Agenda packet — Palo Alto City Council, September 15, 2025 (part 1 of 3)

CITY COUNCIL
Regular Meeting
Monday, September 15, 2025
Council Chambers & Hybrid
5:30 PM

Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda.

The meeting will be broadcast on Cable TV Channel
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, and streamed to Midpen Media
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VIRTUAL PARTICIPATION

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Meeting ID: 362 027 238 Phone:1(669)900-6833

PUBLIC COMMENTS
General

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agenda

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Chair.

General

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30 minutes.

Additional

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Requests

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Chair.

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TIME ESTIMATES
Listed

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time,

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while

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use

less

time

any

item,

to
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the

order

items

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items

another

meeting.

Particular

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best
manage the time at a meeting or to adapt to the participation of the public.

1 September 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

CALL TO ORDER

AGENDA CHANGES, ADDITIONS AND DELETIONS

PUBLIC COMMENT (5:30 - 6:00 PM)
Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 - 6:10 PM) Members of the public may not speak to the item(s).

STUDY SESSION (6:10 - 7:10 PM)

1. 414 California Avenue [25PLN-00140]. Request for Council Prescreening to Rezone the Subject Property from Community Commercial (2) (CC[2]) to Planned Community/Planned Home Zoning and to Allow Construction of a Mixed-Use Building with 37 Units in a Six-Story Structure on a 16,231-Square-Foot (0.37 Acre) Site. CEQA Status: Not a Project.

CONSENT CALENDAR (7:10 - 7:15 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

2. PUBLIC HEARING: Adoption of Voluntary Residential Electric Service Time-of-Use Rates (E-1 TOU) as Recommended by the Finance Committee; CEQA Status: Not a Project

3. Finance Committee Recommendation for City Council to Direct Staff to Follow the Reasonable-Cost Analysis Required by Proposition 26 for the Gas Cost of Service Analysis and Collaborate with the Utilities Advisory Commission to Develop Revised Gas Rate Schedules Effective January 2026, Based on Five Design Principles; CEQA – Not a Project

4. Authorization to Execute Amendment to Legal Services Agreement S25193131 with Diepenbrock Elkin Dauer McCandless to Increase Amount by $1,086,000 for Total Not-to- Exceed Amount of $1,171,000; CEQA Status – Not a Project.

5. Approval of Contract Amendment Number 1 to Contract C21177635B with Ingram Library Services in the amount of $255,000 for Print Materials and Services for a new not-to-exceed (NTE) of $455,000; and Contract Amendment Number 1 to Contract C21177635C with Midwest Tape in the amount of $53,000 for Media and Digital Materials and Services for a new not-to-exceed (NTE) of $753,000; CEQA Status – Not a Project.

2 September 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

6. Approval of 1) Amendment No. 8 to Contract No. C16163034A with Cumming Management Group, Inc. to Add $208,528, Increasing the Not-to-Exceed Amount to $10,683,771, for Additional Construction Management Services; 2) Professional Services Contract No. S26195542 with 4Leaf, Inc. in the Amount of $150,579 to Provide Inspector of Record Services; and 3) Amendment to the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund to Support the New Public Safety Building Capital Improvement Program Project (PE-15001); CEQA Status - Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772)

7. Approval of the Third Amended and Restated Purchase Order Number 4521000199 with Altec Industries, Inc., to Increase the Purchase Order Amount by $365,983 to a New Not- to-Exceed Amount of $1,073,075, including a Contingency Amount of $51,099, for the Purchase of Two 2025 Peterbilt 548 Hydraulic Digger Derricks; and Amend the FY 2026 Budget in the Vehicle Replacement and Maintenance Fund and the Electric Fund; CEQA Status – Exempt, Not a Project

8. FIRST READING: Adoption of Four Ordinances, as Recommended by the Retail Committee, to Amend and Reorganize Stormwater and Wastewater Management Requirements by Amending PAMC Chapter 16.09 (Sewer Use Ordinance), Amending Chapter 16.11 (Stormwater Pollution Prevention), Adding New Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease), and Adding New Chapter 16.66 (Hauled Liquid Waste); Adoption of Two Resolutions Establishing Regulations to Implement PAMC Chapters 16.11 and 16.13; Adoption of a Resolution Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC; CEQA Status – Exempt under CEQA Guidelines Section 15308

9. QUASI-JUDICIAL. 400 Mitchell Lane [25PLN-00006]: Recommendation From the Planning and Transportation Commission to Uphold the Director’s Decision to Approve a Conditional Use Permit Allowing a Private University Educational Use Within an Existing Building. CEQA Status: Exempt in accordance with CEQA Guidelines Section 15301 (Existing Facilities). Zone District: PF.

CITY MANAGER COMMENTS (7:15 - 7:30 PM)

BREAK (15 MINUTES)

3 September 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

ACTION ITEMS (Item 10: 7:45 - 9:00 PM, Item 11: 9:00 - 10:00 PM, Item 12: 10:00 - 10:15) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

10. Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA:

Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)

11. Approval of a Third Phase Agreement with Northern California Power Agency for the Purchase of Battery Energy Storage Capacity from Trolley Pass Project LLC, over a Term of up to 20 Years for a Total Not to Exceed Amount of $161.7 Million; CEQA status: not a project under CEQA Guidelines sections 15378(a), (b)(5)

12. Designation of Voting Delegate and Alternate for the League of California Cities Annual 2025 Conference, to be held October 8-10, 2025, in Long Beach, California

ADJOURNMENT

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

Semi-annual Reports of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees for the period of January 1, 2025 through June 30, 2025; CEQA Status- Not a Project.

