affected local agency if the proposal includes the formation of a district and the applicant is seeking a share of the 1% ad valorem property taxes.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: None
SB 726 (Archuleta) Property taxation: exemption:
disabled veteran homeowners. Would exempt from
taxation, on that part of the full value of the residence that does not exceed $863,790, property owned by, and that
constitutes the principal place of residence of, a veteran, the veteran’s spouse, or the veteran and the veteran’s
spouse jointly if the veteran is 100% disabled. The bill would provide an unmarried surviving spouse a property
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8 exemption in the same amount that they would have been entitled to if the veteran was alive and if certain conditions are met.
Status: Awaiting hearing in the Assembly Revenue &
Taxation Committee.
Cal Cities Position: Watch
SB 871 (Archuleta) Property taxation: homeowners’,
veterans’, and disabled veterans’ exemptions. Would
provide that if Senate Constitutional Amendment 6 is
approved by the voters at the statewide general election scheduled for November 5, 2024, then commencing
January 1, 2025, notwithstanding that prohibition, the
homeowners’ exemption also applies to property on which an owner receives the veterans’ exemption or the disabled veterans’ exemption.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: None
SB 964 (Seyarto) Property tax: tax-defaulted property
sales. Would update California code to match a 2023
Supreme Court ruling where a county is not allowed to
keep profits from the sale of an auctioned property, if the property was seized and auctioned because of defaulted
property taxes. Any profits made from such an auction
would be restored to the owner.
Status: Referred to the Senate Revenue & Taxation
Committee.
Cal Cities Position: Watch
SB 1013 (Bradford) Housing: property tax relief: grant
program. Would establish the Property Tax Assistance for Descendants of Enslaved Persons Program for purposes
of making, upon appropriation of the legislature, grants available to persons who currently live in a formerly
redlined neighborhood in the state and are descendants of a person enslaved in the United States. The bill would
require the Department of Housing & Community
Development to develop and administer the program and
to provide grants to qualified applicants it selects to receive the grant.
Status: Awaiting referral to a policy committee in the
Senate.
Cal Cities Position: Watch
SB 1072 (Padilla) Local government: Proposition 218:
remedies. Would require, if a property-related fee or
charge creates revenues more than the local government’s reasonable cost of providing the specific benefit or specific government service, that the excess revenues be used only to reduce the subsequently adopted and following
property-related fee or charge.
Status: Referred to the Senate Local Government
Committee.
Cal Cities Position: Watch
SB 1164 (Newman) Property taxation: new
construction exclusion: accessory dwelling units. This
bill would exclude an accessory dwelling unit, until 15 years have passed since construction on the accessory
dwelling unit was completed or there is a subsequent
change in ownership of the accessory dwelling unit from property taxes.
Status: Referred to the Senate Revenue & Taxation
Committee.
Cal Cities Position: Oppose
SCA 4 (Seyarto) Property taxation: principal residence
and family home transfers. Would place a measure
before voters that repeals Proposition 19’s limitation on the parent-child and grandparent-grandchild exclusion
from change in ownership of a principal residence to apply only if the property continues as the primary residence of the transferee. SCA 4 also reinstates the parent-child, grandparent-grandchild exclusion for up to $1 million in aggregate value of all other types of property that is not the principal residence. Under the measure, both changes become effective on January 1, 2025, if approved by
voters.
Status: Failed passage in the Senate Governance & Finance Committee.
Cal Cities Position: Watch
SCA 6 (Archuleta) Property taxation: veterans’
exemption. Would allow a dwelling that receives the
veterans’ exemption or the disabled veteran’s exemption to also receive the homeowners’ exemption. Would authorize the legislature to exempt property eligible for the veterans’ exemption in an amount up to the full value of the
property. If the legislature increases the homeowners’
exemption, the measure would require that the legislature provide the same increase in the veterans’ exemption,
except as limited by the full value of the property.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: Watch
Development Fees
AB 1820 (Schiavo) Housing development projects:
applications: fees and exactions. Would authorize a
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9 development proponent that submits a preliminary
application for a housing development project to request a preliminary fee and exaction estimate and would require the local agency to provide the estimate within 10 business days of the submission of the preliminary application.
Status: Referred to the Assembly Committee on Housing & Community Development.
Cal Cities Position: Pending
AB 2430 (Alvarez) Planning and zoning: density
bonuses: monitoring fees. Would prohibit a city, county, or city and county from charging a monitoring fee on
Density Bonus Law types of housing developments if
certain conditions are met. The bill would provide that, beginning on January 1, 2025, any housing development
that is currently placed in service, is subject to monitoring fees, and meets those conditions shall no longer be subject to those fees.
Status: Referred to the Assembly committees on Housing
& Community Development and Local Government.
Cal Cities Position: Track
AB 2433 (Quirk-Silva) California Private Permitting
Review and Inspection Act: fees: building permits.
Current law authorizes the governing body of a county or city to prescribe fees for permits, certificates, or other forms or documents required or authorized under the
State Housing Law, and fees to defray the cost of
enforcement required by the law to be carried out by local enforcement agencies. This bill, the California Private Permitting Review and Inspection Act, would require a
building department of the county or city to prepare a
schedule of the above-described fees and post the schedule on the county or city’s internet website if the city or county prescribes the fees.
Status: Referred to the Assembly committees on Local
Government and Housing & Community Development.
Cal Cities Position: Watch
AB 2729 (Patterson, Joe) Residential fees and charges.
Current law prohibits a local agency that imposes fees or charges on a residential development for the construction of public improvements or facilities from requiring the payment of those fees or charges until the date of the final inspection or the date the certificate of occupancy is
issued, whichever occurs first, except that the payment may be required sooner if the local agency determines that the fees or charges will be collected for public
improvements or facilities for which an account has been established and funds appropriated and for which the local agency has adopted a proposed construction schedule or
plan prior to final inspection or issuance of the certificate of occupancy, or if the fees or charges are to reimburse the local agency for expenditures previously made. This bill would delete the above-described authorization for a local agency to require payment of fees or charges prior to the date of final inspection or issuance of the certificate of occupancy, whichever occurs first.
Status: Referred to the Assembly committees on Local
Government and Housing & Community Development.
Cal Cities Position: Pending
AB 3177 (Carrillo, Wendy) Mitigation Fee Act: land
dedications: mitigating vehicular traffic impacts.
Current law requires a local agency that imposes a fee on a housing development for the purpose of mitigating
vehicular traffic impacts to set the rate for the fee to reflect a lower rate of automobile trip generation if the housing development satisfies specified characteristics, including that the housing development is located within a 1/2 mile of a transit station. Current law defines a transit station for these purposes to mean a rail or light-rail station, ferry terminal, bus hub, or bus transfer station. This bill would instead require the housing development to be located
within a 1/2 mile of a transit priority area for purposes of a local agency setting the rate for a mitigating vehicular traffic impacts fee to reflect a lower rate of automobile trip generation. The bill would define “transit priority area” as an area within 1/2 mile of a major transit stop that is existing or planned, if the planned stop is scheduled to be completed within the planning horizon included in a
Transportation Improvement Program or applicable
regional transportation plan.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: Track
SB 937 (Wiener) Development projects: permits and
other entitlements: fees and charges. Would extend by
18 months the period for the expiration, effectuation, or utilization of a housing entitlement that was issued before January 1, 2024, and that will expire before December 31, 2025, except as specified. The bill would toll this 18-month extension during any time that the housing entitlement is the subject of a legal challenge.
Status: Referred to the Senate committees on Local
Government and Housing.
Cal Cities Position: Pending
Short-Term Rentals
SB 584 (Limón) Laborforce housing: Short-Term
Rental Tax Law. This bill requires a 15% state short-term rental occupancy tax to be collected, and allocates the Item 33
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10 funds for the construction, acquisition and rehabilitation of affordable housing and renter protection programs.
Status: Awaiting hearing in the Assembly Housing &
Community Development Committee.
Cal Cities Position: Oppose Unless Amended
SB 683 (Glazer) Hotels and short-term rentals:
advertised rates: mandatory fees. Would, beginning July 1, 2024, require a person or a website, application, or other similar centralized platform that advertises a hotel room rate or short-term rental rate before the public in this state, or from this state before the public in any state, to include in the advertised hotel room rate or short-term rental rate all mandatory fees, that will be charged in order for the consumer to stay in the hotel room or short-term rental and include in the total price to be paid, before the
consumer reserves the stay, all taxes and fees imposed by a government on the stay.
Status: Awaiting an Assembly floor vote.
Cal Cities Position: Watch
SB 1424 (Glazer) Hotel and private residence rental
reservations: cancellation: refunds. Would expand
provisions requiring a hotel, third-party booking service, hosting platform, or short-term rental, to allow a
reservation for a hotel accommodation or a short-term
rental located in California to be canceled without penalty for at least 24 hours after the reservation is confirmed if the reservation is made 72 hours or more before the time of check-in, to also apply to a reservation for a hotel accommodation or short-term rental that is advertised in California. Would also expand provisions requiring
consumer refunds for all amounts paid to the hosting
platform, hotel, third-party booking service, or short-term rental to the original form of payment within 30 days of the cancellation of the reservation to also apply to a
reservation for a hotel accommodation or short-term
rental that is advertised in California.
Status: Referred to the Senate Judiciary Committee.
Cal Cities Position: None
Cannabis
Direct to Consumer
AB 1111 (Pellerin) Cannabis: small producer event
sales license. This bill establishes a small producer event sales license for licensed small-scale cannabis cultivators in California, utilizing the existing state framework for
cannabis events established under AB 2020. The bill limits license issuance to cultivators meeting specific cultivation size criteria and designated equity licensees. Licensees are required to sell only their own cultivated cannabis products and transport them to event venues through licensed
distributors. Additionally, the bill mandates event
organizers to provide a list of small producer event sales licensees to the Department of Cannabis Control (DCC)
for temporary event applications and grants DCC
authority to take disciplinary action for violations.
Status: Awaiting hearing in the Senate Appropriations
Committee.
Cal Cities Position: Watch
Employment Discrimination
SB 1264 (Grove) Employment discrimination:
cannabis use. While currently a spot bill, according to the author’s office, this bill is being sponsored by the law enforcement community and seeks to undo provisions in
SB 700 (Bradford, 2023) and AB 2188 (Quirk, 2022),
which make it unlawful for an employer to request
information from an applicant for employment relating to the applicant’s prior use of cannabis and for an employer to discriminate against a person in hiring or termination because of the person’s use of cannabis off the job and away from the workplace. Both bills took effect January 1, 2024.
Status: Pending referral to a policy committee in the
Assembly.
Cal Cities Position: Watch
Enforcement
AB 491 (Wallis) Local government: fines and
penalties. Provides additional tools for addressing illicit land use activities, including unlicensed cannabis
operations. Specifically, AB 491 establishes: (1) streamlined judicial reviewed for minor administrative penalties (under $25,000) imposed for unpermitted cannabis activities; (2) efficient collection of final penalty order (i.e., after administrative/judicial review is complete), in the same manner presently used for pesticide enforcement fines; (3) clarifies that priority of real property liens used to collect administrative penalties for these violations, by providing that such liens have the same priority as a judgment lien.
Status: Awaiting assignment to a policy committee in the Senate.
Cal Cities Position: Watch
AB 1616 (Lackey) California Cannabis Tax Fund:
Board State and Community Corrections grants. This
bill amends the Board of State and Community
Corrections (BSCC) Prop 64 Public Health and Safety
Grant Program to expand the eligibility criteria so that all Item 33
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11 of California's 482 cities and 58 counties may apply for grant funding. The bill further directs the BSCC to
prioritize the allocation of BSCC grants to programs
addressing unlawful retail and cultivation activities.
Status: Awaiting hearing in the Senate Public Safety
Committee.
Cal Cities Position: Support
AB 2296 (Villapudua) Enhancements: concentrated
cannabis. This bill aims to amend existing laws related to controlled substances, particularly focusing on
concentrated cannabis. Under existing law, certain
activities related to controlled substances including
manufacturing or possession can lead to felony charges.
There are also sentencing enhancements if these crimes
involve methamphetamine or phencyclidine and occur in a place where a child under 16 is present or gets seriously injured. This bill seeks to extend this sentencing
enhancement provision to cases involving concentrated
cannabis.
Status: Referred to the Assembly Public Safety Committee.
Cal Cities Position: Pending
AB 2846 (Lackey): Controlled substances: synthetic
cannabinoid compound or derivative. This is a spot bill, sponsored by the law enforcement community to address
the proliferation of intoxicating synthetic cannabinoids, which are chemical compounds designed to mimic the
effects of naturally occurring cannabinoids, such as THC found in cannabis. These synthetic compounds are often
sprayed onto dried plant material and sold under various brand names as "synthetic cannabis" or "herbal incense." They are typically smoked or vaporized for their
psychoactive effects.
Status: Awaiting referral to an Assembly policy committee.
Cal Cities Position: Pending
AB 2850 (Rodriguez): Cannabis. This is a spot bill,
which will be amended to incorporate provisions
previously contained in AB 1725 (Smith, 2022), which
stalled in the Assembly Public Safety Committee. AB 1725 made it a felony, punishable by 16 months or 2 or 3 years in county jail, for a person over 21 years of age to plant, cultivate, harvest, dry, or process more than 6 living
cannabis plants. For persons under 21 years of age, the bill made it an infraction accompanied by a requirement to
participate in drug education, counseling, and community service. While unconfirmed, it is assumed that the
introduction of this bill is in reaction to the January 2024 mass murder in San Bernardino County linked to an illicit cannabis cultivation operation in the Mojave Desert.
Status: Pending referral to a policy committee in the
Assembly.
Cal Cities Position: Pending
SB 820 (Alvarado-Gil) Cannabis: enforcement: seizure
of property. Sponsored by the Rural County
Representatives of California, this bill empowers the DCC or local jurisdictions, with an inspection warrant, to seize specified property used in unlicensed commercial cannabis activities, along with vehicles valued over $5,000 used to conceal or transport cannabis products for those engaging in such conduct. Specified property includes various
equipment, materials, and currency exceeding $40,000. The bill excludes limited unlicensed commercial cannabis
activities involving fewer than 1,000 living cannabis plants and real property. It establishes notice requirements and forfeiture proceedings, with seized property sold at public auction and proceeds split between the local jurisdiction and the Cannabis Control Fund. Proceeds allocated to the state are designated for use exclusively under the California Cannabis Equity Act, subject to legislative appropriations.
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: Support
Industrial Hemp
AB 2223 (Aguiar-Curry) Cannabis: industrial hemp.
This bill aims to integrate hemp into the cannabis supply chain, allowing hemp products to be sold in licensed
cannabis dispensaries. The bill reinforces enforcement
provisions established in AB 45, which regulates hemp
cannabinoids in various products.
Status: Referred to the Assembly Business & Professions and Judiciary committees.
Cal Cities Position: Pending
Licensing Reform/Simplification
AB 2540 (Chen) Cannabis: license transfers.
Authorizes the DCC to transfer, assign, or reassign
licenses for commercial cannabis activity.
Status: Referred to the Assembly Business & Professions Committee.
Cal Cities Position: Pending
SB 1064 (Laird) Cannabis. Co-sponsored by the Rural
County Representatives of California and the California Cannabis Industry Association, this is a spot bill aimed at incorporating recommendations outlined in the "California Cannabis Report: Licensing and Market Access" by
Cannabis Policy Lab. The bill proposes enhancements to
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12 the regulatory framework for licensed cannabis businesses, addressing complexities hindering effective oversight and viability. While amendments are still being drafted, the bill seeks to establish a new commercial cannabis state/local licensing framework for retail, distribution, and
manufacturing activities, with cultivation phased in over time.
Status: Pending referral in the Senate.
Cal Cities Position: Pending
SB 1109 (Bradford) Cannabis licensure. This is
currently a spot bill, which is intended to incorporate additional recommendations outlined in Cannabis Policy
Lab’s report, "California Cannabis Report: Licensing and Market Access.”
Status: Pending referral to policy committee in the Senate.
Cal Cities Position: None
Onsite Consumption
AB 1775 (Haney) Cannabis: local control: cannabis
consumption. This bill specifies that a local jurisdiction may allow a licensed retailer or microbusiness to prepare or sell pre-packaged non-cannabis-infused, nonalcoholic food or beverage products and to allow, and to sell tickets for, live musical or other performances on the premises by a licensed retailer or microbusiness in an area where the consumption of cannabis is allowed.
Status: Referred to the Assembly committees on Business & Professions and Governmental Organization.
Cal Cities Position: Pending
SB 285 (Allen) Cannabis: retail preparation, sale, and
consumption of non-cannabis food and beverage
products. Permits the preparation or sale of non-cannabis food or beverage products in compliance with all
applicable provisions of the retail food code by a licensed cannabis retailer or microbusiness in the area where the consumption of cannabis is allowed. Specifies that the
activities above must be authorized by a local jurisdiction, and only if access to the area where cannabis consumption is allowed is restricted to persons 21 years of age or older, if cannabis consumption is not visible from any public
place or nonage-restricted area, and if the sale or
consumption of alcohol or tobacco is not allowed on the premises. Authorizes a local jurisdiction to allow for the sale of prepackaged, non-cannabis-infused, nonalcoholic food and beverages by a licensed retailer.
Status: Awaiting hearing in the Assembly Governmental
Organization Committee.
Cal Cities Position: Watch
Cannabis Taxation
AB 2555 (Quirk-Silva) Sales and use tax: exemption:
medicinal cannabis: donations. This bill ensures
continued access to medicinal cannabis donations for low- income patients by extending indefinitely the sales and use tax exemption for medicinal cannabis or medicinal
cannabis products that are donated by cannabis licensees, also known as the Dennis Peron and Brownie Mary Act.
This exemption is set to expire at the end of 2024.
Status: Scheduled to be heard in the Assembly Revenue & Taxation Committee on April 1.
Cal Cities Position: Watch
SB 1059 (Bradford) Cannabis tax: cannabis retailers.
This is currently a spot bill, which will be amended to incorporate provisions contained in SB 512 (Bradford,
2023) and AB 725 (Ward, 2021). SB 512, which was held
in the Assembly Revenue & Taxation Committee, sought
to reduce the tax burden on licensed cannabis businesses by clarifying that the state’s 15% excise tax is calculated based on gross receipts of cannabis products and does not capture any tax or fee imposed by a local jurisdiction. In some jurisdictions, including the City of Los Angeles, local cannabis taxes or fees are being calculated after the state excise tax is applied. AB 725, which also stalled in the Assembly Revenue & Taxation Committee, eliminated the
mandatory 50% penalty currently imposed by the
Department of Tax and Fee Administration on late filings or delinquent payments of state cannabis taxes.
Status: Awaiting referral to a policy committee in the
Senate.
Cal Cities Position: Watch
Testing Integrity
AB 1610 (Jones-Sawyer) Cannabis: Department of
Cannabis Control. This bill aims to tackle the issue of illegal over-reporting of potency for price markups in the cannabis industry. The bill mandates the DCC maintain a record of recall orders on its website, including details like date, location, licensee name, and license number. It also requires the DCC to establish a blind proficiency test
method for testing laboratories to ensure consistent
results, conduct biennial in-person audits of testing labs, set guidelines for audit procedures, and establish quality assurance standards for cannabis products available for retail sale.
Status: Awaiting hearing in the Senate Committee on
Business, Professions, & Economic Development.
Cal Cities Position: Watch
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13 Transit
AB 1853 (Villapudua) San Joaquin Regional Transit
District: meetings: surplus money investments. Would
authorize the San Joaquin Regional Transit District board to provide, by ordinance or resolution, that each board member receive $100 for each board meeting and
committee meeting attended, not to exceed $500 in a
calendar month.
Status: Scheduled to be heard in the Assembly Local
Government Committee on March 20.
Cal Cities Position: Track
AB 1924 (Nguyen, Stephanie) Sacramento Regional
Transit District. Would authorize the Sacramento
Regional Transit District to also comprise the cities of Galt and Isleton, and the unincorporated portions of the county of Sacramento where the county has declared a need for
the district to operate, provided the cities and county agree to annexation.
Status: Scheduled to be heard in the Assembly Local
Government Committee on March 20.
Cal Cities Position: Track
AB 2325 (Lee) San Francisco Bay Area Rapid Transit
District: officers: designation and appointment.
Would eliminate the treasurer and controller as specifically designated officers of the San Francisco Bay Area Rapid Transit District and as positions subject to appointment and removal by the board. The bill would also eliminate specified qualifications applicable to the controller.
Status: Referred to the Assembly Committee on Local
Government.
Cal Cities Position: None
AB 2553 (Friedman) Housing development: major
transit stops: vehicular traffic impact fees. The
California Environmental Quality Act (CEQA) exempts
from its requirements residential projects on infill sites and transit priority projects that meet certain requirements, including a requirement that the projects are located within 1/2 mile of a major transit stop. CEQA defines “major
transit stop” to include, among other locations, the
intersection of 2 or more major bus routes with a
frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods. This
bill would revise the definition of “major transit stop” to increase the frequency of service interval to 20 minutes.
The bill would additionally define “major transit stop” to include a site in an urbanized area that is being served by an on-demand transit service at least 12 hours a day, 7 days a week.
Status: Awaiting assignment to policy committee in the
Assembly.
Cal Cities Position: None
AB 2634 (McCarty) Sacramento Regional Transit
District. Would exempt the Sacramento Regional Transit
District from the requirement for each transit operator that offers reduced fares to senior citizens to also offer reduced fares to disabled persons, and disabled veterans, at the same rate established for senior citizens, as specified.
Status: Referred to the Assembly Local Government
Committee.
Cal Cities Position: None
AB 2719 (Wilson) Vehicles: commercial vehicle
inspections. Would authorize a public transit agency, as defined, to request the California Highway Patrol (CHP) to conduct an annual inspection and certification of its fleet.
The bill would authorize the Commissioner of the CHP to issue stickers or other devices as evidence of certification.
The bill would exempt any public transit agency vehicle that has been certified through that inspection from the requirement to stop at a roadside inspection.
Status: Referred to the Assembly Transportation
Committee.
Cal Cities Position: Pending Support
SB 904 (Dodd) Sonoma-Marin Area Rail Transit
District. Current law authorizes the board of the Sonoma- Marin Area Rail Transit District to submit to the voters of the district a measure proposing a retail transaction and use tax ordinance. SB 904 would also authorize special
district taxes to be imposed by a qualified voter initiative and require the board of supervisors of the counties of Sonoma and Marin to call a special election on a tax
measure proposed by the district’s board of directors or a qualified voter initiative in their respective counties.
Status: Scheduled to be heard in the Senate Transportation Committee on April 9.
Cal Cities Position: None
SB 960 (Wiener) Transportation: planning: transit
priority projects: multimodal. Would require all
transportation projects funded or overseen by the
Department of Transportation to provide comfortable,
convenient, and connected complete streets facilities
unless an exemption is documented and approved.
Status: Scheduled to be heard in the Senate Transportation Committee on April 9.
Cal Cities Position: Track
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14 SB 1417 (Allen) Transit districts: prohibition orders.
This bill would provide that the Santa Monica Department of Transportation is also a transit district for purposes of provisions regarding prohibition orders.
Status: Scheduled to be heard in the Senate Transportation Committee on April 9.
Cal Cities Position: None
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Sales Tax Data and
Legislative Update
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Planning and Development Services
Meeting Date: June 17, 2024
Report #:2406-3056
TITLE
Establishment of Community Advisory Group for Downtown Housing Plan. CEQA Status -- Not a Project.
EXECUTIVE SUMMARY
The Downtown Housing Plan will establish policies, set development, and design standards, and plan for the public infrastructure necessary to accelerate housing production and further fair housing while ensuring that the Downtown area continues to be an attractive local and regional destination. The City Council approved consultant contracts to begin the Downtown Housing Plan on February 26, 2024. Currently, the project team is collecting data and initiating public outreach and engagement for the Plan.
