Buildings and Facilities Projects – Page 10 of 13
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on the Status of Capital
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Buildings and Facilities Projects Status as of December 2024 City Facility
Parking Lot
Maintenance
(PE‐09003)
Prior Year Actuals
$0
Current Year Budget Implementing Department Project Phase Project Completion $567,564 Public Works N/A Recurring
Project Status: This project repairs, resurfaces, or reconstructs parking lots and walkways at various City facilities, including restriping and signage. The Cubberley Community Center restriping and base‐failure repair work was completed in fall 2024.
Cubberley
Repairs
Prior Year Actuals
$309,506
Current Year Budget Implementing Department Project Phase Project Completion $746,556 Public Works N/A Recurring
(CB‐17001) Project Status: This project is for general maintenance needs of the Cubberley campus. Gym B completed floor sanding, game line repainting, and refinishing in July 2024. One third of the hardwood flooring and subflooring has been restored in Gym A due to water damage. All repair work on Gyms A & B have been completed and the facilities are ready to rent out.
Cubberley
Roof
Prior Year Actuals
$27,039
Current Year Budget Implementing Department Project Phase Project Completion $1,224,164 Public Works N/A Recurring
Replacements Project Status: This project replaces existing roofs at Cubberley Community Center. The Pavilion Roofing project was (CB‐16002) canceled due to the City’s pending purchase of the remaining Cubberley buildings and then ultimately rebuilding a new Cubberley Community Center.
Electric
Charger
Prior Year Actuals
$63,243
Current Year Budget Implementing Department Project Phase Project Completion $ 122,453 Public Works N/A Recurring
Infrastructure Project Status: This project designs and installs electric vehicle chargers at various City facilities. The primary use of the Installation
(PF‐23000)
electric vehicle chargers will be for City fleet vehicles. The City Hall Level C EV Charger project to install six new chargers on Level C of the parking garage is complete.
Buildings and Facilities Projects – Page 11 of 13
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Buildings and Facilities Projects Status as of December 2024 Electrification Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion of City $ 204,162 $1,358,531 Public Works Pre‐Design Fall 2030 Facilities
(PE‐24001)
Project Status: This project will evaluate feasibility, prepare designs, and implement construction for the electrification of fossil fuel consuming building systems in coordination with the Building Systems Improvements project (PF‐01003).
The City Facility Electrification assessment report will act as a workplan to implement the electrification of City facilities.
An RFP for an on‐call task order consultant for all City facilities requiring electrification will be issued in summer 2025.
Facilities will be electrified in order by priorities set by the Electrification Assessment to facilitate reaching the S/CAP goals. Funding is also included for the HVAC electrification upgrade at the 445 Bryant Street property. Mechanical design for the replacement of seven package units and one exhaust fan is 90% complete. Expect 100% design by early January 2025.
Facility
Interior
Prior Year Actuals
$83,323
Current Year Budget Implementing Department Project Phase Project Completion $615,564 Public Works N/A Recurring
Finishes
Replacement
(PF‐02022)
Project Status: This project improves the interior finishes of City facilities, including flooring, walls, cabinets, paint, lighting, ceiling tiles, soundproofing, and fixed office furniture, doors, windows, and associated fire/life safety, mechanical, electrical and plumbing code compliance requirements. New carpet has been selected for the Children’s Library with work scheduled for spring 2025.
Fire Prior Year Actuals
$0
Current Year Budget Implementing Department Project Phase Project Completion $113,405 Fire Department N/A RecurringEquipment
Replacement
(FD‐25000)
Project Status: This project funds ongoing replacement of Fire and Emergency Medical Services (EMS) equipment used for training, medical response, and technical rescue in all emergency situations.
Police Video
Recording
Prior Year Actuals
$ 10,751
Current Year Budget Implementing Department Project Phase Project Completion $ 203,503 Police Department N/A Recurring
Buildings and Facilities Projects – Page 12 of 13
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Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Buildings and Facilities Projects Status as of December 2024 Systems
Replacement
(PD‐20000)
Project Status: This project maintains the Palo Alto Police Department video recording systems used to record events in the field with up to five in‐car cameras as well as body‐worn cameras (BWC). In FY 2024, the City solicited for a new vendor to include the in‐car and BWC systems and newly added fixed interrogation systems in the PSB. A vendor was selected, and City Council approved a Purchase Order. Materials have been shipped, and the transition is in process.
Full implementation is expected to be completed on or around the end of FY 2025. The CIP will remain open to coordinate with the vehicle replacement cycle.
Roofing
Replacement
(PF‐00006)
Prior Year Actuals
$447,681
Current Year Budget Implementing Department Project Phase Project Completion $1,316,825 Public Works N/A Recurring
Project Status: This project replaces existing roofs at City facilities that have outlived their useful lifespans. The Animal Shelter roof recoat has been delayed due to roof modifications required for the proposed kennel remodel. Permits for the Phase 2 of the Lucie Stern Community Center roof replacement project have been completed. This project will go out to bid in early 2025 with construction to start in summer 2025.
University
Avenue
Prior Year Actuals
$0
Current Year Budget Implementing Department Project Phase Project Completion $171,116 Public Works N/A Recurring
Parking Project Status: This project maintains parking lots and parking structures within the University Avenue Downtown Improvements Business Parking District. There is no work planned for parking improvements in the first half of FY 2025. (PF‐14003)
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Improvement Program Projects
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Parks and Open Space Projects Status as of December 2024 One‐Time Projects
Baylands Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Comprehensive $386,401 $438,413 Community Services Design Summer 2026 Conservation
Plan
(PG‐17000)
Project Status: This project provides funding for a conservation plan that will examine native vegetation, wildlife habitat resources, and wildlife‐appropriate public access for the entire Baylands, including Byxbee Park. This plan will provide information to successfully manage wildlife habitat and provide trails or other recreation amenities; provide a design overlay for appropriate types and locations of public art in the Baylands; and design interpretive messaging throughout the Baylands. The plan seeks to optimize opportunities for low‐impact recreation ensuring that these are compatible with the Baylands Master Plan direction for passive use of the nature preserve. The Conservation Plan will also provide input for the Byxbee Park Completion project. The Parks and Recreation Commission has created an Ad Hoc Committee to work with staff on this project. Staff and the Ad Hoc Committee have been reviewing the draft plan and identifying gaps and highlighting where updates are required.
Baylands
Interpretive
Signage
Program
(OS‐24001)
Prior Years Actuals Total Project Budget Implementing Department $178,366 Community Services
Project Status: This project was originally planned for 2018‐2021 but was delayed due to project priorities involved with the moving of the Junior Museum & Zoo to Cubberley Community Center and construction of the newly rebuilt Junior Museum & Zoo. The project will install interpretive signage and exhibits on two miles of trails and on the boardwalk at the Palo Alto Baylands. Construction is anticipated to be complete by spring 2025.
Project Phase Project Completion
Construction Spring 2025$
Boulware Park
Improvements
(PE‐17005)
Prior Years Actuals Total Project Budget Implementing Department $2,937,729 $5,782,383 Public Works
Project Status: This park renovation project was initially planned in FY 2018 but was postponed due to project priorities and potential purchase of the adjacent AT&T lot located at 3350 Birch Street. In fall 2019, the lot was purchased by the City. A Park Improvement Ordinance for the improvements was adopted by the City Council in October 2021. A Project Phase Project Completion
Construction Spring 2025
Parks and Open Space Projects – Page 1 of 9
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Parks and Open Space Projects Status as of December 2024 construction contract was awarded in June 2023, and the project construction began in August 2023. Current site work is 85% complete. The project is anticipated to be completed by spring 2025 Byxbee Park
Completion
(PE‐18006)
Prior Years Actuals Total Project Budget Implementing Department $368,192 $3,699,189 Public Works
Project Phase Project Completion
Pre‐Design Summer 2028
Project Status: This project allows for the remaining improvements to Byxbee Park that follow the completion of the landfill capping work. The Baylands Comprehensive Conservation Plan (BCCP), which is currently undergoing CEQA analysis, will include recommendations on the scope of the Byxbee Park project. The BCCP and the conceptual plan for Byxbee Park need additional outreach and review which is anticipated to continue through fiscal year 2026. The project has been moved to FY 2027 pending completion of the BCCP.
Cameron Park
Improvements
(PG‐14002)
Prior Years Actuals Total Project Budget Implementing Department $205,627 $538,898 Community Services
Project Phase Project Completion
Completed Fall 2024
Project Status: This project upgraded and renovated safety and accessibility features at Cameron Park with a primary focus on the park playground improvements. The Cameron Park Improvements Project was completed in November 2024.
Cubberley Field Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Construction Spring 2025Restroom $776,349 $1,452,876 Public Works (CB‐17002) Project Status: This project will install a new restroom in the sports field area of the Cubberley Community Center. In June 2023, Council approved a purchase order with the Public Restroom Company for a four‐stall prefabricated restroom building. Council awarded a construction contract for site work in September 2024. The prefabricated restroom building was installed in December 2024. The sewer pump station and remaining site utilities work are anticipated to be completed by spring 2025.
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Parks and Open Space Projects Status as of December 2024 El Camino Park
Turf
Prior Years Actuals Total Project Budget Implementing Department $ 40,000 $931,121 Community Services
Project Phase Project Completion
Design Summer 2026
Replacement
(PG‐24000)
Project Status: This project has been paused and City Council has provided direction to use a portion of this CIP funding to complete a comprehensive study comparing synthetic turf fields to natural grass fields. The study will assess environmental and health impacts, field utilization capacity, and capital and operating costs required for both types of fields. Once complete, the study will enable staff to provide recommendations to City Council for replacement.
Eucalyptus Tree Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Removal $ $110,102 Community Services Construction Fall 2025 (PG‐25002) Project Status: This Hazardous Fuel Abatement project identified eucalyptus trees from the City of Palo Alto’s open space preserves for removal. During Phase 1 of this CIP, 36 Eucalyptus trees were removed within Esther Clark Park to reduce hazardous fuels adjacent to homes in the Palo Alto Wildland Urban Interface. Foothills Nature Preserve and Arastradero Preserve are to be evaluated for further Eucalyptus tree removals pending available resources.
Foothills Nature Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Design Summer 2026Preserve $0 $278,470 Public Works
Boronda Lake
Dock
Replacement
(OS‐18000)
Project Status: This project is a refurbishment of the existing dock. The dock was originally built in 1965 and was last refurbished in 2010 with repairs to the wood decking. The current condition of the dock has declined and now requires a complete replacement with new decking, ramp, floats, and pilings. Design for the Foothills Nature Preserve Boronda Lake Dock renovation is currently in progress.
Foothills Nature Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Design Spring 2025Preserve Dam
Seepage
$42,170 $112,716 Public Works
Project Status: This project will study the location of historic seepage from the Foothills Nature Preserve Dam at the sharp bend in the road on the face of the dam and will locate and investigate the pipe and trench backfill material. The source of the seepage is suspected to be the trench backfill around the pipe that returns shallow groundwater to Investigation
and Repairs
Parks and Open Space Projects – Page 3 of 9
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Improvement Program Projects
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Parks and Open Space Projects Status as of December 2024 (PE‐20000) Boronda Lake. Staff continue to monitor and investigate the seepage per the Department of Water Resources Division of Safety of Dams (DSOD) inspections and recommendations. Staff completed camera inspections of the underdrain pipes to identify potential obstructions and leakage issues. Per the DSOD recommendations, the City’s consultant completed a field assessment in fall 2024 identifying location of a seepage weir on the downstream side of the Foothill Nature Preserve Dam. The weir is anticipated to be installed by early 2025 which will allow the City to collect quantitative measurements of the seepage flow and inform the seepage trends and needs for a long‐term solution as necessary.
Foothills Nature Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Design Summer 2028Preserve $246,859 $3,710,577 Public Works Improvements
(PE‐21000)
Project Status: This project has repaired the bridge to Sunfish Island, and will complete the design and permitting to replace the footbridge in Los Trancos Valley, replace the grade control structures along Buckeye Creek, provide new split rail fencing to protect sensitive areas, new pedestrian pathways to keep park visitors safe while walking along the park road, and improvements to some of the existing parking areas to make them safer and more efficient. Council awarded a professional services contract for additional outreach, detailed design and bid package preparation for pathways, fencing and parking improvements in spring 2024. Preliminary renderings have been prepared, and staff anticipate outreach and preliminary design in early 2025. The replacement of the footbridge in Los Trancos Valley and the grade control structures along Buckeye Creek have been moved to FY 2027 and FY 2028 due to staffing constraints.
Golf Course Net Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Pre‐Design Summer 2027and Artificial
Turf
$0 $925,056 Community Services
Project Status: This project will remove and replace the golf course driving range netting and synthetic turf. This project has been delayed due to the assessment of additional ball retention needs throughout the golf course and the ongoing development of a potential long‐term partnership with the First Tee of Silicon Valley for driving range and practice facility improvements.
Replacement
(PG‐18000)
Parks and Open Space Projects – Page 4 of 9
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Improvement Program Projects
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Parks and Open Space Projects Status as of December 2024 Heritage Park
Site Amenities
Replacement
(PG‐21000)
Prior Years Actuals Total Project Budget Implementing Department $0 $143,134 Community Services
Project Status: The project will replace select walkways and all of the site amenities in Heritage Park including benches, picnic tables, trash receptacles, playground arbor, bicycle racks and drinking fountain. In the first half of FY 2025, staff conducted a site assessment to ascertain the full extent of site furnishings to be replaced, with replacement targeted in summer 2025.
Project Phase Project Completion
Construction Summer 2025
Ramos Park
Improvements
(PG‐14000)
Prior Years Actuals Total Project Budget Implementing Department $279,354 $682,057 Community Services
Project Status: This project replaces the playground equipment at Ramos Park. Council awarded a cooperative agreement with Ross Recreation in June 2024 to replace and install the playground equipment for Ramos Park. Work is anticipated to be completed by spring 2025.
Project Phase Project Completion
Construction Spring 2025
Rinconada Park Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Construction Fall 2027Improvements $5,447,216 $10,176,310 Public Works (PE‐08001) Project Status: This project provides upgrades to safety, site amenities, playground facilities, a new restroom, irrigation, drainage, and ADA accessibility improvements at Rinconada Park. These improvements were identified in the Rinconada Long Range Plan (LRP). Phase 1 park improvements to the western half of the park were completed in spring 2022. A new park restroom was installed and opened to the public in summer 2024. Funding was approved by Council in FY 2025 for City to complete structural and electric design for replacement of a storage unit (purchased by Palo Alto Tennis Club (PATC) at Rinconada Park. The design and a Memorandum of Understanding between City and PATC are in progress. Staff anticipate submitting a building permit application for the storage unit upon completion of design work by early 2025. According to the LRP, future improvement phases will include improvements to the eastern half of the park by FY 2028 including pathway improvements, ADA upgrades, planting, irrigation, lighting, and site furnishings.
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Parks and Open Space Projects – Page 5 of 9
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Parks and Open Space Projects Status as of December 2024 Robles Park
Improvements
(PE‐18015)
$161,765 $742,055 Public Works Design Fall 2025
Project Status: This project will replace playground equipment. Community meetings were held in September 2023 and March 2024 to obtain community input. An online community survey regarding the play equipment is currently underway and will end in January of 2025. If the proposed playground equipment is supported by the community, a cooperative agreement with Ross Recreation will be processed. Due to fabrication lead times, it is anticipated the new playground equipment will be installed in fall 2025.
Stanford Palo
Alto Community $
Prior Years Actuals Total Project Budget Implementing Department $2,707,547 Community Services
Project Phase Project Completion
Design Summer 2025
Playing Project Status: The project provides funding for the replacement of synthetic turf at the Stanford Palo Alto Community Playing Fields. The Stanford Palo Alto Community Playing Fields accommodate year‐round play, including additional evening play with some temporary lighting. Since the turf was installed in 2016, it has been in high demand and is used by youth and adult leagues as well as walk‐on play. Synthetic turf has a typical lifespan of approximately eight to ten years with each year of use contributing to gradual wear and tear resulting in loss of pile height, turf fiber, and infill.
The design was completed in fall 2024, and construction is scheduled to begin in spring 2025 through an approved sole source contract.
Fields Turf
Replacement
(PG‐26000)
Recurring Projects
Art in Public
Spaces
Prior Year Actuals Current Year Budget Implementing Department Project Phase $189,175 $1,823,508 Community Services N/A
Project Completion
Recurring
(AC‐86017) Project Status: This project provides the ongoing temporary and permanent artworks throughout the City of Palo Alto. Two new artworks were installed at the Public Safety Building, and one more will be installed in early 2025, a new mural was painted at Cubberley, artwork was installed at Boulware Park, and artwork is under development for Fire Stations 4 and 5, and for three murals downtown. Twenty utility box projects were painted throughout the City Parks and Open Space Projects – Page 6 of 9
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Parks and Open Space Projects Status as of December 2024 during fall 2024. Other projects in process include the ongoing King Artist‐in‐Residence with artist Alma Landeta, including the development of temporary artwork for King Plaza, and preparations for the 2025 Code: ART festival.
Athletic Courts
Resurfacing
(PG‐06001)
Prior Year Actuals Current Year Budget Implementing Department Project Phase $22,294 $194,499 Community Services N/A
Project Status: This project repairs and resurfaces athletic courts in various Palo Alto parks. The reconfiguration and Project Completion
Recurring
resurfacing of the Greer Park basketball courts is scheduled to begin construction in spring 2025.
Benches, Signage, Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Walkways,
Perimeter
Landscaping
(PG‐06003)
$513,204 $325,544 Community Services N/A Recurring
Project Status: This project restores and replaces existing benches, signage, fencing, walkways, and landscaping at various City facilities. The refurbishing of the wooden picnic tables at Rinconada Park was completed in summer 2024. In November 2024 a design consultant was hired for the design of the Lytton Plaza fountain grate. Lytton Plaza design is scheduled for completion in winter 2024 and construction of the fountain grate is estimated for spring 2025.
Dog Park Prior Year Actuals Current Year Budget Implementing Department Project Phase $30,278 $0 Community Services N/A
Project Completion
RecurringInstallation and
Renovation
(PG‐18001)
Project Status: This project enables the construction of dog parks at various City parks and facilities for constructing new or renovating existing dog parks. A new dog park will be added with the Boulware Park expansion project for which construction started in summer 2023. Council approved a Park Improvement Ordinance in September 2022 for the expansion of the Mitchell Park Dog Park. Mitchell Dog Park installation and expansion began in fall 2024 and was completed in April2025.
Prior Year Actuals Current Year Budget Implementing Department Project Phase $22,075 $269,457 Public Works N/A
Project Completion
Recurring
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Parks and Open Space Projects Status as of December 2024 Off‐Road Pathway Project Status: This project repairs, resurfaces, or replaces pathways as needed within the City of Palo Alto.
Resurfacing and
Repair
Pathways are chosen based on safety inspections, condition, and usage. Open Space pathways are currently under review for repair.
(OS‐09001)
Open Space Lakes Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion and Pond $27,900 $78,037 Community Services N/A Recurring Maintenance
(OS‐00002)
Project Status: This project rehabilitates lakes and ponds in open space nature preserves to protect wildlife habitat and recreational safety and to meet State Division of Safety of Dams requirements. A new three‐year contract was awarded in July 2024 for the removal of aquatic vegetation in Boronda Lake.
Open Space Trails Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion and Amenities $360,820 $296,701 Community Services N/A Recurring (OS‐00001) Project Status: This project restores unpaved trails, fences, picnic areas, and campgrounds at Foothills, Baylands, and Pearson‐Arastradero Nature Preserves. Work performed in summer 2024 included approximately 60 acres of firebreak maintenance and fire road mowing. A new five‐year maintenance contract was awarded in November 2024. Work performed in December 2024 included the reconstruction of a degraded levee in the Baylands Nature Preserve, and maintenance of 25 miles of trailside vegetation in the Foothills Nature Preserve.
Parks and Open
Space Emergency
Repairs
Prior Year Actuals Current Year Budget Implementing Department Project Phase $192,025 $335,109 Community Services N/A
Project Completion
Recurring
Project Status: This project replaces or repairs playgrounds, play yard surfaces, wooden structures, park amenities, and play equipment in the event of storms, fire, vandalism, or structural failure. In fall 2024, GMAX impact safety testing was conducted on four artificial turf sports fields located at Cubberley Community Center, El Camino Park, and Stanford Palo Alto Community Playing Fields to ensure safety compliance and evaluate surface performance. In fall 2024, replacement of two water meters on California Avenue were completed. In December 2024, fencing (PG‐09002)
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Parks and Open Space Projects Status as of December 2024 repairs were completed at El Camino Park and repairs to the permeable parking lot pavers are scheduled for completion in January 2025.
Park Restroom
Installation
Prior Years Actuals Current Year Budget Implementing Department Project Phase $485,995 $693,359 Community Services N/A
Project Completion
Recurring
(PG‐19000) Project Status: This project installs new restrooms at City parks that currently do not have restroom facilities. City Council approved a Park Improvement Ordinance for Ramos Park. In April 2023, Council approved a purchase order with the Public Restroom Company for a two‐stall prefabricated restroom building at Ramos Park. Staff completed design and obtained a building permit for site work and restroom. On December 18, 2023, Council awarded a construction contract for the restroom site work. In summer 2024 the Ramos Park restroom construction was completed and opened to the public.
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Streets and Sidewalks Projects Status as of December 2024 One‐Time Projects
California Avenue Prior Years Actuals
District Gateway $26,943
Total Project Budget
$162,783
Implementing Department Project Phase Project Completion Public Works Design Fall 2025
Signs
(PE‐17004)
Project Status: This project includes the design and replacement of two existing gateway signs for the California Avenue business district. Initial public outreach was completed in winter 2021. The California Avenue District Gateway Signs project is in the next phase of improvements following the California Avenue Streetscape update and near‐term improvements. The signage plan, including district gateway signs, will be discussed with the Architectural Review Board in Spring 2025 and presented to City Council for approval later in 2025.
Newell Road
San
Prior Years Actuals
$3,957,812
Total Project Budget
$23,456,670
Implementing Department Project Phase Project Completion Public Works Design Fall 2026
Francisquito
Creek Bridge
Replacement
(PE‐12011)
Project Status: This project removes and replaces the Newell Road bridge over San Francisquito Creek with a clear span to allow the channel to convey up to the natural capacity of the San Francisquito Creek, approximately 7,500 cubic feet per second, and to improve safety for vehicular, bicycle, and pedestrian traffic. The project is being closely coordinated with the City of East Palo Alto, Valley Water, and San Francisquito Creek Joint Powers Authority (SFCJPA).
In the second half of FY 2024, staff acquired the eight easements needed to complete the project, obtain a permit from Regional Water Quality Control Board and a draft permit from California Department of Fish and Wildlife along with encroachment permits from East Palo Alto and Santa Clara Valley Water District. Staff and consultants worked with PG&E, Comcast, AT&T, City of East Palo Alto Water and City of Palo Alto Utilities on the Utility Relocation letters needed for Caltrans’ review and approval. The right‐of‐way acquisition and permitting was completed in September 2024. The request for Caltrans to authorize the start of the construction phase with the construction funding that was previously approved is still under review. Once approval is received from Caltrans staff will solicit bids for construction in spring 2025.
Prior Years Actuals
$8,799
Total Project Budget
$274,309
Implementing Department Project Phase Project Completion Public Works Design Fall 2025
Streets and Sidewalks Projects – Page 1 of 5
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Streets and Sidewalks Projects Status as of December 2024 Streetlights
Condition
Assessment
(PE‐13014)
Project Status: This project will assess the condition of the City’s streetlight system. The assessment will include an inventory of the entire lighting system, including age and condition of conduit, wiring, streetlight poles, foundations, luminaires, and lighting coverage. The project will also determine the inspection, maintenance, repair, and rehabilitation necessary to prolong the life of the City’s streetlight system. This project has not started due to staffing constraints.
Recurring Projects
City Bridge
Improvements
(PE‐20001)
Prior Year Actuals Current Year Budget
$200,258 $1,704,161
Implementing Department Project Phase Project Completion Public Works N/A Recurring
Project Status: This project includes bridge inspections, maintenance, repair, and an improvement program over the next five years. This program will include on‐going inspections to report physical changes to the structures, recommendations for work to be done, and additional information to meet functional and structural standards in accordance with industry standards. Staff hired an on‐call structural engineering firm to assist with the bridge inspection and repair program. Staff completed design and bidding for repairs of seven bridges identified for repairs in winter 2023. A construction contract was awarded by the Council in March 2024. Bridge construction repair work began in September 2024 and was completed in December 2024. Staff will continue recurring inspections and repairs of City bridge structures as needed.
Curb and Gutter
Repairs
Prior Year Actuals Current Year Budget
$1,519 $114,506
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
(PO‐12001) Project Status: This project repairs curbs and gutters uplifted by tree roots. Funding for FY 2023 was carried over into FY 2024 for a larger curb and gutter repairs project focusing on the City’s Sidewalk Districts 1 & 2 that includes Streets and Sidewalks Projects – Page 2 of 5
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Streets and Sidewalks Projects Status as of December 2024 Downtown North and University South neighborhoods (Palo Alto Avenue to Embarcadero Road and Alma Street to Middlefield Road) in addition to addressing hot spot locations from 311 requests. Approximately 2,136 linear feet of curbs and gutters are included in the FY 2024 Sidewalk Repair ADA Improvement Project. Council approved the construction contract on June 10, 2024. Construction of curb and gutter repairs began in September 2024, prioritizing locations with CDBG funding, with the construction work estimated to be completed by February 2025.
San Francisquito
Creek Joint
Powers
Authority
Ongoing Creek
Projects
Prior Year Actuals Current Year Budget
$108,514 $220,205
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
Project Status: This project provides funding for studies and completion of the design for the San Francisquito Creek Joint Powers Authority (JPA) upstream project including channel widening and Continuing Authority Program Section 205 (CAP 205) study. In FY 2024, the JPA awarded a contract with WRA Environmental Consultants to analyze the creek hydraulics and the improvement alternatives that could reduce flooding. The Master Service Agreement includes the design and implementation of Reach 2 project elements. WRA completed their initial field survey, developed a preliminary list of improvement alternatives and provided the initial presentation to the public in November. Their efforts will be driven based on public feedback and direction from the SFCJPA Board. A preferred alternative will be determined in 2025.
(PE‐22000)
Sidewalk Repairs Prior Year Actuals Current Year Budget (PO‐89003) $1,265,080 $ 1,445,415
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
Project Status: This project repairs and replaces broken and uplifted sidewalks. The program completed all twenty‐ three sidewalk districts in 2017, a 30‐year (1986–2017) sidewalk repair district cycle. Council approved a sidewalk assessment contract in November 2017 to evaluate the sidewalk program and assess potential improvements to the current district‐based program. Funding for FY 2023 has been carried over into FY 2024 for a larger sidewalk project.
The FY 2024 Sidewalk Repair ADA Improvement Project will focus on sidewalk repairs (PO‐89003) and curb and gutter repairs (PO‐12001) in the Downtown Professorville neighborhoods (Palo Alto Avenue to Embarcadero Road and Alma Street to Middlefield Road). Council approved the construction contract on June 10, 2024. The project aims to replace Streets and Sidewalks Projects – Page 3 of 5
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Streets and Sidewalks Projects Status as of December 2024 approximately 23,199 square feet of concrete sidewalk, 4,309 square feet of driveways, install 86 new curb ramps, and retrofit 33 existing curb ramps with truncated domes to conform to the Americans with Disabilities Act (ADA).
Sidewalk repairs included in this project are estimated for completion in February 2025.
Sign Reflectivity
Upgrade
Prior Year Actuals Current Year Budget
$6,692 $ 55,052
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
(PO‐11000) Project Status: This project includes the annual inventorying, upgrading and maintaining of all traffic signs. A list of signs not meeting the minimum requirement is derived from MUTCD approved Nighttime Visual Inspection surveys.
Staff will continue to work on replacing the 405 signs identified for replacement from the FY 2024 survey. Due to continuing staffing constraints, nighttime reflectivity surveys are not planned for FY 2025.
Streetlight
Improvements
(PO‐05054)
Prior Year Actuals Current Year Budget
$210,264 $399,481
Project Status: This project replaces streetlights, including poles, pole foundations, luminaires and wiring as needed to restore or improve street lighting. In the second half of FY 2024, there were four knockdown locations with six completed repairs and eleven are still in progress to be completed in FY 2025.