Accessory Dwelling Unit (ADU) – 2025 Quarter 2 (April– June 2025) Report

4 September 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

OTHER INFORMATION
Standing Committee Meetings this week
Rail Committee September 16, 2025
Finance Committee September 16, 2025
Climate Action and Sustainability Committee September 19, 2025 Public Comment Letters
Schedule of Meetings

5 September 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

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6 September 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

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7 September 15, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
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City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Planning and Development Services
Meeting Date: September 15, 2025
Report #:2509-5163
TITLE
414 California Avenue [25PLN-00140]. Request for Council Prescreening to Rezone the Subject Property from Community Commercial (2) (CC[2]) to Planned Community/Planned Home Zoning and to Allow Construction of a Mixed-Use Building with 37 Units in a Six-Story Structure on a 16,231-Square-Foot (0.37 Acre) Site. CEQA Status: Not a Project.

RECOMMENDATION
Staff recommends that Council conduct a prescreening and provide informal comments regarding the applicant’s request to rezone 414 California Avenue from Community Commercial (2) (CC(2)) to Planned Community/Planned Home Zoning (PHZ).1 Comments provided during the prescreening process are not binding on the City nor the applicant.

EXECUTIVE SUMMARY
This prescreening is a request by the applicant to rezone the subject property, which is currently zoned Community Commercial (CC[2]) to “Planned Home Zoning (PHZ).” The project site is 16,230 square feet, and most recently was occupied by Bank of the West. The existing building is currently vacant. The proposed project includes restaurant/retail space, and 37 housing units. The project also proposes encroachments and modifications within the public right-of-way on California Avenue and Mimosa Lane.

In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should refrain from forming firm opinions supporting or opposing the project.
1 Referred to in this report as "Planned Home Zoning" to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy.

Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
1 Packet Pg. 8 of 445

Following this prescreening, the applicant may choose to file a formal application to amend the zoning for the site. Planned Community Rezoning applications require an initial review by the Planning and Transportation Commission (PTC) followed by a formal recommendation from the Architectural Review Board, a formal recommendation from the PTC, and Council’s final decision as set forth in PAMC Chapter 18.38.

BACKGROUND
On February 3, 2020, Council unanimously endorsed using Planned Home Zoning (PHZ) for housing and mixed-use housing projects to help spur housing production. In exchange for deviation from the development standards, as allowed under the rezoning if approved by Council, the project must include at least 20% of the housing units as deed restricted, or equivalent based on a menu of options, for lower income households.

Project Description
The preliminary schematic drawings, included in Attachment E, are conceptual, as is appropriate at this stage of project consideration. As shown in these schematic drawings, the applicant is proposing an approximately 83,218-square-foot mixed-use building with 14 rental units and 23 condominium units. The units would be a mix of studio (10), one-bedroom (11), two-bedroom (8), and three-bedroom (8) units. The plans did not specify which of the units would be rental or condominium in the plans. The proposed project would have a lot coverage of approximately 16,068 square feet (99% of the site). This includes portions of the property which are currently used for surface parking, and the private access alley between 414 California Avenue and 410 California Avenue (The Cobblery). The proposed development would be six stories tall and extend to a height of 78 feet, six inches to the building parapet, and 83 feet to the top of the roof deck stair access. The below grade parking garage would contain two levels of parking with a total of 74 parking spaces, 20 of which would be tandem spaces. The proposed ground floor includes two spaces designated for eating and drinking (restaurant use) and a residential lobby, and two retail/restaurant support spaces, shown as a bakery and butcher on the floor plan (sheet A202). The ground floor includes three roof overhangs that encroach into the public right-of-way on California Avenue and Mimosa Lane. The residential units would be on the upper five floors.

The primary pedestrian entrances for the ground floor restaurants and the residential lobby are designed to front Mimosa Lane, which is proposed to be redesigned to be a pedestrian only street with outdoor seating located along the project frontage within the public right-of-way.

Secondary pedestrian entrances are also provided from California Avenue for the two smaller tenant spaces. The sole vehicle entrance is located at the rear of the site on New Mayfield Lane.

With the existing closure of a portion of California Ave., New Mayfield Lane is accessible from Cambridge Avenue. The upper floors are wrapped with balconies, providing private open space for residential uses. Five of the units have private roof decks.

Surrounding Uses
Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
2 Packet Pg. 9 of 445

This project is located within the California Avenue downtown district adjacent to a wide variety of retail, restaurants, and personal services. The site is specifically between Country Sun Natural Foods market and The Cobblery cobbler. The adjacent buildings are both one story, and buildings in the vicinity vary from one story to four stories.

The project site is on the portion of California Avenue which is permanently closed to vehicles.

On May 21, 2025 the Retail Committee recommended approval of the Car Free California Avenue Outdoor Activation Program to City Council3. That staff report includes a map of the potential/proposed improvements to the California Avenue right-of-way, including in front of 414 California Avenue. California Avenue and adjacent streets are also used for the Farmer’s Market every Sunday morning, as well as community events such as 3rdThursday.

On June 17, 20254 Council approved the resolutions associated with outdoor dining and permit fees enabling activation to continue in its current state. Council also provided direction to staff to revise the outdoor activation program guidelines seeking revisions for outdoor parklet like structures and bike lane adjustments.

ANALYSIS
Staff will prepare a thorough analysis of the Zoning Code and Comprehensive Plan compliance upon submittal of a formal application, if filed. A review of the conceptual plans, below, summarizes staff’s preliminary review of the proposal and highlights key policy considerations associated with the applicant’s request.

Comprehensive Plan Compliance
The Comprehensive Plan designation is Community Commercial. High-density housing is identified as an allowed use in some locations within this land use designation, including this one within one half-mile of the California Avenue CalTrain station. This property is not identified as a Housing Inventory site in the City’s Housing Element, nor was it in the previous 2015-2023 Housing Element Cycle.

Zoning Compliance
This property is within the California Avenue downtown district. This property is zoned CC(2).