The Downtown Housing Plan requires extensive community outreach and participation, and the Community Advisory Group (CAG) will be instrumental in this regard. The group will serve an advisory role and provide feedback to the project team at key junctures of the project.
An application process will allow the City to identify individuals from diverse stakeholder interests for the CAG. Some perspectives may require an invitation to participate instead of a voluntary submittal of an application. The City Manager or designee will initiate the application and recruitment process, to select and appoint members of the CAG with input from the City Council Housing Ad hoc Committee in August 2024.
BACKGROUND
In March 2024, the City began the development of its Downtown Housing Plan and engaged Wallace Roberts & Todd, LLC (WRT) to provide planning and consulting services for the project, with additional project management support from Good City Company.
The Metropolitan Transportation Commission (MTC) adopted a resolution on May 14, 2021, awarding $800,000 to the City to prepare a Housing Plan for Downtown, and the City Council Item 34
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accepted the grant on April 18, 20221, to initiate the preparation of a housing plan within the Downtown Palo Alto Priority Development Area (PDA). The Housing Plan needs to be completed by December 31, 2026, to be eligible for reimbursement from the grant funding agency. The Downtown Housing Plan will focus on housing production, including affordable housing, and will implement policies from the City’s Comprehensive Plan and the 2023-2031 Housing Element. The formation of a Community Advisory Group to provide input throughout the planning process is a recommended community engagement activity of the grant and community engagement is key to the success of the planning effort, as is technical, design, and planning work by qualified consultants.
The Downtown Housing Plan study area covers approximately 76 acres and is a sub-area of the Downtown Palo Alto PDA. Consistent with the requirements of the PDA Planning Grant, the Downtown Housing Plan will evaluate key opportunities and constraints for housing production in Palo Alto’s Downtown and create a focused housing plan consistent with the policies set forth in the 2023-2031 Housing Element. The Plan will establish development standards and identify public infrastructure improvements necessary to accelerate housing production and further fair housing, as required by the grant.
ANALYSIS
The CAG is intended to comprise a representative cross-section of the Palo Alto community and Downtown stakeholders specifically. The CAG will be a key component of the public engagement process for the project.
Role of the Community Advisory Group
The CAG will be an advisory body to the Downtown Housing Plan project team. The project team will meet with the CAG approximately three to six times at key junctures throughout the planning process beginning September 2024; shortly after the selection and recruitment process and provide feedback to City staff and consultant team. The CAG is different in its nature of roles and responsibilities of a Working Group outlined in the PAMC Section 19.10 (Coordinated Area Plans).
The intent of the group is to provide various perspectives and feedback on the ideas under development; serving as a sounding board for the City staff and the consultant team during the planning process to create a holistic plan.
The CAG is not a decision-making body and will not provide recommendations to the City Council; establishing group consensus for a proposed Plan is not a goal. 1 April 18, 2022, City Council Staff Report for Downtown Housing Plan: Initiation and MTC Supplement Agreement & Budget Amendment: https://portal.laserfiche.com/Portal/DocView.aspx?id=59444&repo=r-704298fc Item 34
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The project team anticipates presenting the Downtown Housing Plan vision statement for the City Council's review in December 2024.
Based on the large number of anticipated stakeholders, staff envisions a CAG of about 15 members representing multiple interests. This size is large enough to provide a diverse perspective and small enough to foster productive discussion and input. The proposed list of groups that would be represented in the CAG is:
1. Downtown resident (renter)
2. Downtown resident (homeowner)
3. Resident (owner - lives outside the project area)
4. Downtown business owner
5. Commercial broker
6. Non-profit housing groups
7. Affordable housing developer
8. Market-rate housing/ mixed-use developer
9. Major landholders and property managers
10. Community interest group representative
11. Neighborhood group representative
12. Chamber of Commerce representative
13. Representatives from the City's Architectural Review Board and the Planning and Transportation Commission
Staff anticipates that the CAG membership will include individuals representing multiple categories on the list.
NEXT STEPS
Staff will prepare an application for participants interested in seeking an appointment and publicize this unique opportunity for engagement. Staff will make appointment recommendations to the City Manager who in turn will seek feedback from the City Council Housing Ad Hoc committee members, consisting of the Mayor and Vice Mayor to appoint members of the Downtown Housing Plan Community Advisory Group. It is anticipated the application process will start in late June 2024 with selection and appointment in August 2024.
FISCAL/RESOURCE IMPACT
Costs associated with the recommendation in this report are included in the project budget.
STAKEHOLDER ENGAGEMENT
Public engagement is an important part of the Downtown Housing Plan development. In addition to the Community Advisory Group, the community will be engaged through Item 34
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workshops, pop-up events, online surveys, stakeholder interviews, and a developer round table facilitated by the project team. The project webpage - Downtown Housing Plan – City of Palo Alto, CA was launched in early May and will be maintained throughout the planning process.
The webpage includes a link for viewers to sign up for project updates.
An initial outreach was conducted at the May Fete Event on May 4, 2024, at Heritage Park. Staff had a table for the Downtown Housing Plan to introduce the project and stimulate community conversation about the Downtown Housing Plan. Flyers were distributed and staff spoke to approximately 25 adults, seniors, high school students, and families with children, including residents of Downtown Palo Alto.
ENVIRONMENTAL REVIEW
Council action on this informational item is not a project as defined by the California Environmental Quality Act (CEQA) in that establishing the CAG is an administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines Section 15378(b)(5). Staff will undertake the appropriate CEQA review for the Downtown Housing Plan.
APPROVED BY:
Jonathan Lait, Planning and Development Services Director Item 34
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Item No. 15. Page 1 of 2
City Council
Supplemental Report
From: Philip Kamhi, Chief Transportation Official
Meeting Date: June 17, 2024
Item Number: 15
Report #:2406-3150
TITLE
SUPPLEMENTAL REPORT: Approval of a Funding Agreement with Federal Railroad Administration to Receive $6 Million for the Preliminary Engineering and Environmental Documentation Phase for the Grade Separation Projects at Churchill Avenue, Meadow Drive, and Charleston Road crossings. CEQA status – statutorily exempt per CEQA section 15262; this funding agreement will partially fund CEQA/NEPA review of the grade separation projects.
RECOMMENDATION
The Rail Committee and Staff recommends that the City Council approve the funding agreement with the Federal Railroad Administration (FRA) under its Rail Crossing Elimination program to provide the City with $6 Million towards the Preliminary Engineering and Environmental Documentation Phase to be completed by June 2027 for Grade Separation Projects at Churchill Avenue, Meadow Drive, and Charleston Road crossings and authorize the City Manager or their designee to negotiate the final terms of agreement and execute the funding agreement. The remaining $14 Million in funding is anticipated from non-federal funding sources of the Santa Clara County 2016 Measure B Grade Separation funding.
Supplemental Update
The City and Federal Railroad Administration (FRA) staff are diligently working to finalize the funding agreement for the Preliminary Engineering and Environmental Design phase for the Churchill Avenue, Meadow Drive, and Charleston Road crossings. This supplemental report provides two updates:
1) This transmits the substantially complete funding agreement for approval (Attachment A).
This agreement is currently undergoing internal reviews at the FRA. 2) Staff is seeking City Council approval for the City Manager or their designee to finalize and execute the agreement. As such, the recommendation has been revised to add the following additional language that is underlined:
The Rail Committee and Staff recommends that the City Council approve the funding Item 15
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Item No. 15. Page 2 of 2
agreement with the Federal Railroad Administration (FRA) under its Rail Crossing Elimination program to provide the City with $6 Million towards the Preliminary Engineering and Environmental Documentation Phase to be completed by June 2027 for Grade Separation Projects at Churchill Avenue, Meadow Drive, and Charleston Road crossings and authorize the City Manager or their designee to negotiate the final terms of agreement and execute the funding agreement. The remaining $14 Million in funding is anticipated from non-federal funding sources of the Santa Clara County 2016 Measure B Grade Separation funding.
ATTACHMENTS
Attachment A: Funding Agreement with FRA
APPROVED BY:
Philip Kamhi, Chief Transportation Official
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1 Attachment 1
GENERAL TERMS AND CONDITIONS
Revision Date: December 11, 2023
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2 General Terms and Conditions
Table of Contents
ATTACHMENT 1 ............................................................................................................................................. 7 ARTICLE 1: TERMS AND CONDITIONS .......................................................................................................... 7
1.1 General Terms and Conditions ..................................................................................................... 7
1.2 Project-Specific Terms and Conditions ......................................................................................... 7
1.3 Program-Specific Clauses .............................................................................................................. 7
1.4 Exhibits .......................................................................................................................................... 8 ARTICLE 2: FRA ROLE AND RESPONSIBILITIES .............................................................................................. 8
2.1 FRA Role ........................................................................................................................................ 8
2.2 FRA Professional Staff ................................................................................................................... 8 ARTICLE 3: RECIPIENT ROLE ......................................................................................................................... 9
3.1 Representations and Acknowledgments on the Project .............................................................. 9
3.2 Representations on Authority and Capacity ................................................................................. 9
3.3 FRA Reliance ................................................................................................................................ 10
3.4 Project Delivery ........................................................................................................................... 10
3.5 Rights and Powers Affecting the Project .................................................................................... 10
3.6 Notification of Changes to Key Personnel .................................................................................. 11 ARTICLE 4: AWARD AMOUNT, OBLIGATION, AND TIME PERIODS ............................................................. 11
4.1 Federal Award Amount ............................................................................................................... 11
4.2 Federal Obligations ..................................................................................................................... 11
4.3 Maximum Funding Amount ........................................................................................................ 11
4.4 Budget Period.............................................................................................................................. 11
4.5 Period of Performance ................................................................................................................ 11 ARTICLE 5: STATEMENT OF WORK, SCHEDULE, AND BUDGET CHANGES .................................................. 11
5.1 Notification Requirement ........................................................................................................... 11
5.2 Scope and Statement of Work Changes ..................................................................................... 12
5.3 Schedule Changes ....................................................................................................................... 12
5.4 Budget Changes .......................................................................................................................... 12
5.5 Project Cost Savings .................................................................................................................... 13
5.6 FRA Acceptance of Changes ........................................................................................................ 13 ARTICLE 6: GENERAL REPORTING TERMS .................................................................................................. 14 Item 15
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3 6.1 Alternative Reporting Methods .................................................................................................. 14
6.2 Paperwork Reduction Act Notice ................................................................................................ 14 ARTICLE 7: PROGRESS AND FINANCIAL REPORTING .................................................................................. 14
7.1 Quarterly Project Progress Reports and Recertifications ........................................................... 14
7.2 Final Progress Reports and Financial Information ...................................................................... 15
7.3 Real Property Reporting .............................................................................................................. 15 ARTICLE 8: PERFORMANCE MEASUREMENT AND REPORTING ................................................................. 15
8.1 Baseline Performance Measurement ......................................................................................... 15
8.2 Post-Project Performance Measurement ................................................................................... 15
8.3 Project Outcomes Report ............................................................................................................ 16
8.4 General Performance Measurement Requirements .................................................................. 16
8.5 Outcome Measurement and Reporting Survival ........................................................................ 16 ARTICLE 9: NONCOMPLIANCE AND REMEDIES .......................................................................................... 16
9.1 Noncompliance Determinations ................................................................................................. 16
9.2 Remedies ..................................................................................................................................... 17
9.3 Other Oversight Entities .............................................................................................................. 18 ARTICLE 10: AGREEMENT SUSPENSION AND TERMINATION .................................................................... 18
10.1 Suspension of Award Activities ................................................................................................... 18
10.2 FRA Termination ......................................................................................................................... 19
10.3 Closeout Termination.................................................................................................................. 19
10.4 Post-Termination Adjustments ................................................................................................... 19
10.5 Non-Terminating Events ............................................................................................................. 19 ARTICLE 11: MONITORING, FINANCIAL MANAGEMENT, CONTROLS, AND RECORDS ............................... 20
11.1 Recipient Monitoring and Record Retention .............................................................................. 20
11.2 Financial Records and Audits ...................................................................................................... 20
11.3 Internal Controls ......................................................................................................................... 21
11.4 FRA Record Access ...................................................................................................................... 21
11.5 Site Visits ..................................................................................................................................... 21 ARTICLE 12: CONTRACTING AND SUBAWARDING ..................................................................................... 21
12.1 Buy America ................................................................................................................................ 21
12.2 Small and Disadvantaged Business Requirements ..................................................................... 22
12.3 Engineering and Design Services [Reserved] .............................................................................. 22
12.4 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment ... 22 Item 15
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4 12.5 Pass-Through Entity Responsibilities .......................................................................................... 22
12.6 Local Hiring Preference for Construction Jobs ............................................................................ 22
12.7 Procurement ............................................................................................................................... 23 ARTICLE 13: COSTS, PAYMENTS, AND UNEXPENDED FUNDS .................................................................... 23
13.1 Limitation of Federal Award Amount ......................................................................................... 23
13.2 Project Costs ............................................................................................................................... 23
13.3 Timing of Project Costs ............................................................................................................... 23
13.4 Recipient Recovery of Federal Funds .......................................................................................... 23
13.5 Unexpended Agreement Federal Funds ..................................................................................... 24
13.6 Interest Earned ........................................................................................................................... 24
13.7 Timing of Payments to the Recipient .......................................................................................... 24
13.8 Payment Method ........................................................................................................................ 24
13.9 Information Supporting Expenditures ........................................................................................ 24
13.10 Reimbursement Request Timing Frequency ............................................................................... 24
13.11 Program Income .......................................................................................................................... 25 ARTICLE 14: PROPERTY AND EQUIPMENT ................................................................................................. 25
14.1 General Requirements ................................................................................................................ 25
14.2 Relocation and Real Property Acquisition .................................................................................. 25
14.3 Use for Originally Authorized Purpose ........................................................................................ 25
14.4 Maintenance ............................................................................................................................... 25
14.5 Real Property Disposition ............................................................................................................ 26
14.6 Equipment Disposition ................................................................................................................ 26
14.7 Recordkeeping ............................................................................................................................ 26
14.8 Encumbrance .............................................................................................................................. 26 ARTICLE 15: AMENDMENTS ....................................................................................................................... 26
15.1 Bilateral Amendments ................................................................................................................ 26
15.2 FRA Unilateral Amendments ....................................................................................................... 26
15.3 Other Amendments .................................................................................................................... 27 ARTICLE 16: CLIMATE CHANGE AND ENVIRONMENTAL JUSTICE .............................................................. 27
16.1 Climate Change and Environmental Justice ................................................................................ 27 ARTICLE 17: RACIAL EQUITY AND BARRIERS TO OPPORTUNITY ................................................................ 27
17.1 Racial Equity and Barriers to Opportunity .................................................................................. 27 ARTICLE 18: LABOR AND WORK ................................................................................................................. 27 Item 15
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5 18.1 Labor and Work ........................................................................................................................... 27
18.2 OFCCP Mega Construction Project Program ............................................................................... 28 ARTICLE 19: CRITICAL INFRASTRUCTURE SECURITY AND RESILIENCE ....................................................... 28
19.1 Critical Infrastructure Security and Resilience ............................................................................ 28 ARTICLE 20: FEDERAL FINANCIAL ASSISTANCE, ADMINISTRATIVE, AND NATIONAL POLICY REQUIREMENTS .......................................................................................................................................... 28
20.1 Uniform Administrative Requirements for Federal Awards ....................................................... 28
20.2 Federal Law and Public Policy Requirements ............................................................................. 29
20.3 Federal Freedom of Information Act .......................................................................................... 29
20.4 History of Performance ............................................................................................................... 29
20.5 Whistleblower Protection ........................................................................................................... 29
20.6 External Award Terms and Obligations ....................................................................................... 29
20.7 Incorporated Certifications ......................................................................................................... 30 ARTICLE 21: ASSIGNMENT.......................................................................................................................... 30
21.1 Assignment Prohibited ................................................................................................................ 30 ARTICLE 22: WAIVER .................................................................................................................................. 30
22.1 Waivers ....................................................................................................................................... 30 ARTICLE 23: ADDITIONAL TERMS AND CONDITIONS ................................................................................. 31
23.1 Disclaimer of Federal Liability ..................................................................................................... 31
23.2 Environmental Review ................................................................................................................ 31
23.3 Project Maintenance Requirement ............................................................................................. 32
23.4 Appropriations Act Requirements .............................................................................................. 32
23.5 Standards of Conduct .................................................................................................................. 32
23.6 Changed Conditions of Performance .......................................................................................... 33
23.7 Litigation ..................................................................................................................................... 33
23.8 Bipartisan Infrastructure Law Signage Guidelines ...................................................................... 33
23.9 Equipment and Supplies ............................................................................................................. 33
23.10 Safety and Technology Data ....................................................................................................... 34
23.11 Intellectual Property ................................................................................................................... 34
23.12 Liquidation of Recipient Obligations ........................................................................................... 34 ARTICLE 24: CONSTRUCTION AND DEFINITIONS ....................................................................................... 34
24.1 Agreement .................................................................................................................................. 34
24.2 Construction ................................................................................................................................ 34 Item 15
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6 24.3 Integration .................................................................................................................................. 35
24.4 Definitions ................................................................................................................................... 35
24.5 Calendar Dates ............................................................................................................................ 36
24.6 Communication in Writing .......................................................................................................... 36 ARTICLE 25: AGREEMENT EXECUTION AND EFFECTIVE DATE ................................................................... 36
25.1 Counterparts ............................................................................................................................... 36
25.2 Effective Date .............................................................................................................................. 36 ARTICLE 26: PROGRAM-SPECIFIC CLAUSES ................................................................................................ 36
26.1 Interstate Rail Compacts Grant Program .................................................................................... 36
26.2 Railroad Crossing Elimination Program Clauses ......................................................................... 38
26.3 Consolidated Rail Infrastructure and Safety Improvements Grants Clauses .............................. 41
26.4 Restoration and Enhancement Grants Clauses ........................................................................... 43
26.5 Federal-State Partnership for Intercity Passenger Rail and Federal-State Partnership for State of Good Repair Clauses ........................................................................................................................... 45
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7 ATTACHMENT 1
This Grant Agreement (Agreement) is between the Federal Railroad Administration (FRA) and the Recipient identified in Attachment 2: Project-Specific Terms and Conditions. This Agreement, including the Agreement cover sheet, this Attachment 1, Attachment 2, and Exhibits A–C, constitutes the entire Agreement between FRA and the Recipient regarding the Project as defined in Attachment 2. All prior discussions and understandings concerning the scope and subject matter of this agreement are superseded by this Agreement.
This Agreement is governed by and subject to 2 C.F.R. part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, and the U.S. Department of Transportation (USDOT) implementing regulations at 2 C.F.R. part 1201.
ARTICLE 1: TERMS AND CONDITIONS
1.1 General Terms and Conditions
This Attachment 1: General Terms and Conditions, is part of the Agreement between FRA and the Recipient. This Attachment 1 contains the standard terms and conditions governing the administration of this Agreement and the execution of the Project. The General Terms and Conditions incorporate by reference the information contained in Attachment 2 and the Exhibits to this Agreement.
1.2 Project-Specific Terms and Conditions
Attachment 2: Project-Specific Terms and Conditions, is part of the Agreement between FRA and the Recipient. Attachment 2 contains Project-Specific Terms and Conditions, which may include special terms and conditions.
1.3 Program-Specific Clauses
Article 26 of this Attachment 1 contains the applicable program-specific clauses. The Recipient will comply with the program-specific clauses below that are associated with the grant program identified in Attachment 2 of this Agreement. In the event that the Recipient’s grant is not authorized under a program listed below, Article 26 does not apply. (a) For Projects funded under the Interstate Rail Compacts program (49 U.S.C. § 22910), the Recipient will comply with the program-specific clauses in Article 26.1. (b) For Projects funded under the Railroad Crossing Elimination program (49 U.S.C. § 22909), the Recipient will comply with the program-specific clauses in Article 26.2. (c) For Projects funded under the Consolidated Rail Infrastructure and Safety Improvements program (49 U.S.C. § 22907), the Recipient will comply with the program- specific clauses in Article 26.3.
(d) For Projects funded under the Restoration and Enhancement program (49 U.S.C. § 22908), the Recipient will comply with the program-specific clauses in Article 26.4.
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8 (e) For Projects funded under the Federal-State Partnership for Intercity Passenger Rail program (49 U.S.C. § 24911) and Federal-State Partnership for State of Good Repair (as authorized in Sections 11103 and 11302 of the Passenger Rail Reform and Investment Act of 2015 (Title XI of the Fixing America’s Surface Transportation (FAST) Act, Pub. L. No. 114- 94 (2015))), the Recipient will comply with the program-specific clauses in Article 26.5.
1.4 Exhibits
Exhibits A–C are part of the Agreement between FRA and the Recipient. The Recipient will comply with Exhibits A–C.
ARTICLE 2: FRA ROLE AND RESPONSIBILITIES
2.1 FRA Role
(a) FRA is responsible for funding disbursements to the Recipient under this Agreement.
FRA will also conduct oversight and monitoring activities to assess Recipient progress against established performance goals and to assess compliance with terms and conditions, including the Statement of Work and other requirements of this Agreement. (b) If this award is made as a Cooperative Agreement, FRA will have substantial programmatic involvement. Substantial involvement means that, after award, technical, administrative, or programmatic staff will assist, guide, coordinate, or otherwise participate with the Recipient in Project activities.
(c) If this award is made as a Grant, FRA will not have substantial programmatic involvement.
2.2 FRA Professional Staff
FRA may provide professional staff to review work in progress, completed products, and to provide or facilitate access to technical assistance when it is available, feasible, and appropriate.
FRA professional staff may include the following:
(a) Financial Analyst. The Financial Analyst will serve as the Recipient’s point of contact for systems (e.g., GrantSolutions and the Delphi eInvoicing System) access and troubleshooting as well as for financial monitoring.
(b) Grant Manager. The Grant Manager will serve as the Recipient’s point of contact for grant administration and will oversee compliance with the terms and conditions in this Agreement. The Grant Manager reviews financial reports, performance reports, and works with the Project Manager to facilitate effective Project delivery. (c) Project Manager. The Project Manager will serve as the Recipient’s point of contact for the technical aspects of Project delivery. The Project Manager coordinates Project deliverable review, provides technical assistance to the Recipient, and generally assesses Project progress and performance.
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9 ARTICLE 3: RECIPIENT ROLE
3.1 Representations and Acknowledgments on the Project
(a) The Recipient represents that:
(1) all material statements of fact in the Application were accurate when the Application was submitted and now; and
(2) the Recipient read and understands the terms and conditions in Attachment 1 and Attachment 2 of this Agreement, the applicable program-specific clauses in Article 26 of this Attachment 1, and the information and conditions in the Exhibits. (b) The Recipient acknowledges that:
(1) the terms and conditions impose obligations on the Recipient and that the Recipient’s non-compliance with the terms and conditions may result in remedial action, including terminating the Agreement, disallowing costs incurred for the Project, requiring the Recipient to refund Federal contributions to FRA, and reporting the non-compliance in the Federal-government-wide integrity and performance system. Recipient acknowledges that the terms and conditions impose such obligations on the Recipient whether the award is made as a Cooperative Agreement, Grant Agreement, or Phased Funding Agreement. (2) The Recipient acknowledges that the requirements of this Agreement apply to the entire Project, including Project costs satisfied from sources other than Agreement Federal Funds.
(c) By entering into this Agreement with FRA, the Recipient agrees to comply with the terms and conditions in Attachment 1 and Attachment 2, including applicable program- specific clauses in Article 26 of this Attachment 1, Exhibits A–C, and all applicable Federal laws and regulations, including those identified in this Agreement. The Recipient will ensure compliance with all terms of this Agreement and all of its parts for all tiers of subawards and contracts under this Agreement, as appropriate. The Recipient understands that the terms and conditions of this Agreement apply regardless of whether the award is made as a Cooperative Agreement, Grant Agreement, or Phased Funding Agreement.