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
Street
Maintenance
(PE‐86070)
Prior Year Actuals Current Year Budget
$3,892,921 $5,531,353
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
Project Status: Street Maintenance Projects include the annual resurfacing, micro‐seal, crack seal, and reconstruction of various city streets in support of the Council’s goal of achieving a citywide average pavement condition index (PCI) score of 85, representing very good or excellent conditions. The FY 2024 Street Resurfacing Project will replace 10,149 square feet of sidewalk, 3,371 square feet of driveway, 2,280 linear feet of curb and gutter, construct 37 new ADA curb ramps, and will place 9,844 tons of asphalt concrete overlay, 36 blue markers, 384 thermoplastic legends, and 39,615 LF of thermoplastic striping on the streets of Palo Alto. The FY 2024 Street Resurfacing Project is completed except for the resurfacing of University Avenue due to an existing Gas Main Replacement Project still under Streets and Sidewalks Projects – Page 4 of 5
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Streets and Sidewalks Projects Status as of December 2024 construction. University Avenue will be resurfaced in spring 2025 once the Gas Main Replacement Project is completed. The FY 2024 Street Preventive Maintenance Project was completed in October 2024. The FY 2024 Preventive Maintenance Project micro‐surfaced 14.23 lane‐miles of streets, replaced 19,200 LF of thermoplastic striping, installed 85 thermoplastic legends, and updated 77 blue markers. Together, both the Street Resurfacing and Preventive Maintenance Projects will maintain and improve the City’s Pavement Condition Index (PCI) beyond its average of 84 and will address many streets whose PCI scores fall below the City’s minimum goal of 60.
Thermoplastic
Lane Marking
and Striping
(PO‐11001)
Prior Year Actuals Current Year Budget
$0 137,628
Project Status: This project maintains thermoplastic markings on roadways. Thermoplastic lane marking and striping are incorporated into annual Pavement Preventive Maintenance Projects. The FY 2024 Streets Preventive Maintenance Project (PE‐86070) was completed in October 2024 and installed 12,400 LF of thermoplastic striping and 33 thermoplastic legends.
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
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Traffic and Transportation Projects Status as of December 2024 One‐Time Projects
California Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Streetscape
Update
(PL‐23000)
$84,054 $560,583 City Manager’s Office Design Spring 2025 Project Status: The project provides funding for interim changes to the street and for necessary CEQA analysis for the future configuration of the street. Interim changes to the street will take place in early 2025. CEQA analysis will be brought forward to the Planning and Transportation Commission and City Council in spring 2025.
Charleston Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Road/Alma Street $0 $1,298,512 Office of Transportation Design Fall 2027 Railroad Crossing Project Status: The California Department of Transportation, in cooperation with the Peninsula Corridor Joint Safety
Improvements
(PL‐25002)
Power Board (JPB) and the City of Palo Alto, proposed a railroad crossing improvement project at Charleston Road and Alma Street to enhance traffic safety. This crossing was identified for possible funding of hazard elimination and safety improvements through Section 130 funds. The Section 130 program is a federal‐funded program, administered at the state level, for the elimination of hazards at at‐grade highway‐rail crossings. Section 130 funding will reimburse the actual and direct costs of the design and construction of the improvements. This project is separate and independent from the on‐going rail grade separation projects and addresses more immediate safety concerns at this crossing. The railroad crossing at Alma Street and Charleston Road experiences a large volume of pedestrian and bicycle traffic during the morning and afternoon school commute hours. JPB and the City will be responsible for the construction of the improvements within each respective agency’s right of way.
Churchill Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Enhanced
Bikeway
(PL‐14000)
$418,211 $4,914,801 Public Works Design Winter 2026
Project Status: This project includes planning, design and construction of a shared‐use path along the north side of Churchill Avenue between the existing shared‐use path at Castilleja Avenue and the Stanford Perimeter Trail. It also includes intersection improvements at Churchill Avenue and El Camino Real, which will include a new dedicated westbound right‐turn lane. PAUSD approved the easements required for the project in August 2023.
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Traffic and Transportation Projects Status as of December 2024 Staff has worked with Caltrans for re‐issuance of the encroachment permit and received approval in June 2024.
The construction contract was approved by Council on December 9, 2024. The project is anticipated to be completed by winter 2026.
Churchill Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Rail Grade
Separation and
Safety
Improvements
Main
$21,018 $198,542,138 Office of Transportation Design Spring 2029 Project Status: This project provides for the planning, design, and construction of the grade separation at the existing at‐grade crossing on Churchill Avenue in the Caltrain Rail Corridor. The project will provide improvements to accommodate bicycles, pedestrians, and vehicular movement at the crossing. After reviewing various studies and refinements to the alternatives, the Rail Committee recommended proceeding with a Partial Underpass Alternative with Bicycle and Pedestrian crossing at Seale Avenue. On June 10, 2024, the City Council selected the Churchill Underpass with Ped/bike crossing at Seale Avenue. The funding agreement with the Federal Railroad Administration was approved by City Council on June 17, 2024. Staff collaborated with Caltrain and the Valley Transportation Agency to develop a cooperative agreement for the Preliminary Engineering and Environmental Documentation phase and funding from Measure B Grade Separation funds. This cooperative agreement between the City, Caltrain, and VTA was approved by the City Council on December 9, 2024. The City is also working with State representatives to preserve the CalSTA, Transit, and Intercity Capital Program funding awarded for the project, which is currently being reconsidered for reduction in the Governor’s budget. (PL‐24001)
Churchill Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Alma Street
Railroad Crossing
Safety
Improvements
(PL‐20000)
$1,804,194 $9,243,271 Public Works Construction Spring 2025 Project Status: This project is a railroad crossing improvement project to enhance safety at the intersection of Churchill Avenue and Alma Street. The design includes traffic signal modifications, street lighting improvements, roadway resurfacing, sidewalk realignment, drainage improvements, utility relocations, signage, and striping. Staff is coordinating with Caltrain, Caltrans, and California Public Utilities Commission (CPUC). CPUC approved General Order 88‐B for the project in November 2022 and authorized the City to move forward with construction. Council Traffic and Transportation Projects – Page 2 of 8
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Traffic and Transportation Projects Status as of December 2024 approved the construction contract in June 2023 and construction started in summer 2023. Procurement issues and construction constraints from Caltrain will push out project completion through spring 2025.
Downtown
Automated
Parking
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,658,417 $5,197,827 Public Works Construction Spring 2025 Project Status: This project includes design and installation of new downtown parking guidance systems, access controls, and revenue collection equipment that will be coordinated with both the Downtown Parking Wayfinding, PL‐15004 project and the 2016 Downtown Parking Management. Staff contracted with Dixon Resources for additional management support in design and procurement for the system installation in the Downtown garages on University Avenue. Building permits for the garage interior work were approved in June 2024 for all four garages. The High Street Parking Garage (Lot R) and Bryant Street Parking Garage (Lot S/L) passed final inspections in early December 2024. The Webster/Cowper Parking Garage (Lot J) interior work is in progress and expected to be complete in February 2025. Construction will then move the Civic Center Garage. Plans for the exterior digital matrix signs are under review with Planning.
Guidance
Systems, Access
Controls &
Revenue
(PL‐15002)
Meadow Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Drive/Charleston $42,055 $401,639,254 Office of Transportation Design Spring 2028 Road Rail Grade
Separation and
Safety
Improvements
(PL‐24000)
Project Status: This project provides for the planning, design, and construction of the grade separations at the existing at grade crossings on Meadow Drive and Charleston Road in the Caltrain Rail Corridor. The project will provide improvements to accommodate bicycles, pedestrians, and vehicular movement at the crossings. After reviewing various studies and refinements to the alternatives, the Rail Committee recommended proceeding to advance two alternatives, the Hybrid and Underpass Alternatives, into the early phase of Preliminary Engineering and Environmental Documentation. The committee also recommended refining these alternatives to reduce right‐ of‐way impacts and improve bicycle and pedestrian facilities. The City Council after reviewing directed staff to advance these alternatives into Preliminary Engineering and Environmental phase at Council Meetings in June 2024. The funding agreement with the Federal Railroad Administration was approved by City Council on June 17, Traffic and Transportation Projects – Page 3 of 8
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Traffic and Transportation Projects Status as of December 2024 2024. Staff collaborated with Caltrain and the Valley Transportation Agency to develop a cooperative agreement for the Preliminary Engineering and Environmental Documentation phase and funding from Measure B Grade Separation funds. This cooperative agreement between the City, Caltrain, and VTA was approved by the City Council on December 9, 2024. The City is also working with State representatives to preserve the CalSTA, Transit, and Intercity Capital Program funding awarded for the project, which is currently being reconsidered for reduction in the Governor’s budget.
Parking Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Management and
System
Implementation
(PL‐16002)
$292,811 $627,247 Office of Transportation Procurement Spring 2025 Project Status: This project provides funding for the design and installation of the Comprehensive Parking Permit and Citation Management System. The all‐inclusive system is a tool staff will utilize in the management of parking permits for eight parking permit programs and associated on and off‐street parking citations. An RFP to solicit another vendor was issued the last week of June 2024. Interviews for the final three candidates were completed in December 2024.
Quarry Road
Improvements
and Transit
Center Access
(PL‐16000)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,282,050 $1,682,068 Office of Transportation Design Fall 2026 Project Status: This project provides funding for the planning, design, and construction of bicycle and pedestrian improvements along Quarry Road between El Camino Real and Welch Road, including, but not limited to, upgraded bicycle lanes and crosswalks, innovative intersection treatments for bicyclists, and improved access to transit stops.
Railroad Grade
Separation and
Safety
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $4,501,430 $11,735,179 Office of Transportation Pre‐Design Fall 2025 Project Status: This project is a community‐based process to advance the railroad grade crossing circulation study Improvements and context sensitive solutions study envisioned by the City Council for the Palo Alto Avenue crossing. It will also Traffic and Transportation Projects – Page 4 of 8
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Traffic and Transportation Projects Status as of December 2024 (PL‐17001) fund the preparation of a Project Study Report and environmental analysis that will be required for the City to realize its goals of advancing grade separations. The project will perform preliminary engineering design, conduct project related studies, and prepare environmental documents for the improvements. This project is currently on hold while the City is considering quiet zone implementation for interim conditions, and staff will initiate the conceptual plan development for grade separation at this crossing in 2025.
Traffic Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Intersection
Accessibility
Improvement
Project
$ $550,512 Office of Transportation Design Summer 2025
Project Status: This project will provide traffic intersection accessibility improvements at four identified locations across the City to enhance traffic congestion relief efforts. These modifications may include the addition of new crosswalks and curb ramps; accessible pedestrian system (APS) push buttons; updating existing 8” traffic signal indication heads to 12”; video detection for improved operations; and implementation of Automated Traffic Signal Performance Measures (ATSPM) for ongoing data collection and operational/safety analysis. Funding for this project will be provided by 2016 Measure B Local Streets and Roads (LSR) grant funds. Since the City’s pavement condition index (PCI) is above 70, the City is eligible to use this funding for traffic congestion relief projects.
(PL‐25001)
University Ave
Streetscape
Update
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $461,353 $1,625,909 Public Works Design Summer 2027
Project Status: This project includes a study to reconfigure University Avenue between Alma Street and Middlefield Road to adapt the public realm to maximize pedestrian and bicycle use, reduce congestion, and enhance the retail environment/economic activity, while maintaining two‐way vehicular access, parking opportunities, delivery and loading zones, ride share spaces, and other amenities including performance space. Council awarded a professional services contract for CSW/Stuber‐Stroeh Engineering in February 2022. The project uses a phased approach with Phase 1 consisting of public outreach, conceptual design, preliminary environmental studies, and financial assessment. Staff presented an alternatives analysis and a preferred streetscape concept plan to Council on (PE‐21004)
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Traffic and Transportation Projects Status as of December 2024 December 18, 2023. Council did not approve the plan and directed staff to identify additional concept alternatives for Council discussion. Staff conducted additional outreach to the Retail Committee, Stakeholder Working Group, and received input from Council on June 3, 2024. On December 9, 2024, Council approved staff’s recommended preferred concept plan. Staff will seek Council approval for a consultant contract amendment in early 2025 for Phase 2 services, including preliminary design, environmental review, and Engineer’s Report for an Assessment District.
Recurring Projects
Bicycle and
Pedestrian
Prior Year Actuals Current Year Budget
$211,611 $14,400,000
Implementing Department Project Phase Project Completion Office of Transportation N/A Recurring
Transportation
Plan
Implementation
(PL‐04010)
Project Status: This project funds the Bicycle and Pedestrian Transportation Plan Update effort, which kicked off in fall 2023 and is scheduled to be completed by fall 2025. This project also includes the implementation of various individual bicycle and pedestrian projects, such as the design and construction of bicycle boulevards, enhanced bikeways, shared‐paths, bicycle parking, pedestrian improvements, and quick‐build implementation of the City’s existing 2012 Bicycle and Pedestrian Transportation Plan.
Parking District
Implementation
(PL‐15003)
Prior Year Actuals Current Year Budget
$0 $180,457
Project Status: This project introduces additional parking permit programs throughout the City. One aspect of this project is to update City Council‐approved Residential Preferential Parking (RPP) ordinance language to establish uniform and streamlined procedures and processes to implement RPP districts through the process outlined in Municipal Code 10.50.
Implementing Department Project Phase Project Completion Office of Transportation N/A Recurring
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Traffic and Transportation Projects Status as of December 2024 Safe Routes
to School
Prior Year Actuals Current Year Budget
$77,525 $610,103
Implementing Department Project Phase Project Completion Office of Transportation N/A Recurring
(PL‐00026) Project Status: This project enables the City’s Safe Routes to School program, including school commute planning, encouragement activities, and capital improvements along local and collector streets that may be impacted by school commute activities. The capital improvements include traffic calming devices, enhanced crosswalks, and improved signage along suggested safe routes to school. The community engagement and planning process for the construction of the South Palo Alto Bikeways project began in FY 2021. The project will implement buffered or protected bike lanes on East Meadow Drive from Alma Way to Fabian Way, Fabian Way from East Meadow Drive to East Charleston Road, and widen and repave the Waverley Avenue Bike Path between East Meadow Drive and Charleston Road. Staff was notified of the award of a “Safe Streets for All” grant in spring 2024 to pilot the South Palo Alto Bikeways concept plans on East Meadow Drive and Fabian Way. In FY 2024, this project funded education to improve school access and safety. In addition, this project supported a secondary school needs assessment to identify middle and high school education and encouragement programs and to query the Safe Routes Partnership for the resources to support these programs. This project will support the demonstration project local match and pre‐grant activities in FY 2025.
Traffic Signal
and Intelligent
Transportation
Systems
Prior Year Actuals Current Year Budget
$223,813 $994,336
Implementing Department Project Phase Project Completion Office of Transportation N/A Recurring
Project Status: This project includes design and construction of traffic signals, traffic signal communications networks, detection, and data projects for transportation use, and maintenance of the City’s traffic signal central management system. The project includes the replacement of traffic signal controllers and cabinets, video detection systems, accessible pedestrian buttons, and related field equipment. Design for traffic signal safety and operational improvements at the intersection of San Antonio Road and Charleston Road is nearing 100% completion. Staff is finalizing the plans and will be preparing bid documents for construction to be released in fall 2024, with construction anticipated to begin in spring 2025. Staff is in the process of updating the Centralized Traffic Management system servers to improve operational functions and system security. An IFB for the Quarry (PL‐05030)
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Traffic and Transportation Projects Status as of December 2024 Road Traffic Signal and Intelligent Transportation System upgrade project is anticipated for spring/summer 2025. Staff continually provide traffic signal modifications, installations, and upgrades throughout the City.
Transportation
and Parking
Prior Year Actuals Current Year Budget
$309,114 $442,611
Implementing Department Project Phase Project Completion Office of Transportation N/A Recurring
Improvements
(PL‐12000)
Project Status: This project implements miscellaneous parking and transportation related improvements including neighborhood traffic calming, neighborhood traffic studies, minor striping and signs installation, and parking improvements. This project also funds the development of grant proposals used to procure funding for future projects. For the traffic calming project in the Crescent Park neighborhood, City Council approved proceeding with the design of permanent improvements in November 2023. Staff has procured the services of the consultant to design improvements and conduct community outreach. In addition, staff initiated an Engineering and Traffic Survey to select roadway segments to study prevailing speeds and review traffic conditions in order to establish and/or certify posted speed limits. Staff is also working on the quiet zone project for all railroad crossings along the Caltrain corridor. A quiet zone study was performed for the Palo Alto Avenue and Alma Street crossing in collaboration with City of Menlo Park in 2022. Staff has retained the services of the consultant to design final improvements at this crossing. The design plans are currently at 70% and are being reviewed by CPUC, Caltrain and FRA for feedback and comments that will be incorporated to develop final PS&E and procure necessary permits. In addition, staff procured the services of the consultant to conduct a study for evaluation of quiet zones at the other three crossings of Churchill Avenue, Meadow Drive, and Charleston Road.
The $200K Safe Streets for All (SS4A) Safety Action Plan is funded via this project but will be reimbursed up to $160K by a federal grant. The plan will target eliminating traffic deaths and life‐changing injuries on local streets.
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Airport Projects Status as of December 2024
One‐Time Projects
Airfield Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Electrical $0 $5,789,450 Public Works Design Summer 2030 Improvements
(AP‐19001)
Project Status: This project is for the design and construction of electrical improvements and installation of LED lighting at the airport runway and taxiway. This project has not received FAA funding and is currently on hold.
Airport Access Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Road $0 $3,700,002 Public Works Design Summer 2027
Reconstruction
(AP‐24000)
Project Status: This project is for the design and reconstruction of the pavement on Embarcadero Way, which is the main access road for airport businesses and the Air Traffic Control Tower at the Airport. The Airport did not receive FAA funding for this project and the project is currently on hold.
Airport Layout Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Plan $1,179,551 $ 967,100 Public Works Construction Summer 2025 (AP‐21000) Project Status: This project provides updates to the Airport Layout Plan, also known as the Long‐Range Facilities and Sustainability Plan, including a narrative report and environmental study. The Airport received funding for a Phase I portion of this project in fall 2020. The airport conducted five public meetings for the project, and additional meetings are currently being planned for this project. Phase I is approximately 95% complete, and Phase II is approximately 75% complete. This project is currently on hold, and the completion date is unknown.
Airport Parking Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Lot Electric
Vehicle
Charger
Installation
(AP‐24001)
$0 $28,993 Public Works Design Summer 2026
Project Status: This project will install electric vehicle charging stations in the Airport customer parking lot. The Airport is currently unable to offer electric vehicle charging to its customers, but there is increasing demand for vehicle charging capability from Airport tenants. This project has been delayed as the Airport explores further funding options.
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Airport Projects Status as of December 2024
Airport Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Temporary
Office Buildings
(AP‐22001)
$947 $431,005 Public Works Procurement Winter 2025
Project Status: This project provides funding for the installation and Furniture, Fixtures, & Equipment (FF&E) of existing temporary modular buildings at the airport to provide adequate office space for airport staff as well as terminal space for the public. This project has been delayed while the Airport explores further funding options.
Airport Zero
Emission
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $192,546 $377,696 Public Works Completed Summer 2024
Vehicle Fleet
Replacement
Program
Project Status: The Airport vehicle fleet will be replaced by three zero emissions vehicles (ZEV), to be supported by three electric charging stations. The van is used for the transportation of airport guests and passengers and improves safety by minimizing foot traffic on the airport apron. The truck is used as a maintenance, first response, and operations vehicle. The ZEV fleet will include one passenger vehicle and two trucks. FAA funding was received in fall 2023, for the fleet replacement. The Airport received delivery of a new electric truck in fall 2024 which replaced both airport vehicles with electric vehicles.
(AP‐23000)
Automated
Weather
Observation
System
(AWOS)
AP‐19000
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $43,677 $1,588,533 Public Works Design Summer 2025
Project Status: This project provides a new weather information system to be installed at the Palo Alto Airport.
The Airport has applied for FAA funding and is waiting for the grant agreement to start design. The Airport received a bid for the project and is submitting a grant application to the FAA. It is anticipated that funding for the project will be received in spring 2025.
Recurring Projects
2024‐2028 – Airport Capital Improvements Program Projects: There are no recurring projects scheduled at this time.
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Electric Fund Projects Status as of December 2024
One‐Time Projects
115 kV Electric
Intertie
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $742,639 $ 1,364,625 Utilities Pre‐Design Summer 2027
(EL‐06001) Project Status: This project will perform a technical feasibility study to determine the general project requirements to establish a 115 kV electric intertie line and construct a 115/60 kV substation to connect the City's electric system directly to the 115 kV transmission line at an additional location. Staff did not receive California Independent System Operator’s (CAISO) commitment to support this interconnection. Staff has retained the services of a consultant to evaluate the options available to the City. Staff submitted CPAU electric load forecast and proposal for an additional 115 kV transmission line in October 2024 to CAISO for review and acceptance. Staff expects a response from CAISO by June 2025.
Colorado Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Distribution
Feeder Outlet
Replacement
(EL‐22002)
$10,576 $400,000 Utilities Construction Fall 2025
Project Status: This project is for the installation of a new underground duct bank and cable at Colorado Substation.
The installation will improve reliability for all Colorado circuits. The design was completed in spring 2024 and construction will begin by summer 2025. Council approved the contract in April 2024 and an order for the material has been issued. The construction is delayed due to the procurement of the 12 kV pad‐mount switches. In addition, construction is being coordinated with the fiber hut installation which is expected to be installed by June 2025.
Colorado Power
Station
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $4,468,548 $11,293,873 Utilities Design Fall 2027
Equipment
Upgrades
(EL‐19001)
Project Status: This project is for the upgrades to equipment at the Colorado Power substation. In FY 2022 staff completed the evaluation of existing equipment and will proceed with replacing the COP‐3 115 kV/60 kV transformer bank and the 115 kV breaker. Engineering is continuing to work on the design RFPs and construction IFBs for contract services to complete substation projects. The station’s service voltage transformers (SSVT1) was Electric Fund Projects – Page 1 of 8
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Electric Fund Projects Status as of December 2024
purchased and installed. The 60 kV Bus 1 & 2 Potential Transformers (PT) have been purchased for their eventual replacement.
Colorado Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Substation Site
Improvements
(EL‐19002)
$275,777 $1,416,912 Utilities Design Fall 2025
Project Status: This project will make modifications to the substation driveways and fence to provide adequate ingress and egress for utility vehicles used for maintenance and repair. Staff has prepared an overall master plan for Colorado Substation to include all proposed improvements. Detailed designs for lighting, driveway, fences, walls, and an improvement of oil containment have been prepared. The Planning Department approved the Utility engineering’s design in May 2024. Engineering staff are currently preparing the IFB for construction. Bid opening has been delayed until spring 2025 due to recent staff changes.
Foothills Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion (Fire Mitigation) $8,503,110 $14,999,581 Utilities Construction Fall 2025 (EL‐21001) Project Status: This project will rebuild the approximately 11 miles of overhead line in Foothills Park, as necessary to mitigate the possibility of wildfire due to overhead electric lines. This could include the utilization of more robust equipment or construction practices, rerouting to avoid vegetation and improve access for inspection and maintenance, or converting the overhead lines to underground where feasible. Two proposals were received for this project and both proposals were rejected because they did not provide an option to underground existing overhead electric lines. Substructure for Phases 1 and 2 are completed while Phase 3 substructure installation is currently in progress. Phase 4 construction is currently paused for an easement relocation from Mid‐Peninsula Open Space. Construction will resume in early 2025 when the easement paperwork is completed. Phase 5 substructure installation along Arastradero Road is currently in progress.
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $350,153 $300,000,000 Utilities Construction Winter 2030 Electric Fund Projects – Page 2 of 8
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Electric Fund Projects Status as of December 2024
Grid Project Status: This project will provide the City with an electric infrastructure adequate to support the City’s goal Modernization of 100% electrification and 80% carbon emissions reduction by the year 2030. To attain the 100% electrification for Electrification scenario, the City must maximize use of electric energy and phase out carbon‐based end uses such as natural gas (EL‐24000) appliances and internal combustion vehicles. The electric system must be updated to meet the needs of electrification, and older components in the distribution infrastructure must be replaced to mitigate chances of overloading the system. Examples of assets to be replaced are distribution and substation transformers, primary/secondary distribution circuits. A Pilot area was designated and engineering staff in conjunction with a consultant have completed the distribution system design for the Pilot area, with a handful of power poles replaced and installed as initial construction efforts start to take shape. Starting in FY 2025, this project will incorporate and consolidate the scope of work from the following projects into one CIP: Coleridge Cowper Tennyson 4/12kV Conversion (EL‐14000), Hopkins Substation 4/12 kV Conversion (EL‐20000), Rebuild Underground District 15 (EL‐ 11003) and Rebuild Underground District 16 (EL‐13003). Engineering design in the Pilot area is complete and construction is in progress. Fifty‐five (73%) poles out of the seventy‐five targeted for replacement have been replaced in the Grid Modernization Pilot area, with the remaining twenty poles slated for replacement by March 2025. Additionally, 428 (47%) of the 908 homes in the Pilot area are ready for electrification, with another 480 homes in line to be connected to the upgraded infrastructure by the end of April 2025.
Hanover Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Substation
Improvement
(EL‐24001)
$220,986 $15,000,000 Utilities Completed Fall 2024
Project Status: This project installed two 12 kV 50 MVA transformers to replace two 4kV transformers that served 1501 Page Mill Road and make all substation improvements necessary to accommodate the installations.
Generally, three to four years are spent on a substation upgrade. Project construction is 100% complete and new Hanover substation transformers and switchgear have been successfully tested and commissioned and released to the Utility Operations group. Final project close out and settlement of the Public‐Private Partnership Contract between the City and Tesla remain.
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Electric Fund Projects Status as of December 2024
Inter‐Substation
Line Protection
Relay
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $371,146 $1,805,866 Utilities Construction Summer 2027
Project Status: This project replaces the existing HCB pilot wire relays with a new microprocessor line differential protective relay to protect the city’s 60 kV sub‐transmission line sections and equipment from damage due to faults (i.e. short circuits) on the 60 kV line sections. This project is being done in phases, with design and construction happening concurrently on the different phases. Construction of these improvements relies on work completed by other projects to install fiber optic connections. Engineering design for segments Colorado substation to Adobe Creek substation, Park Boulevard substation to Quarry substation, and Maybell substation to Park Boulevard substation is in progress. A test plan is being written to prove the equipment will work as designed.
The Quarry to Park substation segment is delayed due to resources and is expected to be completed fall 2025. Park to Maybell segment is still in progress, fiber installation is complete, and completion is expected winter 2026. Staff has completed the testing and verification of a fiber optic transfer switch proof of concept project required to proceed with replacement of HCB relays at COP.
(EL‐17005)
Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Underground
District 24
(EL‐10006)
$1,949,767 $2,240,451 Utilities Design Fall 2025
Project Status: This project rebuilds and replaces the underground electric system in Underground District 24, the area bounded by Lytton Avenue; Bryant Street; Forest Avenue; and Alma Street. The engineering design will be completed in spring 2025. Construction will follow in fall 2025.
Smart Grid
Technology
Installation
(EL‐11014)
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $12,387,759 $19,430,985 Utilities Construction Spring 2025 Project Status: Council approved the Advanced Metering Infrastructure (AMI) with Sensus on October 18, 2021.
The project includes replacement of 30,000 electric meters and retrofit of 20,800 water and 24,200 gas meters with radio endpoints to transmit meter data to the AMI network. The proof‐of‐concept phase including AMI Electric Fund Projects – Page 4 of 8
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Electric Fund Projects Status as of December 2024
network installation, meter testing, and system integration will occur between January 2022 and August 2023. Full deployment is anticipated to run from September 2023 through April 2025.
Substation
Breaker
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,568,954 $7,312,009 Utilities Pre‐Design Summer 2028
Replacement
(EL‐17002)
Project Status: This project replaces high voltage circuit breakers that interconnect the nine electric substations and two power switching stations that are reaching the end of their useful life and are now underrated for their use. This project is being done in phases, with design and construction happening concurrently on the different phases. Staff completed the construction on the first phase and is working to procure a multi‐year contract with a contractor to complete the design and replacement of the remaining breakers. Staff is working on the design RFP and the construction IFB for contract services to complete substation projects. Lead times for circuit breakers are currently at around 18 months.
Substation Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Physical Security $3,093,299
(EL‐16003)
$7,397,072 Utilities Construction Winter 2025
Project Status: This project installs facilities providing physical protection for nine electric substations from vandalism and intrusion. The installation for the first phase was completed for seven of the nine substations in December 2024. The bid package for the 2 nd phase and final two substations is being prepared for solicitation. Construction is to be completed by summer 2026.
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Electric Fund Projects Status as of December 2024
Recurring Projects
Communications Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion System $45,733 $100,000 Utilities N/A Recurring
Improvements
(EL‐89031)
Project Status: This project installs high frequency coaxial cable, fiber optic cable, and related equipment to provide communications services for traffic signal coordination, telephone links, computer data transmission, and the Electric Supervisory Control and Data Acquisition (SCADA) system. This project is funding a portion of the design phase of an expanded Utilities fiber optic network. The contract for design of this network was approved by Council in June 2020. Staff installed 48F FO Cable between Maybell MB and PBS Park Boulevard substations in Existing Aerial Innerduct for pilot wire relay protection.