A summary of the project’s consistency with these development standards is detailed in Attachment B. The applicant is requesting to deviate, through the Planned Community rezoning process from the following development standards:
Height: 83 feet in height where up to 37 feet is allowed (60 feet under HIP); Floor Area: A 5.13:1 FAR where a maximum of 2.0 total FAR is allowed (0.6 residential FAR allowed)(2.6:1 FAR allowed under HIP);
3 Retail Committee Staff Report, May 21, 2025, Item 1:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17618 4 City Council Staff Report, June 17, 2025, Item 17:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17567 Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
3 Packet Pg. 10 of 445

Open Space: 1,612 square feet of useable open space is proposed, all of which is private and available to five of the units, where 150 square feet of usable open space per unit is required. See additional discussion below.
Parking: 88 parking spaces are proposed where 169 spaces are required (161 required under HIP). This site is eligible to use AB 2097 to reduce parking to 0 with a TDM plan. Roof overhangs encroach into the public right of way on California Avenue and Mimosa Lane.
Portions of the upper floors, where the elevators and stairways are located, do not meet the 10 foot required rear setback for residential uses. No street-side setback is proposed on Mimosa Lane, where five feet is required; The project also deviates from several Objective Design Standards in PAMC Chapter 18.24, such as:
Stepback (PAMC 18.24.050(b)(1)): The building massing as proposed is not stepped back where it is more than 20 feet taller the average height of an adjacent building. This step back would start within two vertical feet of the height of the adjacent building. The step back would be a minimum depth of six feet along both the façade on the primary building frontage and the facing façade of the adjacent building, and the step shall occur for a minimum of 70% of each façade length.
Façade Modulation (PAMC 18.24.050(b)(3)): Additional information would be needed to analyze the façade modulation. The side and rear facades lack upper floor modulation.
Base/Middle/Top (PAMC 18.24.060(c)(1): Although the design has a strong base and middle, the top is less defined. The fenestration variation is also limited on the upper floors.

Planned Community/PHZ projects are not required to comply with Chapter 18.24 of the code.

However, it is analyzed for the purposes of understanding how the design could be improved to be more consistent with the standard project requirements. Under the CC(2) zoning a project could also opt to be evaluated in accordance with the context-based design criteria in-lieu of the objective design standards under 18.24.

Usable Open Space
The proposed plans include balconies at all upper levels, wrapping most of the façade, however these four foot wide balconies do not count as useable open space as they do not meet the minimum depth requirement of six feet. Additionally, five roof decks are proposed. In the CC(2) zoning district, roof decks are only allowed if they are for common open space, and these are private open space (PAMC 18.40.240 [c]).

Refuse Pick Up
The project currently proposes a shared refuse room for residential and commercial uses, which is not allowed by the Code. Additonally the refuse room is not sufficiently sized to Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
4 Packet Pg. 11 of 445

accommodate the project’s needs and would need to be redesigned. Staff would expect the trash room to be designed in a manner that allows the bins to be pulled directly from the trash room and would not support staging of the bins within public right-of-way.

Public Right-of-way Modifications and Encroachments
The closure of Mimosa Lane would require a Comprehensive Plan Amendment to Amend Map T-5 and a Resolution to Close this public street to vehicular traffic, similar to the efforts lead by the City for the closure of portions of California Avenue and Ramona Street. This proposal would need to be evaluated as staff understands it could have impacts on deliveries to neighboring properties and activation of the public space for events such as 3rd Thursday and the farmers' market or other civic events. The project also includes canopies that extend into the public right-of-way on California Avenue and along Mimosa Lane. There are several existing buildings along California Avenue that have existing minor canopy encroachments. Staff has generally allowed existing legal noncomplying buildings to maintain their canopies when modifying the facade, with approval of a permanent encroachment permit, but has not generally allowed new permanent encroachments.

PC Special Requirements
The project is not within 150 feet of residential uses or residential zones. Therefore, the PC Special Requirements (PAMC 18.38.150) do not apply.

Housing Incentive Program or State Density Bonus Law Alternatives As an alternative to the PHZ process the applicant could consider a State Density Bonus Law project and may request waivers and concessions from certain standards in accordance with State Density Bonus Law requirements. However, because the CC(2) zone does not regulate maximum density, a density bonus is calculated based on allowable FAR and proposed average unit size. The highest number of units achievable under State Density Bonus Law is 16 units. The Housing Incentive Program provides an additional path but would be insufficient for the proposed building heights, floor area and other standards.

Multi-Modal Access & Parking
414 California is approximately 0.3 miles from the California Avenue CalTrain Station, providing potential for future residents to walk or bike to CalTrain. It is also approximately 120 feet from the nearest Valley Transit Authority (VTA) bus stop, served by lines 22 and Rapid 522. This project has not yet been analyzed for consistency with the City’s Bicycle and Pedestrian Transportation Plan and other transportation policies such as Council’s Local Transportation Impact Analysis Policy adopted on June 15, 2019 (CMR 11256). This analysis would be conducted as a part of any formal application and reviewed by the Office of Transportation.

However, staff notes that the plans proposed modifications to California Avenue and Mimosa Lane do not align with what is currently planned for street improvements in this area proposed Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
5 Packet Pg. 12 of 445

by the City, as recommended for approval by the Retail Committee.

Parking
All parking is proposed in two levels of below-grade parking. Access to the parking garage would be provided from New Mayfield Lane through a single entrance/exit. Of the 74 proposed parking spaces, 20 would be in tandem to other spaces. Under the zoning code, 169 stalls would be required based on the sizes of the housing units. Under AB 2097, no spaces are required with implementation of a TDM plan. One loading space is proposed, interior to the building at grade, with access adjacent to the parking garage entrance; the functionality of this space for deliveries or ride share services remains to be evaluated.

Potential space for bicycle parking is identified on both levels of the parking garage. It is unclear how many bikes each space could hold. The rooms are only accessible by stair or elevator and do not have a protected path within the garage. Thirty-seven long term and four short term spaces are required for the proposed residential use, and five long term and seven short term spaces are required for the proposed commercial use.