3.2 Representations on Authority and Capacity
The Recipient represents that:
(a) it has the legal authority to receive Federal financial assistance under this Agreement; (b) it has the legal authority to complete the Project; (c) all representations and warranties made in the Federal System for Awards Management (SAM.gov) and in the Application are true and correct; Item 15
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10 (d) it has the capacity, including legal, technical, institutional, managerial, and financial capacity, to comply with its obligations under this Agreement and complete the Project; (e) the Non-Federal Funds listed in Article 6 of Attachment 2 of this Agreement are committed to fund the Project;
(f) it has sufficient funds available to ensure that equipment and infrastructure funded under this Agreement will be operated and maintained in compliance with this Agreement and applicable Federal law;
(g) it has sufficient funds available to ensure that operations funded under this agreement are conducted in compliance with this Agreement and applicable Federal law; and (h) the individual executing this agreement on behalf of the Recipient has the legal authority to enter this Agreement and make the statements and certifications in this Agreement on behalf of the Recipient.
3.3 FRA Reliance
The Recipient acknowledges that:
(a) FRA relied on statements of fact in the Application and SAM.gov to select the Project to receive this award;
(b) FRA relied on statements of fact in the Application, SAM.gov, and this Agreement to determine that the Recipient and the Project are eligible to receive financial assistance under this Agreement;
(c) FRA relied on statements of fact in the Application, SAM.gov, and this Agreement to determine that the Recipient has the legal authority to implement the Project; and (d) FRA relied on statements of fact in both the Application and this Agreement to establish the terms of this Agreement; and
(e) FRA’s selection of the Project to receive this award may have prevented awards to other eligible applicants.
3.4 Project Delivery
(a) The Recipient will implement and complete the Project to FRA’s satisfaction under the terms of this Agreement.
(b) The Recipient will ensure that the Project is financed, constructed, operated, and maintained in accordance with all applicable Federal laws, regulations, and policies.
3.5 Rights and Powers Affecting the Project
(a) The Recipient will not take or permit any action that deprives it of any rights or powers necessary to the Recipient’s performance under this Agreement without written approval of FRA.
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11 (b) The Recipient will act promptly, in a manner acceptable to FRA, to acquire, extinguish, or modify any outstanding rights or claims of right of others that would interfere with the Recipient’s performance under this Agreement.
3.6 Notification of Changes to Key Personnel
The Recipient will notify the FRA Grant Manager in writing within 30 days of any change in key personnel who are identified in the Application, which may require an amendment to this Agreement.
ARTICLE 4: AWARD AMOUNT, OBLIGATION, AND TIME PERIODS
4.1 Federal Award Amount
Under this Agreement, FRA awards a Grant to the Recipient in the amount that is the Agreement Federal Funds in Article 6.1 of Attachment 2 of this Agreement.
4.2 Federal Obligations
This Agreement obligates for the budget period the amount that is the Agreement Federal Funds in Article 6.1 of Attachment 2 of this Agreement.
4.3 Maximum Funding Amount
This Agreement funds the Project at the lesser amount of the Agreement Federal Funds in Article 6.1 of Attachment 2 of this Agreement, or the FRA maximum contribution percentage of the total Project cost identified in Article 6.5 of Attachment 2 of this Agreement.
4.4 Budget Period
The budget period for this award begins on the date of this Agreement and ends on the end date that is listed in Section 5 on the Agreement cover sheet. In this Agreement, “budget period” is used as defined at 2 C.F.R. § 200.1.
4.5 Period of Performance
The Period of Performance for this award is listed in Section 4 on the Agreement cover sheet. In this Agreement, “Period of Performance” is used as defined at 2 C.F.R. § 200.1.
ARTICLE 5: STATEMENT OF WORK, SCHEDULE, AND BUDGET CHANGES
5.1 Notification Requirement
The Recipient will notify the FRA Grant Manager and Project Manager by electronic correspondence within 30 days of any change in circumstances or commitments that adversely affect the Recipient’s plan to complete the Project, including change in authority. In that notification, the Recipient will describe the change and what actions the Recipient has taken or plans to take to ensure completion of the Project. This notification requirement under this Section 5.1 is separate from any requirements under this Article 5 that the Recipient request an amendment to this Agreement.
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12 5.2 Scope and Statement of Work Changes
If the Project’s activities differ from the activities described in Article 4 of Attachment 2 of this Agreement, then the Recipient will notify FRA in writing of the change, which may require an amendment to this Agreement.
5.3 Schedule Changes
If one or more of the following conditions are satisfied, then the Recipient will request an amendment to this Agreement to update the Estimated Project Schedule in Section 5.2 of Attachment 2 of this Agreement:
(a) a completion date for the Project or a component of the Project is listed in the Estimated Project Schedule in Section 5.2 of Attachment 2 of this Agreement and the Recipient’s estimate for that milestone changes to a date that is more than six months after the date listed;
(b) a schedule change would require the budget period to continue after the end of the budget period defined in Section 4.4; or
(c) a schedule change would require the Period of Performance to continue after the end of the Period of Performance defined in Section 4.5. The Recipient must submit requests to extend the Period of Performance not later than 90 days before the end of the Period of Performance.
For other schedule changes, the Recipient will notify the Grant Manager in writing.
5.4 Budget Changes
(a) The Recipient acknowledges that if the cost of completing the Project increases:
(1) that increase does not affect the Recipient’s obligation under this Agreement to complete the Project;
(2) any additional funds the Recipient contributes to complete the Project are subject to the requirements of this Agreement in the same manner as the Non- Federal Funds identified in Article 6.5 of Attachment 2 of this Agreement; and (3) FRA will not increase the amount of this award to address any funding shortfall.
(b) The Recipient will notify FRA in writing if the total Project cost, as described in Table 6- A of Attachment 2 of this Agreement, amount increases, which may result in an amendment to this Agreement.
(c) The Recipient will notify FRA in writing if the Non-Federal Funds amount decreases, which may result in an amendment to this Agreement.
(d) For all other budget changes, the Recipient will follow the applicable procedures and document the changes in writing.
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13 5.5 Project Cost Savings
(a) If there are Project Cost Savings, then the Recipient may notify FRA in writing of its intent to include in the Project and complete with the Project Cost Savings the additional activities within the scope of this award that are specified in the Additional Task(s) in Article 4 of Attachment 2 of this Agreement. The Recipient will complete the Additional Task(s) after FRA provides a written approval. An amendment to this Agreement is not required to proceed with the Additional Task(s).
(b) If there are Project Cost Savings, and there are not Additional Task(s) identified in Article 4 of Attachment 2 of this Agreement, then the Recipient may propose a new task that is within the scope of this award and request an amendment to add the new task to this Agreement and complete it with Project Cost Savings. (c) In this Agreement, “Project Cost Savings” means the difference between the actual costs to complete the Project and the estimated total Project cost listed in Section 6.5 of Attachment 2 of this Agreement, if after the Recipient completes the tasks identified in Article 4 of Attachment 2 of this Agreement to FRA’s satisfaction, the actual Project costs are less than the estimated total Project costs. There are no Project Cost Savings prior to completion of the Project or if the actual costs to complete the Project are equal to or greater than the total Project cost listed in Section 6.5 of Attachment 2 of this Agreement. (d) If there are Project Cost Savings and either the Recipient does not make a proposal or FRA does not accept the Recipient’s proposal under (a) of this Section 5.5, then:
(1) The Recipient will provide written notice to FRA and reduce the Federal Share by the Project Cost Savings, which may result in an amendment to this Agreement; and
(2) If the reduced Federal Share reduces this award and the Recipient received reimbursed costs exceeding the appropriate amount under the reduced award, the Recipient will refund the difference between the reimbursed costs and the reduced award.
(e) In this Agreement, “Federal Share” means the sum of the Agreement Federal Funds and Other Federal Funds amounts that are identified in the Approved Project Budget in Section 6.5 of Attachment 2 of this Agreement.
(f) The Recipient acknowledges that amounts that are required to be refunded under this Section constitute a debt to the Federal Government that FRA may collect under 2 C.F.R. § 200.346 and the Federal Claims Collection Standards (31 C.F.R. parts 900–999).
5.6 FRA Acceptance of Changes
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14 accepts the request and the parties amend this Agreement under Section 15.1 of this Attachment 1.
ARTICLE 6: GENERAL REPORTING TERMS
6.1 Alternative Reporting Methods
FRA may establish processes for the Recipient to submit reports required by this Agreement, including electronic submission processes. If the Recipient is notified of those processes in writing, the Recipient will use the processes required by FRA.
6.2 Paperwork Reduction Act Notice
Under 5 C.F.R. § 1320.6, the Recipient is not required to respond to a collection of information that does not display a currently valid control number issued by the Office of Management and Budget (OMB). Notwithstanding any other term of this Agreement, the due date for any information collections required under this Agreement, including the reporting requirements in Articles 7 and 8, is the later of (1) the due date stated with the requirement and (2) the 30th day after OMB approves that information collection.
ARTICLE 7: PROGRESS AND FINANCIAL REPORTING
7.1 Quarterly Project Progress Reports and Recertifications (a) On or before the 30th day of the first month of each quarter and until the end of the Period of Performance, the Recipient will submit to FRA through GrantSolutions a complete FRA Form 34
1 Quarterly Project Progress Report and Recertification that contains, for the previous quarter:
(1) a certification that the Recipient is in compliance with 2 C.F.R. § 200.303 (Internal Controls) and 2 C.F.R. part 200, Subpart F (Audit Requirements); (2) the certification required under 2 C.F.R. § 200.415(a); and (3) a certification that the Recipient is complying with any environmental mitigation commitments and Section 106 compliance obligations.
If the date of this Agreement is in the final month of a quarter, then the Recipient will submit the first Quarterly Project Progress Report and Recertification in the quarter that begins after the date of this Agreement.
(b) On or before the 30th day of the first month of each quarter and until the end of the Period of Performance, the Recipient will submit to FRA through GrantSolutions a Federal Financial Report (SF-425) covering the previous quarter.
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15 7.2 Final Progress Reports and Financial Information No later than 120 days after the end of the Period of Performance, the Recipient will submit:
(a) a final Quarterly Project Progress Report and Recertification in the format and with the content described in Section 7.1(a) of this Attachment 1 for each Quarterly Project Progress Report and Recertification;
(b) a final SF-425 through GrantSolutions;
(c) a Final Performance Report FRA Form 33 as provided by FRA2 ; and (d) any other information required under FRA’s award closeout procedures.
7.3 Real Property Reporting
The Recipient will comply with the reporting obligations in 2 C.F.R. § 200.300, as directed by FRA.
ARTICLE 8: PERFORMANCE MEASUREMENT AND REPORTING
8.1 Baseline Performance Measurement
Within one year before the start of work on the Project, the Recipient will collect baseline data for each performance measure that is identified in Article 7 of Attachment 2 of this Agreement.
Within six months of the start of the Period of Performance, the Recipient will submit to FRA a Baseline Performance Measurement Report that describes the data collected, the dates when the data were collected, the data sources, assumptions, variability, and estimated levels of precision for each performance measure. The Recipient will also provide FRA access to the data collected in machine-readable format.
8.2 Post-Project Performance Measurement
For each performance measure that is listed in Article 7 of Attachment 2 of this Agreement, the Recipient will collect data and submit to FRA a Post-Project Performance Measurement Report that describes the data collected, the dates when the data were collected, the data sources, assumptions, variability, and estimated levels of precision for each performance measure, at the frequency and for the duration identified in Article 7 of Attachment 2 of this Agreement. The Recipient will also provide FRA access to the data collected in machine-readable format. If an external factor affects a performance measure, the Recipient will identify that external factor in the Post-Project Performance Measurement Report and discuss the external factor’s influence on the performance measure. In the Post-Project Performance Report, the Recipient will compare the actual project performance against the pre-project (baseline) performance and expected post-project performance as described in Table 7-A of Attachment 2 of this Agreement.
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16 8.3 Project Outcomes Report
Where indicated in Article 7 of Attachment 2 of this Agreement, the Recipient will submit to FRA, not later than January 31st of the year that follows the final year during which data were collected, a Project Outcomes Report that contains:
(a) an analysis of the impacts of the Project, including a comparison of the baseline performance measurement data collected under Section 8.1 of this Attachment 1 with the post-project performance measurement data that the Recipient reported in the final Post- Project Performance Measurement Report required under Section 8.2 of this Attachment 1;
(b) for each performance measure that is identified in Article 7 of Attachment 2 of this Agreement, an analysis of the accuracy of the projected outcome; and (c) all data collected under Sections 8.1 and 8.2 of this Attachment 1; (d) additional information as directed.
8.4 General Performance Measurement Requirements
The Recipient will ensure that all data collection for each performance measure identified in Article 7 of Attachment 2 of this Agreement is completed in a manner consistent with the description, location, and other attributes associated with that performance measure.
8.5 Outcome Measurement and Reporting Survival
The data collection and reporting requirements in Article 8 of this Attachment 1 survive the termination of this Agreement. FRA may consider the Recipient’s compliance with this requirement after closeout of the grant in its evaluation of future applications for Federal financial assistance.
ARTICLE 9: NONCOMPLIANCE AND REMEDIES
9.1 Noncompliance Determinations
(a) Notice of Proposed Determination. If FRA determines that the Recipient may have failed to comply with the United States Constitution, Federal law, or the terms and conditions of this Agreement, FRA will notify the Recipient of a proposed determination of noncompliance through a written notice that:
(1) explains the noncompliance;
(2) describes a proposed remedy that is consistent with Section 9.2 of this Attachment 1;
(3) describes the process and form in which the Recipient may respond to the notice that is consistent with Section 9.1(b) of this Attachment 1; and Item 15
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17 (4) if applicable, provides the Recipient an opportunity to cure the noncompliance or take corrective action.
(b) Response to Notice of Proposed Determination. The Recipient may, not later than 7 days after receiving the notice of proposed determination of noncompliance, respond to that notice in the form and through the process described in that notice. In its response, the Recipient may:
(1) accept the proposed remedy;
(2) acknowledge the noncompliance, but propose an alternative remedy; (3) acknowledge the noncompliance and agree to cure or take corrective action; or
(4) dispute the noncompliance.
To dispute the noncompliance, the Recipient must include in its response sufficient documentation or other information supporting the Recipient’s compliance. (c) Notice of Final Determination. After considering the Recipient’s response or failure to timely respond under Section 9.1(b) of this Attachment 1, FRA will make a final determination. To make a final determination, FRA must provide a written notice to the Recipient that:
(1) states what the final determination is (e.g., noncompliance or compliance); (2) states the basis for the final determination; and
(3) describes the remedy that FRA is imposing, if applicable, or if FRA is not imposing a remedy, describes the resolution to the proposed determination of noncompliance, including whether the Recipient has cured or corrected the noncompliance.
(d) If FRA determines the noncompliance is one that cannot be addressed while work on the Project is ongoing, in the notice of proposed determination or in the notice of final determination, FRA will direct the Recipient to stop work. The Recipient will stop work and will direct any Subrecipients or contractors to stop work immediately upon receipt of a notice to stop work from FRA.
(e) FRA may consider the public interest in making a determination of noncompliance and imposing a remedy.
9.2 Remedies
(a) If FRA makes a final determination of noncompliance under Section 9.1(c) of this Attachment 1, FRA may impose a remedy, including:
(1) additional conditions on the award;
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18 (3) directing the Recipient to stop work;
(4) any remedy permitted under 2 C.F.R. §§ 200.339–200.340, including withholding of payments; disallowance of previously reimbursed costs, requiring refunds from the Recipient to FRA; suspension or termination of the award; or suspension and disbarment under 2 C.F.R. part 180; or
(5) any other remedy legally available.
(b) The Recipient acknowledges that any amounts FRA requires the Recipient to refund to FRA under this Section 9.2 constitute a debt to the Federal Government that FRA may collect under 2 C.F.R. § 200.346 and the Federal Claims Collection Standards (31 C.F.R. parts 900–999).
(c) Other Remedies. The termination authority under Article 10 of this Attachment 1 supplements and does not limit FRA’s remedial authority under this Article 9 or 2 C.F.R. part 200, including 2 C.F.R. §§ 200.339-200.240. FRA reserves the right to seek any appropriate remedy or otherwise enforce the terms and conditions of this Agreement as authorized by law.
9.3 Other Oversight Entities
Nothing in Article 9 of this Attachment 1 limits any party’s authority to report activity under this agreement to the United States Department of Transportation Inspector General or other appropriate oversight entities.
ARTICLE 10: AGREEMENT SUSPENSION AND TERMINATION
10.1 Suspension of Award Activities
(a) If FRA determines that the remedy for noncompliance imposed under Article 9 of this Agreement does not achieve the desired result or is unlikely to improve compliance or performance, FRA may suspend activities under this Agreement pending corrective action by the Recipient or termination.
(b) If FRA suspends activities under this Agreement, FRA will notify the Recipient in writing of the following, which may be included in the determinations of non-compliance under Section 9.1 of this Attachment 1:
(1) what project activities, if any, will take place during the period of suspension; (2) what costs FRA will reimburse if the suspension is lifted and the award resumed;
(3) what corrective actions must occur during the suspension; and (4) FRA’s intent to terminate the award under this Article 10 if the Recipient does not meet the conditions of the remedial action.
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19 (c) The duration of the temporary suspension of activities under the Agreement should be commensurate with the corrective action needed, but should not exceed 120 days at the outset. If the Recipient is not making sufficient progress in correcting the noncompliance, FRA must consider both financial and programmatic requirements in determining the appropriate extension to avoid the need for termination.
10.2 FRA Termination
(a) FRA may terminate this Agreement and all its obligations under this Agreement if any of the following occurs:
(1) the Recipient fails to obtain or contribute the required Non-Federal Funds, or alternatives approved by FRA, as provided in this agreement and consistent with Article 6 of Attachment 2 of this Agreement;
(2) the Recipient fails to meet a milestone by six months after the completion date listed in Article 5 of Attachment 2 of this Agreement and the Recipient fails to request an amendment to this Agreement pursuant to Section 5.3 of this Attachment 1;
(3) the Recipient fails to comply with the terms and conditions of this Agreement; (4) there are changes to the Project that FRA determines are inconsistent with FRA’s basis for selecting the Project to receive the award; or (5) FRA determines that termination of this Agreement is in the public interest. (b) The Recipient may request that FRA terminate the Agreement, which may result in FRA determining noncompliance and imposing remedies pursuant to Article 9 of this Attachment 1.
10.3 Closeout Termination
(a) This Agreement terminates on Project Closeout.
(b) In this Agreement, “Project Closeout” means the date that FRA notifies the Recipient that the award is closed out. Under 2 C.F.R. § 200.344, Project Closeout should occur no later than one year after the end of the Period of Performance.
10.4 Post-Termination Adjustments
The Recipient acknowledges that under 2 C.F.R. §§ 200.345–200.346, termination of this Agreement does not extinguish FRA’s authority to disallow costs, including costs that FRA reimbursed before termination, and recover funds from the Recipient.
10.5 Non-Terminating Events
(a) The end of the budget period described under Section 4.4 of this Attachment 1 does not terminate this Agreement or the Recipient’s obligations under this Agreement.
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20 (b) The end of the Period of Performance described under Section 4.5 of this Attachment 1 does not terminate this Agreement or the Recipient’s obligations under this Agreement.
ARTICLE 11: MONITORING, FINANCIAL MANAGEMENT, CONTROLS, AND RECORDS
11.1 Recipient Monitoring and Record Retention
(a) The Recipient will monitor activities under this award, including activities under subawards and contracts, to ensure:
(1) that those activities comply with this agreement; and (2) that funds provided under this award are not expended on costs that are not allowable under this award or not allocable to this award. (b) If the Recipient makes a subaward under this award, the Recipient will monitor the activities of the Subrecipient in compliance with 2 C.F.R. §200.332(d). (c) The Recipient will retain and provide access to records relevant to the award during the course of the Project and for three years after closeout or longer, as required under 2 C.F.R. § 200.334
(d) The Recipient will adhere to the recording and recordkeeping requirements set forth in 2 C.F.R. §§ 200.334–200.338. Project Closeout does not alter these requirements.
11.2 Financial Records and Audits
(a) The Recipient will keep all Project accounts and records that fully disclose the amount and disposition by the Recipient of the award funds, the total cost of the Project, and the amount or nature of that portion of the cost of the Project supplied by other sources, and any other financial records related to the Project.
(b) The Recipient will keep accounts and records described under Section 11.2(a) of this Attachment 1 in accordance with a financial management system that meets the requirements of 2 C.F.R. §§ 200.301–200.303 and 2 C.F.R. part 200, subpart F and will facilitate an effective audit in accordance with 31 U.S.C. §§ 7501–7506. (c) The Recipient will separately identify expenditures under the award in financial records required for audits under 31 U.S.C. §§ 7501–7506. Specifically, the Recipient will:
(1) list expenditures separately on the schedule of expenditures of Federal awards required under 2 C.F.R. part 200, subpart F, including the fiscal year in the format “FY 202X” in the program name; and
(2) list expenditures on a separate row under Part II, Item 1 (Federal Awards Expended During Fiscal Period) of Form SF-SAC, including “FY 202X” in Column C (Additional Award Identification).
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21 (d) If the Recipient expends $750,000 or more in Federal awards during the Recipient’s fiscal year, a single or program audit will be conducted for that year, consistent with 2 C.F.R. §§ 200.501(a) and 200.512(c).
11.3 Internal Controls
The Recipient will establish and maintain internal controls as required under 2 C.F.R. § 200.303.
11.4 FRA Record Access
FRA may access Recipient records related to this award under 2 C.F.R. § 200.337.
11.5 Site Visits
FRA may conduct site visits to review Project activities, accomplishments, and management control systems and to provide technical assistance to the Recipient. The Recipient will provide or ensure reasonable, safe, and convenient access to FRA for any such site visit. FRA will conduct all site visits in such a manner as will not unduly delay work conducted by the Recipient, Subrecipient, or contractor.
ARTICLE 12: CONTRACTING AND SUBAWARDING
12.1 Buy America
(a) For infrastructure projects, steel, iron, manufactured goods, and construction materials used in the Project are subject to the domestic preference requirement at § 70914 of the Build America, Buy America Act (Buy American Act), Pub. L. No. 117-58, div.
G, tit. IX, subtit. A, 135 Stat. 429, 1298 (2021) and 2 C.F.R. part 184, as implemented by OMB, USDOT, and FRA. The Recipient acknowledges that this Agreement is neither a waiver of § 70914(a) nor a finding under § 70914(b).
(b) For all other projects, the Recipient’s acquisition of steel, iron, and manufactured goods with funding provided through this Agreement is subject to the requirements set forth in the Buy American Act, 41 U.S.C. §§ 8301-8305. The Recipient also represents that it has never been convicted of violating the Buy American Act nor will it make funding received under this Agreement available to any person or entity who has been convicted of violating the Buy American Act.
(c) Under this Section, “infrastructure project” has the definition provided in 2 C.F.R. § 184.3.
(d) Under 2 C.F.R. § 200.322, as appropriate and to the extent consistent with law, the Recipient should, to the greatest extent practicable under this award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. The Recipient shall include the requirements of 2 C.F.R. § 200.322 in all subawards including all contracts and purchase orders for work or products under this award.
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22 12.2 Small and Disadvantaged Business Requirements
The Recipient will expend all funds under this award in compliance with the requirements at 2 C.F.R. § 200.321 (Contracting with small and minority businesses, women’s business enterprises, and labor surplus area firms), and to the extent applicable, 49 C.F.R. part 26 (Participation by disadvantaged business enterprises in Department of Transportation financial assistance programs).