Electric Customer Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Utilities N/A RecurringConnections $2,202,541 $2,700,000 (EL‐89028) Project Status: This project installs services, transformers, and meters for new customers; upgrading of existing services; temporary service connections; and overhead and underground extensions for new or existing customers. Projects are in many stages of design and construction to provide temporary and permanent power to residential and commercial customers in Palo Alto.
Electric System
Improvements
(EL‐98003)
Prior Year Actuals Current Year Budget
$1,567,547 $2,980,070
Project Status: This project consists of various projects that replace deteriorated facilities or install protective devices that improve the Electric Distribution System. Projects are in many stages of development to replace transformers, replace poles, replace overhead wires, and install protective devices to improve service reliability.
Implementing Department Project Phase Project Completion Utilities N/A Recurring
Electric Utility
Geographic
Prior Year Actuals Current Year Budget
$68,397 $165,000
Implementing Department Project Phase Project Completion Utilities N/A Recurring
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Information
System
(EL‐02011)
Project Status: This project enhances the citywide Geographical Information System (GIS). The project scope includes on‐going maintenance/technical support of the existing GIS system and implementation of the new GIS platform, ESRI.
SCADA System
Upgrades
Prior Year Actuals Current Year Budget
$136,591 $225,000
Implementing Department Project Phase Project Completion Utilities N/A Recurring
(EL‐02010) Project Status: This project upgrades the Supervisory Control and Data Acquisition (SCADA) system hardware.
Staff completed the upgrade of the servers used for monitoring the utility substations and equipment for 2024.
The next hardware and software upgrade is currently in progress at the factory and work will occur in winter 2025.
Substation
Facility
Prior Year Actuals Current Year Budget
$29,240 $400,000
Implementing Department Project Phase Project Completion Utilities N/A Recurring
Improvements
(EL‐89044)
Project Status: This project makes improvements to facilities at the electric substations in Palo Alto. Staff is working on the replacement of Remote Terminal Units (RTU) at various substations, upgrading gravel and grounding, 60 kV air switches, and reconfiguring steel trusses and associated devices. Engineering is working on design and construction for contract services to complete substation projects. Staff has completed the refurbishment of capacitor cans and fuses at Adobe Creek, the procurement and replacement of 12kV Alllis Chalmers circuit breakers at Hansen Way (7ea) and Hanover (9ea) as well as completed the installation of new Nexus meters at Hansen Way (22/23) and Colorado (20/21). The design of new Nexus meters at Hansen Way (20/21) is in progress.
Substation
Protection
Prior Year Actuals Current Year Budget
$262,000 $300,000
Implementing Department Project Phase Project Completion Utilities N/A Recurring
Improvements
(EL‐89038)
Project Status: This project makes improvements to equipment used at electric substations to protect the substation equipment and circuits emanating from the substation from damage due to faults (i.e. short circuits) Electric Fund Projects – Page 7 of 8
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Electric Fund Projects Status as of December 2024
on the electric system. Staff issued a task order with Soudi Consultants to review and revise protection settings and training on the commissioning of Park Boulevard relay.
Underground
System Rebuild
(EL‐16001)
Prior Year Actuals Current Year Budget
$0 $350,000
Implementing Department Project Phase Project Completion Utilities N/A Recurring
Project Status: This project replaces underground electric equipment in areas that were originally installed underground, that are not part of an Underground District. Staff is working to identify areas where the age of the existing cables is a high priority for cable replacement. To date, this includes areas in the Stanford Research Park, Arastradero Road, and along East Bayshore Road. New areas have been identified, and progress has been made on the development of the project. Projects are in many stages of development to replace underground transformers, cables, vaults, and to install protective devices to improve service reliability.
Wood Pole
Replacement
(EL‐19004)
Prior Year Actuals Current Year Budget
$533,613 $750,000
Project Status: This project will fund the annual replacement of deteriorated wood power poles. CPAU staff and contract consultants are continuously working on pole replacement designs for construction. Replacement of poles in the Grid Modernization Pilot area is the top priority.
Implementing Department Project Phase Project Completion Utilities N/A Recurring
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Fiber Optics Fund Projects Status as of December 2024
One‐Time Projects
Fiber Optic
Network
System
Rebuild
(FO‐16000)
Prior Years Actuals Total Project Budget
$3,232,944 $29,789,313
Implementing Department Project Phase Project Completion Utilities Design December 2026
Project Status: This project is for the System Capacity Improvement that rebuilds portions of the "dark" fiber optic network around Palo Alto. In September 2022, Council approved the City’s fiber expansion plan including construction of a new fiber backbone and a phased buildout of a fiber‐to‐the‐premises network. The Fiber Optic Network System Rebuild CIP will be replaced with new Fiber Backbone and Fiber‐to‐the‐Premises (FTTP) CIPs in FY 2024. Staff has hired a consultant to complete the Fiber Backbone and FTTP conceptual design. The conceptual design has been completed the contract has been amended to complete the design and all provide documentation necessary for procurement of a construction contract. Staff is updating fiber databases and reviewing the current inventory of fiber strands in order to determine what sections of the Fiber Backbone should be upgraded first. Due to the Fiber to the Premises pilot and Wildfire Mitigation project in the Foothills, materials and resources have been reassigned from this project. Staff anticipates restarting this review phase of the new fiber backbone in July 2025 after the Foothills undergrounding, grid modernization pilot, and FTTP pilot are completed. As the FTTP pilot expands into Phase I, staff will be designing and constructing the new Fiber Backbone in phases and in alignment with Grid Modernization, with a tentative completion of the phase 1 Fiber Backbone by end of December 2026.
Fiber to the Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Utilities Design Winter 2030Premises
(FTTP)
$53,550 $ 20,000,000
Project Status: This project will build Fiber‐to‐the‐Premises (FTTP) to deliver broadband (high‐speed internet) for homes and businesses in the City of Palo Alto. As the City builds the FO‐16000 ‐ Fiber Optics Network ‐ System Rebuild Staff has divided up the City into smaller sections for a phased approach of the Fiber‐to‐the‐Premises project.
Furthermore, Staff has proceeded to combine the Phase 1 Fiber‐to‐the‐Premise design with a Grid Modernization Project covering the same area. Staff is capitalizing on inherent synergies between the two projects, as well as taking advantage of economies of scale deployment that can be realized as a result of combining the two projects. Staff has contracted with an Engineering firm to produce design drawings and specifications. The City is implementing a pilot (FO‐24000)
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Fiber Optics Fund Projects Status as of December 2024
during Phase 1 of the FTTP project to evaluate various new technologies and to assess various construction methodologies to closely align with Grid Modernization and inform on future phases of deployment. In conjunction with the grid modernization pilot, FTTP make‐ready work such as pole replacements and installation of messenger strands is being performed. The remaining FTTP pilot construction including fiber lashing and fiber distribution cabinets is scheduled to begin in February 2025 and customers in the pilot area are tentatively scheduled to be served in July 2025.
Recurring Projects
Fiber Optics
Customer
Prior Year Actuals
$18,434
Current Year Budget Implementing Department Project Phase Project Completion $253,100 Utilities N/A Recurring
Connections
(FO‐10000)
Project Status: This project enables the installation of fiber optic infrastructure for new service connections.
Projects are developed as needed to meet customer requests for leasing of fibers on the Dark Fiber system. There have been seven new customer inquiries in the first half of FY 2025. The City is partnering with a non‐profit agency under a dark fiber licensing agreement to provide fiber broadband service to customers in the foothills area.
Fiber Optics
Network
System
Prior Year Actuals
$36,608
Current Year Budget Implementing Department Project Phase Project Completion $602,500 Utilities N/A Recurring
Project Status: This project improves the reliability within the fiber optic network system. As part of the City’s Improvements wildfire mitigation plan, this project will add new fiber conduit and substructure in the foothills to support city (FO‐10001) infrastructure and improve telecommunication and connectivity in the open space. This project will rebuild approximately 11 miles of overhead electric and fiber lines in Foothills Nature Preserve. Staff have completed the undergrounding of 7,000 feet of fiber. Staff will also be extending the fiber backbone from Dahl reservoir to Montebello reservoir. The foothills project is scheduled to be completed by summer 2025.
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Gas Fund Projects Status as of December 2024
One‐Time Projects
Gas Line Prior Years Actuals Total Project Budget Implementing Department Project Phase $ 0 $1,000,000 Utilities Design
Project Status: This project is for the design of the Arastradero Creek to address a creek bed erosion project that exposed an 8” natural gas pipeline and threatened the integrity of a 16” potable water pipeline and 16” sanitary sewer pipeline.
The project will address requirements outlined by the Water Board in the City emergency work permit to re‐bury the exposed 8” gas pipeline. The design is expected to finish by winter 2026, with construction beginning in summer 2026.
Project Completion
Fall 2026Repair at
Arastradero
Creek
(GS‐25001)
Gas Main
Replacement $3,929,943
Prior Years Actuals Total Project Budget Implementing Department Project Phase $11,409,309 Utilities Construction
Project Completion
Spring 2025
Project 24
(GS‐14003)
Project Status: This project enables the design and construction to replace approximately 20,100 linear feet (which represents 1.9% of the City's Gas distribution main system) of distribution main and 260 gas services constructed mainly of PVC on various streets within the University Park and Crescent Park neighborhoods. Release of the project for bidding has been delayed, to include the Town & Country Village scope. This project was split into GMR24A and GMR24B.
GMR24A (Stanford Shopping Center) was completed in spring 2023. GMR24B construction started in winter 2024, is approximately 80% complete, and is anticipated to be complete in spring 2025.
Gas Main
Replacement $15,525
Prior Years Actuals Total Project Budget Implementing Department Project Phase $8,743,849 Utilities Design
Project Completion
Fall 2026
Project 25
(GS‐15000)
Project Status: This Gas Main Replacement (GMR) project replaces approximately 26,000 linear feet (which represents
2.3% of the City’s Gas Distribution System) of leaking, inadequate sized, and structurally deficient gas mains and services located on various streets in the neighborhoods of Community Center, Leland Manor, Midtown, and Palo Verde neighborhoods. Staff identified problematic mains and services by researching maintenance and leak histories, analyzing performance of the entire Gas Distribution System, and considering risk ratings of the Distribution Integrity Management Plan. A federal grant application was submitted in August 2023, and the City was awarded $16.5 million in grant funding for this project. Staff is currently completing the Tier 2 Environmental documentation to meet federal grant requirements Gas Fund Projects – Page 1 of 3
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before it can be released through purchasing for construction bids. The Grant Agreement is anticipated to go before Council in January 2025. The project is on track for construction to begin in summer 2025.
Recurring Projects
Gas
Distribution
System
Prior Year Actuals Current Year Budget Implementing Department $484,530 $1,166,723 Utilities
Project Status: This project enables Gas Distribution System improvements that include increasing distribution system Project Phase
N/A
Project Completion
Recurring
Improvements capacity for load growth, replacing deteriorated capital facilities, reconfiguring and adding and improving service (GS‐11002) reliability, and conducting research related to performance of the gas distribution system or its various components making general improvements to the system. The City must continuously evaluate service reliability needs and make improvements to the system to maintain top level service to City customers and to minimize potential economic losses due to service interruptions. In the first half of FY 2025, City crews completed the replacement of various gas services and valves throughout the system and replaced leaking ten inch steel gas valves on the Waverley Street bridge crossing at Matadero Creek.
Gas Prior Year Actuals Current Year Budget Implementing Department $80,226 $100,000 Utilities
Project Status: This project purchases polyethylene (PE) fusion equipment and tools, directional boring/locating equipment and tools, and general shop equipment and tools. The equipment needs to be upgraded on an annual basis to safely operate and maintain a natural gas distribution system and to ensure operators’ safety and productivity. In the first half of FY 2025, no new equipment purchases were completed.
Project Phase
N/A
Project Completion
RecurringEquipment
and Tools
(GS‐13002)
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Gas Fund Projects Status as of December 2024
Gas Meters
and
Prior Year Actuals Current Year Budget Implementing Department $365,663 $688,545 Utilities
Project Phase
N/A
Project Completion
Recurring
Regulators
(GS‐80019)
Project Status: This project provides replacement of the existing gas meters and regulators annually. The coordination of gas meters and regulator replacements with gas meters identified to be replaced under the AMI contract, which is generally gas meters that are twenty‐five years or older. The gas meter replacement program ensures the accuracy of gas consumption measurement, reduces possible revenue loss due to under‐registered gas, and provides customers with accurate monthly bills. Replacement of aged gas meters and regulators is on‐going. The next major replacement of meters and regulators will be coordinated with Gas Main Replacement Project 25 (GS‐15000) and the Advanced Metering Infrastructure project.
Gas System,
Customer
Prior Year Actuals Current Year Budget Implementing Department $584,034 $700,000 Utilities
Project Phase
N/A
Project Completion
Recurring
Connections
(GS‐80017)
Project Status: This project enables the Gas Distribution System to be extended to provide gas service to new customers and augment service to customers with increased natural gas demands. Improvements include new mains, services, valves, regulators, meters, and accessories in order to meet changes in existing customer service demands and respond to changes in gas service requirements due to new development or redevelopment. This project is funded partially from reimbursements by customers. City crews completed 22 gas service installations, 4 gas service relocations and 65 gas service demolitions in the first half of FY 2025.
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Stormwater Management Projects Status as of December 2024 One‐Time Projects
Corporation
Way System
Upgrades and
Pump Station
(SD‐21000)
Prior Years Actuals
$340,827
Total Project Budget Implementing Department Project Phase Project Completion $4,146,554 Public Works Design Spring 2026
Project Status: This project incorporates a design of a new small pump station with a 25 cubic feet per second capacity and upgrades 700 linear feet of pipe to 30‐inch diameter High Density Polyethylene pipe. The existing system does not have the force needed to discharge storm flows into the Adobe Creek. Adding a pump station in advance of the outfall and upsizing the storm pipe will eliminate the routine flooding along East Bayshore Road and convey runoff from a 10‐year storm event. Staff secured an easement for the pump station from adjacent property owners. The consultant completed the design of the project in June 2024. Due to poor bid results combined with high construction costs, a third IFB is scheduled to be advertised in December 2024.
East Meadow
Drive System
Upgrades
Prior Years Actuals
$440,133
Total Project Budget Implementing Department Project Phase Project Completion $663,551 Public Works Completed Summer 2024
Project Status: This project added approximately 404 linear feet of new 24‐inch high density polyethylene (HDPE) to be parallel to the existing 36‐inch pipe within East Meadow Drive to increase the capacity of the storm drain system. This project includes upsizing manholes based on new pipes and reconnecting laterals from private property and catch basins. A construction contract was awarded in October 2023, and construction began in November 2023. The project was completed in September 2024, after additional storm drain‐pipe replacement locations as part of the Storm Drain Rehab project (SD‐06101) were completed. (SD‐22000)
East Meadow
Circle
Prior Years Actuals
$333,087
Total Project Budget Implementing Department Project Phase Project Completion $634,016 Public Works Completed Summer 2024
Connection to
Adobe Creek
Pump Station
(SD‐26000)
Project Status: This project installed approximately 506 linear feet of 15‐inch pipe and manholes along East Meadow Circle. The upgraded line will eliminate flooding that occurs within East Meadow Circle when the water level within Barron Creek is higher than the flap‐gate, and flows are not able to drain into the creek. The new 15‐ inch HDPE line extension allows flows to drain away from Barron Creek and into Adobe Creek, where they can be pumped. The project also includes a small bioretention area to treat low flow runoff within East Meadow Circle Stormwater Management Projects ‐ Page 1 of 4
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Stormwater Management Projects Status as of December 2024 before discharging into either creek. A construction contract was awarded in October 2023, and construction began in November 2023. The project was completed in September 2024 following additional storm drain‐pipe replacement locations as part of the Storm Drain Rehab project (SD‐06101).
Hamilton
Avenue System
Upgrades
Prior Years Actuals
$
Total Project Budget Implementing Department Project Phase Project Completion $6,152,539 Public Works Design Summer 2026
Project Status: This project adds approximately 3,700 linear feet of new 48‐inch high‐density polyethylene (HDPE) pipe and manholes on Hamilton Avenue to increase the capacity of the storm drain system. This project proposes to upsize the pipes to divert some flows away from Newell Road System and toward the 96‐inch line near Greer Road that would have otherwise drained towards Channing Avenue by adding storm pipe on a section of the 1500 block of Hamilton. As a result of the December 31, 2022, flood event, the project includes upsizing the existing 12‐ inch line on Alester Drive for additional storage capacity. The design and project documents are underway. The project design is approximately 70% complete.
(SD‐25000)
Trash Capture
Device
Prior Years Actuals
$762,720
Total Project Budget Implementing Department Project Phase Project Completion $818,837 Public Works Completed Summer 2024
Installation
(SD‐22002)
Project Status: This project involved the design and construction of a large trash capture device (TCD) to be installed in the planting strip along Embarcadero Road located in front of the Palo Alto Baylands Golf Links parking lot. The TCD will be integrated into a 36‐inch storm pipe to capture trash as small as five millimeters from a section of the storm drain system prior to discharging to the San Francisco Bay. The 189‐acre drainage area treated by the TCD consists of 169 acres of commercial and office land use in the City’s jurisdiction and 20 acres in the California Department of Transportation (Caltrans) right‐of‐way. Caltrans provided funding for the project construction, while the City will take on the maintenance per an interagency agreement. Construction began in summer 2023 and was completed October 1, 2024.
Prior Years Actuals
$424,398
Total Project Budget Implementing Department Project Phase Project Completion $2,881,017 Public Works Design Spring 2026
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Stormwater Management Projects Status as of December 2024 West Bayshore Project Status: This project incorporates the design and construction of a new small pump station with 15 cubic Road Pump
Station
(SD‐20000)
feet per second capacity. Installing a new pump station will allow storm flows to be pumped into the Adobe Barron Creek confluence while adding a pump station in advance of the outfall would eliminate the routine flooding along West Bayshore Road and allow the system to convey runoff from a 10‐year storm event. Staff secured an easement for the pump station from adjacent property owners. The consultant completed the design of the project in June 2024. Due to poor bid results combined with high construction costs, a third IFB is scheduled to be advertised in December 2024.
West Bayshore Prior Years Actuals
Road Trunk Line $44,554
Total Project Budget Implementing Department Project Phase Project Completion $2,424,006 Public Works Design Spring 2026
Improvements
(SD‐23000)
Project Status: This project replaces approximately 1,400 linear feet of existing 15‐inch diameter pipe with 36‐inch High Density Polyethylene pipe. These improvements along with the new West Bayshore Road Pump Station (SD‐ 20000) will eliminate the routine flooding along West Bayshore Road and allow the system to convey runoff from a 10‐year storm event. Staff secured an easement for the pump station from adjacent property owners. The consultant completed the design of the project in June 2024. Due to poor bid results combined with high construction costs, a third IFB for the project is scheduled to be advertised in December 2024.
Recurring Projects
Green
Stormwater
Infrastructure
(SD‐22001)
Prior Year Actuals
$77,092
Current Year Budget Implementing Department Project Phase Project Completion $1,819,870 Public Works N/A Recurring
Project Status: This project provides funding for Green Stormwater Infrastructure (GSI) projects and the integration of GSI features in the design and implementation of planned CIP projects supported by other funds. GSI mimics the natural environment to slow, spread, infiltrate, and filter pollutants from stormwater runoff through native or Stormwater Management Projects ‐ Page 3 of 4
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Stormwater Management Projects Status as of December 2024 engineered soils or other pervious material rather than discharging it directly into the storm drain system, creeks, and the Bay. Types of GSI include bioretention areas, flow‐through planters, tree wells, and pervious pavement to manage stormwater runoff. The FY 2024 budget is allocated as a match to fund the balance of a GSI project partially funded by the U.S. Environmental Protection Agency (EPA) and for constructing a bioretention area as part of the East Meadow Circle Connection to Adobe Creek pump station project (SD‐26000) in spring 2024. SD‐26000 has been completed, while a request for proposals for the EPA‐funded project will be released in spring 2025.
Storm Drainage Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $1,650,239 Public Works N/A RecurringSystem $598,188
Replacement
and
Rehabilitation
(SD‐06101)
Project Status: This project provides for annual replacement and rehabilitation to maintain the integrity of the storm drain system, including deteriorated storm drain piping, manholes, and storm drain inlets. The rehabilitation includes replacement of broken corrugated metal pipe with High Density Polyethylene pipe. Based on recent pipe failures that occurred in early 2023, storm drain pipes at seven locations (Forest Avenue, Embarcadero Road, Fielding Drive, Middlefield Road, Newell Road, and Alexis Drive) were replaced as part of CIP projects SD‐22000 and SD‐26000. A construction contract was awarded in October 2023 and construction was completed in September 2024.
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Wastewater Collection Fund Projects Status as of December 2024 One‐Time Projects
Wastewater
Collection
System
Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $3,000,000 Utilities Construction Summer 2026
Rehabilitation
Augmentation
Project 32
Project Status: This project designs and constructs high priority main and lateral replacements, which reduces inflow of rainfall and infiltration of groundwater into the collection system. The project will replace approximately 5,200 linear feet (which represents 0.5 percent of the City’s Wastewater Collection System) for streets in the Middlefield Road, Webster Street, Santa Rita Avenue, and N. California Avenue neighborhoods. The project will be comprised of laterals identified in video inspection work or through maintenance records as deficient and in need of replacement.
Priority will be given to areas identified by Public Works as targeted work zones ensuring coordination between departments.
(WC‐20000)
Recurring Projects
Sewer
Lateral/Manhole
Rehabilitation
and
Prior Year Actuals Current Year Budget Implementing Department $875,500 Utilities
Project Phase Project Completion
$688,486 N/A Recurring
Project Status: This project replaces defective sewer laterals, cleanouts, manholes, backwater devices, and equipment to support these activities to maintain the Wastewater Collection System, as well as to comply with the Sanitary Sewer Master Plan (SMP). Information collected during routine annual maintenance activities is used to prioritize work. The continued work performed will also help to reduce both sewage blockage and the City's treatment expenses to treat rainwater or groundwater infiltration. A new three‐year construction contract was approved in FY 2023 to replace problematic sewer laterals. In the first half of FY 2025, two sewer lateral replacements were completed under this contract.
Replacement
(WC‐99013)
Wastewater Collection Fund Projects – Page 1 of 2
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Wastewater Collection Fund Projects Status as of December 2024 Sewer System,
Customer
Prior Year Actuals
$386,388
Current Year Budget Implementing Department
$450,000 Utilities
Project Phase
N/A
Project Completion
Recurring
Connections
(WC‐80020)
Project Status: This project installs sewer lateral connections and additions or extensions of existing mains to serve new customers and to respond to changes in sewer requirements due to redevelopment. Old existing non‐plastic sewer laterals with condition deficiencies per Utilities Operations’ criteria are required to be replaced in accordance with the latest 2022 WGW Standards. In the first half of FY 2025, eleven new lateral connections were performed.
Wastewater
General
Prior Year Actuals
$44,679
Current Year Budget Implementing Department
$90,000 Utilities
Project Phase
N/A
Project Completion
Recurring
Equipment and
Tools
Project Status: This project provides funds to procure new general equipment and new tools. In the first half of FY 2025, no new general equipment or tools was procured.
(WC‐13002)
Wastewater
System
Prior Year Actuals
$133,144
Current Year Budget Implementing Department
$200,000 Utilities
Project Phase
N/A
Project Completion
Recurring
Improvements
(WC‐15002)
Project Status: This project implements improvements to the Wastewater Collection System by increasing system capacity for growth, flow monitoring, hydraulic modeling and system analysis, load simulations, asset management analysis and assessment, system infiltration analysis, and sanitary sewer overflow monitoring and reduction. Part of this project funds the Sewer Master Plan Study, which is evaluating the City’s existing wastewater collection system, flows, and flow patterns to determine system capacity to meet current and future flows and recommend and prioritize capital improvement projects where needed. The consultant contract was approved in November 2023 and work began in December 2023. The project completed calibrating the collection system model in fall 2024 and is beginning to run the model to quantify existing system flows and buildout system flows. Project completion is anticipated in summer 2025.
Wastewater Collection Fund Projects – Page 2 of 2
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Wastewater Treatment Fund Projects Status as of December 2024 One‐Time Projects
Local
Advanced
Water
Purification
System
(WQ‐19003)
Prior Years Actuals Total Project Budget
$2,196,877 $ $67,138,041
Implementing Department
Public Works
Project Phase Project Completion
Design Winter 2027
Project Status: This project enables the design and construction of an Advanced Water Purification Facility to further improve the quality of the tertiary‐treated recycled water by ultrafiltration followed by reverse osmosis to reduce the level of total dissolved solids. The water reuse partnership agreement with Valley Water and Mountain View provides $16 million in funding from Valley Water grant funding for a portion of the project costs and a State low‐interest loan for the design and construction phases. Mountain View agreed to pay the remainder of the capital costs associated with this project. The design is completed and staff issued an IFB in fall 2024. The project is in the process of receiving a building permit while financial agreements with funding agencies are being finalized. Construction is expected to start in spring 2025.
Headworks
Facility
Prior Years Actuals Total Project Budget
$184,846 $55,820,790
Implementing Department
Public Works
Project Phase Project Completion
Pre‐Design Fall 2032
Replacement
(WQ‐16002)
Project Status: This project replaces the existing two outdated influent pump stations and their associated equipment and ancillary systems, including the suction and discharge piping manifolds, valves, electrical and controls system, screening equipment, grit handling equipment, pumps, flow meters and yard piping. The consultant is currently performing the preliminary design to finalize the design criteria. At the preliminary design conclusion, either the same or a different consultant will be selected to perform detailed design.
Horizontal
Levee Pilot
(WQ‐22001)
Prior Years Actuals Total Project Budget Implementing Department $156,195 $754,625 Public Works
Project Status: This project consists of the design, permitting, and construction of a horizontal levee pilot system. The system will utilize treated wastewater to create a transitional brackish habitat on the Bayside of a future flood control levee located in the Palo Alto Baylands, adjacent to the Regional Water Quality Control Plant (RWQCP). Information and data collected by this pilot system could support broader implementation of horizontal levees as green Project Phase Project Completion
Design Fall 2029
Wastewater Treatment Fund Projects – Page 1 of 4
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Wastewater Treatment Fund Projects Status as of December 2024 infrastructure components in larger flood control levee improvement projects within Palo Alto and beyond. The project completed design, CEQA review, conducted several stakeholder outreach events, created a project webpage, obtained all construction permits from resource agencies, received a recommendation from the Parks and Recreation Commission, and obtained Council approval of the Park Improvement Ordinance as well as a Cooperative Agreement between project partners. The project is currently onboarding a construction management firm, preparing for required monitoring, and coordinating future community engagement activities including BioBlitz and King Tide Walks. The San Francisco Estuary Partnership/Association of Bay Area Governments will be posting the project for solicitation in early 2025.
Joint
Intercepting
Sewer
Prior Years Actuals Total Project Budget
$103,833 $12,590,181
Project Status: This project will rehabilitate 2,364 linear feet of the 60‐inch and 72‐inch diameter Joint Intercepting Implementing Department
Public Works
Project Phase Project Completion
Construction Summer 2025
Rehabilitation Sewer (JIS) trunk line leading to the Regional Water Quality Control Plant (RWQCP). The entire trunk sewer line, (Phase 1)
(WQ‐24000)
constructed in 1972, is approximately 9,000 feet long consisting of thirteen manholes and three junction structures.
The JIS conveys raw wastewater mainly from the City of Mountain View, City of Los Altos, Los Altos Hills, and a portion of Palo Alto, which accounts for more than half of the RWQCP’s influent flows. A construction contract was awarded in winter 2024. Construction is 23% complete and is scheduled to be completed by summer 2025.
New
Laboratory
and
Prior Years Actuals Total Project Budget
$363,705 $17,051,434
Project Status: This project was originally envisioned to replace the existing plant laboratory and environmental Implementing Department
Public Works
Project Phase Project Completion
Pre‐Design Fall 2030
Environmental services offices. Staff is currently revising space planning assumptions as the City and RWQCP are investigating the Services
Building
(WQ‐14002)
potential acquisition of a property adjoining the RWQCP and have put further design efforts on hold. The original design contract was terminated in March 2021. Solicitation for engaging a new consultant for detailed design will begin after advanced planning and siting analysis are completed as part of the Long‐Range Facilities Plan Update.
Wastewater Treatment Fund Projects – Page 2 of 4
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Wastewater Treatment Fund Projects Status as of December 2024 Recommendations from the Long Range Facilities Plan Update, anticipated to be completed in winter 2027, will help determine the direction the RWQCP will pursue to address this item.
Outfall Line
Construction
(WQ‐19000)
Prior Years Actuals Total Project Budget
$0 $18,237,754
Implementing Department
Public Works
Project Phase Project Completion
Design Summer 2027
Project Status: This project consists of the construction of a new parallel outfall pipe to convey final plant effluent to San Francisco Bay. A re‐design of the pipeline is needed to accommodate a potential future runway shift at Palo Alto Airport. Staff is currently working with the Airport staff and Federal Aviation Administration (FAA) to gain FAA concurrence for the pipeline construction and permanent easements on Airport property. The re‐design is anticipated to begin in 2025, moving immediately to construction upon design completion.