Inclusionary Requirement and Jobs Housing Imbalance
The intent of limiting PHZ projects to residential and residential mixed-use is to address the job/housing imbalance and to support increased housing production within the City, consistent with the City’s RHNA allocation. PHZ projects are required to provide more housing than jobs on site. The proposed mixed-use project would demolish an approximately 6,135 sf bank and develop a mixed-use project with approximately 15,063 sf of retail and 37 residential units. The net new commercial sf would result in the need for 5 new housing units, which is less than the 37 proposed. Therefore, the project complies with this requirement.

The project is required to provide 20% of the units at Below Market Rate at an average of 80% AMI in accordance with Council’s requirements for projects seeking to rezone using the PHZ process. The applicant is currently proposing 18.9% BMR units (7 units) at unspecified income levels. Additionally, the project proposes a mix of rental and condominium units, and does not specify how many of which type would be provided at BMR. Until more information is provided, this project cannot be fully analyzed for compliance with Council’s requirements.

POLICY IMPLICATIONS
The City Council has previously identified California Avenue as an area to accelerate housing, though the effort is not currently resourced. California Avenue would benefit from a policy document to guide future housing and development proposals. In the absence of such a framework, individual property owners are advancing projects independently. In addition to the subject project, a builder’s remedy application is being processed for 17-, 11-, and 7-story buildings at 156 California Avenue. While the City has broad discretion to evaluate PHZ Item 1
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applications due to their legislative nature, the lack of a coordinated planning policy that considers proximity to the rail station, the California Avenue street closure, parcel sizes, street access, and broader urban design and placemaking objectives may result in a less cohesive neighborhood character.

The conceptual plans for the subject project also propose use of the public right-of-way, raising a unique policy question for the City Council. Staff must analyze the access implications of this proposal. Developer-funded improvements could support pedestrian activity in the area, though in an ad hoc manner. Council’s support for or opposition to such improvements would significantly affect both the project and the surrounding neighborhood. Use of the public right- of-way as part of a PHZ application has not been considered previously and may warrant further public benefits, beyond the minimum benefits typically associated with these projects.

FISCAL/RESOURCE IMPACT
The recommendation in this report does not have any significant fiscal or budgetary impacts.

STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on July 31, which is 10 days in advance of the meeting. Postcard mailing occurred on July 29, which is 12 days in advance of the meeting.

As of the writing of this report, six public written comments expressing support of the project were received. These are included in Attachment D.

ENVIRONMENTAL REVIEW
The prescreening is a preliminary review process in which Councilmembers may provide comment, but no formal action will be taken. Therefore, no review under the California Environmental Quality Action (CEQA) is required at this time. A full review in accordance with CEQA would be initiated with the formal filing of a development application.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Zoning Comparison Table
Attachment C: Applicant’s Description Letter
Attachment D: Public Comments
Attachment E: Link to Project Plans
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 1
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VEN
UE
ASH

FIELD LANE
NEW M
AYFIE
CA
LIFORN

IA AVENUE

CALIFORNIA AVENUE

PERAL LA

MIMOSA LANE
CA
MBRI

DGE AVENUE
JACA

RANDA LANE
Lot C-8
Lot C-4
Parking
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Project Site
Current Features
0' 48'
Attachment A
Location Map
414 California Ave.

CITY OF PALO ALTO
I
N
C

O R P O R A
T
E
D

CAL I FORN IA
P a l o A l t o
T h e C i t y o f
A
P
R
I L 1 6 1
8 9
4 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto ekallas, 2025-08-22 14:45:33
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ATTACHMENT B

ZONING COMPARISON TABLE
414 California Ave, 25PLN-00140
Table 1: COMPARISON WITH CHAPTER 18.16 (CC(2) DISTRICT) AND CHAPTER 18.14 (HOUSING INCENTIVES) Mixed Use and Residential Development Standards
Regulation Required Proposed
Minimum Site Area, width and
depth No Requirement 16,230.95 sf.

Minimum Front Yard 0' - 10' to create an 8' - 12'
effective sidewalk width
0 ft. ground floor
10 ft. upper floor, except at
elevator/stairs
Rear Yard (New Mayfield Lane) 10' for residential portion; no requirement for commercial
portion
0 ft. ground floor
10 ft. upper floor, except at
elevator/stairs
Interior Side Yard No Requirement 2 ft. 6.5 in. on ground floor 1 ft. 1.75 in. on upper floors
Street Side Yard (Mimosa Lane) 5 feet
0 ft. ground floor
10 ft. upper floor, except at
elevator/stairs
Min. yard for lot lines abutting or
opposite residential districts or
residential PC districts
Not applicable, no abutting
residential districts/PCs Not applicable
Build-to-lines (7)
50% of frontage built to setback
on California Avenue;
33% of side street built to setback
on Mimosa Lane
Complies
Max. Site Coverage 100% (16,230.95 sf) 99% (16,068 sf)
Max. Building Height (CC(2)) 37 feet (4) 78 feet 6 inches to parapet 83 feet to top of roof deck access
Max. Building Height (HIP) 60 feet (4) See above
Max. Floor Area Ratio (FAR)
(CC(2))

0.6:1 residential (9,738.6 sf)

2.0:1 non-residential (32,460 sf)
Not to exceed 2.0:1 (32,460 sf)
total

4.17: 1 Residential (67,667.43 sf)

0.96:1 Non-residential (15,550.72
sf)

5.13: 1 (83,218.15 sf) total
Max. Floor Area Ratio (FAR) (HIP)

2.6 residential or residential with
mixed-use on the ground floor
(42,198.6 sf)
See above
Max. Residential Density No Maximum Complies
Daylight Plane for lot lines
abutting one or more residential
zone districts other than an RM-
40 or PC Zone
None Not applicable
Usable Open Space (Private
and/or Common) 150 sf per unit
1,612 sf of useable open space =
43 sf per unit, however only 5 of
the units have access to these
spaces.