12.3 Engineering and Design Services [Reserved]
12.4 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment The Recipient acknowledges that Section 889 of Pub. L. No. 115-232 and 2 C.F.R. § 200.216 prohibit the Recipient and all Subrecipients from procuring or obtaining certain telecommunications and video surveillance services or equipment under this award.
12.5 Pass-Through Entity Responsibilities
(a) If the Recipient makes a subaward under this award, the Recipient will comply with the requirements for pass-through entities under 2 C.F.R. parts 200 and 1201, including 2 C.F.R. §§ 200.331–200.333, regardless of whether the Recipient is also a Pass-Through Entity as defined in 2 C.F.R. § 200.1.
(b) The Recipient will report any subaward obligation of $25,000 or more in Federal funds in USASpending.gov consistent with the Federal Funding Accountability and Transparency Act, Pub. L. 109-282.
(c) The Recipient is accountable for performance under this award, the appropriate expenditure of funds, and other requirements under this Agreement. The Recipient is responsible for any non-compliance under the award and for compliance with any remedies imposed.
12.6 Local Hiring Preference for Construction Jobs
Under Section 25019 of the Infrastructure Investment and Jobs Act, Pub. L. No. 117-58, div. B, tit. V (2021), a Recipient or Subrecipient may implement a local or other geographical or economic hiring preference relating to the use of labor for construction of a project funded by this grant if funded under title 49 or 23 United States Code, including prehire agreements, subject to any applicable State and local laws, policies, and procedures. The use of such a local or other geographical or economic hiring preference in any bid for a contract for the construction of a project funded by this grant shall not be considered to unduly limit competition. Project labor agreements should be consistent with the definition and standards outlined in Executive Order 13502. The Recipient will document its consideration of Local Hiring Preference for Construction Jobs related to the Project in Article 11 of Attachment 2 of this Agreement. For additional information, see
https://www.transportation.gov/sites/dot.gov/files/2023-05/Creating-Local-Construction- Workforce.pdf.
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23 12.7 Procurement
The Recipient may acquire property, goods, or services in connection with the Project. If the Recipient is a State, then it will use its own procurement procedures that reflect applicable State laws and regulations in compliance with 2 C.F.R. § 200.317. A Subrecipient of a State will follow the policies and procedures allowed by that State when procuring property and services under this award consistent with 2 C.F.R. § 1201.317, notwithstanding 2 C.F.R. § 200.317. An entity that is not a State or Subrecipient of a State will comply with 2 C.F.R. §§ 200.318–200.327, and applicable supplementary USDOT or FRA directives and regulations. The Recipient will provide technical specifications and requirements to FRA for review upon request.
ARTICLE 13: COSTS, PAYMENTS, AND UNEXPENDED FUNDS
13.1 Limitation of Federal Award Amount
Under this award, FRA will not provide funding in an amount greater than the Agreement Federal Funds. The Recipient acknowledges that FRA is not liable for payments exceeding that amount, and the Recipient will not request reimbursement of costs exceeding that amount.
13.2 Project Costs
This award is subject to the cost principles at 2 C.F.R. part 200, subpart E, including provisions on determining allocable costs and determining allowable costs.
13.3 Timing of Project Costs
(a) The Recipient will not charge to this award costs that are incurred after the budget period.
(b) The Recipient will not charge to this award costs that were incurred before the date of this Agreement unless those costs are identified as approved pre-award costs in Section
6.6 of Attachment 2 of this Agreement and would have been allowable if incurred during the budget period. This limitation applies to pre-award costs under 2 C.F.R. § 200.458. This agreement hereby terminates and supersedes any previous FRA approval for the Recipient to incur costs under this award for the Project. Section 6.6 of Attachment 2 of this Agreement is the exclusive FRA approval of costs incurred before the date of this Agreement.
(c) The Recipient may request approval of pre-award costs in a written request that demonstrates the purpose and amount of the costs, compliance with 2 C.F.R. § 200.458, and whether such costs would otherwise serve as Non-Federal Funds.
13.4 Recipient Recovery of Federal Funds
The Recipient will make all reasonable efforts, including initiating litigation, if necessary, to recover Federal funds if FRA determines, after consultation with the Recipient, that those funds have been spent fraudulently, wastefully, or in violation of Federal laws, or misused in any manner. The Recipient will not enter a settlement or other final position, in court or otherwise, involving the recovery of funds under the award unless approved in advance in writing by FRA.
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24 13.5 Unexpended Agreement Federal Funds
Any Agreement Federal Funds that are obligated but not expended on allocable, allowable costs remain the property of the United States.
13.6 Interest Earned
Interest earned on advances of Agreement Federal Funds is not program income.
13.7 Timing of Payments to the Recipient
(a) Reimbursement is the payment method, unless otherwise approved by FRA. (b) The Recipient will not request reimbursement of a cost before the Recipient has entered into an obligation for that cost.
13.8 Payment Method
(a) The Recipient will use the DELPHI e-Invoicing System (https://www.dot.gov/cfo/delphi-einvoicing-system.html) to request reimbursement under this award. FRA will provide access to that system upon request by the Recipient. (b) FRA may deny a payment request that is not submitted using the method identified in this Section.
13.9 Information Supporting Expenditures
(a) When requesting reimbursement of costs incurred or credit for cost share incurred, the Recipient will electronically submit the SF 270 (Request for Advance or Reimbursement) and will submit supporting cost detail to document clearly all costs incurred. As supporting cost detail, the Recipient will include a detailed breakout of all costs incurred and classify all costs by task and by Agreement Federal Funds and Agreement Non-Federal Funds.
(b) Unless FRA and the Recipient agree otherwise in writing, the Recipient will ensure that the proportion of expenditure of Agreement Federal Funds to Agreement Non-Federal Funds is not more than the maximum percent of total Project cost FRA will contribute identified in Section 6.5 of Attachment 2 of this Agreement. The Recipient will ensure the proportional expenditure of funds is reflected in the detailed breakout of costs supporting the SF 270.
(c) If the Recipient submits a request for reimbursement that FRA determines does not include or is not supported by sufficient detail, FRA may deny the request or withhold processing the request until the Recipient provides sufficient detail.
13.10 Reimbursement Request Timing Frequency
The Recipient will request reimbursement as needed to maintain cash flow sufficient to timely complete the Project. The Recipient will not submit any single payment request exceeding $99,999,999.99. The Recipient will not submit a payment request exceeding $50,000,000.00 unless the Recipient notifies FRA six days before submitting the request.
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25 13.11 Program Income
The Recipient is encouraged to earn income to defray Project costs, where appropriate, and will work with FRA to determine how income may be applied to the grant, in accordance with 2 C.F.R. § 200.307 and 2 C.F.R. § 1201.80. Program income not deducted from total allowable costs may be used only for the purposes and under the terms and conditions established in this Agreement. The Recipient will maintain records of all program income.
ARTICLE 14: PROPERTY AND EQUIPMENT
14.1 General Requirements
The Recipient will comply with the property standards of 2 C.F.R. §§ 200.310–200.316 and will ensure compliance with these standards for all tiers of subawards and contracts under this award.
14.2 Relocation and Real Property Acquisition
The Recipient will comply with the land acquisition policies and relocation requirements in 42 U.S.C. § 4601 et seq. and 49 C.F.R. part 24, subparts A–F, as applicable. At a minimum, under this section, the Recipient will:
(a) comply with the land acquisition policies in 49 C.F.R. part 24, subpart B and will pay or reimburse property owners for necessary expenses as specified in that subpart; (b) provide a relocation assistance program offering the services described in 49 C.F.R. part 24, subpart C and provide reasonable relocation payments and assistance to displaced persons as required in 49 C.F.R. part 24, subparts D–E; and (c) make available to displaced persons comparable replacement dwellings in accordance with 49 C.F.R. part 24, subpart E.
(d) provide to FRA a real estate acquisition and management plan prior to beginning real property acquisition if the Project is designated a Major Project in Article 1 of Attachment 2 of this Agreement, or if the total Project cost in Section 6.5 of Attachment 2 of this Agreement is greater than $300 million and the Project is also receiving financial assistance from the Federal Transit Administration (FTA).
14.3 Use for Originally Authorized Purpose
The Recipient will ensure that property and equipment funded under this Agreement is used for the originally authorized purpose. If necessary to satisfy this obligation, the Recipient will enter into appropriate arrangements with the entity or entities using, or with the owner of right-of- way used by, the property and/or equipment funded under this Agreement.
14.4 Maintenance
The Recipient will ensure that any property, improvements to property, and any equipment funded under this Agreement are maintained in good working order and in accordance with FRA regulations, guidelines, and directives.
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26 14.5 Real Property Disposition
In accordance with 2 C.F.R. § 200.311, when real property acquired or improved under this award is no longer used for its originally intended purpose, the Recipient will request disposition instructions from FRA.
14.6 Equipment Disposition
(a) In accordance with 2 C.F.R. §§ 200.313 and 1201.313, when equipment acquired under this award is no longer needed for the Project:
(1) if the entity that acquired the equipment is a State or a Subrecipient of a State, that entity will dispose of that equipment in accordance with State laws and procedures; and
(2) if the entity that acquired the equipment is neither a State nor a Subrecipient of a State, that entity will request disposition instructions from FRA. (b) In accordance with 2 C.F.R. §200.443(d), the distribution of the proceeds from the disposition of equipment must be made in accordance with 2 C.F.R. §§ 200.313–200.316 and 2 C.F.R. § 1201.313.
14.7 Recordkeeping
The Recipient will keep records regarding the operation and maintenance of property, improvements to property, equipment, and supplies funded under this Agreement and will provide them to FRA upon request.
14.8 Encumbrance
The Recipient will not create an obligation, such as a transfer of title, lease, lien, mortgage, or encumbrance, that would dispose of or encumber the Recipient’s title or other interest in property, improvements to property, equipment or supplies funded under this Agreement without prior written approval from FRA.
The Recipient will not take any action that would adversely affect FRA’s interest or impair the Recipient’s continuing control over the use of the property, improvements to property, equipment, or supplies funded under the Agreement without prior written approval from FRA.
ARTICLE 15: AMENDMENTS
15.1 Bilateral Amendments
The parties may amend, modify, or supplement this Agreement by mutual agreement in writing signed by FRA and the Recipient. Either party may request to amend, modify, or supplement this Agreement by written notice to the other party.
15.2 FRA Unilateral Amendments
(a) FRA may unilaterally amend this Agreement for the following reasons:
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27 (1) to comply with Federal law;
(2) at closeout or in anticipation of closeout; and
(3) other non-substantive changes, such as to correct typographical errors, as deemed appropriate by FRA.
(b) To unilaterally amend this Agreement under Section 15.3 of this Attachment 1, FRA will provide a written notice to the Recipient that includes the amendment and the date that the amendment is effective.
(c) Except at closeout or in anticipation of closeout, FRA may not unilaterally amend the Statement of Work, this Agreement’s monetary amount, the delivery schedule, the Period of Performance, or other terms or conditions of this Agreement.
15.3 Other Amendments
The parties will not amend, modify, or supplement this Agreement except as permitted under Sections 15.1, 15.2, or 15.3 of this Attachment 1. If an amendment, modification, or supplement is not permitted under Section 15.1, 15.2, or 15.3 of this Attachment 1, it is void.
ARTICLE 16: CLIMATE CHANGE AND ENVIRONMENTAL JUSTICE
16.1 Climate Change and Environmental Justice
Consistent with Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad” (Jan. 27, 2021), the Recipient will document its consideration of climate change and environmental justice impacts of the Project in Article 9 of Attachment 2 of this Agreement.
ARTICLE 17: RACIAL EQUITY AND BARRIERS TO OPPORTUNITY
17.1 Racial Equity and Barriers to Opportunity
Consistent with Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government” (Jan. 20, 2021), the Recipient will document its activities related to the Project to improve racial equity and reduce barriers to opportunity in Article 10 of Attachment 2 of this Agreement.
ARTICLE 18: LABOR AND WORK
18.1 Labor and Work
Consistent with Executive Order 14025, “Worker Organizing and Empowerment” (Apr. 26, 2021), and Executive Order 14052, “Implementation of the Infrastructure Investment and Jobs Act” (Nov. 15, 2021) (IIJA), the Recipient will document its consideration of job quality and labor rights, standards, and protections related to the Project in Article 11 of Attachment 2 of this Agreement.
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28 18.2 OFCCP Mega Construction Project Program
If the total eligible Project costs listed in Attachment 2 of this Agreement are greater than $35,000,000 and the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) selects this award for participation in the Mega Construction Project Program, then the Recipient shall partner with OFCCP, as requested by OFCCP.
ARTICLE 19: CRITICAL INFRASTRUCTURE SECURITY AND RESILIENCE
19.1 Critical Infrastructure Security and Resilience
(a) Consistent with Presidential Policy Directive 21, “Critical Infrastructure Security and Resilience” (Feb. 12, 2013), and the National Security Presidential Memorandum on Improving Cybersecurity for Critical Infrastructure Control Systems (July 28, 2021), the Recipient will consider physical and cyber security and resilience in planning, design, and oversight of the Project.
(b) If the Security Risk Designation in Section 1.3 of Attachment 2 of this Agreement is “Elevated,” then not later that than two years after the date of this Agreement the Recipient will submit to FRA a report that:
(1) identifies a cybersecurity point of contact for the transportation infrastructure being improved in the Project;
(2) summarizes or contains a cybersecurity incident reporting plan for the transportation infrastructure being improved in the Project; (3) summarizes or contains a cybersecurity incident response plan for the transportation infrastructure being improved in the Project; (4) documents the results of a self-assessment of the Recipient’s cybersecurity posture and capabilities; and
(5) describes any additional actions that the Recipient has taken to consider or address cybersecurity risk of the transportation infrastructure being improved in the Project.
ARTICLE 20: FEDERAL FINANCIAL ASSISTANCE, ADMINISTRATIVE,
AND NATIONAL POLICY REQUIREMENTS
20.1 Uniform Administrative Requirements for Federal Awards The Recipient will comply, and will ensure that other entities receiving funding under this agreement will comply, with the obligations on non-Federal entities under 2 C.F.R. parts 200 and 1201, regardless of whether the Recipient or other entity receiving funding under this agreement is a Non-Federal entity as defined in 2 C.F.R. § 200.1, except that subpart F of part 200 does not apply if the Recipient or Subrecipient is a for-profit entity.
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29 20.2 Federal Law and Public Policy Requirements
(a) The Recipient will ensure that Federal funding is expended in full accordance with the United States Constitution, Federal law, and statutory and public policy requirements:
including but not limited to, those protecting free speech, religious liberty, public welfare, the environment, and prohibiting discrimination.
(b) The failure of this Agreement to expressly identify Federal law applicable to the Recipient or activities under this Agreement does not make that law inapplicable.
20.3 Federal Freedom of Information Act
(a) FRA is subject to the Freedom of Information Act (FOIA), 5 U.S.C. § 552. (b) The Recipient acknowledges that the Application and materials submitted to FRA by the Recipient related to this Agreement will become FRA records that may be subject to public release under 5 U.S.C. § 552. If the Recipient submits any materials to FRA related to this Agreement that the Recipient considers to include trade secret or confidential commercial or financial information, the Recipient should note that the submission contains confidential business information, mark each affected page, and highlight or otherwise denote the portions of the submission that contain confidential business information.
20.4 History of Performance
Under 2 C.F.R. § 200.206, any Federal awarding agency may consider the Recipient’s performance under this Agreement, when evaluating the risks of making a future Federal financial assistance award to the Recipient.
20.5 Whistleblower Protection
(a) The Recipient acknowledges that it is a “Recipient” within the scope of 41 U.S.C. § 4712, which prohibits the Recipient from taking certain actions against an employee for certain disclosures of information that the employee reasonably believes are evidence of gross mismanagement of this award, gross waste of Federal funds, or a violation of Federal law related this this award.
(b) The Recipient will inform its employees in writing of the rights and remedies provided under 41 U.S.C. § 4712, in the predominant native language of the workforce.
20.6 External Award Terms and Obligations
(a) In addition to this document and the contents described in Article 25 of this Attachment 1, this Agreement includes the following additional terms as integral parts:
(1) Appendix A to 2 C.F.R. part 25: System for Award Management and Universal Identifier Requirements;
(2) Appendix A to 2 C.F.R. part 170: Reporting Subawards and Executive Compensation;
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30 (3) 2 C.F.R. § 175.15(b): Trafficking in Persons; and (4) Appendix XII to 2 C.F.R. part 200: Award Term and Condition for Recipient Integrity and Performance Matters.
(b) The Recipient will comply with:
(1) 49 C.F.R. part 20: New Restrictions on Lobbying;
(2) 49 C.F.R. part 21: Nondiscrimination in Federally Assisted Programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964;
(3) 49 C.F.R. part 27: Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance; and
(4) Subpart B of 49 C.F.R. part 32: Governmentwide Requirements for Drug-free Workplace (Financial Assistance).
20.7 Incorporated Certifications
The Recipient makes the representations in the following certifications, which are incorporated by reference:
(a) Appendix A to 49 C.F.R. part 20 (Certification Regarding Lobbying).
ARTICLE 21: ASSIGNMENT
21.1 Assignment Prohibited
The Recipient will not transfer to any other entity any discretion granted under this Agreement, any right to satisfy a condition under this Agreement, any remedy under this Agreement, or any obligation imposed under this Agreement.
ARTICLE 22: WAIVER
22.1 Waivers
(a) A waiver of a term of this Agreement authorized by law and granted by FRA will not be effective unless it is in writing and signed by an authorized representative of FRA. (b) A waiver of a term of this Agreement granted by FRA on one occasion will not operate as a waiver on other occasions.
(c) If FRA fails to require strict performance of a term of this Agreement, fails to exercise a remedy for a breach of this Agreement, or fails to reject a payment during a breach of this Agreement, that failure does not constitute a waiver of that term or breach.
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31 ARTICLE 23: ADDITIONAL TERMS AND CONDITIONS
23.1 Disclaimer of Federal Liability
FRA will not be responsible or liable for any damage to property or any injury to persons that may arise from, or be incident to, performance or compliance with this Agreement.
23.2 Environmental Review
(a) Except as authorized by law or under 23 C.F.R. § 771.113(d)(4), the Recipient will not begin final design activities; acquire real property, construction materials, or equipment, including rolling stock; begin construction; or take other actions that would have an adverse environmental impact or limit the choice of reasonable alternatives for the Project unless and until FRA complies with the National Environmental Policy Act, 42 U.S.C. § 4321 et seq. (NEPA), and any other applicable environmental laws and regulations. In addition, the Recipient will not begin project development that involves ground disturbing activity prior to FRA compliance with NEPA and any other applicable environmental laws and regulations.
(b) The Recipient acknowledges that:
(1) FRA’s actions under Section 23.2(a) of this Attachment 1 may depend on the Recipient conducting necessary environmental analyses and submitting necessary documents to FRA; and
(2) applicable environmental statutes and regulations may require the Recipient to prepare and submit documents to other Federal, State, and local agencies. (c) Consistent with 23 C.F.R. § 771.105(a), to the maximum extent practicable and consistent with Federal law, the Recipient will coordinate all environmental investigations, reviews, and consultations as a single process.
(f) The activities described in Article 4 of Attachment 2 of this Agreement and other information described in this Agreement may inform environmental decision-making processes, but the parties do not intend this Agreement to document the alternatives under consideration under those processes. If a build alternative is selected that does not align with Article 4 of Attachment 2 of this Agreement or other information in this Agreement, then FRA will either:
(1) amend this Agreement under Section 15.1 of this Attachment 1 for consistency with the selected build alternative; or
(2) if FRA determines that the condition at Section 10.1(a)(5) of this Attachment 1 is satisfied, terminate this Agreement under Section 10.1(a)(5) of this Attachment 1; or
(3) take other action as deemed appropriate by FRA.
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32 (g) The Recipient will complete any mitigation activities described in the environmental document or documents for the Project, including the terms and conditions contained in the required permits and authorizations for the Project. Article 4 of Attachment 2 of this Agreement identifies documents describing mitigation activities, but the absence of a document from that section does not relieve the Recipient of any compliance obligations.
23.3 Project Maintenance Requirement
The Recipient will ensure that any property and equipment funded within this Agreement is operated and maintained in good operating order and in accordance with 2 C.F.R. §§ 200.310– 200.316, 1201.313 and any guidelines, directives, or regulations that FRA may issue.
23.4 Appropriations Act Requirements
The Recipient will comply with applicable requirements of the appropriations act identified in Section 6.3 of Attachment 2 of this Agreement.
23.5 Standards of Conduct
The Recipient will comply with the following standards of conduct:
(a) Standards of Conduct. The Recipient will maintain a written code or standards of conduct governing the performance of its officers, employees, board members, or agents engaged in the award and administration of contracts or agreements supported by the Federal contribution provided through this Agreement. The code or standards will provide that the Recipient's officers, employees, board members, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from present or potential Subrecipients or contractors. The Recipient may set minimum rules where the financial interest is not substantial, or the gift is an unsolicited item of nominal intrinsic value. As permitted by state or local law or regulations, such code or standards will provide for penalties, sanctions, or other disciplinary actions for violations by the Recipient's officers, employees, board members, or agents, or by Subrecipients or their agents. (b) Personal Conflict of Interest. The Recipient's code or standards must provide that no employee, officer, board member, or agent of the Recipient may participate in the selection, award, or administration of a contract supported by the Federal contribution if a real or apparent conflict of interest would be involved. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract.
(c) Organizational Conflicts of Interest. The Recipient's code or standards of conduct must include procedures for identifying and preventing real and apparent organizational conflicts of interests. An organizational conflict of interest exists when the nature of the work to be performed under a proposed contract, may, without some restrictions on future activities, result in an unfair competitive advantage to the contractor or impair the contractor's objectivity in performing the contract work.
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33 (d) Existing Codes or Standards. This Section does not require the Recipient to implement a new code or standards of conduct where a state statute, or written code or standards of conduct, already effectively covers all of the required elements. (e) Disclosure of Conflicts. The Recipient will disclose in writing any potential conflict of interest to FRA or pass-through entity.
23.6 Changed Conditions of Performance
The Recipient will notify FRA of any event that may affect its ability to perform the Project in accordance with the terms of this Agreement.
23.7 Litigation
The Recipient will notify FRA in writing of any decision pertaining to the Recipient’s conduct of litigation that may affect FRA's interests in the Project or FRA's administration or enforcement of applicable Federal laws or regulations. The Recipient will inform FRA in writing before naming FRA as a party to any type of litigation for any reason in any forum.
23.8 Bipartisan Infrastructure Law Signage Guidelines
For projects funded by the Bipartisan Infrastructure Law, also known as the Infrastructure Investment and Jobs Act, Pub. L. No. 117-58 (2021), the Recipient will ensure:
(a) signage is designed consistent with the guidelines and design specifications available at
https://www.whitehouse.gov/wp-content/uploads/2022/08/Building-A-Better- America-Brand-Guide.pdf. Sig ns should include the official Building A Better America emblem and corresponding logomark and identify the project as “funded by President Biden’s Bipartisan Infrastructure Law.”
(b) signage displays the FRA logo and the Recipient logo, if any, along with the official Building A Better America emblem. The FRA logo should not be displayed in a manner that implies FRA itself is conducting the project.
(c) where applicable, the signage includes the project name (e.g., [Name of] Project funded by President Biden’s Bipartisan Infrastructure Law.) (d) the sign is placed at construction sites where it is clearly visible near the location of work and that the sign is maintained in good condition throughout the construction period.
(e) signs on equipment are placed in an easily visible location and maintained in good condition
23.9 Equipment and Supplies
The Recipient will maintain written policies and procedures that address acquisition, classification, and management of all equipment and supplies acquired or used under this award.
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34 23.10 Safety and Technology Data
The Recipient will ensure that FRA has access to safety and technology relevant data generated by the Recipient under the award, in a machine-readable format, where specified in Article 4 of Attachment 2 of this Agreement.