Secondary
Treatment
Upgrades
Prior Years Actuals Total Project Budget
$76,312,534 $193,322,311
Implementing Department
Public Works
Project Phase Project Completion
Construction Summer 2028
Project Status: This project upgrades the Secondary Treatment process at the RWQCP. The existing Secondary Treatment process has two main components, the Fixed Film Reactors (FFR) and the Activated Sludge (AS) Process.
This project includes the reconstruction of the AS process, rehabilitation and reconfiguration of the AS Aeration Basins, the elimination of the FFRs, addition of denitrification capabilities, and replacement of equipment beyond its useful life. Construction began in winter 2023 with the completion of new nitrification denitrification treatment and retirement of the FFR’s is expected in 2028. Construction is still in progress with much of the underground support infrastructure in place. Reconfiguration of the first AS Aeration Basin is completed with the basin and is anticipated to be online in winter 2025.
(WQ‐19001)
Wastewater Treatment Fund Projects – Page 3 of 4
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Wastewater Treatment Fund Projects Status as of December 2024 Recurring Projects
Plant Master
Plan
Prior Year Actuals
$559,871
Current Year Budget
$442,061
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
(WQ‐10001) Project Status: This project enables the ongoing program management support for major capital projects. Current tasks include developing scopes of work, evaluating consultant proposals, coordinating project management activities, pursuing State low‐interest loans for multiple projects, and updating partner agreements. The consultant provides support for the projects associated with the Long‐Range Facilities Plan (LRFP) update.
Plant Repair,
Retrofit and
Equipment
Prior Year Actuals
$5,804,943
Current Year Budget
$13,727,555
Implementing Department
Public Works
Project Phase Project Completion
N/A Recurring
Project Status: This project enables the assessment, repair, and retrofit of the RWQCP’s concrete and metal structures; Replacement the replacement of necessary equipment and ancillary facilities, including electrical equipment/systems, to maintain (WQ‐19002) treatment reliability and existing infrastructure; and the replacement of large diameter flow meters built into the wastewater treatment system on sewers, pipes, and water lines. Design of the 12 kV Electrical Loop Upgrade Project was completed in spring 2022. A construction contract for phase 1 was executed in winter 2023 and completed in fall 2024. A construction contract for Phase 2 was executed in fall 2024 and is scheduled to be completed by fall 2026.
Wastewater Treatment Fund Projects – Page 4 of 4
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Water Fund Projects Status as of December 2024
One‐Time Projects
Water Main
Replacement
Project 29
Prior Years Actuals Total Project Budget
$3,888,047 $9,307,828
Implementing Department Project Phase Project Completion Utilities Completed Summer 2024
Project Status: This project funded the design and replacement of structurally deficient water mains and appurtenances. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and/or subject to breaks. The project scope includes approximately 7,500 linear feet (which represents 0.6 percent of the City’s Water Distribution System) of mains and services on various streets within the City, including areas in the Evergreen Park and Ventura neighborhoods. Construction started in November 2023 and was completed in September 2024.
(WS‐15002)
Water Main
Replacement
Project 30
Prior Years Actuals Total Project Budget
$5,371 $9,809,000
Implementing Department Project Phase Project Completion Utilities Design Spring 2026
Project Status: This project will fund the replacement of structurally deficient water mains and appurtenances in Fiscal Year 2026. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and subject to breaks. The project scope includes approximately 10,000 linear feet (which represents 0.8 percent of the City’s Water Distribution System) of mains and services on various streets within the City, including areas in Midtown/Midtown West, Palo Verde, and Green Meadow neighborhoods. The design is approximately 50% complete at the midpoint of FY 2025. (WS‐16001)
Water Recycling Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Utilities Pre‐Design Fall 2027Facilities $710,106 $852,674 (WS‐07001) Project Status: This project allows the City to hire a consultant to prepare a business plan, prepare preliminary design, and secure funding options for an expansion of the existing recycled water delivery system in the City. The expansion pipeline is one of several water reuse projects being considered in the Northwest County Recycled Water Strategic Plan. One Water Plan development is underway to evaluate alternative water supplies, define existing and future uncertainties and supply risks, and identify community needs and priorities. Funding contribution from Water Fund Projects – Page 1 of 5
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
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Water Fund Projects Status as of December 2024
the Water Fund to the Recycled Water project has ended and funding for Operations and Maintenance will be reviewed for budget cycle FY 2027.
Water Tank
Seismic Upgrade $9,944,241
Prior Years Actuals Total Project Budget
$26,816,199
Implementing Department Project Phase Project Completion Utilities Construction Fall 2028
and
Rehabilitation
(WS‐09000)
Project Status: This project for Seismic Water System Upgrades includes seismic upgrades at the Montebello, Mayfield, Corte Madera, Park, Boronda, and Dahl Reservoirs in compliance with the American Society of Civil Engineers (ASCE 7) seismic codes. Mayfield Reservoir was seismically retrofitted in 2011. Seismic upgrades of Boronda and Montebello Reservoirs were completed in 2016 and 2018. The new concrete Corte Madera Reservoir was completed in April 2022. The Park Reservoir and Dahl Reservoir Tanks are scheduled next for retrofit or replacement. An Engineering and structural assessment of Park Reservoir was completed in spring 2023, and Dahl Reservoir will be assessed in 2025.
Recurring Projects
Water Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Distribution
System
Improvements
(WS‐11003)
$161,813 $975,388 Utilities N/A Recurring
Project Status: This project enables improvements to water distribution system deliverability and reliability. Typical activities include installing restraining joints at critical pipelines and bridge crossings, increasing the size of inadequate facilities, system leakage surveys, network modeling, and fire flow studies or other system improvements as required. Continuous evaluation of system needs and making required improvements is necessary to maintain adequate quantities of quality water, meeting local, state, and federal safe drinking water standards. The Pump Station Painting project to paint the five foothill pump stations was completed in May 2024.
Water Fund Projects – Page 2 of 5
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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Water Fund Projects Status as of December 2024
Services for a full system leakage survey of the water distribution system will be solicited in 2025 and the work is expected to be completed by 2026.
Water, Gas,
Wastewater
Utility GIS Data
(WS‐02014)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $249,154 $578,800 Utilities N/A Recurring
Project Status: This project enables contracts related to Utilities GIS (Geographic Information System) needs. AME database is heavily utilized by Utilities Engineering staff to update the utility information in GIS. The updated information is used by various City staff, such as marking/locating underground utilities to comply with USA (Underground Service Alert) requirements; developing design drawings for pipeline replacement projects; verifying existing underground utilities during construction activities; creating customized utility map books for field crews and on‐call personnel to meet their specific needs. Annual surveying contracts collect GPS points of existing above‐ ground utility features within CIP project areas. The data being collected continues to be used to correct the GIS database. Accurate utility data helps the design to select new pipe alignment to minimize construction conflicts and provides data for additional road feature linework to be corrected in the older GIS/AVEC database via ESRI.
Water General Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Equipment/Tools $0.00 $100,000 Utilities N/A Recurring
(WS‐13002) Project Status: This project acquires new equipment and tools, the replacement of existing fusion equipment, and other associated tools. The fusion equipment is used to fuse together pipe joints in the City's water distribution system. Equipment and tools are required to be upgraded on an annual basis to maintain high quality standards for the installation of the City's water distribution mains, along with the associated service standards and worker safety and productivity measures. There were no purchases of equipment or tools in the first half of FY 2025.
Water Meters Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion (WS‐80015) $2,801,577 $367,440 Utilities N/A Recurring
Water Fund Projects – Page 3 of 5
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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Water Fund Projects Status as of December 2024
Project Status: This project enables the purchasing of meters for new customers, upgrading meters for current customers, installing meter bypasses, and replacing obsolete meters that are no longer repairable. This funding also allows for annual testing and calibration of selected meters to maintain meter accuracy and reliability. During the AMI implementation process, approximately 50% of the meters will be replaced, with a focus on meters more than twenty years old. Staff is currently testing large diameter meter sets. Staff continues to test additional larger diameter meters.
Water Service
and Hydrant
Replacement
(WS‐80014)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $152,163 $412,000 Utilities N/A Recurring
Project Status: This project replaces system control valves, deteriorated galvanized service lines, lead goosenecks, and fire hydrant valves and assemblies per the Fire Department’s flow testing, upgrades fire hydrants in main line replacement project areas, replaces damaged fire hydrants, and replaces existing undersized or deteriorated copper water services on an as needed basis. Staff has been working on an extensive valve audit and to date have operated and evaluated approximately 74% of the City’s 6,500 water valves. This project will be increasing work to replace inoperative and leaking valves identified during this audit process. This project will be increasing work to replace inoperative and leaking valves identified during this audit process. In addition, the City will be doing additional work to look for possible lead whips in our distribution system as we continue to comply with the new lead and copper rule revisions (LCRR).
Water System
Customer
Connections
(WS‐80013)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $1,187,207 $960,500 Utilities N/A Recurring
Project Status: This project allows for improvements that include new main extensions, valves, domestic services, meters on upgraded services, backflow devices, fire services, and fire hydrants. System extensions are required to provide service to new large developments and to serve existing customers requesting expanded service on Development Services projects. A total of 70 water services were installed in the first half of FY 2025.
Water Fund Projects – Page 4 of 5
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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Water Fund Projects Status as of December 2024
Water System
Supply
Improvements
(WS‐11004)
Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $23,648 $4,133,706 Utilities N/A Recurring
Project Status: This project evaluates and improves the City’s water distribution system on an as‐needed basis. This project includes piping modifications, equipment replacements associated with water delivery, supervisory control software upgrades, system modifications for water system quality compliance, conditional assessment of the reliability of transmission mains, and security system installations. The water system includes the connection facilities between the City’s and the San Francisco Public Utility Commission’s pipelines, emergency water wells within the City’s pumping stations, water reservoirs, and pipelines. Security cameras will also be added to various tanks, pump stations, and turnouts as part of the Security Cameras project. Two new generators have been purchased and will be deployed in FY 2025.
Water Fund Projects – Page 5 of 5
Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date Airport Zero Emission
AP‐23000 Vehicle Fleet Replacement
This project provided the funding to replace existing support vehicles used by Airport staff with zero emission vehicles. The Airport received delivery of the final new electric truck in fall 2024 which replaced both airport vehicles with electric vehicles.
Procurement Airport Airport Summer
Fall
2024
2024
2024
$
$
$
377,696.00
276,461.00
205,627.00
Program
This project provided funding for the identification and implementation of a long‐term repair solution to damage caused by aquatic borers to the Lucy Evans Baylands Interpretive Center’s boardwalk pilings. The project received permits from the San Francisco Bay Regional Water Quality Control Board, Bay Conservation and Development Commission, United States Fish and Wildlife Services, and United States Army Corps of Engineers. Project construction was completed in October 2024.
Baylands Boardwalk Piling
Repair
Buildings and
FacilitiesPE‐24000 Construction
Construction
Public Works
This project upgraded and renovated safety and accessibility features at Cameron Park with a PG‐14002 Cameron Park Improvements primary focus on the park playground improvements. The Cameron Park Improvements Project Parks and Open Space
Community
Services Fall
were completed in November 2024.
This project provided a complete Facility Condition Assessment (FCA) to renew cost estimates of the deferred maintenance, planned maintenance, capital renewal and electrification costs of city City Facilities Assessment
PE‐20002 and Record Plan
facilities over the next 30 years.ꢀ A detailed list of buildings for electrification has been analyzed to determine prioritization to help meet SCAP goals. The data has been updated into the City of Palo Alto’s newly customized Infrastructure Management System to provide long range capital planning based on the results of the FCA. The Record Plan Management System is being implemented through TE‐13004. The project reached completion in fall 2024.
Buildings and
FacilitiesConstruction Public Works Fall 2024 $ 333,134.00 Management Systemꢀꢀꢀꢀ
This project added 407 linear feet of new twenty‐four inch high density polyethylene (HDPE) to be parallel to the existing thirty‐six inch pipe within East Meadow Drive to increase the capacity of the storm drain system. This project included upsizing manholes based on new pipes and reconnecting laterals from private property and catch basins. Project was completed in September 2024.
East Meadow Drive System
Upgrades
Stormwater
ManagementSD‐22000 Construction
Construction
Public Works
Public Works
Summer
Summer
2024
2024
$
$
636,405.00
634,016.00
This project installed 506 linear feet of fifteen‐inch pipe and manholes along East Meadow Circle.
The upgraded line will eliminate flooding that occurs within East Meadow Circle when the water level within Barron Creek is higher than the flap‐gate, and flows are not able to drain into theEast Meadow Circle Stormwater ManagementSD‐26000 Connection to Adobe Creek creek. The new fifteen‐inch HDPE line extension allows flows to drain away from Barron Creek Pump Station and into Adobe Creek, where they can be pumped. The project also included a small bioretention area to treat low flow runoff within East Meadow Circle before discharging into either creek. The project was completed in September 2024.
This project included both the design and construction of a large trash capture device (TCD) installed in the planting strip along Embarcadero Road located in front of the Palo Alto Baylands Golf Links parking lot. The TCD was integrated into a thirty‐six inch storm pipe to capture trash as small as five millimeters from a section of the storm drain system prior to discharging to the San Francisco Bay. The 189‐acre drainage area treated by the TCD consists of 169 acres of commercial and office land use in the City’s jurisdiction and twenty acres in the California Department of Transportation (Caltrans) right‐of‐way. Construction was completed October 1, 2024.
Trash Capture Device
Installation
Stormwater
ManagementSD‐22002 Construction Public Works Fall 2024 $ 818,837.00 1 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project installed two 12 kV 50 MVA transformers to replace two 4kV transformers that served 1501 Page Mill Road and make all substation improvements necessary to accommodate the installations. Project construction is 100% complete and new Hanover substation transformers and switchgear have been successfully tested and commissioned and released to the Utility Operations group. Final project close out and settlement of Public‐Private Partnership Contract between the City and Tesla still remain.
Hanover Substation
ImprovementEL‐24001 Construction Electric Utilities Fall 2024 $ 15,000,000.00 This project funded the design and replacement of structurally deficient water mains and appurtenances. Mains are selected by researching the maintenance history of the system and identifying those that are undersized, corroded, and/or subject to breaks. The project scope included approximately 7,500 linear feet (which represents 0.6 percent of the City’s Water Distribution System) of mains and services on various streets within the City, including areas in the Evergreen Park and Ventura neighborhoods. The project was completed in September 2024.
Water Main Replacement
Project 29WS‐15002
OS‐24000
Construction
Construction
Water Utilities Fall 2024 $
$
9,307,828.00
132,701.00
This project installed a new automated gate at the Baylands Nature Preserve main entrance. The existing gate was manually opened and closed by staff each day for public access. The scope of work included an electrical transformer, trenching, wiring, and gate automation equipment. The project started June 24, 2024 and reached substantial completion on June 30, 2024.
Baylands Nature Preserve
Entrance Gate
Parks and Open
Space
Community
Services Spring 2024
The Charleston Arastradero Corridor was reconfigured to provide new landscaped median islands, bulb outs, enhanced bike lanes, traffic signal improvements, and new street trees to complement the new lane configurations that were approved for permanent retention. Phase 1 (Arastradero Road between Foothill Expressway to Clemo Avenue), Phase 2 (Charleston Road from Alma Street to Middlefield Road) and Phase 3 (Arastradero Road from Los Palos Avenue to El Camino Real, Charleston Road from El Camino Real to Alma Street and from Middlefield Road to San Antonio Road) have all been completed as of spring 2024.
Charleston Arastradero
Corridor Project
Traffic and
TransportationPE‐13011 Construction
Construction
Public Works Spring
Spring
2024
2024
$ 20,788,951.00
This project funded the design and construction of high priority main replacement work, which reduces inflow of rainfall and groundwater into the collection system. The project replaced approximately 11,000 linear feet (which represents 1.0 percent of the City's Wastewater Collection System) for El Camino Real from Page Mill Road to Cesano Court, and Page Mill Road from Ramos Way to Ash Street. The project wais comprised of mains identified in video inspection work or through maintenance records as structurally deficient and in need of replacement. The work was in Caltrans (El Camino Real) and the County of Santa Clara (Page Mill Road) right‐of‐way. Construction was completed May 5, 2024.
Wastewater Collection
WC‐19001 System Rehabilitation Wastewater
Collection Utilities $ 8,635,244.00
Augmentation Project 31
This project enabled the design and construction for new protective coatings on each of the four concrete primary sedimentation tanks, with replacement of worn rotating parts and mechanical and electrical equipment. These tanks were installed in 1972 and the recoating project will will extend the concrete life for another thirty years. Substantial completion was achieved on June 1, 2024.
Primary Sedimentation Tank
Rehabilitation
Wastewater
TreatmentWQ‐14003
WS‐07000
Construction
Construction
Public Works Spring
Spring
2024
2024
$
$
20,449,644.00
2,960,477.00
This project for Water Regulation Station Improvements included seismic upgrades, piping improvements and other various upgrades to increase the structural reliability of two of the City's turnouts with SFPUC. Work under this project includes Seismic Upgrades of California Avenue and Page Mill Road Turnouts. Structural evaluation for restraining the Page Mill turnout and piping was included in the design. The construction was completed in May 2024.
Water Regulation Station
Improvements Water Utilities
2 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
77 Packet Pg. 345 of 413
List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project incorporated renovations to the Utilities Water Gas Wastewater (WGW) office space at the Municipal Service Center (MSC). The new work area includes a small reception area, a renovated kitchen and printer area, additional offices and cubicles, upgrades to the HVAC system, lighting improvements and fire life safety systems upgrade. Construction was completed in April 2023.
Water, Gas, Wastewater
Office Remodel
Buildings and
FacilitiesPE‐19001 Construction Public Works Spring
Winter
Spring
Spring
2023
2023
2023
2023
$
$
$
$
1,234,354.00
298,200.00
This project provided funding for the replacement of all extrication tools for the Fire Department. Extrication tools, also known as "Jaws of Life", are used to rescue victims of car accidents and other emergencies where the victims are trapped in confined spaces. Equipment was purchased in winter 2023 and the project is complete.
Buildings and
Facilities
Fire
DepartmentFD‐22000 Extrication Tool Replacement Procurement Construction
Construction
This project has replaced approximately 18,600 linear feet (which represents 1.6% of the City's water distribution system) of mains and 265 services on various streets in the City, including areas in the Duveneck, St. Francis, Barron Park and Charleston Meadows neighborhoods.
Construction started in April 2022 and the project was substantially completed in spring 2023.
Water Main Replacement
Project 28WS‐14001 Water Utilities
Utilities
10,305,619.00
4,656,777.00
This project included the design and construction of high priority mains with structural defects that could not be addressed with routine maintenance. The wastewater mains on various streets in the City were replaced with approximately 10,000 linear feet of HDPE sanitary sewer mains and associated laterals in the Ventura, Charleston Meadows, Fair Meadow, and Palo Verde neighborhoods. The project achieved substantial completion in April 2023.
Wastewater Collection
WC‐17001 System Rehabilitation Wastewater
CollectionAugmentation Project 30
This project included the design and reconstruction of the Palo Alto Airport apron. The need to reconstruct the aircraft parking apron is critical to airport safety. Construction Phase I was completed in November 2017. Construction Phase II was completed in winter 2020.
Construction on Phase III reached substantial completion in June 2023 Airport Apron
ReconstructionAP‐16000 Construction
Construction
Airport Airport Spring 2023
2022
$
$
41,563,570.00
857,380.00
This project replace rubberized and synthetic turf surfacing in the playground and replace play Magical Bridge Playground equipment including swings, climbing net, and playhouse. An IFB was issued in November 2021 Parks and Open SpacePE‐21003 Rubber and Synthetic Turf and Council awarded a construction contract in spring 2022. Installation of rubberized and synthetic surfacing, replacement of climbing nets and renovation of the playhouse took place in fall 2022. Project was completed in December 2022.
Public Works Fall
Resurfacing
3 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project designed and constructed approximately 21,700 linear feet (which represents 1.9% of the City's Gas distribution main system) of distribution main and 320 gas services constructed mainly of PVC material on various streets within the Midtown, Evergreen Park, Ventura, College Terrace, Charleston Terrace, and Research Park neighborhoods. Construction began in winter 2021and was completed in summer 2022
Gas Main Replacement
Project 23GS‐13001 Construction Gas Utilities Summer 2022 $ 7,951,858.00 This project replaced the entire complement of Automated External Defibrillators (AEDs) throughout City facilities and emergency response vehicles, which currently totals 93 AEDs. The RFP process was completed in fall 2021. The new AEDs were purchased and deployed in summer 2022.
Automated External
Defibrillator Replacement
Buildings and
Facilities
Fire
DepartmentFD‐21000
PF‐17000
Procurement
Construction
Summer
Fall
2022
2022
$
$
237,500.00
This project replaced the existing MSC roofs. The existing asphalt and gravel roofs have reached the end of their useful life and needed to be replaced. The new roofs will meet current cool roofing codes to optimize energy efficiency. Construction was completed in November 2022.
Municipal Service Center A,
B, & C Roof Replacement
Buildings and
Facilities Public Works
Utilities
2,013,475.00
This project installed capacitor banks at electric substations and on distribution lines to ensure Northern California Power Association Power Factor requirements are met. Capacitor banks EL‐16002 Capacitor Bank Installation were installed at Hanover Avenue, Hansen Way, Maybell Avenue, and Park Boulevard Substations. The project was substantially completed in June 2022 and will be commissioned and energized in summer 2022.
Construction Electric
Electric
Spring 2022 $ 1,050,443
Facility Relocation for
EL‐17007 Caltrain Modernization
Project
The Utilities Department removed the overhead lines allowing for the installation of the Overhead Catenary System above the rails for the Caltrain Modernization. This project was completed in spring 2022
Construction
Construction
Utilities Spring
Spring
2022
2022
$
$
3,055,472
4,646,247
This project upgraded safety, site amenities, playground facilities, a new restroom, irrigation, drainage, and ADA accessibility improvements at Rinconada Park. These improvements were identified in the Rinconada Long Range Plan (LRP). Phase 1 of construction started in August 2021 and construction was completed in spring 2022.
Rinconada Park
Improvement
Parks and Open
SpacePE‐08001 Public Works
This project reconfigured the distribution circuits to the substation transformer at Quarry EL‐14005 Reconfigure Quarry Feeders Substation. Design of QR 27 feeder replacement was completed in spring 2021. Construction Construction Construction
Electric Utilities Fall
Fall
2021
2021
$
$
792,034
was completed in December 2021 .
This project provided for the relocation of the Junior Museum and Zoo to Cubberley for two years while a new JMZ was being built, tenant improvements to the Cubberley Auditorium and Buildings and Facilities
Community
ServicesAC‐18001 JMZ Renovation then removal of tenant improvements post‐construction. Construction of the new Junior Museum and Zoo started in June 2018 and was completed in late 2021. The new Junior Museum and Zoo was opened to the public on November 12, 2021.
2,927,870.00
4 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
79 Packet Pg. 347 of 413
List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project included a systems analysis and repaired the water proofing system in the High Street and Bryant Street parking garages. Water proofing repairs were completed in the High Street parking garage. Additional funding was added and the contractor completed waterproofing repairs in the subterranean stairwells in the Bryant Street garage in fall 2021.
High and Bryant Street
PE‐18002 Garages Waterproofing and Buildings and
FacilitiesConstruction Public Works Fall 2021 $ 264,235.00 Repairs
As part of the 2014 Council Infrastructure Plan, this project designed and constructed a new pedestrian bridge across Highway 101 at Adobe Creek. Council approved a contract with Granite Construction in November 2019. Construction began in January 2020. The project construction completed on November 20, 2021, with a ribbon‐cutting ceremony and a community celebration.
Highway 101 Pedestrian
Bicycle Overpass Project
Traffic and
TransportationPE‐11011
EL‐12001
Construction
Construction
Public Works Fall
Fall
2021
2021
$
$
22,889,453
3,904,425
This project undergrounded the existing overhead utility systems in the area along the 400 block of West Charleston and El Camino Real. Staff completed cable, equipment installation and 100% of customer service conversions. The construction for the final phase of the project to install two 60 foot tall steel poles and to reconductor the 60 kV sub‐transmission lines was completed in the fall 2021.
Underground District 46
Charleston Electric Utilities
This project improved the Pearson Arastradero Preserve parking lot by improving the base rock surfacing, adding drainage, widening the entrance for safety, and new fencing. This new improvement will allow the overflow parking area to be open year round. The work was completed in May 2021.
Pearson Arastradero
OS‐18001 Preserve Parking lot Parks and Open
Space
Community
ServicesConstruction
Study
Spring
Spring
Spring
2021
2021
2021
$
$
$
170,300
926,792
350,000
Improvement
Cubberley Community
Center Master Plan
This project developed the master plan for future use of the Cubberley Community Center site by the City and Palo Alto Unified School District.
Buildings and
Facilities
Community
ServicesCB‐16001
CB‐19001
This project replaced the Building management System(BMS) controls for the pavilion, Theater, Wing I, and Gyms A and B boiler rooms at the Cubberley Community Center. The project included the installation of control points for each building along with controllers, valve and damper actuators.
Cubberley Building
Management Systems
Buildings and
FacilitiesConstruction Public Works
Fire Ringdown System
Replacement
This project replaced the current ring down system that provides an audible alert of calls in the fire stations. Ongoing installations started in 2018 and were completed with Fire Station #3.
Buildings and
FacilitiesFD‐14002
PD‐14000
Construction
Construction
Fire Departent Spring
Winter
Spring
2021
2021
2021
$
$
$
400,144
77,569
94,500
Internal Alarm System
Replacement
The project replaced the citywide internal alarm system. The alarms at City Hall migrated to this new system in FY 2019, but was completed in early 2021.
Buildings and
Facilities
Police
Department
Self Contained Breathing
FD‐20001 Apparatus (SCBA) Air
This project replaced the central air compressor that provides air for the self‐contained breathing apparatus (SCBA) tanks to ensure firefighter safety when entering environments with hazardous Construction air quality.
Buildings and
Facilities
Fire
DepartmentCompressor Replacement
5 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
80 Packet Pg. 348 of 413
List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date Airport Electrical
Improvements
This project replaced the outdated electrical panels for the Palo Alto Airport office rental spaces.
Construction was completed in January 2021.AP‐20000 Construction Airport Public Works Winter Fall
2021
2020
$
$
146,466
This project built the California Avenue Area Parking Garage, as part of the 2014 Council Infrastructure Plan. The parking garage has 627 parking spaces with 2 basement levels and 4 above grade floors. The garage features an automated parking space guidance system, EV charging stations, bicycle parking, and motorcycle parking. The garage was opened to the public on December 8, 2020.
New California Avenue Area
Parking Garage
Buildings and
FacilitiesPE‐18000 Construction
Construction
Public Works
Public Works
50,119,976
This project updated the individual sleeping quarters in the firehouse to address gender issues and privacy concerns. Fire Station #1 was the only fire station in the City that did not have separate bedrooms to accommodate male and female firefighters. This project was completed in fall 2020.
Buildings and
FacilitiesPF‐14002 Fire Station 1 Improvements Fall
Fall
2020
2020
$
$
187,064
This project replaced gas services laterals constructed of Acrylonitrile‐butadiene‐styrene (ABS) or Tenite material on various streets. Council approved funding in June 2019. The project replaced 104 ABS and Tenite gas services. The WQCP ABS gas service is assigned to Utility Operations for replacement and the remaining five ABS gas services will be scheduled for replacement once the five‐year moratorium ends on those streets. As of November 2020, this project is complete.
Gas ABS/Tenite Replacement
ProjectGS‐18000
SD‐19000
WS‐19000
Construction
Construction
Gas Utilities
Utilities
2,615,100
This project replaced 1,750 linear feet of storm drain with 48‐inch diameter High Density Polyethylene (HDPE) pipe and associated catch basins, laterals and manholes. In addition to underground work, additional street restoration and concrete work was completed. Work includes resurfacing one full lane on Loma Verde from the beginning to the end of the project limits, replacement of driveways, sidewalk, and 718 linear feet of curb and gutter. The contract was awarded in June 2020, construction work began in August 2020, and was completed in December 2020.
Loma Verde Avenue Trunk
Line Improvements Storm Drain Fall 2020 $ 2,976,813
This project is part of the City’s recent Seismic Upgrade and Emergency Water Supply and Storage Projects. The reservoir was drained in 2012 for approximately two years to allow extensive seismic rehabilitation work to be performed and construction of a new pump station.
Subsequently hairline cracks were sealed in the reservoir. A geotechnical consultant was hired to Construction evaluate the tank foundation. This study was completed and there were several options identified. Staff has completed the design and construction of the vent screen replacement and crack sealing.