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Minimum Mixed Use Ground
Floor Commercial FAR

0.25:1 (4,057.7 sf)
Retail Preservation applies Approximately 15,063 sf proposed (1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard.
(2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line.. (4) As measured to the peak of the roof or the top of a parapet; penthouses and equipment enclosures may exceed this height limit by a maximum of five feet, but shall be limited to an area equal to no more than ten percent of the site area and shall not intrude into the daylight plane.
(7) 25 foot driveway access permitted regardless of frontage.

Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) Type Required Existing Proposed
Special Requirements This project is located
within a half mile of the
California Ave. CalTrain
Station. AB 2097
applies.
0 parking spaces
required.
74 parking stalls
proposed, TDM plan
will be required.

Vehicle Parking per PAMC

18.52 per land use
1 per studio/1 bed
2 per 2+ bed
(53 spaces)
For ground floor uses:
1 space for each 60
gross sq. ft. of public
service area, plus 1
space for each 200
gross sq. ft. for all
other areas.

Seating area is
approximately 3,254 sf
(54.23 spaces)
Rest of ground floor is
approximately 12,296
sf (61.48 spaces)
169 spaces required
14 spaces paid into the
parking district.
20 spaces provided
onsite.
74 parking stalls
proposed plus 14
district spaces
88 spaces total.

Vehicle Parking per PAMC

18.14 (HIP) plus PAMC 18.52
for non-residential land uses.
1 per studio/1 bed

1.5 per 2+ bed
(45 spaces)
For ground floor uses:
1 space for each 60
gross sq. ft. of public
service area, plus 1
space for each 200
See above See above
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Comparison Table

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gross sq. ft. for all
other areas.

Seating area is
approximately 3,254 sf
(54.23 spaces)
Rest of ground floor is
approximately 12,296
sf (61.48 spaces)
161 spaces required
Bicycle Parking 1 LT space per unit (37)
1 ST space per 10 units
(4)
12 spaces for the
ground floor uses (5 LT,
7 ST)
None provided,
potential bike parking
area shown on both
garage levels.

Loading Space 1 loading spaces for
less than 100,000 sf
No loading space
required for residential
projects with fewer
than 50 units.
1 off-street space
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Comparison Table

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SPF:architects
8609 Washington Blvd. Culver City, CA | www.spfa.com
WRITTEN PROJECT DESCRIPTION - 414 CALIFORNIA AVENUE, PALO AL TO

Project Summary:

The proposed development at 414 California Avenue is a new six-story mixed-use building that includes approximately 10,000 square feet of ground floor restaurant and market uses, 14 affordable and market-rate apartments, and 23 for- sale residential condominiums. Two levels of subterranean parking provide 74 total spaces. The overall building height is 75’-0” to the top of the roof structure and 78’-6” to the top of parapet—intentionally designed to remain below the 75’ occupiable floor threshold that would classify the building as a high-rise.

Located within the California Avenue Commercial District and surrounded by existing commercial and multi-family buildings, the project is consistent with the City’s ongoing effort to densify infill sites near transit and services. There are no single-family homes in the immediate vicinity, and the scale and intensity of the proposed development are well- suited to the surrounding context. While the proposed commercial uses and square footage are permitted by code, the project seeks rezoning to allow an increase in residential floor area (beyond the current 0.6:1 RFA limit) and overall height. We believe these modifications support the City’s broader planning goals and regional housing objectives.

Design Concept & Site Relationship:

The design approach takes inspiration from the cultural and material heritage of the region—most notably the Muwekma Ohlone Tribe, the area's Indigenous inhabitants. The façade expresses this influence through a refined architectural screen system that references traditional basket weaving and ceremonial regalia. This “Golden Weave” exterior system functions not only as an expressive visual motif, but also as an environmental filter, offering solar shading and layered transparency across the upper residential levels.

Ground floor uses activate both California Avenue and Mimosa Lane with a curated mix of restaurants, butcher, bakery, and market-style retail. These uses are complemented by upgraded public realm improvements, including widened sidewalks, planters, and seating areas, designed to reinforce the project’s “Gateway to California Avenue” concept. An enhanced pedestrian experience is prioritized, while vehicular access is located at the rear of the property via New Mayfield Lane.

The massing is stepped to respect zoning code and urban adjacencies:
• The building steps back at residential floors to provide a consistent 10-foot setback above the podium, complying with city standards.
• Balconies protrude 4’-0” into the residential setback. • Stairs are exposed and articulated to break up the building volume and provide light, and air into the center of the building.
• Private rooftop terraces are set back for individual and neighborhood privacy.

Preliminary Review Focus:

We respectfully request Council and ARB to provide feedback in the following areas:
• Density: Is the proposed increase in Residential Floor Area and density in alignment with the future growth and evolution of California Avenue?
• Massing & Height: Does the project appropriately scale to its commercial surroundings? We are under the high-rise classification and believe this six-story massing is a reasonable for the site. • Public Realm Interface: Does the project contribute positively to the pedestrian experience at California Avenue and Mimosa Lane?
• Zoning Compatibility: Given the absence of single-family residences in the area and the site's location in an active commercial zone, we believe the increased density and height are well justified. Does the Board agree with this position?
• Cultural Heritage: The design draws from the heritage of the Muwekma Ohlone Tribe and other Indigenous communities of the region. We welcome feedback on how this is reflected in the architecture and are exploring ways to deepen the connection. A dedicated zone on the California Avenue façade is envisioned for a permanent artwork honoring Indigenous history, and the landscape strategy may be refined to further acknowledge the site's cultural significance.

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Project Description

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From: Amy Asin
To: Council, City
Subject: Please Support 414 California Ave
Date: Tuesday, August 26, 2025 11:33:35 AM
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.
i
My name is Amy Asin and I live in the St Francis neighborhood. Please support the proposal for 37 homes at 414 California Avenue. We need more housing near retail and transportation.

This project will promote sustainable lifestyles, support local businesses, and bring much needed housing options to our community. I spend time on Cal Ave 4-5 times per week.

