SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
1 SUMC Development Agreement Compliance: FY 2023-2024
Health Care Benefits
DA
Section Description Summary Activity Complies?
5(a)(ii)
Fund for
Healthcare
Services
Financial assistance
for Palo Alto
residents
SUMC establishment of a $3M fund that will
grow to $5.6M by December 31, 2025. Fund
will be used in even increments over a ten-
year period from 2026-2036 to assist Palo
Alto residents who have self-payment
responsibilities beyond their financial
means, as described in Section 5(a)(ii).
Yes, complies – No activity
required in FY 2023-24.
5(a)(iii)
Fund for
Community
Health and
Safety Programs
$4M fund for
selected community
health programs for
Palo Alto residents
$4M City fund established on August 25,
2011. The joint committee formed according
to the Development Agreement and
approved $366,000 in expenditures from
this fund for FY 2023-24, however it was not
used.
Yes, complies - Fund
activity and balances in FY
2023-24 reported in
Attachment E.
Fiscal Benefits
DA
Section Description Summary Activity Complies?
5(b)(i), (ii)
Payment of
Sales and Use
Taxes
Activities to
maximize sales and
use taxes paid to the
City
SUMC contributes to General Fund Sales and
Use Tax revenues via construction-related
activities. The City reviews the Construction
Sales & Use Tax Monitoring Report that is
Yes, complies - SUMC
timely submitted the
Construction Sales & Use
Tax Monitoring Report for
SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
2 SUMC Development Agreement Compliance: FY 2023-2024
submitted by SUMC on June 30 of each year.
The City submits a letter to SUMC each year
that notes local tax received from SUMC
project activities for the year. Based upon
the City’s review of the annual Construction
Sales and Use Tax Monitoring Report,
revenues for calendar years 2011 through
2023 have totaled $5,497,299.
the previous calendar year.
The City sent their
required response. This
annual reporting assists in
the process of ensuring
that the City would receive
no less than $8.1M in
construction sales and tax
revenue by December 31,
2025.
5(b)(iii)
Funding of
Operating
Deficit /
Expansion Cost
Mitigation
$2.417M fund to
assure City costs
associated with the
project do not
exceed revenues
resulting from
construction and
operation of the
project.
$2.417M fund established on August 25,
2011. $750,000 were transferred in FY 2023-
2024
Yes, complies - Fund
activity and balances in FY
2023-24 reported in
Attachment E.
5(b)(iv) Payment of
Utility Users Tax
5% tax on all
electricity, gas and
water charges on
new construction
Established in past fiscal years, the Utility
Users Tax is paid through the normal billing
process for each building.
Yes, complies.
5(b)(v) School Fees
PAUSD school fees have been paid based on
the net new square footage reported in the
SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
3 SUMC Development Agreement Compliance: FY 2023-2024
Payment of PAUSD
fees for net new
square footage
SUMC Annual Report. No occupancy for new
square footage occurred in FY 2023-24.
Yes, complies – No activity
in FY 2023-24
Traffic Mitigation and Reduced Vehicle Trips
DA
Section Description Summary Activity Complies?
5(c)(ii)
Menlo Park
Traffic
Mitigation
$3,699,000 payment
for traffic mitigation,
infrastructure,
sustainable
neighborhoods,
affordable housing
All required payments were made to Menlo
Park between 2011-2017. No further activity
needed.
Yes, complies - completed
in FY 2017-18.
5(c)(iii)
East Palo Alto
Voluntary
Mitigation
$200K for roadway
and signal
improvements on
University Ave.
$200K payment made on
August 19, 2011.
Yes, complies - completed
in FY 2011-12.
5(c)(iv) Contributions
to AC Transit
U-line capital
improvements, low
load factor ratios,
parking spaces at
Ardenwood Park &
Ride
$250K payment made to AC Transit on
January 5, 2018.
SUMC is also invoiced by AC Transit for
payments throughout the year that total
over the $50K per year discussed in the
SUMC Development Agreement. Payments
to AC Transit are required for the life of the
project.
Since FY 2020-2021, SUMC has leased 100
Yes, complies.
SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
4 SUMC Development Agreement Compliance: FY 2023-2024
parking spaces in Newark (35263 Fircrest
Drive).
5(c)(v) Opticom
Payments
$11,200 payment
for Opticom traffic
control system at 7
intersections
$11.2K payment made to the City in FY
2017-2018. As the City has upgraded
systems, the City and SUMC agreed through
a letter exchange that the payment could be
used for the new coordinated prioritization
signaling at City-maintained traffic signals.
Yes, complies - completed.
5(c)(vi) Caltrain Go
Passes
SUMC purchase of
passes for all
existing and new
hospital employees
working
>20hrs/week
Go Passes have been purchased per the
Development Agreement since January 1,
2012, including for FY 2023-2024.
Yes, complies.
5(c)(vii) Marguerite
Shuttle Service
Purchase of
additional shuttles
to meet demand
Between 2011-2018, the fleet was expanded
to five renewable diesel-electric hybrid
buses and 41 all-electric buses.
Yes, complies - completed.
5(c)(viii)
SUMC
Transportation
Demand
Management
SUMC hires
coordinator to
promote alternative
transportation
options
TDM Coordinator was hired in March 2012.
This position has since been elevated to a
TDM Program Manager position and the
position remains filled.
Yes, complies.
SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
5 SUMC Development Agreement Compliance: FY 2023-2024
(TDM)
Coordinator
5(c)(ix) Monitoring of
TDM Programs
Yearly report
regarding
alternative transit
mode use
The SUMC parties found that the alternative
mode share milestone target of 33%
outlined in SUMC DA Section 5(c)(ix) was not
met for 2024.
SUMC timely submitted
their annual Alternative
Mode Share report for FY
2022-24. SUMC missed the
alternative mode share
target of 33% for one year.
No penalty is incurred
unless SUMC does not
meet the 2024 target in
2025.
Linkages
DA
Section Description Summary Activity Complies?
5(d)(i) Intermodal
Transit Fund
$2.25M payment to
improve pedestrian
linkages to PA
Intermodal Transit
Center
$2.25M City fund established on August 25,
2011. City constructed temporary
improvements prior to the issuance of the
first Hospital Occupancy Permit (LPCH) to
serve the linkage goal and functional
requirements.
There were no expenditures from this fund
during the reporting period FY 2023-2024.
Yes, complies - Fund
activity and balances in FY
2023-24 reported in
Attachment E.
SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
6 SUMC Development Agreement Compliance: FY 2023-2024
5(d)(ii) Quarry Road
Fund
$400K payment to
improve pedestrian
linkages along
Quarry Road
$400K City fund established on August 25,
2011. City constructed the improvements
prior to the issuance of the first Hospital
Occupancy Permit (LPCH) to serve the
linkage goal and functional requirements.
Yes, complies –
Completed, as of FY 2019.
5(d)(iii) Stanford Barn
Connection
SUMC budgets up to
$700K for
connections in the
vicinity of barn
SUMC constructed the Stanford Barn
Connection prior to the issuance of the first
Hospital Occupancy Permit (LPCH) to serve
the linkage goal and facilities are fully
operational.
Yes, complies –
Completed.
Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing DA
Section Description Summary Activity Complies?
5(e)
Infrastructure,
Sustainable
Neighborhoods
and
Communities,
and Affordable
Housing Fund
$23.2M payment for
these uses
$23.2M fund established between 2011-
2017. There were $5.3M expenditures
budgeted from this fund during the reporting
period FY 2023-24. Actual expenditure
$4.58M
The funds allotted to Affordable Housing
were fully exhausted in FY 2013 for the
Stevenson House Project, and in FY 2020 for
the Wilton Court Housing Project.
Yes, complies -Fund
activity and balances in FY
2022-2023 reported in
Attachment E.
Climate Change
SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
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DA
Section Description Summary Activity Complies?
5(f)
Climate Change
– Sustainability
Programs
Benefit Fund
$12M payment for
climate change-
related projects and
programs
$12M fund established 2011-2017.
There were no expenditures from this fund
during the reporting period FY 2023-2024.
Yes, complies -Fund
activity and balances in FY
2023-24 reported in
Attachment E.