Mayfield Reservoir Subgrade
and Venting Repair Water Utilities
Utilities
Fall
Fall
2020
2020
$
$
600,000
This project undergrounded the existing overhead distribution system in the area bounded by Middlefield Road, Homer Avenue, Webster Street, and Addison Avenue. Installation of substructures and utility electric system is completed. Where possible, the overhead electric lines were removed and poles cut down to the level of the communication lines.
Underground District 47
EL‐11010 Middlefield, Homer, Construction Electric 3,649,356 Webster, Addison
6 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project replaced of 8,972 linear feet of wastewater mains. The sanitary sewer mains, laterals, and manholes to be rehabilitated or replaced in this project are located in the Charleston Meadows neighborhood. Construction started in February 2020 and was suspended for almost 3 months due to COVID‐19 County’s Shelter‐in‐Place Order. The project is complete as of December 2020.
Wastewater Collection
WC‐16001 System Rehabilitation Wastewater
CollectionConstruction Utilities Fall 2020 $ 4,434,839
Augmentation Project 29
This project modernized the existing elevators at parking Lot J. The project involves upgrading the interior of the elevators, elevator control interface, call buttons, and meeting current ADA standards. Construction started in April 2019. Project is complete except for the State final inspection on the second car. State is behind because of COVID, but the inspection should be done by the end of July 2020.
Parking Lot J Elevator
Modernization
Buildings and
FacilitiesPF‐18000 Construction
Construction
Public Works
Public Works
Spring
Winter
2020
2020
$
$
781,324
This project replaced the existing Fire Station at Embarcadero Road and Newell Road with a new PE‐15003 Fire Station 3 Replacement structure that meets essential services standards and current program needs. Construction Buildings and Facilities 10,080,258
completed in March 2020.
This project included the recoating of four steel tanks. Work under this project was included in the Seismic Upgrade of four Steel Tanks and the three Turnout Projects. Once construction started, it was found that the Montebello Reservoir was in very poor condition. Due to escalating Construction costs associated with roof replacement, staff decided to complete construction of the Montebello Reservoir and re‐evaluate the remaining three tanks for replacement.
Water Reservoir Coating
ImprovementsWS‐08001
WS‐13001
Water
Water
Utilities Spring 2020 $ 2,141,172
This project replaced approximately 9,600 linear feet of structurally deficient, aging, or corroded water mains and services along the mains on Sand Hill Road, Oak Creek Drive (5%) and Fulton Avenue.
Water Main Replacement ‐
Project 27 Construction
Construction
Utilities
Utilities
Spring
Spring
2020
2020
$
$
7,786,998
5,665,897
This project enabled the design and construction of a high priority wastewater main and lateral replacement work to reduce inflow of rainfall and ground water into the collection system. The project replaced or rehabbed a total of 7,655 linear feet of wastewater mains located in the Leland Manor/Garland, Midtown West, and Lower Page Mill/Los Altos Hills areas of the City.
Wastewater Collection Wastewater
CollectionWC‐15001 System Rehabilitation
Augmentation Project 28
This project met the growing electric needs of the VA Hospital. Staff has had numerous discussions with VA Hospital on electric load growth at the hospital and anticipated needs from the utility. Much of the cost is reimbursed to the City by the VA Hospital. Staff has prepared preliminary designs for interim solutions and is awaiting additional information from VA to develop long range plans to meet their future needs.
VA Hospital ‐ Customer Load
RequirementsEL‐17003 Design Electric Utilities Spring 2020 $ 84,984 7 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project added electronic security systems at utility sites to protect equipment at electric substations, water pumping plants, reservoirs, and gas stations from intrusion and vandalism.
Cameras and detection systems have been installed at nine electric substations, three water stations, and one natural gas station to monitor facilities.
Utility Site Security
ImprovementsEL‐04012 Construction Electric Utilities Spring Spring
2020
2020
$
$
1,644,681
149,023Rebuild Underground District This project rebuilt and replaced the underground electric system in Underground District 19, theEL‐11008 FD‐18000
Construction
Purchase
Electric Utilities19 area bounded by Forest Avenue, Waverley Street, Addison Avenue, and Alma Street.
This project replaced Self Contained Breathing Apparatus equipment (SCBA) used by firefighters when entering hazardous conditions when responding to fire and hazardous materials incidents.
The SCBA provides breathable air for firefighters when entering environments where the atmosphere is immediately dangerous to life or health. The expected service life for SCBAs is 15 years.
Self Contained Breathing
Apparatus Replacement
Buildings and
Facilities
Fire
Department Spring 2020 $ 799,999
This project replaced the entire complement of twenty cardiac monitors in the Department.
Along with other tools needed for patient assessment and airway verification, cardiac monitors assess cardiac activity in patients and provide defibrillation and pacing.
Cardiac Monitor
Replacement
Buildings and
Facilities
Fire
DepartmentFD‐20000
PL‐16001
Purchase Spring
Fall
2020
2019
$
$
850,000
Downtown Mobility and
Safety Improvements
This project included the construction of curb extensions and the installation of new pedestrian signal heads and traffic signal modifications in 2019 as part of the Upgrade Downtown project.
Traffic and
Transportation Transportation
Office ofConstruction 1,819,847
This project replaced the Thermal Imaging Cameras (TICs) on all fire and response vehicles used to help identify the location of victims; assess the source of fires, smoke, and heat; to assist in creating a plan of action.
Thermal Imaging Cameras
Replacement
Buildings and
Facilities
Fire
DepartmentFD‐20002 Purchase Fall 2019 $ 99,000
Wastewater Collection
WC‐11000 System Rehabilitation
This project addressed areas that were identified in Wastewater Capital Improvement Project 17 (Cleaning and Video Inspection of the Collection System) as needing rehabilitation. This project was combined with Project 25 and 26(WC‐12001; WC‐13001).
Wastewater
CollectionConstruction Utilities
Utilities
Fall
Fall
Fall
2019
2019
2019
$
$
$
3,131,595
3,309,998
1,851,708
Augmentation Project 24
Wastewater Collection
WC‐13001 System Rehabilitation
Augmentation Project 26
This project was combined with Project 24 and 25(WC‐11001; WC‐12001). All new service laterals were installed from the new sewer main to the new sewer cleanouts located in the City’s Construction right‐of‐way.
Wastewater
Collection
Cubberley Track and Field
Replacement
Parks and Open
SpaceCB‐19000
PE‐14018
This project replaced the synthetic turf field, installed an all‐weather track and a fitness area. Construction Public Works Baylands Boardwalk
Improvements
Buildings and
FacilitiesThis project replaced the existing boardwalk with similar alignment and configuration. Construction Construction
Public Works
Public Works
Winter
Winter
2019
2019
$
$
2,123,681
494,818This project improved the Administrative Services Department offices on the fourth floor of City Hall.
Buildings and
FacilitiesPE‐17009 City Hall Floor 4 Remodel
8 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
83 Packet Pg. 351 of 413
List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date Lucie Stern Buildings
PE‐14015 Mechanical and Electrical
This project replaced and upgraded the mechanical, electrical, and fire/life safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Theater, and Lucie Stern Community Center.
Buildings and
FacilitiesConstruction Public Works Spring 2019 $ 6,142,607 Upgrades
Planning and
Community
Environment
Quarry Road Improvements This project included planning, design and construction of bicycle and pedestrian improvements Traffic and TransportationPL‐16000
EL‐17008
Construction
Construction
Spring
Winter
2019
2019
$
$
5,148,378
499,997
and Transit Center Access along Quarry Road.
Utility Control Center
Upgrades This project upgraded the Utility Control Center working environment. Electric Gas
Utilities
Gas Main Replacement
Project 22
This project replaced approximately 23,700 linear feet of gas mains and services along University Avenue and other streets in the Downtown North nieghborhood.GS‐12001 Construction Construction
Construction
Construction
Construction
Utilities Spring
Spring
Spring
Spring
Summer
2019
2019
2019
2019
2018
$
$
$
$
$
11,658,997
3,211,998
27,497,551
7,506,161
525,000
Wastewater Collection
WC‐12001 System Rehabilitation / This project was combined with Project 24 and 26 (WC‐11001; WC‐13001) replacing 45,294 linear feet of sanitary sewer mains in university South, Professorville and Old palo Alto neigborhoods.
Wastewater
Collection Utilities
Public Works
Utilities
Augmentation Project 25
Dewatering and Loadout
Facility
This project provides funding for the design and construction of the sludge dewatering facility and truck loadout to retire existing dewatering and sewage sludge incinerators.
Wastewater
TreatmentWQ‐14001
WS‐12001 Water Main Replacement – This project replaced approximately 11,000 linear feet of aging water mains and services which WaterProject 26 included water main replacement as part of the Upgrade Downtown Project.
This project improved the Planning and Community Environment (PCE) Department offices on the fifth floor of City Hall.
Buildings and
FacilitiesPE‐17009 City Hall Floor 5 Remodel Public Works Baylands Nature Interpretive This project replaced worn out or non‐functioning exhibits at the Baylands Nature Interpretive Center Exhibit Improvements Center.
Buildings and
Facilities
Community
ServicesAC‐14001
PE‐17000
PD‐14000
Construction
Construction
Construction
Summer
Summer
Summer
2018
2018
2018
$
$
$
56,000
250,000
78,000
Mitchell Park Adobe Creek
Bridge Replacement
Parks and Open
SpaceThis project replaced the existing bridge over Adobe Creek in Mitchell Park. Public Works PoliceInternal Alarm System
Replacement
This project replaced the citywide system of panic alarms from various departments and the Council chambers.
Buildings and
Facilities
Maybell 1&2 4/12kV
ConversionEL‐14004
GS‐15001
This project converted circuits 1 & 2 at Maybell substation from 4kV to 12kV. Construction Construction
Electric
Gas
Utilities
Utilities
Fall 2018
2018
$
$
364,796
150,000Security at City Gas Receiving
Stations This project equiped the City’s four Gas Receiving Stations with video surveillance systems. Summer Matadero Creek Storm
SD‐13003 Water Pump Station and This project upgraded the capacity to the Matadero Creek Storm Water Pump Station, which serves a low‐lying 1200‐acre area of southeastern Palo Alto. Construction Storm Drain Public Works Summer 2018 $ 6,685,317 Trunk Line Improvements
9 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Department CMR Date Wildlife Hazard Management The Wildlife hazard Management Plan identified the specific actions the airport will take toAP‐16002 Study Construction
Study
Airport Public Works
Utilities
Summer
Winter
Spring
2018
2018
2018
$
$
$
63,415
4,022,455
167,741
Plan mitigate the risk of wildlife strikes on or near the airport.
Wastewater Collection
WC‐14001 System Rehabilitation This project replaced 16,859 linear feet of sanitary sewer mains of various sizes on various streets.
Wastewater
CollectionAugmentation Project 27
Buckeye Creek Hydrology
Study
This project analyzed flooding conditions and recommended flood control structures and drainage and erosion control solutions for the creek located within Foothills Park.
Parks and Open
SpacePG‐15000 Public Works
CalTrain Corridor Video
PE‐17004 Management System This project replaced two existing gateway signs in the right‐of‐way for the California Avenue business district.
Streets and
SidewalksConstruction
Construction
Study
Public Works
Public Works
Spring
Fall
2018
2017
2017
2017
2017
2017
2017
$
$
$
$
$
$
$
1,550,000
170,608
Installation
Parking Lot Q Elevator
Modernization
Buildings and
FacilitiesPF‐16003
PE‐13003
This project modernized the existing elevator at Parking Lot Q.
Parks, Trails, Open Space,
and Recreation Master Plan parks, trails, open space and recreational programs.
This master plan provided guidance on the recreation and improvement needs for Palo Alto’s Parks and Open Space
Community
Services Fall 627,057
This project developed a plan for short, medium and long range improvements to the regional PE‐12003 Rinconada Park Master Plan park including the consideration of pathways, new restrooms and playgrounds, new landscaping, Parks and Open Space
Community
ServicesStudy Fall 541,355
and revitalization of underutilized areas within the park.
The project developed an inventory of all City‐owned bridges and culvert structures, condition assessment, cost estimate for rehabilitation, and recommendation for future inspection frequencies, assessment and improvements.
Structural Assessment of City
Bridges
Buildings and
FacilitiesPE‐13012 Study Public Works
Utilities
Fall 198,529
Wastewater Collection
WC‐11000 System Rehabilitation /
Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced and/or rehabilitated approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes.
Wastewater
CollectionConstruction
Construction
Fall 3,119,806
3,361,118
Augmentation Project 24
Wastewater Collection
WC‐13001 System Rehabilitation /
Augmentation Project 26
Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced and/or rehabilitated approximately 42,398 linear feet of sanitary sewer mains of various sizes, 779 sewer laterals, and 121 sewer manholes.
Wastewater
Collection Utilities Fall
Golf Reconfiguration and
PG‐13003 Baylands Athletic Center
Improvements
This project completed the rehabilitation of the Palo Alto Municipal Golf Course, including a new layout for the course, new prefabricated restroom, new water‐saving turf and irrigation system, and rebranded the course as the Baylands Golf Links.
Parks and Open
SpaceConstruction
Construction
Public Works
Utilities
Fall 2017
2017
$
$
13,675,177
2,364,937Gas Main Replacement –GS‐11000 This project combined with GWR 19B & GMR 20 and replaced ABS gas mains and services. Gas WinterProject 21 10 Item A
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on the Status of Capital
Improvement Program Projects
Item A: Staff Report
Pg.
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List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type Fund Source Water
Department
Utilities
Utilities
Utilities
Utilities
Utilities
Utilities
CMR Date
This project provided installation of approximately 11,869 linear feet of new High Density Polyethylene (HDPE) water mains, 232 new HDPE water services, and 15 new fire hydrants within Construction the City limits.
Water Main Replacement –
Project 25WS‐11000 Winter
Spring
Winter
Spring
Winter
Winter
Fall
2017
2017
2017
2017
2017
2017
2016
2016
2016
$
$
$
$
$
$
$
$
$
$
$
$
5,445,069
500,000
1,272,289
696,918
208,648
400,000
1,499,979
94,419
The 2015 Water System Master Plan identified present capital improvements and replacement rates required to ensure optimal reliability levels of service to the existing distribution and transmission systems.
WS‐15004 Water System Master Plan Study Water
Wastewater Collection
WC‐10002 System Rehabilitation /
Augmentation Project 23
Combined with Project 22 (WC‐09001). This project replaced and/or rehabilitated approximately 33,497 linear feet of sanitary sewer mains of various sizes, 554 sewer laterals, and 102 sewer manholes.
Wastewater
CollectionConstruction
Construction
Street Light System Street
EL‐10009 Light System Conversion
Project
This project converted HPS streetlights to LED and the conversion of approximately 4500 cobrahead streetlight fixtures. Electric
Electric
Electric
Sand Hill / Quarry 12kV
InterTieEL‐13006
EL‐15001
This project installed new wire to connect circuits QR‐24 and QR‐27 in the Sand Hill/Quarry area. Construction Electric Substation Battery
Replacement This project replaced the batteries in all nine of the City's electric substations.
This project replaced the synthetic turf at the Stanford/Palo Alto Playing Fields.
Construction
Construction
Construction
Construction
Construction
Construction
Construction
Stanford/Palo Alto Playing Parks and Open
Space
Community
ServicesPG‐13001 Fields Soccer Turf
Replacement
Park Maintenance Shop
Remodel
This project renovated and remodeled the Parks maintenance shop for safety and efficienciency upgrades.
Parks and Open
Space
Community
ServicesPG‐09003
PE‐12017
Summer
SummerCity Hall First Floor
Renovations
This project installed new elevator control panels and replaced the gray‐painted panels inside the elevators.
Buildings and
Facilities Public Works
Public Works
Public Works
3,974,963
156,254
889,452
421,126
This project created a temporary main Library to be used while the new one was being constructed.
Buildings and
FacilitiesPE‐11012 Temporary Main Library
The project replaced decking, railings, structural framing members, exterior wood flooring, and cabinetry, restroom reconfiguration, and provided Americans with Disabilities Act (ADA) improvements.
Baylands Nature Interpretive
Center Facility Improvement
Buildings and
FacilitiesPE‐15029 Spring 2017
2016
This project improved the children’s playground and included park amenity upgrades such as new playground equipment, a new retaining wall, surfacing and pathway upgrades, planting restoration and irrigation renovations, and replaced of damaged wood benches and the playground perimeter fence.
Parks and Open
Space
Community
ServicesPE‐13008 Bowden Park Improvements Summer
11 Item A
Attachment A - Semiannual Update
on the Status of Capital
Improvement Program Projects
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List of Completed Projects
Season
Completed Completed
Year Total Project Budget
**CIP # Project Name Project Description Project Type
Construction
Construction
Construction
Construction
Fund Source Department
Public Works
Public Works
Public Works
CMR Date
Parks and Open
SpacePE‐13020 Byxbee Park Trails This project provided trail and site amenities over the remaining area of the landfill cap. Fall 2016 2017
2016
2017
2017
2016
2016
2016
2016
2015
$
$
$
$
$
$
$
$
$
334,607
440,000
3,247,248
65,000
This project improved the Utilities Department administrative offices on the third floor of City Hall. It included new carpet, wall reconfiguration, a kitchenette, cabinets, paint, soundproofing, office furniture, doors, and associated building systems.
Buildings and
FacilitiesPE‐17002 City Hall Floor 3 Remodel Spring
Lucie Stern Buildings
PE‐14015 Mechanical and Electrical
Upgrades – Phase 1
This project replaced and upgraded the mechanical, electrical, and fire/life safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Theater, and Lucie Stern Community Center.
Buildings and
Facilities Summer
Winter
Spring
Sarah Wallis Park
Improvements
This project improved site amenities with new concrete pathways, replaced old furnishings, and upgraded landscape with drought tolerant species.
Parks and Open
Space
Community
ServicesPG‐12004
This project replaced the perimeter fencing and gates surrounding the Palo Alto Airport boundaries to prevent unauthorized access to the airport runway in accordance with Federal and Construction State standards.
AP‐16003 Airport Perimeter Fence Airport
Storm Drain
Gas
Public Works
Public Works
Utilities
2,003,540
7,676,275
149,500
150,000
464,433
Channing Avenue/Lincoln
SD‐11101 Avenue Storm Drain
Improvements
This project installed of 5,800 linear feet of 36‐inch to 60‐inch diameter storm drain along Channing and Lincoln Avenues over three project phases to increase drainage system capacity. Construction Study
Winter
Summer
Winter
Winter
Gas Distribution System
Model
This project included the development, model installation, testing, documentation, and staff training of a natural gas distribution system model.GS‐14004 AC‐14000 Art Center Auditorium Audio, This project replaced outdated audio visual equipment and furnishings following the Visual and Furnishings
Buildings and
Facilities
Community
ServicesConstruction
Construction
Construction
auditorium’s use as a temporary library.
This project renovated the Rinconada Pool locker room including the changing area, restrooms, and showers in the women's and men's locker rooms.
Buildings and
FacilitiesPF‐15000 Rinconada Pool Locker Room Public Works This project installed new athletic fields, synthetic turf, field lighting, fencing, a new restroom, Parks and Open Space
Community
ServicesPE‐13016 El Camino Park Restoration scorekeeper booth and storage buildings, an expanded parking lot, new bike and pedestrian Fall $ 5,611,122 pathways, landscaping, benches, and other amenities.
Notes: ** Final Project Actuals may be different from Total Project Budget amounts Grand Total $ 434,107,677 12 Item A
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on the Status of Capital
Improvement Program Projects
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: June 17, 2025
Report #:2506-4764
TITLE
Approval of and Authorization for the City Manager or Designee to Negotiate and Execute a Purchase and Sale Agreement with C H LLC to Acquire the Industrial Property Located at 2575 East Bayshore Road (Assessor’s Parcel Number 008-03-015) for $8.5 million, with Leaseback to Insulation Sources, Inc. (dba Ico Rally) for $12,600/Month; CEQA Status – Exempt Under CEQA Guidelines Section 15301
RECOMMENDATION
Staff recommends that the Council approve the Purchase and Sale Agreement in Attachment A and authorize the City Manager or their designee to take all actions necessary, including negotiating and executing the final Purchase and Sale Agreement, including necessary exhibits, in Attachment A, to acquire the industrial property at 2575 East Bayshore Road (Assessor’s Parcel Number 008-03-015) in an amount not to exceed $8.5 million plus typical closing costs and lease back the property to the existing tenant for $12,600 per month for up to six months.
EXECUTIVE SUMMARY
Utilities staff have had an ongoing need for storage space and contractor office workspace for capital improvement projects (CIPs). The property at 2575 East Bayshore Road is listed for sale and ideally situated between the Municipal Service Center (MSC) and the Regional Water Quality Control Plant for Utilities’ needs. Staff recommend to acquire the property in an amount not to exceed $8.5 million plus typical closing costs and lease the property back to the existing tenant for up to six months. The terms of the Purchase and Sale Agreement have been finalized in Attachment A, while the Lease Agreement is pending minor revisions.
BACKGROUND
The Utilities Department has many CIPs, such as recurring gas main replacement, sewer main replacement, and water main replacement projects, that require a contractor to independently acquire access to space to store and stage construction materials, equipment, and vehicles.
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Given the limited availability and high cost of leasing commercial space in or near Palo Alto, the cost is generally passed through to the City by the contractor at $100,000 - $200,000 per CIP.
Over the past few years, Utilities has been seeking to purchase storage space at a fair price between Redwood City and Mountain View to support grid modernization and recurring CIPs.
However, there are not many suitable properties available for purchase, and the prices range between $8 million and $15 million. Many properties that staff assessed have had unfavorable conditions, such as renovation costs of $1 million or more to bring office space up to code, zoning restrictions preventing warehouse use, safety and security vulnerabilities on the lot, or operating costs due to travel time and traffic congestion.
Previously, Utilities used a portion of the City-owned property at 2000 Geng Road as storage for various CIPs, paying rent to the City’s General Fund. The Geng Road site was an undeveloped lot which did not have office space or power or water utility services. Contractors would have to bring in their own mobile trailer office and generator to provide power. There was also limited parking space for contractor vehicles and equipment at Geng Road. As of September 2024, the Geng Road site has been re-purposed for Safe Parking.
For the Advanced Metering Infrastructure (AMI) project, Utilities had to lease a vacant lot at 975 Terra Bella Avenue, in Mountain View, to store the AMI meters, lids, and radios securely and provide a staging area for the contractors and their 10 vehicles. The monthly lease was approximately $35,600, totaling $213,600 for a six-month lease. As noted in staff’s report to Council on August 19, 2024, the Utilities Department attempted to negotiate a purchase agreement for the property at an estimated cost of $8 million.1 The parties were unable to reach an agreement and staff continued to explore other options.
ANALYSIS
The property at 2575 East Bayshore Road was listed on October 24, 2024, by Brian McCarthy of Renault & Handley with an asking price of $10.1 million. Below are some details of the property. The property market value is estimated at $7.8 million, as of March 31, 2025, based on an appraisal completed for the City.
•Zoning: ROLM (E)(D)(AD) [Research, Office and Limited Manufacturing Subdistrict – Embarcadero (Site and Design Review) (Automobile Dealership)] •Comp Plan: RO (Research/Office Park)
•Flood Zone: AE; flood insurance required.
•Building Area: +/- 14,640 square feet plus 2,000 – 3,000 square feet of mezzanine storage
•Age: 65 years (built 1960)
1 City Council, August 19, 2024; Agenda Item #10;
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•Buildout: 20% office, balance manufacturing/warehouse space •Land area: +/- 1 acre; A southeastern portion of the parking lot encroaches on the adjacent City parcel, as shown on the aerial image below. •Parking: +/- 46 parking spaces as currently striped
•Features: 4 – 14’ roll up doors (one door currently covered), sprinklered, 3 space heaters in manufacturing/warehouse area, +/-23’8” clear height
Staff toured the property at 2575 East Bayshore Road in March 2025. The property is attractive to Utilities because of its proximity to the MSC, Warehouse, Operations, and Elwell Engineering offices (less than one mile); the size of the lot; indoor warehouse capacity; and office space.
Utilities will be able to utilize this space for multiple CIPs concurrently. In the next seven to 10 years, Utilities will be purchasing $20M - $40M of equipment which can be stored indoors for the modernization of the electric grid. Because the lead time for some of the materials required ranges from eight to 24 months, Utilities needs to place the orders in advance to secure reasonable delivery dates and prices. The new warehouse will enable Utilities to pre-order and secure materials required for grid modernization and prevent future project delays due to potential supply chain issues.
The property has eight offices and a conference room which can serve as a satellite office for staff and contractors during projects. Given the property’s proximity to MSC and Elwell, it can also serve as another location for Engineering and Operations staff to convene and collaborate if conference rooms are not available in either facility. With these offices, Utilities could also reduce the cost of leasing mobile offices for contractors during multi-year construction projects, which is generally a pass-through cost to the City. Given the location, size, existing improvements, general condition, and price of 2575 East Bayshore Road, as well as storage requirements for planned critical long-term CIPs, staff believe this is a cost-effective investment.
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After several conversations with the sellers, parties reached agreement on $8.5 million. Staff engaged an outside attorney to draft the purchase and sale agreement and lease agreement in Attachment A. Below is a summary of the key provisions. •Purchase Price: $8,500,000
•Refundable Deposit: $255,000 (3% of Purchase Price)
•Contingencies: City has 35 days from the execution of the purchase and sale agreement to conduct due diligence and remove contingencies
•Close of Escrow: Within 10 days from the buyer’s removal of contingencies •Lease: Month to month, up to six months, at $12,600.33 per month, industrial gross
FISCAL/RESOURCE IMPACT
Funds are available in the FY 2025 Electric Grid Modernization for Electrification CIP budget (EL- 24000). Due to lengthy lead time for materials and delay of construction contracts, there is $23 million remaining in the FY 2025 Grid Mod CIP budget. Instead of returning $23 million back to Electric CIP reserves, Staff will reassign $8.5 million to the warehouse purchase. Staff will return the remaining $14.5 million to CIP reserves at fiscal year-end. The FY 2025 and proposed FY 2026 electric rates will not be impacted by the warehouse purchase.
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Staff recommend use of the Grid Modernization CIP budget for the initial purchase, with reimbursement of the CIP to replenish it to be completed through the initial debt financing of the Grid Modernization capital project estimated to cost $300 million over the life of the project. This strategy would have no initial rate impact on customers and allow for the smoothing of the costs to the rate payers. With the new warehouse, Utilities will avoid paying contractors $100,000 - $200,000 per CIP project for leasing a staging area and warehouse for materials and equipment. Should equipment or projects from utilities other than the electric utility need warehouse space, staff would appropriately allocate a rental cost to ensure compliance with the restricted nature of enterprise funds.
STAKEHOLDER ENGAGEMENT
The terms of the Purchase and Sale Agreement have been finalized in Attachment A, while the Lease Agreement is pending minor revisions. Per the terms of the purchase and sale agreement, the City will have 35 days from the execution of the purchase and sale agreement to conduct due diligence and remove contingencies. Staff is coordinating internally and with outside parties to complete the various due diligence items including obtaining an environmental site assessment and a property inspection. The close of escrow is estimated to occur in late July or early August 2025.
ENVIRONMENTAL REVIEW
The acquisition and continued use of the industrial property at 2575 East Bayshore Road for storage and office purposes is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 because it involves the operation and maintenance of an existing facility with negligible or no expansion.