Having a vibrant neighborhood setting there with residents is critical. It’s about housing density but also about vitality. Thank you for your leadership to support homes for all in our community.

Amy Asin
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Comments

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From: Bill Fitch
To: Council, City
Subject: Please Support 414 California Ave
Date: Tuesday, August 26, 2025 12:19:11 PM
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i
My name is Bill Fitch and I live in Evergreen Park.

Please support the proposal for 37 homes at 414 California Avenue. We need more housing near retail and transportation. This project will promote sustainable lifestyles, support local businesses, and bring much needed housing options to our community.

Bring life to Calave with more housing for people.

Thank you for your leadership to support homes for all in our community, Bill Fitch
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Comments

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From: Rodney Leggett
To: Council, City
Subject: Please Support 414 California Ave
Date: Tuesday, August 26, 2025 4:16:29 PM
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

My name is Rodney Leggett and I live in near downtown Palo Alto Please support the proposal for 37 homes at 414 California Avenue. We need more housing near retail and transportation. This project will promote sustainable lifestyles, support local businesses, and bring much needed housing options to our community.

Thank you for your leadership to support homes for all in our community, Rodney Leggett
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Comments

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From: Zachary Anglemyer
To: Council, City
Subject: Please Support 414 California Ave
Date: Tuesday, August 26, 2025 6:35:36 PM
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

My name is Zachary Anglemyer and I live in San Francisco and formerly lived in Woodside.

We must look at our community development from a circular perspective that includes the well being of our community at large from day one. I request that this project be reviewed through this lens and that the community stresses the importance of architectural design that leaves a lasting impact.

Thank you for your leadership to support homes for all in our community, Zachary Anglemyer
303-250-2150
“Ascende Omnem Montem”
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Comments

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From: susan chamberlain
To: Council, City
Subject: Please Support 414 California Ave
Date: Wednesday, August 27, 2025 11:35:20 AM
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

My name is Susan Chamberlain and I live in Downtown North.

Thank you for your leadership to support homes for all in our community, Susan Chamberlain
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Comments

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From: Tran, Vickie
To: Kallas, Emily; Raybould, Claire
Cc: Lait, Jonathan; Armer, Jennifer
Subject: FW: Please Support 414 California Ave
Date: Wednesday, September 3, 2025 1:32:39 PM
Hi Emily/Claire,
Please see below for public comment on 414 Cal Ave.

VICKIE TRAN
Administrative Assistant to the Director
Planning and Development Department
[email protected]
www.paloalto.gov
-----Original Message-----
From: Velasquez, Ingrid <[email protected]> Sent: Wednesday, September 3, 2025 8:24 AM
To: Lait, Jonathan <[email protected]>; Armer, Jennifer <[email protected]>; Tran, Vickie <[email protected]>
Cc: Nose, Kiely <[email protected]>; Gaines, Chantal <[email protected]>; City Mgr <[email protected]>
Subject: FW: Please Support 414 California Ave
Good morning,
Forwarding the comment below for awareness.

Thanks,
Ingrid
Ingrid Velásquez
Administrative Assistant
Office of the City Manager
(650) 329-2354| [email protected] www.PaloAlto.gov -----Original Message-----
From: Rachel Miller <[email protected]>
Sent: Tuesday, September 2, 2025 12:02 PM
To: Council, City <[email protected]>
Subject: Please Support 414 California Ave
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Comments

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CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

My name is Rachel Miller and I live in the Miranda Green neighborhood of Palo Alto.

My husband and I just became empty nesters as we dropped our youngest off at college a couple weeks ago. We no longer need a big house within walking/biking distance of schools, but in a few years, after retirement, would like to downsize into a condo within walking distance of amenities like grocery stores, restaurants, a train station, etc. We would like to be able to stay in our community, especially since my mother lives nearby and needs my help.

Through my parents, I’ve seen firsthand how dangerous and isolating it can be for aging people to stay too long alone in homes with staircases, that require driving in order to go anywhere, that require maintenance that becomes too difficult to manage. We need to allow more housing for people at all stages of life, whether young singles, families, or retirees. If there are suitable places for people like my husband and I to downsize into, that frees up our large home for a growing young family, which will help sustain our excellent schools which are experiencing plummeting enrollment, as well as generate more property taxes that keep all city services funded.

Thank you for your leadership to support homes for all in our community, Rachel Miller Sent from my iPhone
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Comments

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If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email [email protected]
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Directions to review Project plans and environmental documents online:

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “414 California” and click the address link

3. On this project-specific webpage you will find a link to the project plans and other important information
Direct Link to Project Webpage:
https://www.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/414-California-Ave
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Project Plans

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: September 15, 2025
Report #:2505-4750
TITLE
PUBLIC HEARING: Adoption of Voluntary Residential Electric Service Time-of-Use Rates (E-1 TOU) as Recommended by the Finance Committee; CEQA Status: Not a Project

RECOMMENDATION
The Finance Committee, Utilities Advisory Commission and staff recommends that the City Council adopt a resolution (Attachment A: Resolution) adding voluntary Rate Schedule E-1 Time of Use (TOU) applicable to separately metered single-family residential dwellings receiving electric service effective January 1, 2026 (Attachment B: Rate Schedule E-1 TOU).

EXECUTIVE SUMMARY
The Finance Committee, Utilities Advisory Commission and Staff recommend introducing a voluntary residential electric time-of-use rate plan effective on January 1, 2026 (E-1 TOU Rate Schedule). Separately metered single-family residential dwellings receiving electric service from the City of Palo Alto with Advanced Metering Infrastructure (AMI) meters may opt-in to this new E-1 TOU rate plan.

The proposed E-1 TOU rates align with the requirements of Article XIII C of the California Constitution (often referred to as Proposition 26) to align with the cost of electricity. The proposed E-1 TOU rates also align with the cost of electricity at the time of use. The proposed E- 1 TOU rates provide customers the opportunity to take advantage of lower-cost and lower carbon intensity time periods for electric vehicle charging or other electric uses.