23.11 Intellectual Property
The Recipient agrees to the standard patent rights clauses issued by the Department of Commerce at 37 C.F.R. § 404.14, as applicable.
23.12 Liquidation of Recipient Obligations
(a) The Recipient will liquidate all obligations of award funds under this Agreement not later than 120 days after the end of the Period of Performance. (b) Liquidation of obligations and adjustment of costs under this Agreement follow the requirements of 2 C.F.R. §§ 200.344–200.346.
ARTICLE 24: CONSTRUCTION AND DEFINITIONS
24.1 Agreement
This Agreement consists of the following:
(a) Agreement Cover Sheet
(b) Attachment 1: General Terms and Conditions
(c) Attachment 2: Project-Specific Terms and Conditions (d) Exhibit A: Applicable Federal Laws and Regulations (e) Exhibit B: Additional Standard Terms
(f) Exhibit C: Quarterly Project Progress Reports and Recertifications
24.2 Construction
(a) In these General Terms and Conditions, there are no references to articles or sections in project-specific portions of this Agreement that are not contained in Attachments or Exhibits listed in Section 24.1.
(b) If a provision in these General Terms and Conditions or the Exhibits conflicts with a provision in the Project-Specific Terms and Conditions in Attachment 2 of this Agreement, then the relevant portion in Attachment 2 prevails. If a provision in the Exhibits conflicts with a provision in these General Terms and Conditions, then the provision in these General Terms and Conditions prevails.
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35 24.3 Integration
This Agreement constitutes the entire agreement of the parties relating to the Project and supersedes any previous agreements, oral or written, relating to the Project.
24.4 Definitions
This Section defines terms used in this Agreement. Additional definitions found in 2 C.F.R. § 200.1 are incorporated by referenced into this Agreement. “Agreement Federal Funds” means the total amount of Federal funds obligated under this Agreement. This is the amount shown in Section 6.1 of Attachment 2 of this Agreement. “Application” means the application identified in Article 3 of Attachment 2 of this Agreement, including Standard Form 424 and all information and attachments submitted with that form through Grants.gov.
“Construction Substantial Completion” means the stage of the Project when all construction tasks are complete such that the Recipient can use the Project for its intended use and only closeout activities remain. Activity to address or complete closeout activities will not prevent or disrupt use of the Project.
“Contingent Commitment” means the unobligated amounts of future available budget authority specified in law that FRA commits to obligate under the terms of this Agreement. “Federal Share” means the sum of Agreement Federal Funds and Other Federal Funds. If there are no Other Federal Funds, the Federal Share is the same as the Agreement Federal Funds. “General Terms and Conditions” means this Attachment 1. “Other Federal Funds” means Federal funds that are part of the Approved Project Budget in Section 6.5 of Attachment 2 of this Agreement for the Project but are not obligated under this Agreement.
“Project” means the project proposed in the Application, as modified by the negotiated provisions of this Agreement, including Attachment 2 of this Agreement. “Project Closeout” means the date that FRA notifies the Recipient that the award is closed out.
Under 2 C.F.R. § 200.344, Project Closeout should occur no later than one year after the end of the Period of Performance.
“Project Cost Savings” means the difference between the actual costs to complete the Project and the estimated total Project cost listed in Section 6.5 of Attachment 2 of this Agreement, if after the Recipient completes the tasks identified in Article 4 of Attachment 2 of this Agreement to FRA’s satisfaction, the actual Project costs are less than the estimated total Project costs. “Rural Area” means any area that is not within an area designated as an urbanized area by the Bureau of the Census.
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36 24.5 Calendar Dates
Unless otherwise specified, all dates and durations are in calendar days, calendar quarters, or calendar years, as appropriate.
24.6 Communication in Writing
Unless otherwise specified, all written communication may be provided by electronic mail.
ARTICLE 25: AGREEMENT EXECUTION AND EFFECTIVE DATE
25.1 Counterparts
This agreement may be executed in counterparts, which constitute one document. The parties intend each countersigned original to have identical legal effect.
25.2 Effective Date
The agreement will become effective when all parties have signed it. The date of this Agreement will be the date this Agreement is signed by the last party to sign it.
ARTICLE 26: PROGRAM-SPECIFIC CLAUSES
26.1 Interstate Rail Compacts Grant Program
The Recipient agrees to comply with the clauses in Section 26.1 of this Attachment 1.
Consistent with 49 U.S.C. § 22905(e), clauses (b) through (g) of Section 26.1 of this Attachment 1 do not apply to: 1) commuter rail passenger transportation (as defined in 49 U.S.C. § 24102(3)) operations of a State or local government authority (as those terms are defined in 49 U.S.C. § 5302) or its contractor performing services in connection with commuter rail passenger operations; 2) the Alaska Railroad or its contractors; or 3) Amtrak’s access rights to railroad right of way and facilities under current law.
(a) Non-Federal Match. The Recipient will provide a Non-Federal match of not less than 50 percent of the eligible expenses under the grant.
(b) Buy America. In lieu of Section 12.1 of this Attachment 1, the Recipient will comply with the following clauses, as applicable:
(1) for infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Recipient acknowledges that this agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). For infrastructure projects, construction materials used in the Project are subject to the domestic preference requirement at § 70914 of the Build America, Buy America Act, Pub. L. No. 117-58, div. G, tit. IX, subtit. A, 135 Stat. 429, 1298 (2021) and 2 C.F.R. part 184, as implemented by OMB, USDOT and FRA. The Recipient acknowledges that this agreement is neither a waiver of § 70914(a) nor a finding under § 70914(b).
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37 (2) for non-infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Recipient acknowledges that this agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). (3) under Section 26.1 of this Attachment 1, “infrastructure project” has the definition provided in 2 C.F.R. § 184.3.
(4) for all projects, as appropriate and to the extent consistent with law, the Recipient should under 2 C.F.R. § 200.322, to the greatest extent practicable under this award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. The Recipient shall include the requirements of 2 C.F.R. § 200.322 in all subawards including all contracts and purchase orders for work or products under this award. (c) Operators Deemed Rail Carriers. The Recipient recognizes and agrees that 49 U.S.C. § 22905(b) provides that persons conducting rail operations over rail infrastructure constructed or improved in whole or in part with funds provided under chapter 229 of Title 49, United States Code, will be considered a “rail carrier” as defined by 49 U.S.C. § 10102(5), for purposes of Title 49, United States Code, and any other statute that adopts that definition or in which that definition applies, including: the Railroad Retirement Act of 1974 (45 U.S.C. § 231 et seq.); the Railway Labor Act (45 U.S.C. § 151 et seq.); and the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et seq.). The Recipient agrees to reflect this provision in its agreements (if any) with any entity operating rail services over such rail infrastructure.
(d) Railroad Agreements. In accordance with 49 U.S.C. § 22905(c)(1), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then Recipient represents that it has entered into a written agreement with that railroad owner, which includes:
compensation for such use; assurances regarding the adequacy of infrastructure capacity to accommodate both existing and future freight and passenger operations; an assurance by the railroad that collective bargaining agreements with railroad’s employees (including terms regulating the contracting of work) will remain in full force and effect according to their terms for work performed by the railroad on the railroad transportation corridor; and an assurance that Recipient complies with liability requirements consistent with 49 U.S.C. § 28103.
By signing this Agreement, Recipient certifies that the written agreement referenced in this Section 26.1(d) has been executed or is not required.
Additional guidance on compliance with the Railroad Agreements provisions is available on FRA’s website at:
https://railroads.dot.gov/elibrary/frequently-asked-questions-about- rail-improvement-grant-conditions-under-49-usc-ss-22905c1. (e) Labor Protective Arrangements. In accordance with 49 U.S.C. § 22905(c)(2)(B), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then the Recipient will ensure compliance with the protective arrangements that are equivalent to Item 15
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38 those established under Section 504 of the Railroad Revitalization and Regulatory Reform Act of 1976, 49 U.S.C. § 22404. Such protective arrangements are included herein as Exhibit B.5.
(f) Davis-Bacon and Related Acts Provisions. In accordance with 49 U.S.C. § 22905(c)(2)(A), if the Project funded by this Agreement uses rights-of-way owned by a railroad, the Recipient will ensure compliance with the standards of 49 U.S.C. § 24312 with respect to the Project in the same manner that Amtrak is required to comply with those standards for construction work financed under an agreement made under 49 U.S.C.§ 24308(a). For these purposes, wages in collective bargaining agreements negotiated under the Railway Labor Act are deemed to comply with Davis-Bacon Act requirements.
(g) Replacement of Existing Intercity Passenger Rail Service. If an intercity passenger rail transportation provider replaces Amtrak intercity passenger rail service through a Project funded by this Agreement, then such provider must comply with the provisions of 49 U.S.C. § 22905(d).
(h) Operator Limitation. Recipient’s eligible expenses must be related to intercity passenger rail service to be operated by Amtrak.
(i) Reporting. As requested by FRA, the Recipient will report on:
(1) the status of the planning efforts and coordination funded by the grant award; (2) plans for continued implementation of the interstate rail compact; (3) the status of, and data regarding, any new, restored, or enhanced rail services initiated under the interstate rail compact; and
(4) other data and information as requested by FRA.
26.2 Railroad Crossing Elimination Program Clauses
The Recipient agrees to comply with the clauses in Section 26.2 of this Attachment 1.
Consistent with 49 U.S.C. §§ 22905(e) & 22909(j), clauses (b), (c), (d), and (g) of Section 26.2 of this Agreement 1 do not apply to: 1) commuter rail passenger transportation (as defined in 49 U.S.C. § 24102(3)) operations of a State or local government authority (as those terms are defined in 49 U.S.C. § 5302) or its contractor performing services in connection with commuter rail passenger operations; 2) the Alaska Railroad or its contractors; or 3) Amtrak’s access rights to railroad right of way and facilities under current law. In addition, clause (f) does not apply to:
1) the Alaska Railroad or its contractors; or 2) Amtrak’s access rights to railroad right of way and facilities under current law.
(a) Federal Share. The Federal Share of total Project costs shall not exceed 80 percent. (b) Buy America. In lieu of Section 12.1 of this Agreement 1:
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39 (1) for infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Recipient acknowledges that this Agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). For infrastructure projects, construction materials used in the Project are subject to the domestic preference requirement at § 70914 of the Build America, Buy America Act, Pub. L. No. 117-58, div. G, tit. IX, subtit. A, 135 Stat. 429, 1298 (2021) and 2 C.F.R. part 184, as implemented by OMB, USDOT and FRA. The Recipient acknowledges that this Agreement is neither a waiver of § 70914(a) nor a finding under § 70914(b). (2) for non-infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Recipient acknowledges that this Agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). (3) under this Section, “infrastructure project” has the definition provided in 2 C.F.R. § 184.3.
(4) for all projects, as appropriate and to the extent consistent with law, the Recipient should under 2 C.F.R. § 200.322, to the greatest extent practicable under this award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. The Recipient shall include the requirements of 2 C.F.R. § 200.322 in all subawards including all contracts and purchase orders for work or products under this award. (c) Operators Deemed Rail Carriers. The Recipient recognizes and agrees that 49 U.S.C. § 22905(b) provides that persons conducting rail operations over rail infrastructure constructed or improved in whole or in part with funds provided under chapter 229 of Title 49, United States Code, will be considered a “rail carrier” as defined by 49 U.S.C. § 10102(5), for purposes of Title 49, United States Code, and any other statute that adopts that definition or in which that definition applies, including: the Railroad Retirement Act of 1974 (45 U.S.C. § 231 et seq.); the Railway Labor Act (45 U.S.C. § 151 et seq.); and the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et seq.). The Recipient agrees to reflect this provision in its agreements (if any) with any entity operating rail services over such rail infrastructure.
(d) Railroad Agreements. In accordance with 49 U.S.C. § 22905(c)(1), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then Recipient represents that it has entered into a written agreement with that railroad owner, which includes:
compensation for such use; assurances regarding the adequacy of infrastructure capacity to accommodate both existing and future freight and passenger operations; an assurance by the railroad that collective bargaining agreements with railroad’s employees (including terms regulating the contracting of work) will remain in full force and effect according to their terms for work performed by the railroad on the railroad transportation corridor; and an assurance that Recipient complies with liability requirements consistent with 49 U.S.C. § 28103.
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40 By signing this Agreement, Recipient certifies that the written agreement referenced in this Section 26.2(d) has been executed or is not required.
Additional guidance on compliance with the Railroad Agreements provisions is available on FRA’s website at:
https://railroads.dot.gov/elibrary/frequently-asked-questions-about- rail-improvement-grant-conditions-under-49-usc-ss-22905c1. (e) Impacted Rail Carrier or Real Property Owner Approvals. In accordance with 49 U.S.C. § 22909(e)(2)(A), prior to proceeding with the construction of the Project funded by this Agreement, if applicable, Recipient will obtain necessary approvals to commence construction from any impacted rail carriers or real property owners. If the Project is a planning project, as described in 49 U.S.C. § 22909(d)(6), the Recipient agrees to work collaboratively with rail carriers and right-of-way owners. (f) Labor Protective Arrangements
(1) Notwithstanding 49 U.S.C. § 22905(e)(1), and in accordance with 49 U.S.C. § 22909(j)(3), any employee covered by the Railway Labor Act (45 U.S.C. § 151 et seq.) and the Railroad Retirement Act of 1974 (45 U.S.C. § 231 et seq.) who is adversely affected by actions taken in connection with the project financed in whole or in part by such grant shall be covered by employee protective arrangements required to be established under 49 U.S.C. § 22905(c)(2)(B). In accordance with 49 U.S.C. § 22905(c)(2)(B), the Recipient will ensure compliance with the protective arrangements that are equivalent to those established under Section 504 of the Railroad Revitalization and Regulatory Reform Act of 1976, 49 U.S.C. § 22404, as such protective arrangements are described in the final FRA guidance titled Equivalent Protections for Railroad Employees and effective December 28, 2022, included herein in Exhibit B.
(2) In accordance with 49 U.S.C. § 22909(j)(3), Recipient, and any successors, assigns, and contractors of Recipient:
i. shall be bound by the employee protective arrangements required under subparagraph (1); and
ii. shall be responsible for the implementation of such arrangements and for the obligations under such arrangements, but may arrange for another entity to take initial responsibility for compliance with the conditions of such arrangement.
(3) Labor protections required pursuant to Subsection (f) of Section 26.2 of this Attachment 1 shall be documented consistent with Article 18 of this Attachment
1. (g) Davis-Bacon and Related Acts Provisions. In accordance with 49 U.S.C. § 22905(c)(2)(A), if the Project funded by this Agreement uses rights-of-way owned by a railroad, the Recipient will ensure compliance with the standards of 49 U.S.C. § 24312 with respect to the Project in the same manner that Amtrak is required to comply with Item 15
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41 those standards for construction work financed under an agreement made under 49 U.S.C.§ 24308(a). For these purposes, wages in collective bargaining agreements negotiated under the Railway Labor Act are deemed to comply with Davis-Bacon Act requirements.
(h) Replacement of Existing Intercity Passenger Rail Service. If an intercity passenger rail transportation provider replaces Amtrak intercity passenger rail service through a Project funded by this Agreement, then such provider must comply with the provisions of 49 U.S.C. § 22905(d).
26.3 Consolidated Rail Infrastructure and Safety Improvements Grants Clauses The Recipient agrees to comply with the clauses in Section 26.3 of this Attachment 1.
Consistent with 49 U.S.C. § 22905(e), clauses (b) and (c) through (g) of Section 26.3 of this Attachment 1 do not apply to: 1) commuter rail passenger transportation (as defined in 49 U.S.C. § 24102(3)) operations of a State or local government authority (as those terms are defined in 49 U.S.C. § 5302) or its contractor performing services in connection with commuter rail passenger operations; 2) the Alaska Railroad or its contractors; or 3) Amtrak’s access rights to railroad right of way and facilities under current law. (a) Federal Share. The Federal Share of total Project costs shall not exceed 80 percent. (b) Buy America. In lieu of Section 12.1 of this Attachment 1:
(1) for infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. §22905(a), as implemented by FRA. The Recipient acknowledges that this Agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). For infrastructure projects, construction materials used in the Project are subject to the domestic preference requirement at § 70914 of the Build America, Buy America Act, Pub. L. No. 117-58, div. G, tit. IX, subtit. A, 135 Stat. 429, 1298 (2021) and 2 C.F.R. part 184, as implemented by OMB, USDOT and FRA. The Recipient acknowledges that this Agreement is neither a waiver of § 70914(a) nor a finding under § 70914(b). (2) for non-infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Recipient acknowledges that this Agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). (3) under this Section, “infrastructure project” has the definition provided in 2 C.F.R. § 184.3.
(4) for all projects, as appropriate and to the extent consistent with law, the Recipient should under 2 C.F.R. § 200.322, to the greatest extent practicable under this award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. The Recipient shall Item 15
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Item 15: Staff Report
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42 include the requirements of 2 C.F.R. § 200.322 in all subawards including all contracts and purchase orders for work or products under this award. (c) Operators Deemed Rail Carriers. The Recipient recognizes and agrees that 49 U.S.C. § 22905(b) provides that persons conducting rail operations over rail infrastructure constructed or improved in whole or in part with funds provided under chapter 229 of Title 49, United States Code, will be considered a “rail carrier” as defined by 49 U.S.C. § 10102(5), for purposes of Title 49, United States Code, and any other statute that adopts that definition or in which that definition applies, including: the Railroad Retirement Act of 1974 (45 U.S.C. § 231 et seq.); the Railway Labor Act (45 U.S.C. § 151 et seq.); and the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et seq.). The Recipient agrees to reflect this provision in its agreements (if any) with any entity operating rail services over such rail infrastructure.
(d) Railroad Agreements. In accordance with 49 U.S.C. § 22905(c)(1), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then Recipient represents that it has entered into a written agreement with that railroad owner, which includes:
compensation for such use; assurances regarding the adequacy of infrastructure capacity to accommodate both existing and future freight and passenger operations; an assurance by the railroad that collective bargaining agreements with railroad’s employees (including terms regulating the contracting of work) will remain in full force and effect according to their terms for work performed by the railroad on the railroad transportation corridor; and an assurance that Recipient complies with liability requirements consistent with 49 U.S.C. § 28103.
By signing this Agreement, Recipient certifies that the written agreement referenced in this Section 26.3(d) has been executed or is not required.
Additional guidance on compliance with the Railroad Agreements provisions is available on FRA’s website at:
https://railroads.dot.gov/elibrary/frequently-asked-questions-about- rail-improvement-grant-conditions-under-49-usc-ss-22905c1. (e) Labor Protective Arrangements. In accordance with 49 U.S.C. § 22905(c)(2)(B), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then the Recipient will ensure compliance with the protective arrangements that are equivalent to those established under Section 504 of the Railroad Revitalization and Regulatory Reform Act of 1976, 49 U.S.C. § 22404. Such protective arrangements are included herein as Exhibit B.5.
(f) Davis-Bacon and Related Acts Provisions. In accordance with 49 U.S.C. § 22905(c)(2)(A), if the Project funded by this Agreement uses rights-of-way owned by a railroad, the Recipient will ensure compliance with the standards of 49 U.S.C. § 24312 with respect to the Project in the same manner that Amtrak is required to comply with those standards for construction work financed under an agreement made under 49 U.S.C.§ 24308(a). For these purposes, wages in collective bargaining agreements Item 15
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43 negotiated under the Railway Labor Act are deemed to comply with Davis-Bacon Act requirements.
(g) Replacement of Existing Intercity Passenger Rail Service. If an intercity passenger rail transportation provider replaces Amtrak intercity passenger rail service through a Project funded by this Agreement, then such provider must comply with the provisions of 49 U.S.C. § 22905(d).
26.4 Restoration and Enhancement Grants Clauses
The Recipient agrees to comply with the clauses in Section 26.4 of this Attachment 1.
Consistent with 49 U.S.C. § 22905(e), clauses (b) and (c) through (g) of Section 26.4 do not apply to: 1) commuter rail passenger transportation (as defined in 49 U.S.C. § 24102(3)) operations of a State or local government authority (as those terms are defined in 49 U.S.C. § 5302) or its contractor performing services in connection with commuter rail passenger operations; 2) the Alaska Railroad or its contractors; or 3) Amtrak’s access rights to railroad right-of -way and facilities under current law.
(a) Maximum Funding Limitation. A grant authorized by 49 U.S.C. § 22908 may not exceed:
(1) 90 percent of the projected net operating costs for the first year of service; (2) 80 percent of the projected net operating costs for the second year of service; (3) 70 percent of the projected net operating costs for the third year of service; (4) 60 percent of the projected net operating costs for the fourth year of service; (5) 50 percent of the projected net operating costs for the fifth year of service; and
(6) 30 percent of the projected net operating costs for the sixth year of service. (b) Buy America. In lieu of Section 12.1 of this Agreement 1:
(1) for infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Recipient acknowledges that this Agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). For infrastructure projects, construction materials used in the Project are subject to the domestic preference requirement at § 70914 of the Build America, Buy America Act, Pub. L. No. 117-58, div. G, tit. IX, subtit. A, 135 Stat. 429, 1298 (2021) and 2 C.F.R. part 184, as implemented by OMB, USDOT, and FRA. The Recipient acknowledges that this Agreement is neither a waiver of § 70914(a) nor a finding under § 70914(b). (2) for non-infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Item 15
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Item 15: Staff Report
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44 Recipient acknowledges that this Agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). (3) under Section 26.4 of this Attachment 1, “infrastructure project” has the definition provided in 2 C.F.R. § 184.3.
(4) for all projects, as appropriate and to the extent consistent with law, the Recipient should under 2 C.F.R. § 200.322, to the greatest extent practicable under this award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. The Recipient shall include the requirements of 2 C.F.R. § 200.322 in all subawards including all contracts and purchase orders for work or products under this award. (c) Operators Deemed Rail Carriers. The Recipient recognizes and agrees that 49 U.S.C. § 22905(b) provides that persons conducting rail operations over rail infrastructure constructed or improved in whole or in part with funds provided under chapter 229 of Title 49, United States Code, will be considered a “rail carrier” as defined by 49 U.S.C. § 10102(5), for purposes of Title 49, United States Code, and any other statute that adopts that definition or in which that definition applies, including: the Railroad Retirement Act of 1974 (45 U.S.C. § 231 et seq.); the Railway Labor Act (45 U.S.C. § 151 et seq.); and the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et seq.). The Recipient agrees to reflect this provision in its agreements (if any) with any entity operating rail services over such rail infrastructure.
(d) Railroad Agreements. In accordance with 49 U.S.C. § 22905(c)(1), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then Recipient represents that it has entered into a written agreement with that railroad owner, which includes:
compensation for such use; assurances regarding the adequacy of infrastructure capacity to accommodate both existing and future freight and passenger operations; an assurance by the railroad that collective bargaining agreements with railroad’s employees (including terms regulating the contracting of work) will remain in full force and effect according to their terms for work performed by the railroad on the railroad transportation corridor; and an assurance that Recipient complies with liability requirements consistent with 49 U.S.C. § 28103.
By signing this Agreement, Recipient certifies that the written agreement referenced in this Section 26.4(d) has been executed or is not required.
Additional guidance on compliance with the Railroad Agreements provisions is available on FRA’s website at:
https://railroads.dot.gov/elibrary/frequently-asked-questions-about- rail-improvement-grant-conditions-under-49-usc-ss-22905c1. (e) Labor Protective Arrangements. In accordance with 49 U.S.C. § 22905(c)(2)(B), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then the Recipient will ensure compliance with the protective arrangements that are equivalent to those established under Section 504 of the Railroad Revitalization and Regulatory Reform Item 15
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45 Act of 1976, 49 U.S.C. § 22404. Such protective arrangements are included herein as Exhibit B.5.