ATTACHMENTS
Attachment A: Purchase and Sale Agreement and Lease Agreement APPROVED BY:
Lauren Lai, Administrative Services Director
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PURCHASE AND SALE AGREEMENT
between
CITY OF PALO ALTO,
a California chartered municipal corporation
(“Buyer”)
and
C H LLC,
a California limited liability company
(“Seller”)
June 18, 2025
2575 East Bayshore Road
Palo Alto, California
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TABLE OF CONTENTS
Page
ARTICLE 1 Purchase and Sale....................................................................................................... 1
1.1 The Property............................................................................................................ 1
1.2 Buyer’s Due Diligence. ........................................................................................... 2
1.3 Title Review. ........................................................................................................... 4 ARTICLE 2 Purchase Price ............................................................................................................ 5
2.1 Amount and Payment .............................................................................................. 5
2.2 Deposit .................................................................................................................... 5
2.3 Independent Consideration ..................................................................................... 5
2.4 Liquidated Damages ............................................................................................... 6
2.5 Seller Default. ......................................................................................................... 6
2.6 1031 Exchange Cooperation ................................................................................... 7 ARTICLE 3 Completion of Sale ..................................................................................................... 7
3.1 Place and Date......................................................................................................... 7
3.2 Post-Closing Lease.................................................................................................. 7 ARTICLE 4 Title and Condition .................................................................................................... 8
4.1 Title to the Property ................................................................................................ 8
4.2 “AS IS” Sale ........................................................................................................... 8
4.3 No Implied Warranties ............................................................................................ 8
4.4 Environmental Laws; Hazardous Materials ............................................................ 8
4.5 Release of Seller ..................................................................................................... 9
4.6 California Waiver Provision ................................................................................... 9 ARTICLE 5 Representations and Warranties ............................................................................... 10
5.1 Seller ..................................................................................................................... 10
5.2 Buyer ..................................................................................................................... 13 ARTICLE 6 Covenants ................................................................................................................. 14
6.1 Seller Covenants ................................................................................................... 14
6.2 Eminent Domain ................................................................................................... 15
6.3 Casualty Damage .................................................................................................. 15
6.4 City Council Approval at June 17, 2025 Meeting ................................................ 15 ARTICLE 7 Conditions Precedent; Default ................................................................................. 16
7.1 Seller ..................................................................................................................... 16
7.2 Buyer ..................................................................................................................... 16
7.3 Buyer’s Default ..................................................................................................... 17 ARTICLE 8 Closing ..................................................................................................................... 18
8.1 Closing Deliveries ................................................................................................. 18
8.2 Procedure .............................................................................................................. 19
8.3 Possession ............................................................................................................. 19
8.4 Closing Costs ........................................................................................................ 19
8.5 Prorations .............................................................................................................. 19
8.6 Closing Statements................................................................................................ 20
8.7 Post-Closing Deliveries ........................................................................................ 21 Docusign Envelope ID: 4D0241C8-9A32-40D4-BE7F-F990D02F2E1E Item 8
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ARTICLE 9 General ..................................................................................................................... 21
9.1 Notices .................................................................................................................. 21
9.2 Attorneys’ Fees ..................................................................................................... 22
9.3 Brokers .................................................................................................................. 22
9.4 Governing Law ..................................................................................................... 22
9.5 Construction .......................................................................................................... 22
9.6 Terms Generally.................................................................................................... 23
9.7 Further Assurances................................................................................................ 23
9.8 Partial Invalidity.................................................................................................... 23
9.9 Waivers ................................................................................................................. 23
9.10 Miscellaneous ....................................................................................................... 23
9.11 Electronic Signatures ............................................................................................ 24
EXHIBITS
Exhibit A Legal Description of Real Property
Exhibit B Grant Deed
Exhibit C General Assignment
Exhibit D Post-Closing Lease
SCHEDULES
Schedule 1 List of Service Contracts
Schedule 2 List of Environmental and Engineering Reports
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1 PURCHASE AND SALE AGREEMENT
THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), dated for reference purposes as of June 18, 2025, is entered into by and between CITY OF PALO ALTO, a California chartered municipal corporation (“Buyer”), and C H LLC, a California limited liability company (“Seller”), with reference to the following facts:
RECITALS
A. Seller owns that certain real property commonly known by its mailing address as 2575 East Bayshore Road, Palo Alto, California (APN: 008-03-015) and more particularly described in Exhibit A attached hereto (the “Real Property”), which includes an approximately 14,640 square foot commercial building on the site (the “Building”).
B. Seller’s affiliate, Insulation Sources, Inc., a California corporation, dba ICO RALLY (“ICO RALLY”), leases the Building from Seller pursuant to that certain Lease Agreement dated January 1, 2003 (“Existing Lease”).
C. Seller and Buyer desire to proceed with the sale of the Real Property upon the terms and conditions contained in this Agreement, including the right for ICO RALLY to retain possession of the Real Property post-closing pursuant to a short-term lease by and between Buyer and ICO RALLY.
NOW, THEREFORE, in consideration of the mutual covenants of the parties herein contained and other valuable consideration, Seller and Buyer hereby agree as follows:
ARTICLE 1
Purchase and Sale
1.1 The Property. Subject to the terms of this Agreement (including approval of this Agreement by the Palo Alto City Council (“City Council”) pursuant to Section 6.4 below), Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller, in accordance with and subject to the terms of this Agreement, all of Seller’s right, title and interest in and to the following property (collectively, the “Property”):
(a) The Real Property and all rights appurtenant to the Real Property, if any, including without limitation, any strips and gores abutting the Real Property, and any land lying in the bed of any street, road, or avenue in front of, or adjoining the Real Property, to the center line thereof;
(b) The Building, the parking lot, the drive aisles and all other improvements located on the Real Property, and any and all fixtures attached thereto (collectively, the “Improvements”); (c) All other rights, privileges, easements, licenses, appurtenances, and hereditaments relating to the Real Property;
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2 (d) All building permits, certificates of occupancy, and other certificates, permits, licenses and approvals (the “Permits”) pertaining to the Real Property, to the extent assignable; (e) All Approved Service Contracts as defined in Section 1.2(e) below, to the extent assignable;
(f) All plans, specifications, surveys, architectural, and engineering drawings, and other rights relating to the construction of the Property (collectively, the “Plans and Surveys”); and (g) Any warranty, guaranty, or other obligation from any contractor, manufacturer, or vendor to any improvements, furnishings, fixture, or equipment located at the Property, to the extent assignable in connection with the sale of the Property (collectively, the “Assumed Warranties and Guaranties”).
1.2 Buyer’s Due Diligence.
(a) The “Effective Date” shall mean the date that the parties mutually execute and deliver copies of this Agreement. During the period commencing on the Effective Date and expiring at 5:00 p.m., California local time, on the date thirty-five (35) days after the Effective Date (the “Property Approval Period”), Buyer shall, at Buyer’s sole cost and expense, review and investigate the physical and environmental condition of the Property, the character, quality and general utility of the Property, the zoning, land use, environmental and building requirements and restrictions applicable to the Property and the state of title to the Property.
Buyer shall determine whether or not the Property is acceptable to Buyer within the Property Approval Period. If, during the Property Approval Period, Buyer determines in Buyer’s sole and absolute discretion (and for any or no reason) that the Property is not acceptable to Buyer, Buyer shall have the right, by giving written notice (the “Termination Notice”) to Seller on or before the expiration of the Property Approval Period, to terminate this Agreement. If Buyer is satisfied with the due diligence investigation, it shall notify Seller by giving written notice (the “Approval Notice”) on or before the expiration of the Property Approval Period. If Buyer delivers a Termination Notice, this Agreement shall terminate and the Deposit (defined below) shall be immediately returned to Buyer. If Buyer delivers the Approval Notice, or fails to provide any notice by the expiration of the Property Approval Period, this Agreement shall continue in full force and effect, and Buyer shall have no further right to terminate this Agreement pursuant to this Section 1.2(a).
(b) Upon the Effective Date, Seller shall deliver to Buyer all material documents related to the ownership, operation and use of the Property, that are in the possession or control of Seller, including, without limitation, the following items (collectively, the “Diligence Documents”):
(i) Copies of all service contracts and agreements entered into by Seller related to the Property including without limitation those described in Schedule 1 attached hereto (the “Service Contracts”).
(ii) Copies of all environmental and engineering reports prepared for and/or provided to Seller (including the reports disclosed on Schedule 2) in connection with Seller’s purchase, ownership or management of the Property.
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3 (iii) Copy of the Existing Lease, including all amendments and modifications thereto.
(iv) Copies of all of Seller’s books and records relating to the operation of the Property including, without limitation:
(A) all building plans, licenses, permits, authorizations, approvals and other documents associated with any entitlements issued by all governmental authorities having jurisdiction over the Property;
(B) copies of each bill for current real estate, personal property and possessory interest taxes, water charges and other utilities; and (C) all records, documents and files relating to the operation and maintenance of the Property.
(v) Surveys and site plans.
(vi) Maintenance reports.
(c) Seller is required to disclose if any of the Property lies within the following natural hazard areas or zones: (i) a special flood hazard area designated by the Federal Emergency Management Agency; (ii) an area of potential flooding; (iii) a very high fire hazard severity zone; (iv) a wild land area that may contain substantial forest fire risks and hazards; (v) an earthquake fault or special studies zone; or (vi) a seismic hazard zone. Seller shall promptly engage the services of a natural hazard consultant to examine the maps and other information specifically made available to the public by government agencies and within five (5) days of the Effective Date Seller shall cause such consultant to deliver to Buyer a natural hazard report and disclosure statement prepared by the consultant containing the results of its examination. (d) Following the Effective Date Buyer and its agents, employees and contractors shall be afforded full and complete access to the Property during normal business hours following at least one (1) business day’s prior written or telephonic notice from Buyer to Seller, accompanied by evidence reasonably acceptable to Seller that Buyer has named Seller as an additional insured on Buyer’s general liability, worker’s compensation and/or property insurance (as applicable), for the purpose of making such investigations as Buyer deems prudent with respect to the physical condition of the Property, including, without limitation, engineering studies, seismic tests, environmental studies (including, without limitation, surface and subsurface tests, borings, samplings (including, without limitation, soil, groundwater and asbestos sampling) and measurements) and a survey of the Property. Buyer may conduct such feasibility studies and environmental investigations (including a Phase I environmental report) as Buyer deems necessary and investigate all matters relating to the zoning, use and compliance with other applicable laws which relate to the use and occupancy of the Property and any proposed impositions, assessments or governmental regulations affecting the Property. Seller shall reasonably cooperate to assist Buyer in completing such inspections. Buyer shall indemnify and hold Seller harmless from any damage to the Property resulting from the entry onto the Property of Buyer and its agents, employees and contractors pursuant to this Section
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4 Property caused by the negligence or wrongful misconduct of Seller or as a result of the discovery or presence of any preexisting conditions, including any Hazardous Materials (as defined below) on the Property. The provisions of this Section 1.2(d) will survive the termination of this Agreement and will not be deemed to have merged into any of the documents executed or delivered at Closing.
(e) On or before the expiration of the Property Approval Period, Buyer shall have the right to disapprove, by written notice to Seller, any of the Service Contracts that are not terminable upon no more than thirty (30) days prior notice. If Buyer desires to have any Service Contract terminated that is not expressly terminable upon no more than thirty (30) days’ notice without penalty (each a “Non-Terminable Service Contract”), then Buyer shall notify Seller in writing of any such Non-Terminable Service Contract that it desires to have terminated, and Seller shall terminate the same at or before Closing (as defined below). All of the Service Contracts which are either terminable on no more than thirty (30) days’ notice without penalty or which are not disapproved by Buyer, are referred to as the “Approved Service Contracts”. (f) No later than twenty (20) days after the Effective Date, Seller shall deliver to Buyer an agreement executed by Seller and ICO RALLY (in a form reasonably approved by Buyer in advance), pursuant to which Seller and ICO RALLY agree to (i) terminate the Existing Lease effective as of the Closing and (ii) release Buyer of any and all liability arising under the Existing Lease (the “Lease Termination Agreement”).
1.3 Title Review.
(a) Within five (5) days following the Effective Date, Seller shall (i) cause Title Company (as defined below) to deliver to Buyer a current preliminary title report covering the Property, together with true, legible (to the extent available), and complete copies of any exceptions to title to the Property (the “Title Report”) and (ii) deliver Seller’s most recent survey of the Property (the “Survey”) which Buyer may cause to be updated at Buyer’s expense. (b) No later than twenty (20) days after the date Buyer receives the Title Report and Survey (“Title Objection Date”) or if additional exceptions to title are first identified by Title Company after Buyer’s receipt of the Title Report, then Buyer shall have until the later of: (i) the Title Objection Date; and (ii) that day which is five (5) days following Buyer’s receipt of an amendment or supplement of the Title Report (unless an additional matter shown on such subsequent update first arises on the Closing Date, in which event notice of same may be given on the Closing Date and the Closing Date shall be extended day for day without need for additional action by either party), Buyer shall deliver to Seller, in writing (the “Title Objection Notice”), any objections to those matters set forth in the Title Report or the Survey (collectively, “Title Objections”). Buyer hereby acknowledges and agrees that TIME IS OF THE ESSENCE with respect to all time periods relating to Buyer’s delivery of the Title Objection Notice. Buyer shall be deemed to have unconditionally waived its right to object to all matters shown in the Title Report and the Survey, unless Buyer objects to any title exception in accordance with this Section 1.3. If Buyer makes any such objection, Seller may, by giving notice to Buyer on or before the date that is five (5) days after the Title Objection Notice, elect either to remove such objections or not to remove such objections. Seller shall be deemed to have elected not to remove any such Title Objection unless Seller elects to remove any such Title Objection in Docusign Envelope ID: 4D0241C8-9A32-40D4-BE7F-F990D02F2E1E Item 8
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5 accordance with this Section 1.3. If Seller elects to remove any such Title Objection, Seller shall remove the title exception in question on or before the Closing Date. If Seller elects (or is deemed to have elected) not to remove any such Title Objection, Buyer shall have the right, by giving notice to Seller on or before the date that is five (5) days after Seller’s election not to cure (or deemed election not to cure), either to terminate this Agreement (in which case the Deposit shall be returned to Buyer) or to withdraw such Title Objection and accept title to the Property subject to the title exception in question. If Buyer does not exercise the right to terminate this Agreement in accordance with this Section 1.3, Buyer shall be deemed to have approved title to the Property subject to the title exception in question and to have withdrawn such objection; provided that, notwithstanding anything to the contrary contained in this Agreement, Seller shall be obligated to cure those matters affecting title to the Property, whether or not objected to by Buyer that are described in any of the following clauses: (i) that are mortgage or deed of trust liens or security interests against the Property; (ii) taxes and assessments other than taxes and assessments not yet delinquent; (iii) that have been placed against the Property by Seller after the Effective Date and that are not otherwise permitted pursuant to the provisions hereof; or (iv) judgment or other liens arising from actions of Seller.
ARTICLE 2
Purchase Price
2.1 Amount and Payment. The total purchase price for the Property (the “Purchase Price”) shall be Eight Million Five Hundred Thousand Dollars ($8,500,000). At the Closing on the Closing Date, Buyer shall pay the total purchase price for the Property (less the amount of the Deposit and subject to prorations described in this Agreement) to Seller, through escrow, in cash in immediately available funds.
2.2 Deposit. Within five (5) business days following the Effective Date, Buyer shall deposit the sum of Two Hundred Fifty-Five Thousand Dollars ($255,000) (the “Deposit”) in cash in immediately available funds in escrow with Chicago Title Company (“Title Company”) care of Sherri Keller at the address set forth in Section 9.1 below. The Deposit shall be held by Title Company in an interest-bearing account reasonably approved by Buyer. If Seller and Buyer complete the purchase and sale of the Property in accordance with this Agreement, the Deposit and all interest thereon shall be applied to payment of the Purchase Price for the Property in accordance with Section 2.1. If the purchase and sale of the Property is not completed and this Agreement terminates for any reason other than a default by Buyer as described in Section 2.4 below, then the Deposit and all interest thereon shall be returned to Buyer upon such termination of this Agreement.
2.3 Independent Consideration. Notwithstanding anything in this Agreement to the contrary, One Hundred Dollars ($100) of the Deposit is delivered to Title Company for delivery to Seller as non-refundable “Independent Consideration”, and the Deposit is hereby reduced by and shall no longer include the amount of the Independent Consideration so delivered to Seller.
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6 payment provided for in this Agreement. The Independent Consideration shall be non- refundable, and shall not be applied to the Purchase Price at the Closing.
2.4 Liquidated Damages. SELLER AND BUYER AGREE THAT, IF THE
PURCHASE AND SALE OF THE PROPERTY IS NOT COMPLETED IN
ACCORDANCE WITH THIS AGREEMENT AS A DIRECT RESULT OF A BUYER DEFAULT (AS DEFINED IN SECTION 7.3 BELOW), SELLER SHALL BE ENTITLED
TO TERMINATE THIS AGREEMENT AND UPON TERMINATION THE DEPOSIT SHALL BE PAID TO SELLER AS LIQUIDATED DAMAGES AND AS SELLER’S SOLE AND EXCLUSIVE REMEDY. SELLER AND BUYER AGREE THAT, UNDER
THE CIRCUMSTANCES EXISTING AS OF THE EFFECTIVE DATE, ACTUAL
DAMAGES MAY BE DIFFICULT TO ASCERTAIN AND THE DEPOSIT IS A
REASONABLE ESTIMATE OF THE DAMAGES THAT WILL BE INCURRED BY
SELLER IF BUYER MATERIALLY DEFAULTS UNDER OR MATERIALLY
BREACHES THIS AGREEMENT AND FAILS TO PURCHASE THE PROPERTY IN ACCORDANCE WITH THIS AGREEMENT. SUCH RETENTION OF THE DEPOSIT
BY SELLER IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO SECTIONS 1671, 1676 AND 1677 OF THE CALIFORNIA CIVIL
CODE, AND SHALL NOT BE DEEMED TO CONSTITUTE A FORFEITURE OR PENALTY WITHIN THE MEANING OF SECTION 3275 OR SECTION 3369 OF THE CALIFORNIA CIVIL CODE OR ANY SIMILAR PROVISION. BY PLACING ITS
INITIALS BELOW, EACH PARTY SPECIFICALLY CONFIRMS THE ACCURACY
OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY WAS
REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS
AGREEMENT WAS MADE, THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION. NOTWITHSTANDING ANYTHING TO THE CONTRARY
SET FORTH IN THIS AGREEMENT, IN NO EVENT WHATSOEVER WILL EITHER
BUYER OR SELLER BE ENTITLED TO RECOVER FROM THE OTHER ANY
PUNITIVE, CONSEQUENTIAL OR SPECULATIVE DAMAGES PURSUANT TO THIS AGREEMENT.
SELLER’S INITIALS:_____ BUYER’S INITIALS:_____
2.5 Seller Default. If Seller fails to perform any of its covenants or agreements contained herein and Seller does not cure such failure within five (5) business days after receipt of written notice from Buyer of such failure or if Seller breaches any of its representations or warranties (each a “Seller Default”), Buyer shall have the right to exercise any or all of the following remedies: (i) waive such failure and proceed to the Closing with no reduction in the Purchase Price; provided, however, that this provision will not limit Buyer’s right to receive reimbursement for attorneys’ fees in connection with any legal proceedings instituted by either party or Title Company with respect to the enforcement of this Agreement, nor waive or affect Seller’s indemnity obligations under this Agreement or Buyer’s rights to enforce those indemnity obligations, nor waive or affect any of Seller’s other obligations under this Agreement to be performed after the Closing or Buyer’s rights to enforce those obligations; (ii) exercise any other rights or remedies Buyer may have at law or in equity, including without limitation the filing of an action for specific performance to cause Seller to convey the Property to Buyer pursuant to the terms and conditions of this Agreement; or (iii) terminate this Agreement by written notice to Docusign Envelope ID: 4D0241C8-9A32-40D4-BE7F-F990D02F2E1E Item 8
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7 Seller and Title Company to that effect, to recover the full amount of the Deposit and all earnings thereon, and to recover all damages and seek such other relief at law or in equity to which Buyer may be entitled as a result of Seller’s breach
2.6 1031 Exchange Cooperation. Buyer agrees to cooperate with Seller to accomplish a tax deferred exchange, provided however that such exchange shall not delay the Closing or amend or modify any of the terms or provisions of this Agreement and shall be at no cost or liability to Buyer. Seller shall not be released or relieved of any liability or obligation as a result of its assignment to exchange or intermediary party (“Seller’s Intermediary”); provided, further, that notwithstanding Seller’s assignment to Seller’s Intermediary, all warranties, representations, and obligations of Seller under this Agreement which are intended to survive the Closing shall continue in full force and effect as Seller’s warranties, representations, and obligations and shall survive the Closing. Seller shall pay all additional costs (including, without limitation, reasonable attorneys’ fees) incurred by Buyer as a result of cooperating with any exchange. Buyer makes no representation regarding and shall have no liability with respect to the tax treatment of Seller’s attempted exchange transaction. Buyer shall not have to incur any liability or expense in connection with Seller’s attempt to structure an exchange transaction, nor shall Buyer have to take title to another property or enter into any other agreements in connection therewith, and Seller shall indemnify and hold Buyer harmless from and against any such liability and expense, which indemnity shall survive Closing or any termination of this Agreement.
ARTICLE 3
Completion of Sale
3.1 Place and Date. The purchase and sale of the Property shall be completed in accordance with Article 8 hereof (the “Closing”). The Closing shall occur through an escrow established with Title Company on the date ten (10) calendar days after the expiration of the Property Approval Period or such other day mutually agreed to by Buyer and Seller (the “Closing Date”). Prior to the Closing Date, Seller and Buyer each shall give appropriate written escrow instructions, consistent with this Agreement, to Title Company for the Closing in accordance with this Agreement provided that, in the event of any conflict between the provisions of this Agreement and any such escrow instructions, the terms of this Agreement shall control.
3.2 Post-Closing Lease. The parties acknowledge that ICO RALLY desires to continue to occupy the Property following the Closing. Therefore, to effectuate ICO RALLY’s occupancy and to document the parties’ rights and obligations thereto, the Buyer shall execute and deliver, and Seller shall cause ICO RALLY to execute and deliver to Buyer, a Industrial Gross lease agreement to be effective at Closing in the form attached hereto as Exhibit D (the “Post-Closing Lease”) in accordance with Section 8.1 below.
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8 ARTICLE 4
Title and Condition
4.1 Title to the Property. Seller shall convey to Buyer fee title to the Real Property, by a duly executed and acknowledged grant deed (the “Grant Deed”) in the form of Exhibit B attached hereto (or otherwise reasonably acceptable to Buyer), free and clear of liens, encumbrances, leases, easements, restrictions, rights, covenants and conditions, except the following (the “Permitted Exceptions”): (a) the title matters approved by Buyer in accordance with Section 1.3; (b) taxes and assessments which are not past due as of the Closing Date; and (c) any other matters created, permitted or approved by Buyer (including without limitation the Post-Closing Lease).
4.2 “AS IS” Sale. Except for those representations and warranties included in this Agreement and any document delivered by Seller at Closing: (i) Seller makes no representations or warranties regarding the Property; (ii) Seller hereby disclaims, and Buyer hereby waives, any and all representations or warranties of any kind, express or implied, concerning the Property or any portion thereof, as to its condition, value, compliance with laws, status of permits or approvals, existence or absence of hazardous material on site, occupancy rate or any other matter of similar or dissimilar nature relating in any way to the Property, including the warranties of fitness for a particular purpose, tenantability, habitability and use; (iii) Buyer otherwise takes the Property “AS IS”; and (iv) Buyer represents and warrants to Seller that Buyer has sufficient experience and expertise such that it is reasonable for Buyer to rely on its own pre-closing inspections and investigations.
4.3 No Implied Warranties. Except for Seller’s representations, warranties and covenants set forth in this Agreement (including without limitation Seller’s representations and warranties in Sections 5.1 and 9.3) or in the documents delivered by Seller at the Closing (collectively, “Seller’s Warranties”), Seller hereby specifically disclaims all warranties, promises, covenants, agreements or guaranties of any kind, whether express or implied, oral or written, concerning or with respect to the income or expenses produced from the Property; the suitability of the Property for any activities and use; the compliance or non-compliance of the Property with any laws, rules, ordinances or regulations of any applicable governmental authority or body, including, without limitation, all zoning, building, health, fire and environmental matters; the habitability, merchantability, marketability, profitability, or fitness for a particular purpose of the Property; the manner quality, state of repair or lack of repair of the Property; or any other matter with respect to the Property. The provisions of this Section will survive the termination of this Agreement and will not be deemed to have merged into any of the documents executed or delivered at Closing.
4.4 Environmental Laws; Hazardous Materials. EXCEPT FOR SELLER’S
WARRANTIES, SELLER EXPRESSLY DISCLAIMS ALL WARRANTIES OR
REPRESENTATIONS MADE CONCERNING THE PRESENCE OF ANY HAZARDOUS
MATERIALS (DEFINED BELOW) ON, ABOVE, OR BENEATH THE PROPERTY (OR
ANY PARCEL IN PROXIMITY THERETO) OR ANY WATER OR MINERALS ON OR UNDER THE PROPERTY.
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9 4.5 Release of Seller. IN DETERMINING THE PHYSICAL CONDITION OF THE PROPERTY, BUYER IS AND WILL RELY SOLELY ON BUYER’S OWN KNOWLEDGE OF THE PROPERTY OBTAINED DURING BUYER’S INVESTIGATION AND INSPECTION OF THE PROPERTY. SUBJECT TO SELLER’S WARRANTIES, BUYER
HEREBY EXPRESSLY ASSUMES THE RISK THAT ADVERSE MATTERS MAY NOT BE REVEALED DURING BUYER’S INVESTIGATION OF THE PROPERTY, INCLUDING
BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS. EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT TO THE CONTRARY AND EXCEPT FOR THE EXCLUDED MATTERS (AS
DEFINED BELOW), BUYER HEREBY RELEASES AND DISCHARGES SELLER, FROM
AND AGAINST ANY AND ALL CLAIMS THAT BUYER OR ANY PARENT OR AFFILIATE OF BUYER (EACH, A “BUYER AFFILIATE”) HAS OR MAY HAVE
AGAINST SELLER ARISING FROM OR IN CONNECTION WITH ANY MATTER
ARISING OUT OF OR RELATED TO THE PROPERTY, INCLUDING THE DOCUMENTS AND INFORMATION REFERRED TO HEREIN; ANY CONSTRUCTION DEFECTS,
ERRORS, OR OMISSIONS IN THE DESIGN OR CONSTRUCTION OF THE IMPROVEMENTS; AND ANY ENVIRONMENTAL CONDITIONS. EXCEPT AS
EXPRESSLY SET FORTH IN THIS AGREEMENT TO THE CONTRARY AND EXCEPT
FOR THE EXCLUDED MATTERS, NEITHER BUYER NOR ANY BUYER AFFILIATE
MAY LOOK TO SELLER IN CONNECTION WITH THE FOREGOING FOR ANY REDRESS OR RELIEF. BUYER’S RELEASE AND DISCHARGE OF SELLER
CONTEMPLATED BY THIS SECTION OF THE AGREEMENT WILL BE GIVEN FULL
FORCE AND EFFECT ACCORDING TO EACH OF THE EXPRESS TERMS AND
PROVISIONS HEREIN, INCLUDING THOSE RELATING TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES, AND CAUSES OF ACTION. TO THE EXTENT
REQUIRED TO BE OPERATIVE, THE DISCLAIMERS AND WARRANTIES CONTAINED HEREIN ARE “CONSPICUOUS” DISCLAIMERS FOR PURPOSES OF ANY APPLICABLE LAW, RULE, REGULATION, OR ORDER. THE PROVISIONS OF THIS SECTION WILL
SURVIVE THE TERMINATION OF THIS AGREEMENT AND WILL NOT BE DEEMED
TO HAVE MERGED INTO ANY OF THE DOCUMENTS EXECUTED OR DELIVERED AT CLOSING. “EXCLUDED MATTERS” SHALL COLLECTIVELY MEAN ANY OF THE FOLLOWING: (i) A BREACH OF SELLER’S WARRANTIES, (ii) THE GROSS
NEGLIGENCE, FRAUD OR WILLFUL MISCONDUCT OF SELLER OR ANY OF ITS EMPLOYEES, AGENTS OR REPRESENTATIVES, (iii) THE RELEASE OF HAZARDOUS
MATERIALS ONTO THE PROPERTY BY SELLER OR ANY OF ITS EMPLOYEES, AGENTS OR REPRESENTATIVES, (iv) CLAIMS MADE BY THIRD PARTIES FOR
PERSONAL INJURY OR PROPERTY DAMAGE THAT RESULTED FROM EVENTS THAT
OCCURRED ON THE PROPERTY PRIOR TO THE CLOSING (EXCLUDING ANY INJURY
OR DAMAGE ARISING FROM OR RELATED TO THE ENTRY ONTO THE PROPERTY BY BUYER AND ITS AGENTS, EMPLOYEES OR REPRESENTATIVES), OR (v) SELLER’S BREACH OF THIS AGREEMENT.
4.6 California Waiver Provision.
(a) IN FURTHERANCE OF THE WAIVERS AND RELEASES DESCRIBED IN
THIS AGREEMENT, BUYER HEREBY WAIVES ANY AND ALL BENEFITS AND
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10 BY VIRTUE OF THE PROVISIONS OF SECTION 1542 OF THE CALIFORNIA CIVIL
CODE, WHICH PROVIDES AS FOLLOWS (OR BY THE PROVISIONS OF ANY SIMILAR STATUTE):
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST
IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND
THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” ___________________
Buyer’s Initials
(b) Buyer hereby represents and warrants that it is familiar with, has read, understands, and has consulted legal counsel of its choosing with respect to California Civil Code Section 1542 and the matters now unknown to it which may have given, or which may hereinafter give, rise to actions, legal or administrative proceedings, claims, demands, debts, controversies, damages, costs, losses, liabilities and expenses which are presently unknown, unanticipated and unsuspected, and Buyer further agrees, represents and warrants that the provisions of this Section
4.6 have been negotiated and agreed upon in light of that realization and that Buyer nevertheless hereby intends to release, discharge and acquit the Seller and any affiliate of Seller, from any such unknown causes of action, legal or administrative proceedings, claims, demands, debts, controversies, damages, costs, losses, liabilities and expenses which are in any way related to this Section 4.6.