TOU rates are a type of electricity pricing where the cost of electricity varies depending on the time of day the electricity is used. Under this structure, electricity prices are typically lower during off-peak hours, when demand is low, and higher during peak hours, when the grid is under more strain due to higher demand compared to available electricity supply. Staff considered the marginal cost of energy, as well as several other factors described in detail below to determine the hours of the day that each TOU rate applies.

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BACKGROUND
At the December 4, 2024 UAC meeting, Staff presented preliminary rate proposals for FY 2026 and provided an update on TOU rates as an informational item for discussion purposes.1 On June 4, 2025, these TOU rate proposals were reviewed and unanimously recommended for approval by the UAC (Staff Report #2503-4361)2. On September 2, 2025, the E-1 TOU rate proposals were reviewed and unanimously recommended for approval by the Finance Committee (Staff Report #2506-4899)3
Staff recommends a January 1, 2026 implementation date for E-1 TOU to allow sufficient time for staff to prepare for its implementation. Staff estimates that 95% of residential customers will have electric AMI meters installed by the end of December 2025. The remaining 5% of residential customers are estimated to receive AMI meters by April 2026. Customers will first need to have an AMI meter installed to be eligible to participate in the E-1 TOU rate.

ANALYSIS
The Electric Utility’s rates are evaluated and implemented in compliance with cost-of-service requirements set forth in the California Constitution and applicable statutory law. This E-1 TOU recommendation reflects the proposed FY 2026 costs and revenues for the Electric Utility that are reflected in the financial forecast that was approved by the Council on June 16, 2025, and the “City of Palo Alto Electric Cost of Service and Rate Study” by EES Consulting, Inc. in 2023/2024 (FY 2024 COS Study), supplemented by EES’s April 1, 2025 memo on “Electric Time of Use Rate Design for E-1: Residential Customer Class” (Attachment C: COSA Study’s E-1 TOU Supplement).

The new E-1 TOU rates are designed to generate the same FY 2026 revenue as the standard E-1 rates, assuming customers do not change their electric usage patterns. Because the number of customers opting in to E-1 TOU will gradually increase over time, the revenue risk to the Electric Utility will be minimal as adjustments to the rate will be implemented over time as more data is available regarding changes in customers’ electric usage patterns.

These residential TOU rates align with the cost of electricity at the time of use. Residential customers may opt-in to this rate to take advantage of lower-cost time periods for electric vehicle charging and other appliances with flexible loads can also take advantage of this rate.

As presented in the COSA Study’s E-1 TOU Supplement, the hours of the day that each TOU rate applies (peak, off-peak and super off-peak) or “TOU periods” are designed with consideration of 1 The transcript from the meeting is available on the City’s website:
https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=15106&compileOutputType=1. 2 UAC Staff Report #2503-4361 on June 4, 2025
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=a193f374-f0af-479d-bf30-ce2b7a3c6a05 3 Finance Committee Staff Report #2506-4899 on September 2, 2025 https://cityofpaloalto.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=0b323408-c8f5-492c-9868- 673fa312763c
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several factors including marginal cost of energy, distribution system capacity and peak demand, greenhouse gas intensity of market energy, and best practices in ratemaking.

1. Marginal cost of energy
The TOU periods are structured to reflect the marginal cost of energy, which refers to the cost of producing or purchasing one additional unit of electricity. This cost fluctuates throughout the day based on overall demand, fuel availability, and market dynamics. By aligning TOU pricing periods with periods of higher or lower marginal cost, utilities can send price signals that encourage consumers to shift their energy usage to times when electricity is cheaper to purchase. This not only reduces strain on the grid but also improves overall economic efficiency in the energy market. Because of the large penetration of solar resources in California, the lowest priced periods typically occur in the sunny mid-day hours, while the highest priced periods typically occur in the evening hours just after sunset.

2. Distribution system capacity and peak demand
TOU periods are influenced by the capacity of the distribution system and the timing of peak demand. Electricity systems must be built to meet the highest expected load, even if those peaks occur infrequently. Shifting consumption away from peak periods enhances grid reliability and optimizes use of existing infrastructure, delaying or reducing the need for costly infrastructure upgrades. This also reduces the utility’s need to purchase additional local and system resource adequacy capacity, as these procurement requirements are set based on the utility’s actual peak demand levels.

3. Greenhouse gas intensity of market energy
Energy generated during peak hours often comes from fossil-fuel-based plants that produce higher emissions compared to cleaner sources like solar, which are more prevalent during mid- day hours. TOU rates can incentivize customers to use electricity when the grid is powered by cleaner energy, thereby supporting emissions reductions and climate goals. (Note that although CPAU has a carbon neutral electricity supply, the utility is still responsible for countering the effects of the marginal emissions that occur as a result of its electricity consumption through the purchase of additional renewable energy; therefore, it lowers the utility’s costs to have customers use electricity primarily in lower emissions periods.)

4. Best practices in ratemaking
TOU rate plans also reflect established best practices in utility ratemaking, which aim to balance fairness, efficiency, and transparency. This involves designing rates that are cost-reflective, encourage customer responsiveness, and promote long-term sustainability of the electric system. Best practices ensure that TOU pricing is not only effective in achieving grid and environmental objectives, but also understandable and equitable for customers, including protections for vulnerable populations.

It has been shown that consumers are more able to shift energy use to lower-priced periods when the high-priced period is shorter in duration. The recommended peak period is from 4 pm to 9 pm. This 5-hour period captures the highest marginal energy costs, the highest average GHG Item 2
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intensities, and the timing of both the distribution system peak and residential class peak demand.

The Residential TOU program will enable CPAU to gauge customer interest in electric TOU rates and assess the behavioral changes of customers who opt into these TOU rates. In the absence of any E-1 TOU customer data, the TOU rate design assumed the E-1 customer class load profile and the TOU rates were designed to recover the same revenue requirement.