(f) Davis-Bacon and Related Acts Provisions. In accordance with 49 U.S.C. § 22905(c)(2)(A), if the Project funded by this Agreement uses rights-of-way owned by a railroad, the Recipient will ensure compliance with the standards of 49 U.S.C. § 24312 with respect to the Project in the same manner that Amtrak is required to comply with those standards for construction work financed under an agreement made under 49 U.S.C.§ 24308(a). For these purposes, wages in collective bargaining agreements negotiated under the Railway Labor Act are deemed to comply with Davis-Bacon Act requirements.
(g) Replacement of Existing Intercity Passenger Rail Service. If an intercity passenger rail transportation provider replaces Amtrak intercity passenger rail service through a Project funded by this Agreement, then such provider must comply with the provisions of 49 U.S.C. § 22905(d).
(h) Route Reporting. The Recipient will provide similar information regarding the route performance, financial, and ridership projections, and capital and business plans that Amtrak is required to provide, and such other data and information as is required by Article 4 of Attachment 2 of this Agreement.
(i) Termination. In addition to the terms of this Attachment 1, FRA may terminate this Agreement upon the cessation of service, or the violation of any other term of this Agreement.
26.5 Federal-State Partnership for Intercity Passenger Rail and Federal-State Partnership for State of Good Repair Clauses
The Recipient agrees to comply with the clauses in Section 26.5 of this Attachment 1.
Consistent with 49 U.S.C. § 22905(e), clauses (b) through (g) of Section 26.5 of this Attachment 1 do not apply to: 1) commuter rail passenger transportation (as defined in 49 U.S.C. § 24102(3)) operations of a State or local government authority (as those terms are defined in 49 U.S.C. § 5302) or its contractor performing services in connection with commuter rail passenger operations; 2) the Alaska Railroad or its contractors; or 3) Amtrak’s access rights to railroad right of way and facilities under current law.
(a) Federal Share. The Federal Share of total Project costs shall not exceed 80 percent. (b) Buy America. In lieu of Section 12.1 of this Attachment 1:
(1) for infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Recipient acknowledges that this Agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). For infrastructure projects, construction materials used in the Project are subject to the domestic preference requirement at § 70914 of the Build America, Buy America Act, Pub. L. No. 117-58, Item 15
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46 div. G, tit. IX, subtit. A, 135 Stat. 429, 1298 (2021) and 2 C.F.R. part 184, as implemented by OMB, USDOT and FRA. The Recipient acknowledges that this Agreement is neither a waiver of § 70914(a) nor a finding under § 70914(b). (2) for non-infrastructure projects, steel, iron, and manufactured products used in the Project are subject to 49 U.S.C. § 22905(a), as implemented by FRA. The Recipient acknowledges that this Agreement is neither a waiver of 49 U.S.C. § 22905(a)(1) nor a finding under 49 U.S.C. § 22905(a)(2). (3) under this Section, “infrastructure project” has the definition provided in 2 C.F.R. § 184.3.
(4) for all projects, as appropriate and to the extent consistent with law, the Recipient should under 2 C.F.R. § 200.322, to the greatest extent practicable under this award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States. The Recipient shall include the requirements of 2 C.F.R. § 200.322 in all subawards including all contracts and purchase orders for work or products under this award. (c) Operators Deemed Rail Carriers. The Recipient recognizes and agrees that 49 U.S.C. § 22905(b) provides that persons conducting rail operations over rail infrastructure constructed or improved in whole or in part with funds provided under chapter 229 of Title 49, United States Code, will be considered a “rail carrier” as defined by 49 U.S.C. § 10102(5), for purposes of Title 49, United States Code, and any other statute that adopts that definition or in which that definition applies, including: the Railroad Retirement Act of 1974 (45 U.S.C. § 231 et seq.); the Railway Labor Act (45 U.S.C. § 151 et seq.); and the Railroad Unemployment Insurance Act (45 U.S.C. § 351 et seq.). The Recipient agrees to reflect this provision in its agreements (if any) with any entity operating rail services over such rail infrastructure.
(d) Railroad Agreements. In accordance with 49 U.S.C. § 22905(c)(1), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then Recipient represents that it has entered into a written agreement with that railroad owner, which includes:
compensation for such use; assurances regarding the adequacy of infrastructure capacity to accommodate both existing and future freight and passenger operations; an assurance by the railroad that collective bargaining agreements with railroad’s employees (including terms regulating the contracting of work) will remain in full force and effect according to their terms for work performed by the railroad on the railroad transportation corridor; and an assurance that Recipient complies with liability requirements consistent with 49 U.S.C. § 28103.
By signing this Agreement, Recipient certifies that the written agreement referenced in this Section 26.5(d) has been executed or is not required.
Additional guidance on compliance with the Railroad Agreements provisions is available on FRA’s website at:
https://railroads.dot.gov/elibrary/frequently-asked-questions-about- rail-improvement-grant-conditions-under-49-usc-ss-22905c1.
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47 (e) Labor Protective Arrangements. In accordance with 49 U.S.C. § 22905(c)(2)(B), if the Project funded by this Agreement uses rights-of-way owned by a railroad, then the Recipient will ensure compliance with the protective arrangements that are equivalent to those established under Section 504 of the Railroad Revitalization and Regulatory Reform Act of 1976, 49 U.S.C. § 22404. Such protective arrangements are included herein as Exhibit B.5.
(f) Davis-Bacon and Related Acts Provisions. In accordance with 49 U.S.C. § 22905(c)(2)(A), if the Project funded by this Agreement uses rights-of-way owned by a railroad, the Recipient will ensure compliance with the standards of 49 U.S.C. § 24312 with respect to the Project in the same manner that Amtrak is required to comply with those standards for construction work financed under an agreement made under 49 U.S.C.§ 24308(a). For these purposes, wages in collective bargaining agreements negotiated under the Railway Labor Act are deemed to comply with Davis-Bacon Act requirements.
(g) Replacement of Existing Intercity Passenger Rail Service. If an intercity passenger rail transportation provider replaces Amtrak intercity passenger rail service through a Project funded by this Agreement, then such provider must comply with the provisions of 49 U.S.C. § 22905(d).
(h) Northeast Corridor Cost Allocation. For projects located on the Northeast Corridor, as that term is defined in 49 U.S.C. § 24911(a)(4), Amtrak and the public authorities providing commuter rail passenger transportation at the Project location on the Northeast Corridor must remain in compliance with 49 U.S.C. § 24905(c)(2). (i) Interest and Financing Costs. Pursuant to 49 U.S.C. § 24911(g)(2), interest and other financing costs of efficiently carrying out a part of the Project within a reasonable time are a cost of carrying out the Project under a Phased Funding Agreement, except that eligible costs may not be more than the cost of the most favorable financing terms reasonably available for the Project at the time of borrowing. The Recipient will certify to FRA’s satisfaction that the Recipient has shown reasonable diligence in seeking the most favorable financing terms.
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Version Date: December 11, 2023
Attachment 2
PROJECT-SPECIFIC
TERMS AND CONDITIONS
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2 Project-Specific Terms and Conditions
Table of Contents
ARTICLE 1: PROJECT-SPECIFIC DESIGNATIONS .............................................................................................. 4
1.1 Recipient ....................................................................................................................................... 4
1.2 Project and Purpose ...................................................................................................................... 4
1.3 Program Designations ................................................................................................................... 4 ARTICLE 2: SPECIAL TERMS AND CONDITIONS ............................................................................................. 4 ARTICLE 3: ADMINISTRATIVE INFORMATION ............................................................................................... 5
3.1 Application .................................................................................................................................... 5
3.2 FRA Awarding Official.................................................................................................................... 5
3.3 Federal Award Date ...................................................................................................................... 5
3.4 Program Name and Assistance Listings Number .......................................................................... 5
3.5 Recipient’s Unique Entity Identifier .............................................................................................. 5
3.6 Federal Award Identification Number .......................................................................................... 5 ARTICLE 4: STATEMENT OF WORK ................................................................................................................ 5
4.1 General Project Description .......................................................................................................... 5
4.2 Project Location ............................................................................................................................ 5
4.3 Project Scope ................................................................................................................................ 6
4.4 Implement Required Environmental Commitments................................................................... 12 ARTICLE 5: AWARD DATES AND ESTIMATED PROJECT SCHEDULE ............................................................. 12
5.1 Award Dates ................................................................................................................................ 12
5.2 Estimated Project Schedule ........................................................................................................ 12 ARTICLE 6: AWARD AND PROJECT FINANCIAL INFORMATION ................................................................... 12
6.1 Award Amount ............................................................................................................................ 12
6.2 Federal Obligation Information .................................................................................................. 12
6.3 Federal Authorization and Funding Source. ............................................................................... 12
6.4 Funding Availability ..................................................................................................................... 13
6.5 Approved Project Budget ............................................................................................................ 13
6.6 Pre-Award Costs .......................................................................................................................... 14
6.7 Phased Funding Agreement ........................................................................................................ 14 ARTICLE 7: PERFORMANCE MEASUREMENT INFORMATION ..................................................................... 15 Item 15
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3 ARTICLE 8: ENVIRONMENTAL COMPLIANCE ............................................................................................... 16 ARTICLE 9: CLIMATE CHANGE AND ENVIRONMENTAL JUSTICE IMPACTS .................................................. 16
9.1 Consideration of Climate Change and Environmental Justice Impacts ...................................... 16
9.2 Supporting Narrative ................................................................................................................... 18 ARTICLE 10: RACIAL EQUITY AND BARRIERS TO OPPORTUNITY ................................................................. 18
10.1 Efforts to Improve Racial Equity and Reduce Barriers to Opportunity ....................................... 18
10.2 Supporting Narrative ................................................................................................................... 19 ARTICLE 11: LABOR AND WORK .................................................................................................................. 20
11.1 Efforts to Support Good-Paying Jobs and Strong Labor Standards ............................................ 20
11.2 Supporting Narrative ................................................................................................................... 21
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4 ARTICLE 1: PROJECT-SPECIFIC DESIGNATIONS
1.1 Recipient
This Agreement (Agreement) is between the Federal Railroad Administration (FRA) and the City of Palo Alto (the Recipient).
1.2 Project and Purpose
The purpose of this award is to fund a Fiscal Year (FY) 2022 Rail Crossing Elimination Program grant for the Grade Separation Project at Churchill Avenue, Meadow Drive and Charleston Road (the Project), as described in Article 4 of this Attachment 2, to help achieve the goals identified in the Notice of Funding Opportunity for Grade Separation for Elimination of Rail Crossings, Program Description section of Notice of Funding Opportunity,1 that solicited applications for Federal financial assistance. FRA and the Recipient will accomplish that purpose by timely completing the Project and ensuring that this award does not substitute for non-Federal investment in the Project, except as proposed in the Application.
This Agreement does not obligate funds for the Project transferred to FRA from another agency for obligation.
1.3 Program Designations
(a) Research and Development. This award is not for research and development. (b) Project Size. This award is for a non-Major Project as that term is defined in FRA Guidance on Development and Implementation of Railroad Capital Projects, January 11, 2023 (Railroad Capital Projects Guidance).
(c) Phased Funding. This award is not a phased funding agreement as further discussed in Section 6.7 of this Attachment 2.
(d) Grant or Cooperative Agreement. This award is made as a Grant Agreement. (e) Security Risk. This award is for a Project that has a low security risk. (f) Rural Area. The information the Recipient provided to FRA, including in the Application, demonstrates this award is not for a Project in a Rural Area.
ARTICLE 2: SPECIAL TERMS AND CONDITIONS
There are no special terms for this award.
1 https://www.govinfo.gov/content/pkg/FR-2022-07-06/pdf/2022-14344.pdf
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5 ARTICLE 3: ADMINISTRATIVE INFORMATION
3.1 Application
Application Title: Grade Separation Project at Churchill Avenue, Meadow Drive, and Charleston Road Application Date: Oct 10, 2022
3.2 FRA Awarding Official
FRA Office of Railroad Development
Federal Railroad Administration
1200 New Jersey Ave, SE
Washington, DC 20590
[email protected]
3.3 Federal Award Date
The “Federal Award Date” is the effective date of this Agreement, as defined under Section 24.4 of Attachment 1 of this Agreement.
3.4 Program Name and Assistance Listings Number
For the Fiscal Year (FY) 2022 Railroad Crossing Elimination Program, the Assistance Listings Number is
20.327 and the Assistance Listings Title is Railroad Crossing Elimination.
3.5 Recipient’s Unique Entity Identifier
The Recipient’s Unique Entity Identifier, as defined at 2 C.F.R. § 25.415, is listed in Section 1B on the Agreement cover sheet.
3.6 Federal Award Identification Number
The Federal Award Identification Number is listed in Section 2 on the Agreement cover sheet as the “Agreement Number.”
ARTICLE 4: STATEMENT OF WORK
4.1 General Project Description
The Project involves preliminary engineering and environmental review for Churchill Avenue, Meadow Drive, and Charleston Road Crossings. The scope of work includes preparing the preliminary engineering design for FRA approval and completing the environmental review for the Project.
4.2 Project Location
The Project is located in Palo Alto along the Caltrain Corridor which crosses Churchill Avenue, Meadow Drive, and Charleston Road.
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6 Geospatial Project Data:
Churchill Avenue: Latitude: 37.4354930 Longitude: -122.1517170 Meadow Drive: Latitude: 37.4175766 Longitude: -122.1233300 Charleston Road: Latitude: 37.4146165 Longitude: -122.1186389 U.S. DOT Crossing Number:
Churchill Avenue: 754998E
Meadow Drive: 755010S
Charleston Road: 755011Y
4.3 Project Scope
The Project involves preliminary engineering and environmental review for grade separations at Churchill Avenue, Meadow Drive, and Charleston Road Crossings.
The Recipient will notify FRA in writing of any requested changes in Project Scope and will not proceed with the changed scope unless approved by FRA in writing. If approved, changes to Project Scope may require additional environmental review or an amendment to this Agreement.
Task 1: Project Administration and Management
Subtask 1.1: Project Administration
The Recipient will perform all tasks required for the Project through a coordinated process, which will involve affected railroad owners, operators, and funding partners, including:
• Federal Railroad Administration (FRA)
• City of Palo Alto, Project Sponsor, Grant Recipient
• Peninsula Corridor Joint Powers Board (PCJPB is the governing body for Caltrain service on the San Francisco Peninsula)
• Santa Clara Valley Transportation Agency (VTA) – Funding Partner • California High-Speed Rail Authority
The Recipient will facilitate the coordination of all activities necessary for implementation of the Project.
The Recipient will:
• participate in a Project kickoff meeting with FRA following award; Item 15
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7 • complete necessary steps to hire a qualified consultant/contractor to perform required Project work, as necessary;
• hold regularly scheduled Project meetings with FRA;
• inspect and approve work as it is completed; and
• participate in other coordination, as needed.
Subtask 1.2: Project Management Plan
The Recipient will prepare a Project Management Plan (PMP), that describes how the Project will be implemented and monitored to ensure effective, efficient, and safe delivery of the Project on time and within budget. The PMP will describe, in detail, the activities and steps necessary to complete the tasks outlined in this Statement of Work.
The PMP will include a Project Schedule and Project Budget for the work to be performed under this Agreement. The Project Schedule will be consistent with the Estimated Project Schedule in Section 5.2 of this Attachment 2, but provide a greater level of detail. Similarly, the Project Budget should be consistent with the Approved Project Budget in Section 6.5 of this Attachment 2, but provide a greater level of detail.
The Recipient will submit the PMP to FRA for review and approval. The Recipient will implement the Project as described in the approved PMP. The Recipient will not begin work on subsequent tasks until FRA has provided written approval of the PMP, unless FRA has provided pre-award authority for such work under Section 6.6 of this Attachment 2. FRA will not reimburse the Recipient for costs incurred in contravention of this requirement.
FRA may require the Recipient to update the PMP. The Recipient will submit any such updates to FRA for review and approval, and FRA will determine if updates to the PMP require an amendment to this Agreement. The Project Budget and Project Schedule may be revised consistent with Article 5 of Attachment 1 of this Agreement without amending this Agreement.
Subtask 1.3: Project Closeout
The Recipient will submit a Final Performance Report as required by Section 7.2 of Attachment 1 of this Agreement, which should describe the cumulative activities of the Project, including a complete description of the Recipient’s achievements with respect to the Project objectives and milestones.
Task 1 Deliverables:
Deliverable ID Subtask Deliverable Name
1.1 1.2 Project Management Plan
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8 1.2 1.3 Final Performance Report
Task 2: Preliminary Engineering
The Recipient shall conduct investigations and perform studies needed to support the development of the Preliminary Engineering (PE) Plan Set, including plans, calculations, and cost estimates, which are necessary to support the development of construction documents for the selected alternative at each of the grade crossing location. The Recipient shall prepare plans, specifications, calculations, and cost estimates under the responsible charge of the appropriate California Registered Engineer(s) (i.e., civil, electrical, geotechnical) and Architect(s). The Recipient shall prepare PE design sets for each crossing.
The Recipient shall complete the PE Plan Set and submit for FRA review and approval to support the future proposed construction project. The PE Plan Set shall include a cost estimate and may, when applicable, include the following items:
• Basis of Design or Design Criteria, include all pertinent AREMA, AAR, FRA, or other standards that will be used for different design elements of the project. • A title sheet identified with a drawing revision number or date; an index identifying various plan sheets comprising the drawing set; notation of design criteria referenced; and a legend of symbols or abbreviations.
• PE plan drawings overlaid on maps/aerial photography and prepared at an appropriate scale are to include:
o Existing and proposed right-of-way limits to include property lines and railroad ownership;
o Proposed track changes including removals and installations; track centers, track speeds, turnout sizes, curve, and spiral data; vertical profiles and grades of proposed construction; typical cross sections to scale showing the proposed work to existing conditions for each change in track configuration and at other locations requiring retaining walls or right-of-way acquisitions, and public and private at-grade crossings; o Bridge span arrangement, Typical sections of bridge approach spans and movable (main) span, bridge size and location (Bridge TSL drawing) if applicable; o Bridge horizontal and vertical profile if applicable; o Typical Retaining Wall Detail, Section, and elevation with footing type and type of fill used;
o New bridge elevation with Limits of navigation channel shown, current and proposed if applicable;
o Substructure type and size detail and any construction requirements and if applicable, impacts to river and navigational traffic during construction; Item 15
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9 o Limits of removal of the existing bridge superstructure and substructure if applicable; o Horizontal and vertical alignment drawings to include existing and proposed grades; o Cross sections showing the proposed work to existing conditions for each change in track configuration and at other locations requiring easements, retaining walls, or right- of-way acquisitions, as needed;
o All pertinent flood elevations;
o Correspondence with US Coast Guard and obtaining PNCD if applicable; o Correspondence with US Army Corps of Engineers and any work that can be advanced at PE stage towards future permit requirements if applicable, o Limits of disturbance (must be within the APE shown in the approved NEPA document); o Survey and base mapping of the bridge site: The Grantee will initiate the additional topographic survey of the Project location. This additional work will include courthouse research, property boundary mapping, digital terrain modeling, and subsurface public and franchise utility locations;
o Geotechnical investigation, report, and recommendations for type of support structures based on borings at proposed bridge support locations;
o Label all critical components such as rail centerlines, track centers, turnout sizes, curve and spiral data, bridges, road dimensions, etc.
o Proposed track changes including removals and installations; o Public and private at-grade crossings;
o Preliminary utility coordination (identify utility type, size, and owners in the area for which conflicts may occur) and suggested utility relocation in case of conflict and approval of relocation by the utility owners Include all aerial and submarine cables, also include any railroad utilities and appurtenances; as feasible; o Identify construction access and temporary laydown (staging) areas for contractors, as appropriate;
o Identify any temporary or permanent finger pier or platform that may be required within the river limits for new bridge construction, as applicable; and o Provide construction phasing plans and Maintenance of rail traffic details during construction.
• If existing signal system and instrumentation are modified or new signals and instrumentation are being installed, Grantee will:
o Prepare route and aspect charts, preliminary block design, and identify signal equipment locations.
• A preliminary Risk Register showing risk, risk owner, mitigation strategies, etc. Contingency in the cost estimate should include these risks.
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10 • New track configuration schematic must be signed by all project stakeholders before PE can start (if applicable).
• The Grantee will obtain signature approval of the preliminary engineering cover sheet by all stakeholders impacted by the proposed Project.
• Preliminary Detail of scour protection work at Pier and extent of protection and any environmental mitigation and/or measures warranted by US COE if applicable. • Bridge Design plans submitted to FRA Engineering must also meet the requirements of 49 CFR Part 237 Subparts F and G, as appropriate (see FRA’s Track and Rail Infrastructure Integrity Compliance Manual, Volume IV, Chapter I, Bridge Safety Standards for more details and guidance regarding plan preparation and requirements).
• The Recipient will provide a detailed and itemized construction cost estimate that will include all of the proposed construction elements with their respective unit cost, quantity, and total cost, separate itemized Force Account Work done by the railroad itself and with appropriate level of contingencies to account for unknown conditions expected at the PE level Plans. Use FRA Cost Estimating Guidance and FRA Standard Cost Category as much as possible. See Capital Cost Estimating Guidance | FRA (dot.gov) for more information.
Task 2. 1 Churchill Avenue PE
The PE Package(s) to be submitted to FRA for approval consist(s) of the design with approval signatures by stakeholders (or alternate method of approval acceptable to FRA), cost estimate, schedule, and responses to FRA comments.
Task 2.2 Meadow Drive PE
The PE Package(s) to be submitted to FRA for approval consist(s) of the design with approval signatures by stakeholders (or alternate method of approval acceptable to FRA), cost estimate, schedule, and responses to FRA comments.
Task 2.3 Charleston Road PE
The PE Package(s) to be submitted to FRA for approval consist(s) of the design with approval signatures by stakeholders (or alternate method of approval acceptable to FRA), cost estimate, schedule, and responses to FRA comments.
Task 2 Deliverables: The deliverable package for each sub task will include the following:
• Basis of Design or Design Criteria for all design elements • Geotechnical Investigation Report and Recommendations (For Information only) • Preliminary Engineering Plans and Detailed Cost Estimate • Revised Track Configuration schematic signed by all stakeholders • FEMA No-Rise Certification
• PNCD from USCG (For information only, if applicable)
• USACE correspondence (and fulfilling all of their initial requirements)- For information only Item 15
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11 Deliverable ID Subtask Deliverable Name
2.1 2.1 PE Package(s) for Churchill Avenue
2.2 2.2 PE Package(s) for Meadow Drive
2.3 2.3 PE Package(s) for Charleston Avenue
Task 3: Environmental Review
The Recipient shall complete the appropriate environmental document for the Project, in accordance with the National Environmental Policy Act (NEPA), its implementing regulations at 40 CFR parts 1500- 508, FRA’s Environmental Procedures at 23 CFR parts 771 and 774, Section 4(f) of the Department of Transportation Act, the National Historic Preservation Act, and related environmental laws.
The Recipient shall complete the FRA Categorical Exclusion (CE) worksheet for the Project, including providing the current Project description, appropriate Project maps, and any other relevant background information and submit it to FRA and submit it to assist FRA in making a class of action determination.
The Recipient will use qualified environmental professionals to complete the environmental review, including determining potential environmental impacts, conducting a review of existing literature, coordinating with relevant agencies, and performing field reconnaissance.
If FRA does not concur that a CE is appropriate for this Project, the Recipient will complete the required environmental documentation.
In addition, the Recipient is responsible for identifying all necessary permits required for the Project’s implementation.
Task 3 Deliverables:
Deliverable ID Task Deliverable Name
3.1 3 Environmental Document
Additional Task:
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12 None.
4.4 Implement Required Environmental Commitments
The Recipient will implement any environmental commitments identified through the NEPA process conducted under Task 3: Environmental Review.
None.