ARTICLE 5
Representations and Warranties
5.1 Seller. As a material inducement for Buyer to enter into this Agreement, Seller represents and warrants to Buyer that the following representations and warranties of Seller in this Section 5.1 shall be true as of the Effective Date and shall be true and correct as of the Closing Date. Seller’s representations and warranties under this Section 5.1 shall survive the Closing provided that such representations and warranties shall terminate on the date which is one (1) year after the Closing Date.
(a) Seller is a limited liability company duly organized, validly existing and in good standing in the State of California. Seller has the full power and authority to enter into this Agreement and to perform this Agreement. The execution, delivery and performance of this Agreement by Seller have been duly and validly authorized by all necessary action on the part of Seller, and all required consents or approvals have been duly obtained. This Agreement is a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting the rights of creditors generally. The execution, delivery and performance of the obligations under this Agreement by Seller shall not violate or conflict with any other material agreement, order, decree, judgment or settlement to which Seller is a party or by which Seller is otherwise bound.
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11 (b) Seller has or will deliver or make available to Buyer complete copies of all the Diligence Documents to the extent in Seller’s possession or under Seller’s control with regard to the Property. To the best of Seller’s knowledge, without a duty of inquiry or investigation, none of such Diligence Documents contains any untrue statement of a material fact or omits to state a fact necessary to make the statement of fact contained therein not misleading in any material respect.
(c) There is no agreement to which Seller is a party or to Seller’s knowledge binding on Seller which prevent or impair Seller from performing Seller’s obligations under this Agreement.
Seller has not received written notice from any person (including, without limitation, any applicable governmental authority) of any pending or threatened action against Seller or the Property, including condemnation proceedings, which challenges or impairs Seller’s ability to execute or perform its obligations under this Agreement. (d) Seller has not received any written notice, addressed specifically to Seller and sent by any governmental authority or agency having jurisdiction over the Property, that the Property or its use is in material violation of any law, ordinance or regulation. (e) The Existing Lease is in full force and effect and there exists no material defaults, events which, with the giving of notice or passage of time, or both, would constitute a material default, or default or events with such notice or passage of time, by either party under the Existing Lease. The Existing Lease shall terminate at Closing in accordance with the Lease Termination Agreement and Buyer will have no liability whatsoever arising under the Existing Lease.
(f) Except for the Existing Lease which shall be terminated at Closing and the Post- Closing Lease to be effective at Closing, there are no leases, licenses and occupancy agreements affecting the Property.
(g) Except as shown on Schedule 1, there are no service contracts, maintenance contracts, management contracts, construction contracts, architectural or design contracts or similar agreements to which Seller is a party and which relate to the Property that will remain in effect following the Closing or that shall be binding upon Buyer or the Property following the Closing.
(h) To the knowledge of Seller, there exists no material defaults, events which, with the giving of notice or passage of time, or both, would constitute a material default, or default or events with such notice or passage of time, or both, would give rise to a termination right (i) by Seller under the Service Contracts, or (ii) by the respective other parties to any of the Service Contracts.
(i) There is no litigation, arbitration, or other legal or administrative suit, action, proceeding, or investigation pending or threatened against or involving Seller or the ownership or operation of the Property.
(j) No attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, or other proceedings are pending or threatened against Seller, nor are any such proceedings contemplated by Seller.
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12 (k) Seller has delivered or made available to Buyer all material facts, information and documents relating to the Property that are in Seller’s possession or control. Seller is not aware of any other material facts, information or documents that have not been delivered or made available to Buyer.
(l) All permits required for the Property have been duly and validly issued, are in full force and effect, have been fully paid for (other than normal recurring annual permit or license fees set forth in the operating statements of the Property provided to Buyer), and Seller has received no notice of violation of any permit.
(m) To the knowledge of Seller there are no condemnation, environmental or zoning proceedings instituted or planned to be instituted that would affect the Property and Seller has not received notice of any special assessment proceedings affecting the Property. (n) At the time of Closing there will be no outstanding written or oral contracts made by Seller for any improvements to the Property which have not been fully paid for and Seller shall cause to be discharged all liens arising from any labor or materials furnished to the Property prior to the time of Closing.
(o) Except for the Approved Service Contracts (and the Post-Closing Lease), there are no obligations in connection with the Property which could be binding upon Buyer or affect the Property after Closing and there are no assessments or bonds assessed or, to the knowledge of Seller, proposed to be assessed, against the Property. To the knowledge of Seller, there are no existing or proposed easements, covenants, conditions, restrictions, agreements or other documents which affect title to the Property and which are not disclosed by the Title Policy.
Seller has not granted any option or right of first refusal or first opportunity to any party to acquire any interest in any of the Property.
(p) Neither Seller nor, to the knowledge of Seller, any prior owner or occupant of the Property has engaged in or permitted any activity on the Property involving the handling, manufacture, treatment, storage, use, release, or disposal of any Hazardous Materials. Seller has not received written notice, and otherwise Seller has no knowledge, that removal or other remedial action with respect to Hazardous Materials in, on, under or about the Property is required by any governmental authority having jurisdiction over the Property. For purposes of this Agreement, the term “Hazardous Materials” shall mean any toxic or hazardous waste, material or substance, including, without limitation, asbestos, asbestos containing materials, petroleum, petroleum products, underground storage tanks now or previously containing any other Hazardous Materials, substances defined as “hazardous substances”, “hazardous waste” or “toxic substances” in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq.; Hazardous Materials Transportation Act, 49 U.S.C. Sec. 5101 et seq.; and Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6901 et seq.; and other substances defined as hazardous waste and/or hazardous substances in applicable state or local laws and/or in any regulations and publications promulgated pursuant to said laws and shall also include mold (which has been or is proven to be harmful to human beings), fungus (which has been or is proven to be harmful to human beings) and toxic and mycotoxin spores.
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13 (q) Seller is not a “foreign person” as defined in section 1445 of the Internal Revenue Code of 1986, as amended, and the Income Tax Regulations thereunder. (r) Neither Seller nor any holder of a direct or indirect interest in Seller, or any person, group, entity or nation that Seller is acting, directly or indirectly for, or on behalf of, is named by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or is otherwise a banned or blocked person, group, entity, or nation pursuant to any law that is enforced or administered by the Office of Foreign Assets Control (“OFAC”), and Seller is not engaging in the transaction contemplated under this Agreement, directly or indirectly, on behalf of, or instigating or facilitating such transaction, directly or indirectly, on behalf of, any such person, group, entity or nation. Seller is not engaging in the transaction contemplated under this Agreement, directly or indirectly, in violation of any laws relating to drug trafficking, money laundering or predicate crimes to money laundering.
5.2 Buyer. As a material inducement for Seller to enter into this Agreement, Buyer represents and warrants to Seller that the following representations and warranties of Buyer in this Section 5.2 shall be true as of the Effective Date and shall be true and correct as of the Closing Date. Buyer’s representations and warranties under this Section 5.2 shall survive the Closing provided that such representations and warranties shall terminate on the date which is one (1) year after the Closing Date.
(a) Buyer has full power and authority to enter into this Agreement and to perform this Agreement. The execution, delivery and performance of this Agreement by Buyer have been duly and validly authorized by all necessary action on the part of Buyer and all required consents or approvals have been duly obtained or will be obtained. This Agreement is a legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting the rights of creditors generally. The execution, delivery and performance of the obligations under this Agreement by Buyer shall not violate or conflict with any other material agreement, order, decree, judgment or settlement to which Buyer is a party or by which Buyer is otherwise bound. There are no actions, lawsuits, litigation, or proceedings pending or threatened in any court or before any governmental or regulatory agency that affect Buyer’s power or authority to enter into or perform this Agreement (b) The execution, delivery and performance of the obligations under this Agreement by Buyer shall not violate or conflict with any other material agreement, order, decree, judgment or settlement to which Buyer is a party or by which Buyer is otherwise bound. (c) Neither Buyer nor any holder of a direct or indirect interest in Buyer, or any person, group, entity or nation that Buyer is acting, directly or indirectly for, or on behalf of, is named by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or is otherwise a banned or blocked person, group, entity, or Docusign Envelope ID: 4D0241C8-9A32-40D4-BE7F-F990D02F2E1E Item 8
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14 nation pursuant to any law that is enforced or administered by OFAC, and Buyer is not engaging in the transaction contemplated under this Agreement, directly or indirectly, on behalf of, or instigating or facilitating such transaction, directly or indirectly, on behalf of, any such person, group, entity or nation. Buyer is not engaging in the transaction contemplated under this Agreement, directly or indirectly, in violation of any laws relating to drug trafficking, money laundering or predicate crimes to money laundering.
ARTICLE 6
Covenants
6.1 Seller Covenants. Seller covenants and agrees with Buyer as follows:
(a) After the execution of this Agreement, Seller (i) shall not execute any contract, lease or agreement affecting the Property without the prior approval of Buyer, which approval may be withheld by Buyer in its sole discretion, provided that Seller will not be obligated to obtain Buyer’s written approval if Seller is contractually or legally obligated to take such action, but Seller shall promptly provide Buyer with notice of such action; and (ii) shall maintain the Property in the ordinary course of business; comply with all laws, statutes, rules, regulations and ordinances that are applicable to the Property and the use, occupation, ownership, and conveyance thereof; pay, before delinquency, all indebtedness secured by any portion of the Property, taxes assessments, charges and other expenses affecting the Property. (b) During the period between the Effective Date and the Closing Date, Seller (i) shall promptly deliver to Buyer a copy of any tax bill, notice of assessment, or notice of change in a tax rate affecting the Property; any notice or claim of violation from any governmental authority; any notice of any taking affecting or relating to the Property; any notice by any party to a reciprocal easement, lease or operating agreement relating to the Property; or any other similar notice affecting or relating to the Property; and (ii) shall not apply for or consent to any change or modification with respect to zoning, development or use of the Property without Buyer’s prior written consent, nor cause any liens or other encumbrances to be placed on the Property. (c) Between the Effective Date and the Closing Date, Seller shall (i) continue to keep or cause to be kept in force property insurance covering all buildings, structures, improvements, machinery, fixtures and equipment included in the Real Property insuring against risks of physical loss or damage, subject to standard exclusions, with such policy limits as Seller has maintained prior to the entry into this Agreement and (ii) maintain the Property in compliance with all applicable laws, rules and regulations and in good order, condition and repair, and in at least substantially the same manner as at present, reasonable wear and tear excepted, and shall not materially alter the condition of the Property or make any material changes or alterations to the Improvements without Buyer’s prior written consent, which consent may be withheld by Buyer in its sole discretion.
(d) Seller shall promptly notify Buyer of any change in any condition with respect to the Property or of any event or circumstance which makes any representation or warranty of Seller to Buyer under this Agreement materially untrue or misleading, and of any covenant of Seller under this Agreement which Seller will be incapable of performing or less likely to perform.
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15 6.2 Eminent Domain. If, before the Closing Date, proceedings are commenced for the taking by exercise of the power of eminent domain of any part of the Property which, as reasonably determined by Buyer, would render the Property unsuitable for Buyer’s intended use, Buyer shall have the right, by giving notice to Seller within thirty (30) days after Seller gives notice of the commencement of such proceedings to Buyer, to terminate this Agreement, in which event this Agreement shall terminate and the Deposit shall be returned to Buyer. If, before the Closing Date, proceedings are commenced for the taking by exercise of the power of eminent domain of less than such a material part of the Property, or if Buyer has the right to terminate this Agreement pursuant to the preceding sentence but Buyer does not exercise such right, then this Agreement shall remain in full force and effect and, on the Closing Date, the condemnation award (or, if not theretofore received, the right to receive such award) payable to Seller on account of the taking shall be transferred to Buyer. Seller shall give notice to Buyer reasonably promptly after Seller’s receiving notice of the commencement of any proceedings for the taking by exercise of the power of eminent domain of all or any part of the Property. If necessary, at Buyer’s election, the Closing Date shall be postponed until Seller has given any notice to Buyer required by this Section 6.2 and the period of thirty (30) days described in this Section 6.2 has expired.
6.3 Casualty Damage. If, before the Closing Date, the improvements on the Property are damaged by any casualty and the cost to restore such improvements, as reasonably agreed by Seller and Buyer, is more than One Hundred Thousand Dollars ($100,000), Buyer shall have the right, by giving notice to Seller within thirty (30) days after Seller gives notice of the occurrence of such casualty to Buyer, to terminate this Agreement, in which event this Agreement shall terminate and the Deposit shall be returned to Buyer. If, before the Closing Date, the improvements on the Property are damaged by any casualty and Buyer elects to proceed with the acquisition of the Property, then this Agreement shall remain in full force and effect and, on the Closing Date, any insurance proceeds (or, if not theretofore received, the right to receive such proceeds) payable to Seller on account of the damage shall be transferred to Buyer and the amount of any deductible under Seller’s insurance policy (or, if less, the restoration cost as reasonably determined by Seller and Buyer) shall be a credit to Buyer against the total purchase price for the Property. Seller shall give notice to Buyer promptly after the occurrence of any damage to the improvements on the Property by any casualty.
6.4 City Council Approval at June 17, 2025 Meeting. The parties acknowledge and agree that the parties’ obligations are contingent upon the approval of this Agreement by the City Council at its council meeting scheduled for June 17, 2025. To facilitate the City Council’s approval of this Agreement, Seller shall execute and deliver to Buyer a copy of this Agreement provided that such delivery will not create a binding contractual obligation of Seller until the City Council approves the Agreement and the authorized representative of Buyer executes and delivers to Seller a copy of this Agreement. If this Agreement is not approved by the City Council in accordance with the foregoing, this Agreement shall be deemed void and the parties shall have no further rights or obligations hereunder. If this Agreement is approved by the City Council in accordance with the foregoing, Buyer shall promptly deliver a counter-signed copy of this Agreement to Seller.
6.5 Confidentiality.
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16 (a) Except as may be required under applicable law, court order, or regulation, or to the extent required to perform and enforce this Agreement, both parties shall (and shall cause their employees and contractors to) keep all Information (defined below) confidential and shall not disclose it to any third party, from the Effective Date until the Closing Date. (b) As used in this Agreement, the term “Information” shall mean all information and documents relating to the Property. Information excludes information that: (i) was publicly known at the time it was provided; or (ii) was rightfully in a party’s possession free of any obligation of confidence prior to receipt of Information; (iii) is rightfully obtained by a party from a third party without breach of any confidentiality obligation outlined this Agreement; (iv) is independently developed by employees of Seller or the Buyer; or (v) either party has written consent to disclose.
(c) Notwithstanding anything else to the contrary contained in this Agreement, Seller hereby acknowledges and expressly agrees, that Buyer is subject to the California Public Records Act (Cal. Gov. Code Section 7920.000 et seq., as amended from time to time) and the Brown Act (Cal. Gov. Code Section 54950 et seq., as amended from time to time) and is required, upon request, to disclose information, unless such information is protected from disclosure.
ARTICLE 7
Conditions Precedent; Default
7.1 Seller. The obligations of Seller under this Agreement are subject to satisfaction of all of the conditions set forth in this Section 7.1. Seller may waive any or all of such conditions in whole or in part but any such waiver shall be effective only if made in writing.
After the Closing, any such condition that has not been satisfied shall be treated as having been waived in writing. No such waiver shall constitute a waiver by Seller of any of its rights or remedies if Buyer defaults in the performance of any covenant or agreement to be performed by Buyer under this Agreement or if Buyer breaches any representation or warranty made by Buyer in Section 5.2. If any condition set forth in this Section 7.1 is not fully satisfied or waived in writing by Seller, this Agreement shall terminate, but without releasing Buyer from liability if Buyer defaults in the performance of any such covenant or agreement to be performed by Buyer or if Buyer breaches any such representation or warranty made by Buyer before such termination.
(a) On the Closing Date, Buyer shall not be materially in default in the performance of any material covenant to be performed by Buyer under this Agreement. (b) On the Closing Date, all representations and warranties made by Buyer in Section 5.2 shall be true and correct in all material respects as if made on and as of the Closing Date. (c) On or before the Closing Date, Buyer and Seller shall have executed the Post-Closing Lease in accordance with Section 3.2.
7.2 Buyer. The obligations of Buyer under this Agreement are subject to satisfaction of all of the conditions set forth in this Section 7.2. Buyer may waive any or all of such Docusign Envelope ID: 4D0241C8-9A32-40D4-BE7F-F990D02F2E1E Item 8
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17 conditions in whole or in part but any such waiver shall be effective only if made in writing.
After the Closing, any such condition that has not been satisfied shall be treated as having been waived in writing. No such waiver shall constitute a waiver by Buyer of any of its rights or remedies in the event of a Seller Default. If any condition set forth in this Section 7.2 is not fully satisfied or waived in writing by Buyer, this Agreement shall terminate and the Deposit shall be returned to Buyer, but without releasing Seller from liability due to a Seller Default. (a) On the Closing Date, Seller shall not be materially in default in the performance of any material covenant to be performed by Seller.
(b) On the Closing Date, all representations and warranties made by Seller in Section 5.1 shall be true and correct in all material respects as if made on and as of the Closing Date. (c) On or before the Closing Date, Buyer and Seller shall have executed the Post-Closing Lease in accordance with Section 3.2.
(d) On the Closing Date, Title Company shall be irrevocably and unconditionally (save for payment of the applicable premium) committed to issue to Buyer an Extended Owner’s Title Policy (with such endorsements required by Buyer) (the “Title Policy”), with liability equal to the total purchase price for the Property, insuring Buyer that fee title to the Real Property is vested in Buyer subject only to the Permitted Exceptions.
7.3 Buyer’s Default. Buyer will be deemed to be in default of this Agreement (a “Buyer Default”) if: (i) Buyer fails to timely observe or perform any covenant or satisfy any condition applicable to Buyer under this Agreement and Buyer fails to perform or observe such covenant or satisfy such condition (as applicable) within ten (10) days from the date that Seller delivers to Buyer written notice thereof specifying such failure; (ii) Buyer breaches any warranty made by Buyer under this Agreement; or (iii) if any representation made by Buyer under this Agreement is false, in any material respect. Upon a Buyer Default, Seller may terminate this Agreement by providing written notice to Buyer and Title Company and receive the Deposit as liquidated damages (not as a penalty), without additional instructions to Title Company.
Notwithstanding the provision of Section 2.4, if Buyer creates a cloud on Seller’s title to the Property (except for a lis pendens filed in connection with a complaint by Buyer for specific performance as authorized under this Agreement), fails to timely repair any damage to the Property caused by Buyer or Buyer’s agents, or is obligated to pay any sums related to any claim for indemnification or attorneys’ fees and court costs hereunder, then in addition to retaining the Deposit, Seller may pursue all remedies available to Seller under this Agreement, at law, or in equity to all sums expended and all damages incurred by Seller on account thereof. The terms and conditions of this Section will survive Closing or the earlier termination of this Agreement and will not be deemed to have merged into any of the documents executed or delivered at Closing.
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18 ARTICLE 8
Closing
8.1 Closing Deliveries. The parties shall deliver the following to Title Company no later than one (1) business day prior to the Closing Date. (a) Seller shall deliver to Title Company the following:
(i) The Grant Deed duly executed by Seller with the appropriate acknowledgment form and otherwise in proper form for recording conveying to Buyer the Real Property as required by this Agreement.
(ii) A certification that Seller is not a “foreign person” as such term is defined in Section 1445 of the Internal Revenue Code, as amended, and the regulations thereunder, and a California Franchise Tax Board (FTB) Form 593, as applicable, each duly executed by Seller.
(iii) Two (2) original counterpart copies of the assignment and assumption of contracts, warranties, permits, and licenses (the “General Assignment”) in substantially the form of Exhibit C attached hereto, duly executed by Seller, assigning to Buyer all of Seller’s right, title, and interest in the Permits, the Approved Service Contracts, the Plans and Surveys, and the Assumed Warranties and Guaranties. (iv) Two (2) original counterpart copies of the Post-Closing Lease, each duly executed by ICO RALLY.
(v) An owner’s affidavit in a form reasonably acceptable to Buyer and to Title Company, duly executed by Seller.
(vi) An original or electronically signed copy of the Closing Statement prepared by Title Company under Section 8.6 for Seller, executed by Seller. (vii) All other documents necessary or otherwise required by Title Company to consummate the transaction contemplated by this Agreement. (b) Buyer shall deliver to Title Company the following:
(i) The balance of the Purchase Price, as adjusted for prorations pursuant to Section 8.5 of this Agreement.
(ii) Two (2) original counterpart copies of the General Assignment, each duly executed by Buyer.
(iii) Two (2) original counterpart copies of the Post-Closing Lease, each duly executed by Buyer.
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19 (iv) A California Preliminary Change of Ownership Report, duly executed by Buyer.
(v) An original or electronically signed copy of the Closing Statement prepared by Title Company under Section 8.6 for Buyer, executed by Buyer. (vi) All other documents necessary or otherwise required by Title Company to consummate the transaction contemplated by this Agreement.
8.2 Procedure. Upon satisfaction or waiver of the conditions in Article 7 above and the parties delivery of the items set forth in Section 8.1, the parties shall direct Title Company, as escrow holder, to effectuate the following at the Closing:
(a) The Grant Deed for the Real Property, duly executed and acknowledged by Seller, shall be recorded in the Official Records of the County of Santa Clara, State of California. (b) Title Company shall disburse all funds in accordance with the Closing Statements executed by Seller and Buyer.
(c) Title Company shall deliver to Buyer (i) a conformed copy of the Grant Deed showing the applicable recording information thereon and (ii) the Title Policy. (d) Title Company shall deliver to each party (i) a copy of their respective final Closing Statement and (ii) originals (or copies where originals are not available) of each of the other non- recorded documents submitted into escrow by Buyer and Seller.
8.3 Possession. Seller shall transfer possession of the Property to Buyer on the Closing Date, subject to ICO RALLY’s interest as tenant pursuant to the Post-Closing Lease.
8.4 Closing Costs. Seller shall pay any county transfer taxes and the parties shall split equally any transfer taxes imposed by the City of Palo Alto. Seller shall pay that portion of the Title Policy premium for standard ALTA owner’s title insurance policy coverage and Buyer shall pay the additional Title Policy premium for ALTA extended coverage and any title endorsements requested by Buyer. Seller shall pay any escrow fees. Notwithstanding the foregoing, the parties shall share equally any escrow cancellation fee or other fees due upon a termination of this Agreement, provided that, if this Agreement is terminated due to the default of either party, the defaulting party shall bear all such cancellation fees or other fees due upon the Agreement’s termination. Any other closing costs shall be allocated in accordance with custom in Santa Clara County. Seller and Buyer shall pay the fees of their respective attorneys, accountants and other professionals.
8.5 Prorations. The items in subparagraphs (a) and (b) of this Section 8.5 shall be prorated between Seller and Buyer based on the actual number of days in the applicable period, as of the end of day immediately preceding the Closing Date, with Seller being entitled to income and obligated for expenses attributable to the period prior to the Closing Date, and Buyer being entitled to the income and obligated for expenses attributable to the Closing Date and thereafter.
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20 (a) Real Estate Taxes and Assessments. Seller or Buyer, as the case may be, shall be allocated real estate taxes and assessment installment payments (including, any assessments imposed by private covenant) (“Taxes”) applicable to Buyer’s period of ownership or applicable to Seller’s period of ownership, respectively, even if such taxes and assessment installment payments are not yet due and payable, with Seller being obligated for real estate taxes and assessments pertaining to the period prior to the Closing Date, and Buyer being obligated for real estate taxes and assessments attributable to the Closing Date and thereafter. Notwithstanding the foregoing in this Section, if, on the Closing Date, Seller has paid the Taxes for the current tax year in which the Closing occurs, Seller will receive a credit at Closing equal to the prorated amount of Taxes paid by Seller, which is based on the number of days in the year that Seller owned the Property. If the amount of any installment of Taxes is not known as of the Closing Date, then a proration shall be made by the parties based on a reasonable estimate of the Taxes applicable to the Property and the parties shall adjust the proration when the actual amount becomes known upon the written request of either party made to the other in accordance with Section 8.5(d).
(b) Utilities. Unreimbursed charges for assessments for sewer and water and other utilities, including charges for consumption of electricity, steam and gas and any other receipts or charges, as applicable, shall be apportioned by Buyer and Seller at the Closing based on the last ascertainable bill issued to Seller, subject to adjustment within four (4) weeks after the Closing when next bills are available. Seller shall use reasonable efforts to have all meters read as close to, but before, the Closing as is feasible, and shall be responsible for amounts shown due by reason of such readings. The parties acknowledge and agree that ICO RALLY shall be responsible for the payment of utilities after Closing in accordance with the terms of the Post- Closing Lease.
(c) Base Rent and Security Deposit Under the Post-Closing Lease. At Closing ICO RALLY shall remit payment to Buyer in the amount of Twenty-Five Thousand Two Hundred & 66/100 Dollars ($25,200.66) constituting the first month’s base rent and the security deposit to be paid by ICO RALLY, as tenant, pursuant to the Post-Closing Lease. (d) Post-Closing Reconciliation. The provisions of this Section 8.5 will survive the consummation of the transaction contemplated by this Agreement. If, within twelve (12) months following the Closing Date, either party discovers that the estimated prorations at the Closing Date were not accurate for any reason, it shall notify the other party of such inaccuracy and the parties shall promptly make any adjustment required. Neither party shall be obligated to adjust any prorations after such twelve (12) month period. If either Party is entitled to a readjustment or re-proration, the party responsible for paying such correction must do so by wire transfer of immediately available funds.
8.6 Closing Statements. At least two (2) business days prior to the Closing Date, the parties shall agree upon all of the prorations to be made and submit that information to Title Company. At least one (1) business day prior to the Closing Date, Title Company shall prepare and deliver for Seller’s and Buyer’s review and approval a final closing statement for each party reflecting the prorations and adjustments agreed to by Seller and Buyer, together with all remaining charges, credits, and adjustments and the balance of the Purchase Price due Seller (each, a “Closing Statement”). In the event that any prorations, apportionments, or Docusign Envelope ID: 4D0241C8-9A32-40D4-BE7F-F990D02F2E1E Item 8
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21 computations made under this Article 8 require final adjustment, then the parties shall make the appropriate adjustments promptly when accurate information becomes available and either party hereto shall be entitled to an adjustment to correct the same. Any corrected adjustment or proration shall be paid in cash to the party entitled thereto. The provisions of this Section shall survive the Closing.
8.7 Post-Closing Deliveries. Immediately after the Closing, Seller shall deliver to Buyer:
(a) A notice to each vendor under the Assumed Contracts (if required by the terms of such Assumed Contracts) in a form and substance acceptable to Buyer advising the recipient of the sale of the Property to Buyer.
(b) All keys, key cards, and codes relating to the operation of the Property, provided that ICO RALLY may retain two (2) sets of keys and key cards (if any) in accordance with the Post- Closing Lease.
(c) Originals or, if originals are not in the possession or control of Seller, copies of Plans and Surveys, to the extent the same are in Seller’s possession or under Seller’s control.
ARTICLE 9
General
9.1 Notices. All notices and other communications under this Agreement shall be properly given only if made in writing and (i) mailed by certified mail, return receipt requested, postage prepaid, or (ii) delivered by hand (including messenger or recognized delivery, courier or air express service), or (iii) by electronic mail. Such notices and other communications shall be effective on the date of receipt (evidenced by the certified mail receipt) if mailed, on the date of such hand delivery if hand delivered, or on the date of electronic mail confirmation if sent on a business day, provided that if such email transmission is completed after 5 p.m. California local time or on a non-business day then such notice shall be effective as of 9 a.m. California local time on the next business day. If any such notice or other communication is not received or cannot be delivered due to a change in the address of the receiving party of which notice was not previously given to the sending party or due to a refusal to accept by the receiving party, such notice or other communication shall be effective on the date delivery is attempted. Any notice or other communication under this Agreement may be given on behalf of a party by the attorney for such party.
(a) The address of Seller:
C H LLC
14250 Baleri Ranch Rd.
Los Altos Hills, CA 94022
Attn: Edwina Cioffi
Email: [email protected]
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22 (b) The address of Buyer is:
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Attn: Manager, Real Property
E-Mail: [email protected]
(c) The address of Title Company is:
Chicago Title Company
675 N. First Street, Suite 300
San Jose, CA 95112
Attn: Sherri Keller
Tel: 408-292-4212
Email: [email protected]
9.2 Attorneys’ Fees. If there is any legal action or proceeding between Seller and Buyer arising from or based on this Agreement, the unsuccessful party to such action or proceeding shall pay to the prevailing party all costs and expenses, including reasonable attorneys’ fees and expenses, incurred by such prevailing party in such action or proceeding and in any appeal in connection therewith. If such prevailing party recovers a judgment in any such action, proceeding or appeal, such costs, expenses and attorneys’ fees and expenses shall be included in and as a part of such judgment.