ARTICLE 5: AWARD DATES AND ESTIMATED PROJECT SCHEDULE
5.1 Award Dates
Budget Period End Date: October 31, 2027
Period of Performance End Date: October 31, 2027
5.2 Estimated Project Schedule
Milestones associated with this Agreement are identified in Table 5-A: Estimated Project Schedule. The Recipient will complete these milestones to FRA’s satisfaction by the Schedule Date, subject to Article 5 of Attachment 1 of this Agreement. The Recipient will notify FRA in writing when it believes it has achieved the milestone.
Table 5-A: Estimated Project Schedule
Milestone Schedule Date
Preliminary Engineering Completion June 30, 2026
NEPA Completion June 30, 2027
ARTICLE 6: AWARD AND PROJECT FINANCIAL INFORMATION
6.1 Award Amount
Agreement Federal Funds: $6,000,000.
6.2 Federal Obligation Information
Federal Obligation Type: Single
6.3 Federal Authorization and Funding Source.
Authorizing Statute: Sections 22104 and 22305 of the Infrastructure Investment and Jobs Act, Public Law 117-58 (November 15, 2021); 49 U.S.C. § 22909
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13 6.4 Funding Availability
Program funding that is obligated under this Agreement remains available until expended.
6.5 Approved Project Budget
The estimated total Project cost under this Agreement is $20,000,000.
FRA will contribute a maximum of 30 percent of the total Project cost, not to exceed the Agreement Federal Funds in Section 6.1 of this Attachment 2. FRA will fund the Project at the lesser amount of the Agreement Federal Funds or the FRA maximum contribution percentage of total Project costs.
The Recipient will contribute $14,000,000 in Agreement Non-Federal Funds. Recipient’s Agreement Non-Federal Funds are comprised of cash from a sales tax measure, Measure B Grade Separation Funding, passed in 2016.
The Recipient will complete the Project to FRA’s satisfaction within the Approved Project Budget, subject to Article 5 of Attachment 1 of this Agreement.
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14 Table 6-A: Approved Project Budget by Task
Task # Task Title
Agreement
Federal
Funds
Agreement Non-
Federal Funds Total
1 Project
Administration
and
Management
$ 900,000 $2,100,000 $ 3,000,000
2 Preliminary
Engineering $2,550,000 $5,950,000 $8,500,000
3 Environmental
Documentation $2,550,000 $5,950,000 $8,500,000
Total $6,000,000 $14,000,000 Total Project Cost:
$20,000,000
Table 6-B: Approved Project Budget by Source
Funding Source Total Amount Percentage of Total
Project Cost
Federal Share $ %
Agreement Federal Funds $6,000,000 30%
FRA Grant Program $ 6,000,000 30%
Agreement Non-Federal Funds $14,000,000 70%
[Measure B Grade Separation Funding] $ 14,000,000 70%
6.6 Pre-Award Costs
None. Consistent with 2 C.F.R. part 200, costs incurred before the date of this Agreement are not allowable costs under this award. FRA will neither reimburse those costs under this award nor consider them as a non-Federal cost-sharing contribution to this award.
6.7 Phased Funding Agreement
Not applicable.
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15 ARTICLE 7: PERFORMANCE MEASUREMENT INFORMATION
Table 7-A: Performance Measurement Table identifies the performance measures that this Project is expected to achieve. These performance measures will enable FRA to assess the Recipient’s progress in achieving grant program goals and objectives. The Recipient will report on these performance measures in accordance with the frequency and duration specified in Table 7-A.
Upon Project completion, the Recipient will submit reports comparing the actual Project performance of the new and or improved asset(s) against the pre-Project (baseline) performance and expected post- Project performance as described in Table 7-A. The Recipient will submit the performance measures report to the Project Manager in accordance with Table 7-A.
Table 7-A: Performance Measurement Table
Goal Objective Performance
Measure
Description of
Measure Measurement Reporting
Preliminary
Engineering
FRA PE
Approval
Completion
of PE
PE and design
materials and all
related deliverables
for all three crossings
are successfully
completed and
accepted by FRA
Pre-Project
(Baseline)
Performance as of:
Not applicable, no
documents were
completed prior to
the Award Date.
Frequency:
Once
Expected Post-
Project Performance:
FRA approval of PE
Duration:
One-time
submission as
part of the Final
Performance
Report
Environmental
Review
FRA NEPA
Document
Approval
Completion
of a NEPA
document
The environmental
documentation for
all three crossings is
approved by FRA.
Pre-Project
(Baseline)
Performance as of:
Not applicable, no
documents were
completed prior to
the Award Date.
Frequency:
Once
Expected Post-
Project Performance:
Signed CE or FONSI
for each crossing.
Duration:
One-time
submission as
part of the Final
Performance
Report
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16 ARTICLE 8: ENVIRONMENTAL COMPLIANCE
In accordance with the National Environmental Policy Act (NEPA; 42 U.S.C. § 4321 et seq.), other environmental statutes, related regulatory requirements, and FRA’s NEPA-implementing regulations (23 C.F.R. part 771), FRA has determined that the actions funded under this Agreement as described in this Attachment 2, Section 4.5, Tasks 2 and 3, are categorically excluded from detailed environmental review pursuant to 23 C.F.R. § 771.116 (c) [(1), (3), or (8)]. In accordance with Section 106 of the National Historic Preservation Act (54 U.S.C. § 306108; 36 C.F.R. part 800), FRA has also determined that the actions funded under this Agreement have no potential to cause effects to historic properties. The actions do not require the use of property protected by Section 4(f) of the Department of Transportation Act (49 U.S.C. § 303; 23 C.F.R. part 774).
Categorical exclusions (CEs) are actions identified in an agency’s NEPA-implementing procedures that do not normally have a significant impact on the environment and therefore do not require either an environmental assessment (EA) or environmental impact statement (EIS). See 40 C.F.R. § 1508.1(d). In analyzing the applicability of a CE, FRA also considered whether unusual circumstances are present that would warrant a more detailed environmental review through the preparation of an EA or EIS. In accordance with 23 C.F.R. § 771.116 (a) and (b), FRA has further concluded that no unusual circumstances exist with respect to development of the activities funded under this grant that might trigger the need for a more detailed environmental review.
Should conditions or the scope of the action change, the Recipient must notify FRA and receive written response and notice to proceed before proceeding. FRA will evaluate whether this determination remains applicable or if additional environmental review is necessary.
ARTICLE 9: CLIMATE CHANGE AND ENVIRONMENTAL JUSTICE IMPACTS
9.1 Consideration of Climate Change and Environmental Justice Impacts This Section identifies how the Project addresses climate change and environmental justice priorities.
The Recipient certifies that rows marked with “X” in the following table are accurate:
X The Project directly supports a Local/Regional/State Climate Action Plan that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.) The Project directly supports a Local/Regional/State Equitable Development Plan that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.)
The Project directly supports a Local/Regional/State Energy Baseline Study that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.) Item 15
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17 The Recipient or a Project partner used environmental justice tools, such as the EJSCREEN, to minimize adverse impacts of the Project on environmental justice communities. (Identify the tool(s) in the supporting narrative below.)
X The Project supports a modal shift in freight or passenger movement to reduce emissions or reduce induced travel demand. (Describe that shift in the supporting narrative below.) The Project utilizes demand management strategies to reduce congestion, induced travel demand, and greenhouse gas emissions. (Describe those strategies in the supporting narrative below.)
The Project incorporates electrification infrastructure, zero-emission vehicle infrastructure, or both. (Describe the incorporated infrastructure in the supporting narrative below.) The Project supports the installation of electric vehicle charging stations. (Describe that support in the supporting narrative below.)
The Project promotes energy efficiency. (Describe how in the supporting narrative below.) The Project serves the renewable energy supply chain. (Describe how in the supporting narrative below.)
X The Project improves disaster preparedness and resiliency. (Describe how in the supporting narrative below.)
The Project avoids adverse environmental impacts to air or water quality, wetlands, and endangered species, such as through reduction in Clean Air Act criteria pollutants and greenhouse gases, improved stormwater management, or improved habitat connectivity. (Describe how in the supporting narrative below.)
The Project repairs existing dilapidated or idle infrastructure that is currently causing environmental harm. (Describe that infrastructure in the supporting narrative below.) The Project supports or incorporates the construction of energy- and location-efficient buildings. (Describe how in the supporting narrative below.) X The Project includes recycling of materials, use of materials known to reduce or reverse carbon emissions, or both. (Describe the materials in the supporting narrative below.) The Project includes other actions or attributes that address climate change and environmental justice. (Describe those actions in the supporting narrative below.) Item 15
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18 The Project does not include actions or attributes that address climate change and environmental justice but, before beginning construction of the Project, the Recipient will take relevant actions described below to address climate change and environmental justice impacts of the Project. (Identify the relevant actions in the supporting narrative below.)
9.2 Supporting Narrative
Climate Action Plan: The City of Palo Alto 2020 Sustainability and Climate Action plan has prioritized Road transportation improvements, which represents the largest percentage of Palo Alto’s existing carbon footprint – and a congestion headache. Reducing Vehicle Miles Traveled (VMT), is one solution to reduce transportation related GHG emissions. Priorities include Increase in active transportation (human-powered methods of travel, such as walking or bicycling); Increase availability of transit and shared mobility services. The Project provides for the separation of all modes of traffic from the rail traffic. This separation reduces the vehicle delays along the Alma Street and crossing streets of Churchill Avenue, Meadow Drive, and Charleston Road. In addition, the Project provides for an improved bicycle and pedestrian facility, thus supporting the local 2020 Sustainability and Climate Action Plan.
Modal Shift Support: The Project grade separates the at-grade crossing on the existing passenger rail service provided by Caltrain from San Jose to San Francisco. In addition, this rail corridor will also be serving the future California High Speed Rail system. The Rail grade separation is resulting from the increased need of providing frequent service on the Caltrain corridor and the future High-Speed Rail.
This additional capacity and rail service will directly impact the modal shift from the vehicular or even air traffic to environmentally friendly electrified Caltrain service and California High Speed Rail.
Disaster preparedness and resiliency: The Rail corridor from San Francisco to San Jose is served by commuter train operated by Caltrain and Freight trains operated by Union Pacific Railroad. In the event of a disaster, the grade separations at these crossings provide for faster and un-interrupted emergency response from responders.
Recycling of Materials: The City of Palo Alto 2020 Sustainability and Climate Action plan recommends recycling of materials and, therefore, the Project will incorporate standards and requirements for construction.
ARTICLE 10: RACIAL EQUITY AND BARRIERS TO OPPORTUNITY
10.1 Efforts to Improve Racial Equity and Reduce Barriers to Opportunity This Section identifies how the Project addresses efforts to improve racial equity and reduce barriers to opportunity. The Recipient certifies that rows marked with “X” in the following table are accurate:
A racial equity impact analysis has been completed for the Project. (Identify a report on that analysis or, if no report was produced, describe the analysis and its results in the supporting narrative below.)
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19 X
The Recipient or a Project partner has adopted an equity and inclusion program/plan or has otherwise instituted equity-focused policies related to project procurement, material sourcing, construction, inspection, hiring, or other activities designed to ensure racial equity in the overall delivery and implementation of the Project. (Identify the relevant programs, plans, or policies in the supporting narrative below.)
The Project includes physical-barrier-mitigating land bridges, caps, lids, linear parks, and multimodal mobility investments that either redress past barriers to opportunity or that proactively create new connections and opportunities for underserved communities that are underserved by transportation. (Identify the relevant investments in the supporting narrative below.)
X
The Project includes new or improved walking, biking, and rolling access for individuals with disabilities, especially access that reverses the disproportional impacts of crashes on people of color and mitigates neighborhood bifurcation. (Identify the new or improved access in the supporting narrative below.)
The Project includes new or improved freight access to underserved communities to increase access to goods and job opportunities for those underserved communities. (Identify the new or improved access in the supporting narrative below.) The Recipient has taken other actions related to the Project to improve racial equity and reduce barriers to opportunity. (Describe those actions in the supporting narrative below.) X
The Recipient has not yet taken actions related to the Project to improve racial equity and reduce barriers to opportunity but, before beginning construction of the Project, the Recipient will take relevant actions described below to improve racial equity and reduce barriers to opportunity. (Identify the relevant actions in the supporting narrative below.)
10.2 Supporting Narrative
Equity and inclusion program: City of Palo Alto has adopted a race and equity mission statement that is guiding work within the organization to ensure that diversity, equity, inclusion, and belonging are incorporated into the operations of the City.
Improved walking and biking: The Project intends to create a safe and accessible infrastructure that meets the American Disability Act accessibility guidelines and standards such as grade for pedestrians, that will serve all users.
Racial Equity Consideration for the Project: The City of Palo Alto and have not yet completed the final design to get into the construction phase. This item will be reviewed during the development of construction documents for including requirements for the Project to improve racial equity and reduce barriers to opportunity.
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20 ARTICLE 11: LABOR AND WORK
11.1 Efforts to Support Good-Paying Jobs and Strong Labor Standards This Section identifies the Recipient’s efforts to support good-paying jobs and strong labor standards related to the Project. The Recipient certifies that rows marked with “X” in the following table are accurate:
X The Recipient or a Project partner has adopted the use of project labor agreements in the overall delivery and implementation of the Project. (Identify the relevant agreements and describe the scope of activities they cover in the supporting narrative below.)
The Recipient or a Project partner has adopted the use of local and economic hiring preferences in the overall delivery and implementation of the Project, subject to all applicable State and local laws, policies, and procedures. (Describe the relevant provisions in the supporting narrative below.)
The Recipient or a Project partner has adopted the use of registered apprenticeships in the overall delivery and implementation of the Project. (Describe the use of registered apprenticeships in the supporting narrative below.)
The Recipient or a Project partner will provide training and placement programs for underrepresented workers in the overall delivery and implementation of the Project. (Describe the training programs in the supporting narrative below.)
The Recipient or a Project partner will support free and fair choice to join a union in the overall delivery and implementation of the Project by investing in workforce development services offered by labor-management training partnerships or setting expectations for contractors to develop labor-management training programs. (Describe the workforce development services offered by labor-management training partnerships in the supporting narrative below.)
X
The Recipient or a Project partner will provide supportive services and cash assistance to address systemic barriers to employment to be able to participate and thrive in training and employment, including childcare, emergency cash assistance for items such as tools, work clothing, application fees and other costs of apprenticeship or required pre-employment training, transportation and travel to training and work sites, and services aimed at helping to retain underrepresented groups like mentoring, support groups, and peer networking. (Describe the supportive services and/or cash assistance provided to trainees and employees in the supporting narrative below.)
The Recipient or a Project partner has documented agreements or ordinances in place to hire from certain workforce programs that serve underrepresented groups. (Identify the relevant agreements and describe the scope of activities they cover in the supporting narrative below.)
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21 X
The Recipient or a Project partner participates in a State/Regional/Local comprehensive plan to promote equal opportunity, including removing barriers to hiring and preventing harassment on work sites, and that plan demonstrates action to create an inclusive environment with a commitment to equal opportunity, including:
a. affirmative efforts to remove barriers to equal employment opportunity above and beyond complying with Federal law;
b. proactive partnerships with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs to promote compliance with EO 11246 Equal Employment Opportunity requirements;
c. no discriminatory use of criminal background screens and affirmative steps to recruit and include those with former justice involvement, in accordance with the Fair Chance Act and equal opportunity requirements; d. efforts to prevent harassment based on race, color, religion, sex, sexual orientation, gender identity, and national origin;
e. training on anti-harassment and third-party reporting procedures covering employees and contractors; and
f. maintaining robust anti-retaliation measures covering employees and contractors.
(Describe the equal opportunity plan in the supporting narrative below.) The Recipient has taken other actions related to the Project to create good-paying jobs with the free and fair choice to join a union and incorporate strong labor standards. (Describe those actions in the supporting narrative below.)
X
The Recipient has not yet taken actions related to the Project to create good-paying jobs with the free and fair choice to join a union and incorporate strong labor standards but, before beginning construction of the Project, will take the relevant actions described below. (Identify the relevant actions in the supporting narrative below.)
11.2 Supporting Narrative
Labor Agreement: The City of Palo Alto currently has seven collective bargaining agreements in place.
These agreements cover engineering, accounting, administrative, etc. Most notably these employees are part of Service Employees International Union Local 521. City of Palo Alto employees working on this Project from these collective bargaining units will therefore be involved in delivery and implementation of the Project. The Consultant/Contractor contracts include provisions for prevailing wages and Department of Industrial Relations (DIR) compliance.
Providing Supporting Services: The City of Palo Alto provides support and assistance to City staff through various programs such as commuter benefits, childcare assistance ($10,000 annually), tuition assistance ($1,500 annually), and work-related training and programs.
Equal Opportunity Employer: The City of Palo Alto is an equal opportunity employer within the State of California and complies with all Federal, State, and Local Employment requirements for providing equal Item 15
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22 opportunities and non-discrimination, improve racial diversity and inclusiveness by developing policies and training to the City staff. In addition, City has a strong anti-harassment policy and provide regular trainings to city employees.
In addition, the City’s partner Caltrain, as part of its relationship with the San Mateo County Transit District, participates in an equal employment opportunity policy and affirmative action plan that applies to all employment actions. Furthermore, it has an Office of Civil Rights that investigates any reports of discrimination and harassment.
Project to create good paying jobs: The City of Palo Alto and its Project partners have net yet completed the final design to get into the construction phase. This item will be reviewed during the development of construction documents for including requirements for the Project to create good paying jobs. However, City is committed to fair and competitive salaries. The City has several unions that represent various employment groups and provide choice to staff of various groups/professions for union membership.
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Item No. 19. Page 1 of 1
City Council
Supplemental Report
From: Brad Eggleston, Director Public Works/City Engineer Meeting Date: June 17, 2024
Item Number: 19
Report #:2406-3162
TITLE
SUPPLEMENTAL REPORT: Authorization for the City Manager or Designee to Negotiate and Execute a Line of Credit totaling $31 Million to Address Regional Wastewater Treatment Fund Cashflow as Recommended by the Finance Committee; CEQA Status – Not a Project
STAKEHOLDER ENGAGEMENT UPDATE
This supplemental report is for informational purposes only and provides an update on stakeholder engagement completed subsequent to the issuance of the agenda item.
Following the Finance Committee’s May 21, 2024 review and recommendation to Council to approve a $31 million line of credit, follow-up discussions were held with partner agencies regarding the line of credit strategy. On June 11, 2024, staff hosted a special partners meeting, with Public Works Directors or their equivalents invited, to provide an additional opportunity for discussion of the line of credit approach. Staff from Los Altos, Los Altos Hills, and Mountain View attended. Following the discussion, staff from those three agencies communicated their support of the line of credit approach, including the completion of addenda to the relevant agreements to document the allocation of the interest expenses amongst the partners.
Following the meeting, Stanford and East Palo Alto Sanitary District representatives were contacted by email and voicemail message. Stanford staff responded via email to express support. East Palo Alto Sanitary District representatives have not attended recent meetings and did not respond as of the date of this memo.
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: June 17, 2024
Report #:2406-3148
TITLE
Adopt an Ordinance and Resolution Extending the Interim Parklet Program to the Car-Free Portion of Ramona Street through March 2025; CEQA status - categorically exempt
RECOMMENDATION
Staff recommends that the City Council adopt the attached interim ordinance and resolution to:
a) Extend the interim parklet program for parklets and at-grade dining on the car-free portion of Ramona Street until March 31, 2025; or until outdoor dining standards are adopted for Ramona Street, whichever is sooner; and
b) Implement license fees under the interim ordinance for this same section of Ramona Street for use of the right-of-way as previously established under the Ongoing Parklet Program.
BACKGROUND
Staff recommendations related to the parklet program were agendized for Council action as a consent item on the June 3, 20241, City Council meeting agenda. At the June 3 meeting, Council asked for the item to be pulled from consent and added as a discussion item to the June 10 meeting. Staff issued a supplemental memo2 to provide additional clarification, which was included in the June 10 agenda packet. However, the June 3 staff report, which contained the appropriate title and recommendation language for the ordinance and resolution, was inadvertently not included in the packet.
Since the June 10 Council agenda did not include explicit language about the adoption of an ordinance and resolution, Council voted on two of the three staff recommendations and deferred action on the staff recommendation related to the adoption of changes to the interim 1 https://portal.laserfiche.com/Portal/DocView.aspx?id=72169&repo=r-704298fc&searchid=4a91420b-2309-4be0- 8740-c64ec0dbaad3
2 https://portal.laserfiche.com/Portal/DocView.aspx?id=72812&repo=r-704298fc&searchid=9749d76a-9400-41f1- 9350-b678897a25cb
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ordinance for parklets. Staff is now bringing back this recommendation for formal Council action, as discussed at the June 10 Council meeting.
ENVIRONMENTAL REVIEW
The recommended actions are categorically exempt from environmental review pursuant to CEQA guidelines sections 15301 (existing facilities), 15303 (new construction or conversion of small structures), and 15304(e) (minor alterations to land).
ATTACHMENTS
Attachment A: Interim Ordinance Extending At-grade and Parklet Dining on Ramona Street Closed to Vehicles through March 2025
Attachment B: Interim Parklet Resolution Extending the Interim Parklet Program through March 2025
APPROVED BY:
Ed Shikada, City Manager
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Ordinance No. _____
Interim Ordinance of the Council of the City of Palo Alto Temporarily Continuing the Expansion of Outdoor Dining, Retail and Other Activities on Public and Private Property and Relaxing Regulations Regarding Onsite Parking, On-Sale of Alcohol, Design/Architectural Review, Permit Fees, and Alcohol Consumption in Public Places, All to Facilitate Such Outdoor Use; and Delaying Enforcement of the Permanent Parklet Ordinance Until November 1, 2024.
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On June 23, 2020, the City Council adopted Ordinance 5500, an emergency ordinance, in response to COVID -19 and its effects on local businesses. At that time and since then, county and state regulations related to COVID -19 have limited or curtailed many indoor activities, including dining, bars, retail, performances, and other recreational uses.
B. In June 2021, the City Council adopted Ordinance 5526, which amended and restated Ordinance 5500 on a non-emergency basis (among other changes).
C. On November 8, 2022, the City Council adopted Ordinance 5533, which amended and restated Ordinance 5526 with a sunset date of June 30, 2022.
D. In May 2022, t he City Council adopted Ordinance 5551, which amend ed and restate d Ordinance 5533 to extend its provisions through December 31, 2022.
E. In October and November 2022, the City Council adopted Ordinance 5572, which amended and restated Ordinance 5551 to extend its parklet provisions through June 30, 2023 and the remainder of its provisions through December 31, 2023.
F. In May 2023, the City Council adopted Ordinance 5584 to extend the parklet provisions of this ordinance until March 31, 2024. The remainder of the ordinance will sunset on December 31, 2023 as previously adopted.
G. In November 2023, t he City Council adopted Ordinance 5603 to extend the on -street dining provisions of this ordinance until December 31, 2024.
H. In March 2024, the City Council adopted Ordinance 5618 to extend the parklet provisions of this ordinance until August 1 , 2024; delay aspects of enforcement of the permanent (ongoing) parklet ordinance 5594 to November 1, 2024 for parklets in transition ; and extend parking lot uses through December 2024.
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I. The City Council now desires to allow this ordinance to continue to be applied to the area of Ramona Avenue currently closed to vehicular traffic through March 2025, and apply license fees to this area consistent with the fees imposed under the ongoing par klet program.
SECTION 2. City Manager Authorization
The City Manager or his or her designee(s) may promulgate guidelines and implementing regulations for the uses and programs described in this Ordinance as long as such regulations do not conflict with this Ordinance.
SECTION 3. Fees and Fee Waivers for Encroachment Permits and Parking Space Closures A. The permit fees set forth in the Municipal Fee Schedule are temporarily waived for applications for encroachment permits under Palo Alto Municipal Code Section 12.12.010 and Section 12.12.020, as modified by this Ordinance, to place structures and equipment in the public right-of-way (including closed streets and sidewalks) for purposes of outdoor dining and outdoor retail sales and display of wares.