9.3 Brokers. Except for Renault & Handley (the “Listing Broker”) who shall be paid a commission by Seller pursuant to a separate agreement between Seller and Listing Broker, each of the parties represents and warrants that it has not employed, retained or otherwise utilized any broker or finder in connection with any of the transactions contemplated by this Agreement and no other broker or person is entitled to any commission or finder’s fees in connection with any of these transactions. Listing Broker is an independent contractor and is not authorized to make any agreement or representation on behalf of either party. Except as expressly set forth above, the parties each agree to indemnify and hold harmless one another against any loss, liability, damage, cost, claim or expense incurred by reason of any brokerage commission or finder’s fee alleged to be payable because of any act, omission or statement of the indemnifying party. The provisions of this Section 9.3 shall survive the Closing and the delivery and recordation of the Grant Deed, or the earlier termination of this Agreement.
9.4 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws.
9.5 Construction. Seller and Buyer acknowledge that each party and its counsel have reviewed and revised this Agreement and that the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any document executed and delivered by either party in connection with the transactions contemplated by this Agreement. The captions or section titles Docusign Envelope ID: 4D0241C8-9A32-40D4-BE7F-F990D02F2E1E Item 8
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23 in this Agreement are for convenience of reference only and shall not be used to interpret this Agreement. Unless the context otherwise requires, all periods terminating on a given day, period of days, or date shall terminate at 5:00 p.m. (local California time) on such date or dates and references to “days” shall refer to calendar days except if such references are to “business days” which shall refer to days which are not a Saturday, Sunday or legal holiday. Notwithstanding the foregoing, if any period terminates on a Saturday, Sunday or legal holiday, the termination of such period shall be on the next succeeding business day. The time in which any act provided under this Agreement is to be done shall be computed by excluding the first day and including the last day, unless the last day is a Saturday, Sunday or legal holiday under the laws of California, and then it is also so excluded.
9.6 Terms Generally. The defined terms in this Agreement shall apply equally to both the singular and the plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The term “person” includes individuals, corporations, partnerships, limited liability companies, trusts, other legal entities, organizations and associations, and any government or governmental agency or authority. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The words “approval,” “consent” and “notice” shall be deemed to be preceded by the word “written.”
9.7 Further Assurances. From and after the Effective Date, Seller and Buyer agree to do such things, perform such acts, and make, execute, acknowledge and deliver such documents as may be reasonably necessary or proper and usual to complete the transactions contemplated by this Agreement and to carry out the purpose of this Agreement in accordance with this Agreement.
9.8 Partial Invalidity. If any provision of this Agreement is determined by a proper court to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement and this Agreement shall remain in full force and effect without such invalid, illegal or unenforceable provision.
9.9 Waivers. No waiver of any provision of this Agreement or any breach of this Agreement shall be effective unless such waiver is in writing and signed by the waiving party and any such waiver shall not be deemed a waiver of any other provision of this Agreement or any other or subsequent breach of this Agreement.
9.10 Miscellaneous. The Exhibits and Schedules attached to this Agreement are by this reference incorporated herein and made a part of this Agreement. Buyer shall have the right to assign this Agreement without the prior consent of Seller. Time is of the essence of this Agreement. This Agreement may be executed in counterparts, each of which shall be an original, but all of which shall constitute one and the same Agreement. This Agreement may not be amended or modified except by a written agreement signed by Seller and Buyer. This Agreement constitutes the entire and integrated agreement between Seller and Buyer relating to the purchase and sale of the Property and supersedes all prior agreements, understandings, offers and negotiations, oral or written, with respect to the sale of the Property.
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24 9.11 Electronic Signatures. Each party (i) has agreed to permit the use, from time to time, of telecopied or electronic signatures in order to expedite the transaction contemplated by this Agreement, (ii) intends to be bound by its telecopied or electronic signature, (iii) is aware that the other will rely on the telecopied or electronic signature, and (iv) acknowledges such reliance and waives any defenses (other than fraud) to the enforcement of any document based on the fact that a signature was sent by telecopy. As used herein, the term “telecopied signature” shall include any signature sent via facsimile or via email in portable document format (“.pdf”).
[SIGNATURE PAGE TO FOLLOW]
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25 IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the Effective Date.
BUYER:
CITY OF PALO ALTO
By
Name
Title
Date
Approved as to form:
Jennifer Fine
Deputy City Attorney
SELLER:
C H LLC
By
Name
Title
Date
Title Company acknowledges receipt of a copy of this Agreement and hereby executes below to evidence its agreement to act as escrow holder in accordance with the terms and conditions of this Agreement.
Date ______________ CHICAGO TITLE COMPANY
By
Its
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EDWINA CIOFFI
6/12/2025
Managing Member
Ed Shikada
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1 EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
(to be attached)
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1 EXHIBIT B
GRANT DEED
Recorded at Request of and
When Recorded Mail to:
Mail Tax Statements to:
SPACE ABOVE THIS LINE FOR RECORDER’S USE
THE UNDERSIGNED GRANTOR(S) DECLARE(S)
DOCUMENTARY TRANSFER TAX is $__________________________ computed on full value of property conveyed, or
computed on full value less value of liens or encumbrances remaining at time of sale. unincorporated area
City of Palo Alto
GRANT DEED
For valuable consideration, receipt of which is acknowledged, [______________________, a __________] (“Grantor”) hereby grants to [_________________, a _________], the real property located in the City of Palo Alto, County of Santa Clara, State of California, described in Exhibit A attached hereto and made a part hereof, together with the tenements, easements, rights of way and appurtenances belonging or in any way appertaining to the same, and the improvements thereon, subject to all matters of record.
Dated: ____________, 2025
[______________________________], a
__________________
By: ____________________________
Name: _________________________
Title: __________________________
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1 $d536e4e6253c$36CFA5738BD74712A4E304015F05FFE4.docx
EXHIBIT C
GENERAL ASSIGNMENT
This General Assignment (this “Assignment”), dated as of _______, 2025 (“Effective Date”), is by and between C H LLC, a California limited liability company (“Assignor”), and CITY OF PALO ALTO, a California chartered municipal corporation (“Assignee”).
RECITALS
A. Assignor, as seller, and Assignee, as buyer, have entered into that certain Purchase and Sale Agreement dated as of June 18, 2025 (the “Purchase Agreement”), for the purchase and sale of that certain property having an address of 2575 East Bayshore Road, Palo Alto, California and as more particularly described in the Purchase Agreement (the “Property”).
B. In connection with the purchase and sale of the Property, the Purchase Agreement obligates Assignor to assign to Assignee, and Assignee to assume from Assignor, the contracts, warranties, guaranties, permits and licenses each as further defined herein, subject to the terms and conditions set forth in this Assignment.
NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Assignment. As of the Effective Date Assignor hereby assigns, transfers, and sets onto Assignee, all of its right, title and interest, in, under and to all benefits and privileges accruing to Assignor thereunder to each of the following (collectively, the “Assumed Agreements”):
(a) All Permits (as defined in the Purchase Agreement); (b) All Approved Service Contracts (as defined in the Purchase Agreement) and further identified on Attachment 1 attached hereto and made a part hereof; (c) All Plans and Surveys (as defined in the Purchase Agreement); (d) All Assumed Warranties and Guaranties (as defined in the Purchase Agreement) and as further identified on Attachment 2 attached hereto and made a part hereof.
2. Assumption. Assignee hereby assumes and agrees to perform any and all of the obligations and liabilities of Assignor under each of the Assumed Agreements accruing from and after the Effective Date.
3. Indemnification.
(a) Assignor hereby agrees to indemnify and to hold Assignee harmless from and against any and all loss, cost, liability, damage or expense, including without limitation, Docusign Envelope ID: 4D0241C8-9A32-40D4-BE7F-F990D02F2E1E Item 8
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reasonable attorneys’ fees, arising from Assignor’s breach or default of its obligations or duties under any Assumed Agreement before the Effective Date.
(b) Assignee hereby agrees to indemnify and to hold Assignor harmless from and against any and all loss, cost, liability, damage or expense, including, without limitation, reasonable attorneys’ fees, arising from Assignee’s breach or default of its obligations or duties under any Assumed Agreement on or after the Effective Date.
4. Miscellaneous.
(a) This Assignment shall be governed by and construed in accordance with the laws of the State of California, without regard to conflict of law rules. (b) No modification, waiver, amendment, discharge or change of this Assignment shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver, amendment, discharge or change is or may be sought. (c) Assignor shall promptly execute and deliver to Assignee any additional instrument or other document which Assignee reasonably requests to evidence or better effect the assignment contained herein.
(d) This Assignment and the obligations of the parties hereunder shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and assigns.
(e) This Assignment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original for all purposes, and all such counterparts shall together constitute but one and the same instrument. [Signatures on the next page]
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IN WITNESS WHEREOF, the parties have executed this Assignment as of the Effective Date.
ASSIGNOR:
C H LLC
By
Name
Title
ASSIGNEE:
CITY OF PALO ALTO
By
Name
Title
Approved as to form:
By
Name
Title
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EXHIBIT D
POST-CLOSING LEASE
(to be attached)
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1 SCHEDULE 1
LIST OF SERVICE CONTRACTS
(to be attached)
None.
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1 SCHEDULE 2
LIST OF ENVIRONMENTAL AND ENGINEERING REPORTS
(to be attached)
Environmental Data Resources Radius Map with GeoCheck dated August 8, 2001, Inquiry Number 0666216.1r.
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Item No. 14. Page 1 of 1
City Council
Supplemental Report
From: Kristen O'Kane, Community Services Director
Meeting Date: June 17, 2025
Item Number: 14
Report #:2506-4847
TITLE
Approval of Professional Services Contract No. C26193874 with Palo Alto Community Child Care in an Amount Not-to-Exceed $3,228,146 to Provide Management of the City’s Childcare Subsidy Program for a Term of Five Years. CEQA Status – Not A Project
RECOMMENDATION
The link to the Palo Alto Community Child Care contract #C26193874, as listed in footnotes 1, 5, and 6 of staff report #2505-4680 was incorrect. The correct link is as follows, https://www.paloalto.gov/files/assets/public/v/1/community-services/human-services/palo- alto-community-child-care-contract-c26193874.pdf.
APPROVED BY:
Kristen O'Kane, Community Services Director
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Item No. 8. Page 1 of 2
City Council
Supplemental Report
From: Lauren Lai, Administrative Services Director
Meeting Date: June 17, 2025
Item Number: 8
Report #:2506-4859
TITLE
Approval of and Authorization for the City Manager or Designee to Negotiate and Execute a Purchase and Sale Agreement with C H LLC to Acquire the Industrial Property Located at 2575 East Bayshore Road (Assessor’s Parcel Number 008-03-015) for $8.5 million, with Leaseback to Insulation Sources, Inc. (dba Ico Rally) for $12,600/Month; CEQA Status – Exempt Under CEQA Guidelines Section 15301
BACKGROUND
This supplemental report is in response to an email from a Palo Alto resident as it relates to Report #2506-4764, Item #8. The resident is the owner of a property located at 1020 O’Brien Drive, in Menlo Park, and suggests that property is available for $7,000,000.
ANALYSIS
Staff have reviewed the information provided and recommends no change. As noted in the staff report, the 2575 East Bayshore property is attractive because of its location, lot size, indoor warehouse capacity, and office space.
While the 1020 O’Brien property is slightly larger, the building covers a higher percentage of the site (nearly 42% building to land area coverage ratio compared to just under 34% of the Palo Alto property). Staff previously evaluated 1020 O’Brien and deemed this property not feasible due to building access and vehicle maneuverability constraints, posing a turning radius challenge for large commercial vehicles.
Utilities staff has verified the turning radius at 2575 East Bayshore is sufficient for large commercial vehicles carrying utility poles. The 1020 O’Brien property also has only one rollup door in the building, so City staff and contractors would have to reverse their vehicles out of the building or dedicate space in the warehouse for a turning radius. The 2575 East Bayshore Item 8
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Item No. 8. Page 2 of 2
property has four rollup doors with a clear height of 23’8”, compared to 16’6” at 1020 O’Brien, allowing for more storage space and maneuverability. Other potential complications with the 1020 O’Brien property is its location in another city and county, which can lead to less certainty in permitting, zoning, or other local requirements when compared to a property within the city of Palo Alto. The location would also increase inefficiencies, with extra commute of city staff (Utilities, Stores Warehouse) for regular receipt, testing and delivery of materials.
APPROVED BY:
Lauren Lai, Administrative Services Director
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Item No. 11. Page 1 of 1
City Council
Supplemental Report
From: Darren Numoto, Chief Information Officer
Meeting Date: June 17, 2025
Item Number: 11
Report #:2506-4864
TITLE
Authorize the City Manager to Negotiate and Execute 14 Professional Services Contracts for GIS On-Call Services, supplemental staffing, and programming services: C26193271A with Lynx Technologies Inc, C26193271B with Seven Tablets Inc, C26193271C with iSpatial Techno Solutions Inc, C26193271D with Geodesy, C26193271E with UDC, C26193271F with NV5 Geospatial Inc, C26193271G with SSP Innovations, C26193271H with Timmons Group, C26193271I with Infojini Inc, C26193271J with Sybyte Technologies Inc, C26193271K with 360S2G, C26193271L with Enterprise Maps, C26193271M with Farallon Geographics, C26193271N with Arini Geographics, Each in an Amount Not-to-Exceed $2,000,000 for a Term of One Year; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate, approve, and execute one year contracts with each of the vendors above for on-call GIS services. Each vendor is not guaranteed any amount of work; the City must approve a task order for specific projects with binding terms on schedule and price. Each on-call contract will have a maximum not-to-exceed of $2,000,000, and the total spend on all 14 contracts combined shall not exceed $2,000,000.
BACKGROUND
The report originally distributed contained incorrect descriptions of multiyear terms and dollar values recommended. This supplemental report revises the title and recommendation to clarify the intent of the item.
Upon City Council approval of the revised recommendation, staff will revise the contracts to reflect a one-year term with four optional years. Staff will return to Council for approval in Fiscal Year 2027 through Fiscal year 2030 to amend the contracts term based on the anticipated needs in the future.
APPROVED BY:
Darren Numoto, Chief Information Officer
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Item No. 12. Page 1 of 1
City Council
Supplemental Report
From: Darren Numoto, Chief Information Officer
Meeting Date: June 17, 2025
Item Number: 12
Report #:2506-4865
TITLE
Authorize the City Manager to Negotiate and Execute Professional Services Contracts for SAP Enterprise Resource System On-call Programming Services: Contract C26193272A with 360S2G, C26193272B with Sage Group Technologies Inc, C26193272C with Avertra Corp, C26193272D with Amick Brown LLC, C26193272E with 2iSolutions Inc, C26193272F with the Peloton Group, C26193272G with Phoenix Business Inc, C26193272H with EPI-USE America, Each in an Amount Not-to-Exceed $2,000,000 for a Term of One Year; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate, approve, and execute one-year contracts with each of the vendors above for on-call SAP services. Each vendor is not guaranteed any amount of work; the City must approve a task order for specific projects with binding terms on schedule and price. Each on-call contract will have a maximum not-to-exceed of $2,000,000, and the total spend on all 14 contracts combined shall not exceed $2,000,000.
BACKGROUND
The report originally distributed contained incorrect descriptions of multiyear terms and dollar values recommended. This supplemental report revises the title and recommendation to clarify the intent of the item.
Upon City Council approval of the revised recommendation, staff will revise the contracts to reflect a one-year term with four optional years. Staff will return to Council for approval in Fiscal Year 2027 through Fiscal year 2030 to amend the contracts term based on the anticipated needs in the future.
APPROVED BY:
Darren Numoto, Chief Information Officer
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Item No. 13. Page 1 of 1
City Council
Supplemental Report
From: Darren Numoto, Chief Information Officer
Meeting Date: June 17, 2025
Item Number: 13
Report #:2506-4866
TITLE
Authorize the City Manager to Negotiate and Execute Eight Professional Services Contracts for On-Call IT Project Support and supplemental staffing: Contract C26193247A with INSPYR Solutions, C26193247B with AgreeYa Solutions, C26193247C with TechLink Systems, C26193247D with Compunnel Software Group, C26193247E with Progile Tech Inc, C26193247F with Omm IT Solutions, C26193247G with Infojini Inc, and C26193247H with California Creative Solutions Inc., Each in an Amount Not-to-Exceed $1,500,000 for a Term of One Year; CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to negotiate, approve, and execute one-year contracts with each of the vendors above for on-call Information Technology related services. Each vendor is not guaranteed any amount of work; the City must approve a task order for specific projects with binding terms on schedule and price.
Each on-call contract will have a maximum not-to-exceed of $1,500,000, and the total spend on all 14 contracts combined shall not exceed $1,500,000.
BACKGROUND
The report originally distributed contained incorrect descriptions of multiyear terms and dollar values recommended. This supplemental report revises the title and recommendation to clarify the intent of the item.
Upon City Council approval of the revised recommendation, staff will revise the contracts to reflect a one-year term with four optional years. Staff will return to Council for approval in Fiscal Year 2027 through Fiscal year 2030 to amend the contracts term based on the anticipated needs in the future.
APPROVED BY:
Darren Numoto, Chief Information Officer
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: June 17, 2025
Report #:2506-4869
TITLE
Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year Term to Continue the City of Palo Alto On-Demand Transit Service through June 30, 2026; CEQA status - not a project. (Originally Published on the June 16, 2025 City Council Meeting Agenda Item Number #18 - Deferred to June 17, 2025 City Council Meeting)
BACKGROUND
Original Staff Report #2506-4761 published on the June 16, 2025 City Council meeting agenda item number #18 and deferred to June 17, 2025 City Council meeting and is now before you.
ATTACHMENTS
Attachment A: 6/16/25 Staff Report #2506-4761
Attachment B: 6/16/25 Attachment A - Nomad Transit LLC (Via) Contract, C23184827 Amendment #3
APPROVED BY:
Ria Lo, Chief Transportation Official
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: June 16, 2025
Report #:2506-4761
TITLE
Approval of Amendment No. 3 to Contract Number C23184827 with Nomad Transit, LLC (Via) in the Amount of $1,100,000 for a total not to exceed $4,901,550 over a Four-Year Term to Continue the City of Palo Alto On-Demand Transit Service through June 30, 2026; CEQA status - not a project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Amendment No. 3 to Contract C23184827 with Nomad Transit, LLC (Via) (Attachment A) to provide Palo Alto Link Services, extending the contract term to June 30, 2026, in an amount not to exceed of $1,100,000. This amendment results in revised not-to- exceed amount of $4,901,550.
BACKGROUND
Palo Alto Link provides on-demand transit service Monday-Friday for a 12-hour service span 7:00 am-7:00 pm. The service operates within most of the City, with exceptions only to the east and west ends that primarily house large open spaces and conservation lands. PAL is utilizing a ten (10) vehicle fleet to provide virtually positioned pick-up and drop-off locations within an acceptable walking distance with the help of a web application. Door-to-door service is available for riders who may require extra assistance. The service addresses first-/last-mile challenges in Palo Alto and provides a convenient and affordable transportation option for residents, employees, and vulnerable/transit-dependent populations.
Finding and securing funding partners such as Stanford Research Park (SRP) is an integral strategy to establish a long-term path forward for funding PAL transit services. The City Council approved the contract for this service December 12, 20221 and further discussed service levels 1 City Council meeting 12/12/2022, Item#8:
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and funding in April 2023 and as part of the FY 2025 budget process in May 2024. For the FY 2026 Budget process in May 2025, a reduction in service and contract funding to $1.1 million was recommended to mitigate the potential nonrenewal of grant sources. Staff will bring forward subsequent budget adjustments as needed if grant renewals are awarded. Notification is expected in the next several weeks.
The contract with Nomad Transit LLC (Via) provided on-demand transit services in the amount of $2,043,000 for up two years, which the City conducted a formal solicitation for and was primarily funded through the 2016 Measure B Innovative Transit Grant ($2,000,000). On April 10, 2023, the Council approved contract Amendment No. 12, adding a cost sharing agreement with Stanford Research Park. On November 4, 2024, the Council approved contract Amendment No. 2, making some service and fee adjustments, and updating the revenue sharing approach with SRP3. The City continues to work in conjunction with SRP to increase the service area of PAL to also serve SRP, with SRP contributing per month to the City to cover the increased cost of providing the expanded service area.
ANALYSIS
A study session was held with the City Council in FY 20244 to discuss the service levels of this program in light of the sunset of the Innovative Transit Grant. This discussion reviewed the funding necessary to support different levels of services in preparation for the FY 2025 budget process. During the FY 2025 budget process, the Finance Committee and City Council adopted a revised level of service and funding plan including changes to ride fares, partnerships with other agencies, and grant funding to lower the net financial impact on the City’s General Fund. The FY 2025 Adopted Budget reflected gross program expenses of $1.2. million, reflecting a reduction in service level from FY 2024.
The service level included in the second amendment and recommended in this third amendment maintains Palo Alto Link on-demand transit service Monday—Friday for a 12-hour service span 7:00 am-7:00 pm, with increased wait times compared to the previous fiscal year.
FY 2025 was the first of $4 standard fares and $2 fares for the discounted categories—senior, disabled, low-income, and youth. While the first six months of service saw wait times in the 13- to 15-minute ranges, wait times in FY 2025, and particularly in the last six months, have approached 20 minutes (Figure 1).
2 City Council meeting 4/10/2023, Item#7 SR#2303-1128:
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4 City Council meeting 4/1/2024, Item#3 SR#:
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Figure 1: Average Pickup ETA for On Demand Rides
Ridership began with steady growth throughout the first year of the service, but the increased wait times and a slightly increased walking distance to aggregated ride routes have likely helped to modulate growth over the last six months.
Figure 2: Average Pickup Walking Distance
Figure 3: Met Demand (Ride Requests Fulfilled)
Prior to the fare increase, fare recovery ranged from $0.60 to $0.75 per fare. Since the fare increase, fare recovery has ranged from $0.75 to $1.00 per fare. Similarly, total operations cost per trip decreased from a $27 to $35 range per month to a $23 to $30 per month average cost.
In the first four months of 2025, the main factor in services cost, driver hours, has been kept below 1000 hours, increasing ride pooling efficiency and helping to keep per trip costs down.
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Figure 4. Driver Hours.
The recommended service level for FY 2026 will be responsive to funding available for the program: $1.1 million, currently provided, will be a baseline level provided by the City and SRP, with an expanded service level should grant funding be awarded.
FISCAL/RESOURCE IMPACT
In line with the plan outlined in Amendment 2, staff will closely monitor PAL activity and bring forward budgetary adjustments to Council as needed with the expectation that the City’s General Fund funding for the program of $500,000 will not be increased in FY 2026. The remaining $600,000 is funded mostly by Stanford University to offset the cost of PAL services to the University and Research Park ($520,000). Fare revenues from riders using PAL are estimated to provide an additional $80,000 to offset the cost of the program.
STAKEHOLDER ENGAGEMENT
Public engagement is ongoing since the program launched on March 7, 2023. Community engagement and marketing activities include tabling at community events and destinations and social media campaigns.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA under CEQA regulation 15061 (b)(3).
ATTACHMENTS
Attachment A: Nomad Transit LLC (Via) Contract, C23184827 Amendment #3 APPROVED BY:
Ria Hutabarat Lo, Chief Transportation Official
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AMENDMENT NO. 3 TO CONTRACT NO. C23184827
BETWEEN THE CITY OF PALO ALTO AND NOMAD TRANSIT, LLC
This Amendment No. 3 (this “Amendment”) to Contract No. C23184827 (the “Contract”) is entered into as of June 30, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and NOMAD TRANSIT, LLC, a Delaware limited liability corporation, located at 10 Crosby Street, 2nd Floor, New York, NY 10013 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
RECITALS
A. The Contract was entered into by and between the Parties for the provision of transit and shuttle services, including equipment, transportation planning, customer engagement, marketing services, labor, vendor services, and the technology to support services, as detailed therein.
B. The Parties now wish to amend the Contract to extend the term by six months from December 31, 2025, to June 30, 2026, to increase billing rates, and to increase the compensation by One Million One Hundred Thousand Dollars ($1,100,000.00) from Three Million, Eight Hundred One Thousand Five Hundred Fifty Dollars ($3,801,550.00) to a new total not-to-exceed compensation amount of Four Million, Nine Hundred One Thousand, Five Hundred Fifty Dollars ($4,901,550.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:
SECTION 1. Definitions.
The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” refers to Contract No. C23184827 between CONSULTANT and CITY, dated December 12, 2022, as amended by:
Amendment No. 1, dated April 10, 2023, and
Amendment No. 2, dated September 23, 2024.
b. Other Terms. Capitalized terms used but not defined in this Amendment shall have the meanings assigned to such terms in the Contract.
SECTION 2. Section 2, "TERM", of the Contract is hereby amended to read as follows:
"The term of this Agreement shall be from the date of its full execution through June 30, 2026, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement." Docusign Envelope ID: F2E682D7-C646-49E6-9401-0A3E35243C92 Item AA2
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SECTION 3. Section 4, "NOT TO EXCEED COMPENSATION", of the Contract is amended to read as follows:
"The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Four Million, Nine Hundred One Thousand, Five Hundred Fifty Dollars ($4,901,550.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1. Any work performed or expenses incurred beyond this maximum compensation shall be at no cost to the CITY." SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference:
a. Exhibit "C" entitled "COMPENSATION, AMENDMENT NO. 3", AMENDED, REPLACES PREVIOUS.
b. Exhibit “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO. 3” AMENDED, REPLACES PREVIOUS.
SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.
CITY OF PALO ALTO NOMAD TRANSIT, LLC
City Manager: Officer 1
APPROVED AS TO FORM: By:
Name:
City Attorney or designee Title:
Officer 2
By:
Name:
Title:
Attachments
EXHIBIT “C”: “COMPENSATION, AMENDMENT NO. 3”, AMENDED, REPLACES PREVIOUS.
EXHIBIT “C-1”: “SCHEDULE OF RATES, AMENDMENT NO. 3, AMENDED, REPLACES PREVIOUS
Docusign Envelope ID: F2E682D7-C646-49E6-9401-0A3E35243C92 Manager
Alex Laoie
Chief Legal Officer
Erin Abrams
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EXHIBIT C
COMPENSATION, AMENDMENT NO. 3
(AMENDED, REPLACES PREVIOUS)
CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK NOT TO EXCEED AMOUNT
Task 1 (Upfront Costs) $92,500.00 + $13,500.00*
Task 2
(Vehicle Hours compensated at the rate specified in Exhibit C-1)
$2,503,050.00 + $1,186,500.00** +
$1,100,000.00***
Task 3
(Estimated Electricity Cost (To be Treated as a Pass-
Through))
$6,000.00
Sub-total for Services $3,801,550
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Reimbursable Expenses (if any) $0.00
Total for Services and Reimbursable Expenses $4,901,550 Additional Services (if any, per Section 4) $0.00
Maximum Total Compensation $4,901,550
Should Customer require additional WAV retrofits or vehicle wraps, CONSULTANT will bill CITY as incurred as a pass-through, so long as the amount stays within the not-to-exceed amount.
* The $13,500 is added by Amendment 2 for the cost of moving from hybrid vans to fully electric vans per TFCA requirements.
** The $1,186,500 is added by Amendment 2.
***The $1,100,000 is added by Amendment 3.
Note: Pricing assumes that the Services provided hereunder are tax exempt and assumes service hours of 8am-6pm M-F. Pricing assumes launch within 4 months of contract signing. Estimated Electricity Cost assumes 2 active EVs with 171 Wh/km efficiency and electricity cost at $0.23 / kWh. Electricity costs will be treated as a pass-through. In the event that the Services cease to be tax exempt, such taxes will be treated as pass-through and charged to the City.
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.
Docusign Envelope ID: F2E682D7-C646-49E6-9401-0A3E35243C92 Item AA2
Attachment B - 61625
Attachment A - Nomad
Transit LLC (Via) Contract,
C23184827 Amendment
#3
Item AA2: Staff Report
Pg.
10 Packet Pg. 412 of 413
EXHIBIT C-1
SCHEDULE OF RATES, AMENDMENT NO. 3
(AMENDED, REPLACES PREVIOUS)
CONSULTANT’s schedule of rates is as follows:
Cost per Driver Hour, Months 1-12: $88.65
Cost per Driver Hour, Months 18 and onward: $89.00
Note: Annual rate increase for Months 13-18 will be the greater of 5% (as shown) or the last 12 months U.S. all-items CPI. A Driver Hour is defined as each hour during which a driver is paid on the Via platform.
Docusign Envelope ID: F2E682D7-C646-49E6-9401-0A3E35243C92 Item AA2
Attachment B - 61625
Attachment A - Nomad
Transit LLC (Via) Contract,
C23184827 Amendment
#3
Item AA2: Staff Report
Pg.
11 Packet Pg. 413 of 413