B. The parking space closure fee in the Municipal Fee Schedule collected by the Department of Planning and Development Services is temporarily waived for the use of a parking space(s) on-street or in a parking lot for purposes of outdoor dining and outdoor retail sales and display of wares as authorized through an encroachment permit, license, or agreement with the City.
C. As a requirement for a permit issued under this Ordinance, a fee shall be imposed and collected to use the right-of-way on the portion of Ramona Avenue closed to vehicular traffic. The fee imposed shall be same fee and rate established for the license fee for parklets under PAMC Chapter 12.11.
SECTION 4. Modified Review Process for Commercial Sidewalk Encroachment Permits Notwithstanding contrary provisions of PAMC Section 12.12.020, permits may be granted for commercial sidewalk encroachments for outdoor retail sales and display areas and outdoor eating areas. Permits for these purposes shall not be required to undergo and complete design review by the Planning Department described in subsection (d) of Section 12.12.020. Except as expressly modified herein, the provisions of Section 12.12.020 shall apply to commercial sidewalk encroachments.
SECTION 5. Eating and Drinking Establishments
Eating establishments, and drinking establishments may temporarily relocate some or all of their existing indoor seating capacity to outdoor seating capacity, as follows:
A. Location. Outdoor eating areas may be placed in one or more of the following areas:
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1. Public streets temporarily closed by the City of Palo Alto, through issuance of an encroachment permit under PAMC Section 12.12.010;
2. Sidewalks through issuance of an encroachment permit under PAMC Section
12.12.020, as modified by Section 4 of this Ordinance;
3. In on -street parking spaces approved for use as temp orary parklets, in accordance with the Pilot Parklet Demonstration Project as first approved by Council Resolution No. 9909 and continued by subsequent resolutions;
4. Surface p arking lots that currently provide required onsite parking for the eating/drinking establishment, through issuance of an approval by the Director of Planning, or his or her designee , as described in subsections C and D of this Section, below;
5. Other outdoor areas on the eating /drinking establishment site not originally permitted for outdoor seating in the establishment’s approved site plan or planning entitlement ( such as landscaped areas ), through issuance of an approval by the Director of Planning, or his or her designee, in accordance with subsections C and D of this Section, below; and
6. In other areas that the Council identifies by resolution or ordinance.
B. Use of Private Parking Lots – Temporary Reduction of Parking Requirements.
1. Notwithstanding the parking requirements applicable to eating /drinking establishments in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for eating /drinking establishments, an eating/drinking establishment may place outdoor eating areas in its parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. If the establishment’s parking lot has ten or fewer parking spaces, up to 100 percent of the parking lot may be used for outdoor eating, subject to review and approval of the Planning Director or his or her designee.
2. Notwithstanding the parking requirements applicable to shopping centers and their tenant businesses in Title 18 (Zoning) of the PAMC or in individual pla nning entitlements or approvals for shopping centers or their tenant businesses, a shopping center with an eating /drinking establishment tenant(s) may place outdoor eating areas for such tenant business(es) in the shopping center parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles.
C. Application. A n application in a form approved by the Director of Planning shall be submitted to the Planning and Development Services Department to relocate some or all of an eating /drinking establishment’s permitted indoor restaurant seating to outdoor Item AA1
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seating in privately-owned areas on the eating/drinking establishment site not originally permitted for outdoor eating. The Director of Planning is authorized to establish submittal requirements and procedures. Temporary Use Permit s (TUP) under PAMC Section 18.42.050 may be utilized for this purpose. A TUP issued for this purpose may be valid for a specified period longer than 45 days, notwithstanding subsection (d) of Section
18.42.050. The Planning Director may extend a TUP issued prior to the effective date of this Ordinance to be valid beyond 45 days.
D. Seating Layout Review. A Seating Layout Review is required to relocate some or all of an eating/drinking establishment’s permitted indoor seating to outdoor seating in privately- owned areas on the eating /drinking establishment site not originally permitted for outdoor eating. The Seating Layout Review shall be conducted by a transportation planner, planner, and/or fire inspector who will review and either approve or require modifications to the proposed outdoor seating layout based on the following criteria:
1. Seating layout does not create a safety risk and adequate pedestrian and vehicular separation is maintained, including with movable barriers as appropriate where outdoor seating is to be placed in parking lots or on-street parking spaces.
2. Seating layout accommodates appropriate vehicle and pedestrian circulation and maintains adequate paths of travel and complies with accessibility requirements of the Americans with Disabilities Act.
3. Any tents must comply with fire codes and Palo Alto Fire Department issued standards for tents, and safety standards set forth by the National Fire Protection Association for fire-resistant tents and must include an affixed manufacturer’s label stating the tent meets NFPA requirements. A State Fire Marshal seal on the tent or a certi ficate is needed to prove treatment.
4. Any heaters must comply with fire codes.
5. An adequate and visible barrier is placed that clearly separates the retail area from the parking area and provides sufficient protection for patrons. Adequacy shall be defined in standards and guidelines issued by the Director of Planning.
6. Other requirements established in the standards and guidelines issued by the Director of Planning.
E. Fee. No fee will be charged for submittal and review of the Application and for conducting a Seating Layout Review.
F. Occupancy. Total seating occupancy (including all indoor and outdoor seating) shall not exceed the overall occupancy for which the restaurant is permitted.
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G. Alcohol Service. Establishments that are allowed by the City to serve alcohol for onsite consumption by issuance of a conditional use permit (“CUP”) as required by PAMC Section
18.42.090 or as a legal nonconforming use, and that both have an on -sale license from the Department of Alcoholic Beverage Control (“ABC”) and are duly authorized by ABC to serve alcohol in outdoor areas, shall be allowed to serve alcohol for onsite consumption in such outdoor areas, notwithstanding any prohibition on outdoor alcohol service or consumption in the PAMC or planning entitlement issued under Title 18 (Zoning) of the PAMC. During the effective period of this Ordinance, establishments that meet the preceding requirements may expand their footprint to outdoor areas without an amendment of the CUP, notwithstanding PAMC Section 18.42.090(c). Outdoor alcohol service shall be in full compliance with ABC regulations, as amended.
H. No Architectural Review . Notwithstanding PAMC Sections 18.77.077 and 18.76.020, architectural review shall not be required for proposed outdoor eating areas or signage related to such areas during the effective period of this Ordinance.
SECTION 6. Retail Establishments
Retail establishments may temporarily relocate some or all of their existing customer-accessible square footage to outdoor spaces as follows:
A. Location. Outdoor retail sales and display areas and outdoor eating areas may be placed in one or more of the following areas:
1. Public streets temporarily closed by the City of Palo Alto, through issuance of an encroachment permit under PAMC Section 12.12.010;
2. Sidewalks through issuance of an encroachment permit under PAMC Sec tion
12.12.020, as modified by Section 4 of this Ordinance;
3. Surface parking lots that currently provide required onsite parking for the retail establishment, through issuance of an approval by the Director of Planning , or his or her designee, as described in subsections C and D of this Section, below;
4. Other outdoor areas on the retail establishment site not originally permitted for retail sales and display or dining in the retail establishment’s approved site plan or planning entitlement (such as landscaped areas), through issuance of an approval by the Director of Planning or his or her designee in accordance with subsections C and D of this Section, below; and
5. In other areas that the Council identifies by resolution or ordinance.
B. Use of Private Parking Lots – Temporary Reduction of Parking Requirements.
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1. Notwithstanding the parking requirements applicable to retail establishments in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for retail establishments, a retail establishment may conduct outdoor retail sales and display and may place outdoor eating areas in its parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. If the establishment’s parking lot has ten or fewer parking spaces, up to 100 percent of the parking lot may be used for outdoor dining/retail , subject to review and approval of the Planning Director or his or her designee.
2. Notwithstanding the parking requirements applicable to shopping centers and their tenant businesses in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for shopping centers or their tenant businesses, a shopping center with a retail establishment tenant(s) may place outdoor retail sales and display areas and outdoor eating areas for such tenant business(es) in the shopping center parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles.
C. Application. An application in a form approved by the Director of Planning shall be submitted to the Planning and Development Services Department to relocate some or all of a retail establishment’s customer-accessible square footage to outdoor retail sales and display in privately-owned areas on the retail establishment site not originally permitted for outdoor retail sales and display . The Di rector of Planning is authorized to establish submittal requirements and procedures. Temporary Use Permits (TUP) under PAMC Section 18.42.050
may be utilized for this purpose. A TUP issued for this purpose may be valid for a specified period longer than 45 days, notwithstanding subsection (d) of Section
18.42.050. The Planning Director may extend a TUP issued prior to the effective date of this Ordinance to be valid beyond 45 days.
D. Merchandise or Seating Layout Review. A Layout Review is required to relocate some or all of a retail establishment’s permitted indoor customer -accessible square footage to privately-owned areas on the retail establishment site not originally permitted for retail.
The Layout Review shall be conducted by a transportation planner, planner, and/or fire inspector who will review and either approve or require modifications to the proposed retail layout based on the following criteria:
1. The placement of the merchandise, displays, or other items does not create a safety risk and adequate pedestrian and vehicular separation is maintained, including with movable barriers as appropriate where outdoor seating is to be placed in parking lots or on-street parking spaces.
2. The layout accommodates appropriate vehicle and pedestrian circulation and maintains adequate paths of travel and complies with accessibility requirements of the Americans with Disabilities Act.
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grade and Parklet Dining
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3. Any tents must comply with fire codes and Palo Alto Fire Department issued standards for tents, and safety standards set forth by the National Fire Protection Association for fire-resistant tents and must include an affixed manufacturer’s label stating the tent meets NFPA requirements. A State Fire Marshal seal on the tent or a certificate is needed to prove treatment.
4. Any heaters must comply with fire codes.
5. An adequate and visible barrier is placed that clearly separa tes the retail area from the parking area and provides sufficient protection for patrons. Adequacy shall be defined in standards and guidelines issued by the Director of Planning.
6. Other requirements established in the standards and guidelines issued by the Director of Planning.
E. Fee. No fee will be charged for submittal and review of the Application and for conducting a Layout Review.
F. No Architectural Review . Notwithstanding PAMC Sections 18.77.077 and 18.76.020, architectural review shall not be required for proposed outdoor retail areas or signage related to such areas during the effective period of this Ordinance.
SECTION 7. Compliance with Other Regulations, Orders and Approvals The uses of public and private property allowed in this Ordinance shall be conducted in compliance with any applicable state or county mandate (including executive orders and health orders), this Ordinance, Resolution No. 9909 and its successors, and all other local and state regulations, orders, and approvals, as applicable (collectively, “Applicable Law”). Any approval, allowance or permit to conduct such temporary outdoor use(s) shall be subject to revocation by the issuing City official if the use is conducted in violation of Applicable Law, or poses a threat to public health, safety or welfare.
SECTION 8. No Vested Rights
The outdoor uses of public and private property allowed in this Ordinance are temporary and shall be terminated upon the earlier of the date stated in the applicable permit/approval or the expiration of this interim Ordinance , unless earlier revoked by the City Manager or other authorized official (or their designee) or terminated by action of the City Council . The City may discontinue one or more, or all, of the allowed outdoor uses at any time if the City Manager or designee determines that the public health, safety or welfare warrant such action. Nothing in this Ordinance shall establish a vested right.
Item AA1
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona Street Closed
to Vehicles through
March 2025
Item AA1: Staff Report
Pg.
9 Packet Pg. 938 of 946
*NOT YET APPROVED*
110_20240521_ts24 8
SECTION 9. Suspension of Prohibition on Alcohol Consumption in Lytton Plaza and Cogswell Plaza
Notwithstanding PAMC Sections 22.04.330 and 22.04.331, the City Manager is authorized to suspend the prohibition on consumption of alcoholic beverages in the parking lots adjacent to Lytton Plaza and Cogswell Plaza.
SECTION 10. Use of City Parking Lots for Reopening Activities A. The City Manager, or his or her designee (“City Manager”), is authorized to permit outdoor dining, retail and other activities necessary to facilitate the reopening of businesses, in public parking lots owned by the City, subject to the City Manager’s adoption of rules, regulations, guidelines, and standards for such use (“Regulations”), and publication of such Regulations on the City’s website . Use of parking lots, or portions thereof, by a business shall require a license or other agreement, including an agreement to indemnify and hold harmless the City, and provision of insurance.
B. The City Manager is authorized to waive any fee in the Municipal Fee Schedule associated with the temporary use of parking areas for the purposes identified in Section A above.
C. Notwithstanding PAMC Section 9.04.020, the City Manager is authorized to suspend the prohibition on consumption of alcoholic beverages in any City owned parking lot.
SECTION 11. Personal Services, Indoor Recreation and Other Uses The authorized outdoor uses of public and private spaces authorized in this Ordinance may be applied to personal services, indoor recreation and other uses. Prior to authorizing these additional activities to occur, the City Manager, or his or her designee (“City Manager”), shall adopt rules, regulations, guidelines, and standards for these uses, and publish them on the City’s website.
SECTION 12. Severability
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 13. Environmental Review
The Council finds that the Ordinance is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) , 15303 (new construction of small structures), and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment).
Item AA1
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona Street Closed
to Vehicles through
March 2025
Item AA1: Staff Report
Pg.
10 Packet Pg. 939 of 946
*NOT YET APPROVED*
110_20240521_ts24 9
SECTION 14. Effective Date and Sunset Dates
This Ordinance shall be effective 31 days after adoption.
Subject to future Council action, the provisions of this ordinance allowing eating and drinking establishments, retail establishments, and other uses on temporarily closed streets and in public and private parking lots in Sections 5, 6, 10 and 11 of this O rdinance shall remain in effect until December 31, 2024. The remainder of the provisions in sections 5, 6, 10, and 11, including those provisions allowing parklets shall remain in effect until July 31, 2024.
Notwithstanding the paragraph above, only for the portion of Ramona Avenue closed to vehicular traffic: the provisions of this ordinance allowing eating and drinking establishments, retail establishments, and other uses on temporarily closed streets and in parklets in Sections 5, 6, and 11 of this Ordinance shall remain in effect until March 31, 2025 or until such portion of Ramona Avenue reopens to vehicular traffic.
The City may adopt regulations for the orderly wind-down of the programs implemented by these provisions, including setting deadlines for teardown and removal.
SECTION 15. Uncodified
This Ordinance shall not be codified.
SECTION 16. Supersedes Ordinance 5603
As of the effective date of this Ordinance, this Ordinance shall supersede Ordinance 5618, and any conflict shall be resolved in favor of this Ordinance.
SECTION 17. Delay of Enforcement of the PAMC Chapter 12.11 for Transitioning Permittees and the Portion of Ramona Avenue Closed to Vehicular Traffic The City shall delay enforcement of Ordinance 5594 as codified at PAMC Chapter 12.11 as follows:
(a) Beginning July 1, 2024, the City may begin to collect fees for the use of the right-of-way. (b) From April 1, 2024 until October 31, 2024, the City should not take enforcement action for a violation of Chapter 12.11 against a person who has (1) duly filed a pre-application for an ongoing parklet; (2) has a violation caused by the imposition of Chapter 12.11 and its regulations that did not exist prior to the imposition ; (3) has met City deadlines for transitioning parklets; and (4) is making a good-faith effort to come into compliance with Chapter 12.11 and its regulations. The City may take any other enforcement action , including if a person is (1) occupying a right of way without a valid permit or other City authorization; (2) maintaining a condition as to negatively affect public safety or welfare; or (3) for an alleged violation of any other law or regulation besides PAMC Chapter 12.11. (c) The City may adopt regulations for the orderly implementation of PAMC 12.11 that do not conflict with this Section. This includes setting deadlines for pre -applications and other submissions, as well as transition progress deadlines. (d) The City shall temporarily delay implementation and enforcement of Chapter 12.11 for the portion of Ramona Avenue closed to vehicular traffic until March 31, 2025.
Item AA1
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona Street Closed
to Vehicles through
March 2025
Item AA1: Staff Report
Pg.
11 Packet Pg. 940 of 946
*NOT YET APPROVED*
110_20240521_ts24 10
SECTION 18. Fee is not a Tax
The fee in this Ordinance is a charge imposed for the use of local government property. Pursuant to Art. XIII C, Section 1(e)(4) of the California Constitution, this fee is not a tax.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Public Works
____________________________
Director of Planning & Development
Services
Item AA1
Attachment A - Interim
Ordinance Extending At-
grade and Parklet Dining
on Ramona Street Closed
to Vehicles through
March 2025
Item AA1: Staff Report
Pg.
12 Packet Pg. 941 of 946
*NOT YET ADOPTED*
109_20240521_ts24 1
Resolution No. _____
Resolution of the Council of the City of Palo Alto Continuing the Pilot Parklet Demonstration Program as Continued by Resolution 10158
R E C I T A L S
A. On June 23, 2020, the City Council adopted Resolution 9909 in response to COVID-19 and its effects on local businesses. Resolution 9909 created a Pilot Parklet Demonstration Program and also permitted the City Manager to temporarily close certain streets. At that time and since then, county and state regulations related to COVID -19 have limited or curtailed many indoor activities, including dining, bars, retail, and other recreational uses.
B. On June 7, 2021, the City Council adopted Resolution 9962, which amended and rest ated Resolution 9909 on a non -emergency basis (among other changes).
C. On October 18, 2021, the City Council adopted Resolution 9992, which amended and restated Resolution 9962 to continue the pilot program until June 30, 2022.
D. On May 9, 2022, the City Council adopted Resolution 10036, which amended and restated Resolution 9962 to continue the pilot program until December 31, 2022.
E. On October 24, 2022 the City Council adopted Resolution 10081, which amended and restated Resolution 10036 to continue the pilot program until June 30, 2023.
F. On May 8, 2023, t he City Council adopted Resolution 10106, which amended and restated Resolution 10081 to continue pilot program through March 31, 2024.
G. On May 6, 2025, the City Council adopted Resolution 10158, which amended and restated Resolution 10106 to continue the pilot program through July 31, 2024.
H. The City Council now desires to continue the pilot program through March 2025.
I. This Resolution, like its predecessors, implements a temporary parklet program authorized by Ordinance 5526 and its successor ordinances.
Item AA1
Attachment B - Interim
Parklet Resolution
Extending the Interim
Parklet Program through
March 2025
Item AA1: Staff Report
Pg.
13 Packet Pg. 942 of 946
*NOT YET ADOPTED*
109_20240521_ts24 2
NOW THEREFORE THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS:
SECTION 1. Findings and Declarations . The Council hereby adopts the above Recitals as findings of the Council.
SECTION 2. Pilot Parklet Program and Design Requirements . The City Council hereby approves the temporary use of on-street parking spaces in Palo Alto for parklets under the Pilot Parklet Demonstration Program as first described Resolution 9909 and continued by its successor resolutions.
A. The Direct or of Public Works /City Engineer , or his or her designee (the “Director”), is delegated the authority to exercise their discretion to approve specific parklet locations, plans, designs, materials, and standards, and amendments thereto . The plans and designs shall be signed by the Director. Any existing parklet locations, plans, designs, materials, standards, and amendments to the Parklet Standards and Requirements approved by the Director under the authority of Resolution 9909 and/or its successors shall remain valid under the authority of this Resolution unless otherwise amended, rescinded, or modified in any other way.
B. The Director is authorized to issue implementing guidelines and regulations for the Pilot Parklet Demonstration Program, and to a pprove amendments to the Parklet Standards and Requirements as the Director in his or her discretion deems necessary and proper. Any existing guidelines, regulations, or amendments issued by the Director under the authority of Resolution 9909 and/or its s uccessors shall remain valid under the authority of this Resolution unless otherwise amended, rescinded, or modified in any other way.
C. A valid encroachment permit issued under Palo Alto Municipal Code Section 12.12.010 is required to operate a parklet under this Program. The Director may approve a parklet application through issuance of an Encroachment Permit , subject to the general regulations in Palo Alto Municipal Code Section 12.12.010 and the following criteria and procedures:
1. Use. Parklets shall be restricted to outdoor eating areas of eating establishments.
2. Application and Review . A complete application for a parklet encroachment permit shall be reviewed by City staff for a determination as to whether such application complies with the Item AA1
Attachment B - Interim
Parklet Resolution
Extending the Interim
Parklet Program through
March 2025
Item AA1: Staff Report
Pg.
14 Packet Pg. 943 of 946
*NOT YET ADOPTED*
109_20240521_ts24 3
Parklet Standards and Requirements. The application shall include all information necessary fo r a determination on the application including, but not limited to a certificate of insurance and a hold harmless and indemnity agreement in favor of the C ity shall be submitted in accordance with the provisions of Palo Alto Municipal Code Section 12.08.120. The Director shall grant or deny the application.
3. Conditions. Conditions of approval may be imposed on parklet encroachment permits to maintain the public health, safety and welfare.
4. Revocation. The Director may revoke a parklet encroachment permit if he or she determines that the conditions of the permit, the provisions of this Resolution, or any applicable regulation, ordinance, or provision of the Municipal Code are being violated, or if the municipal use of the area is require d for reasons of public health, safety, welfare or convenience. The permittee shall be notified of an intent to revoke the permit and shall be entitled to a hearing before the Director whose decision shall be final.
5. Existing Permits. Any parklet encroac hment permit issued under the authority of Resolution 9909 and/or its successors shall remain valid under the authority of this Resolution unless such a permit is otherwise amended, revoked, or modified in any other way.
SECTION 3. Rules and Regulation s. In addition to the authority given to the Director of Public Works and his or her designee in Section 2 of this Resolution, t he City Manager is authorized to enact any rule or regulation or implementing guidelines to effectuate and implement this Resolution.
SECTION 4. Compliance with Other Regulations, Orders and Approvals . The uses of public and private property allowed in this R esolution shall be conducted in compliance with any applicable state or county mandate (including executive orders and health orders), and all other local, county, and state regulations, orders, and approvals, as applicable (collectively, “Applicable Law”) . Any approval, allowance or permit to conduct such temporary outdoor use(s) shall be subject to revocation by the issuing City official if the use is conducted in violation of Applicable Law, or poses a threat to public health, safety or welfare.
SECTION 5. No Vested Rights . The uses allowed in this Resolution are temporary and shall be terminated upon the earlier of the date stated in the applicable permit/approval or the expiration of this Resolution, unless earlier revoked by the City Manager or other authorized official (or their designee) or terminated by action of the Item AA1
Attachment B - Interim
Parklet Resolution
Extending the Interim
Parklet Program through
March 2025
Item AA1: Staff Report
Pg.
15 Packet Pg. 944 of 946
*NOT YET ADOPTED*
109_20240521_ts24 4
City Council. The City may discontinue one or more, or all, of the allowed uses at any time if the City Manager or designee determines that the public health, safety or welfar e warrant such action. Nothing in this Resolution shall establish a vested right.
SECTION 6. The Council finds that this Resolution is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities), 15303 (new construction of small facilities), and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment).
SECTION 7. This Resolution supersedes Resolution 10158. Any conflict between this Resolution and Resolution 10158 shall be resolved in favor of this Resolution.
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Item AA1
Attachment B - Interim
Parklet Resolution
Extending the Interim
Parklet Program through
March 2025
Item AA1: Staff Report
Pg.
16 Packet Pg. 945 of 946
*NOT YET ADOPTED*
109_20240521_ts24 5
SECTION 8. This Resolution shall become effective immediately upon approval and shall remain in effect until March 31, 2025 unless otherwise mod ified, repealed or extended by the City Council.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________ Assistant City Attorney City Manager
_____________________________
Director of Public Works
_____________________________
Director of Planning and
Development Services
Item AA1
Attachment B - Interim
Parklet Resolution
Extending the Interim
Parklet Program through
March 2025
Item AA1: Staff Report
Pg.
17 Packet Pg. 946 of 946