Table 1 shows the proposed E-1 TOU rates, compared to the proposed E-1 rates for FY 2026.

Table 1: FY 2026 Rates for E-1 and E-1 TOU
Commodity Distribution Public
Benefits Total
E-1 TOU Rate Schedule – Proposed in this Staff Report, effective date January 1, 2026 E-1 TOU Volumetric Rate, $/kWh (No Baseline)
Summer: June 1 – September 30
Peak: 4pm to 9pm 0.23354 0.09351 0.00604 0.33309
Off-Peak: 9pm to 9am, 3pm to 4pm 0.08249 0.09351 0.00604 0.18204 Super Off-Peak: 9am to 3pm 0.06690 0.09351 0.00604 0.16645 Winter: October 1 – May 31
Peak: 4pm to 9pm 0.16705 0.09351 0.00604 0.26660
Off-Peak: 9pm to 9am, 3pm to 4pm 0.11033 0.09351 0.00604 0.20988 Super Off-Peak: 9am to 3pm 0.07835 0.09351 0.00604 0.17790 E-1 TOU Customer Charge
Customer Charge, $/month 5.15
E-1 Rate Schedule – Effective date July 1, 2025
E-1 Volumetric Rate, $/kWh (Baseline at 450 kWh)
E-1 Tier 1 (up to 450 kWh) 0.10373 0.09593 0.00604 0.20570 E-1 Tier 2 (over 450 kWh) 0.13372 0.08968 0.00604 0.22944 E-1 TOU and E-1 Customer Charge
Customer Charge, $/month 5.15
Figures 1 and 2 below show the E-1 and E-1 TOU volumetric rates for summer and winter for FY 2026.

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Figure 1: E-1 (Tier 1 and Tier 2) and Summer E-1 TOU Volumetric Rates for FY 2026 Figure 2: E-1 (Tier 1 and Tier 2) and Winter E-1 TOU Volumetric Rates for FY 2026 Customers electing the E-1 TOU rate plan must remain on the plan for a minimum of six months. After six months, E-1 TOU customers may request a change to any applicable rate schedule; however, once a customer switches to a rate schedule other than E-1 TOU, they cannot re-elect E-TOU for the next 12 billing cycles. Other utilities have similar restrictions regarding customers switching between rate plans 7. For Palo Alto, six months is a reasonable balance between offering flexibility to customers and protecting the utility from customers switching rate plans frequently based upon which season the rate plan benefits the customer, thereby generating additional administration for the utility.
7 This proposed rule is slightly different from that implemented by California’s three largest electric utilities. For PG&E, customers may request a rate plan change up to two times in a rolling 12-month period; however, once a customer makes the 2nd rate change, they will have to remain on that plan for the next 12 billing cycles. For Southern California Edison and San Diego Gas & Electric Company, customers switching to TOU rate will not be able to make another switch for a full 12 months.

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Net Energy Metering (NEM) customers9 will not be eligible to opt-in to the Residential TOU rate plan due to existing constraints in the billing system. Staff is working to address these constraints.

Implementation Plan
Staff has begun the process of updating the billing system to accept energy consumption data from the AMI system to compute electric TOU customer bills. Planning and implementation activities include modifying the billing system and developing logistics related to customer enrollment, customer informational tools and communication plan. To ensure a smooth roll-out of this new rate, staff anticipates an initial testing period with a small group of beta customers beginning in January 2026 followed by a modulated increase in customer enrollments. Staff plans to present marketing and communication and customer-centric details of this new rate implementation to the UAC in Fall 2025.

FISCAL/RESOURCE IMPACT
The rate level of E-1 TOU is based on the FY 2026 cost estimates and is therefore designed to produce the same revenue increase percentage as that expected from the standard E-1 rates adopted by Council effective July 1, 2025.

STAKEHOLDER ENGAGEMENT
Utility Advisory Commission
Staff provided an update on the development of E-1 TOU rates at the December 4, 2024 UAC meeting. On June 4, 2025, staff presented the TOU rate proposals to the UAC. Commissioners reported that the UAC subcommittee had met with staff twice and commented that it is important to communicate to customers why it is important to use electricity during the solar production hours (energy is cleaner and cheaper) potentially using appropriate naming or branding and that E-1 TOU rates would be even more impactful if the dollar impact of shifting load to the super-off peak was greater. One Commissioner asked whether staff had considered maximizing the price differential between the super off-peak and peak in order to provide more of a financial incentive to customers and staff responded that different TOU periods were examined and that changing the TOU periods did not change the resulting rates very much. The UAC unanimously recommended approval of this proposal. The details of the meeting are available on the City’s website at the following link:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17431 Since the June 4, 2025 UAC meeting staff added the requirement that residential customers must have an AMI meter installed in order to participate in the E-1 TOU rate schedule. This is reflected in Attachment B. Staff plans to present a more detailed implementation plan to the UAC in Fall 2025.
9 NEM customers are those who receive compensation for the energy generated by photovoltaic systems installed at their residences.

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Finance Committee
On September 2, 2025, staff presented the TOU rate proposals to the Finance Committee.

Finance Committee members asked about the financial implications as a result of behavioral changes and rate revenues with this new schedule, communications and marketing plans, and recommendations for shifting usage to off-peak and super off-peak lower priced time periods.

The Committee expressed an understanding that the slow ramp period will enable staff to monitor changes in usage mitigating and immediate risk to the financials of the utility. Staff have committed to monitoring these impacts to inform future financial forecasts and rate setting to ensure the utility is adapting to the true cost of service and fiscal health.

Finance Committee members recommended that staff promote the use of smart panels and smart appliances that can be programmed to run during off-peak and super off-peak times of day. Some of the ways referenced that customers could change usage times included charge their Electric Vehicles, dishwashers and clothes washers to run during off-peak times. The Finance Committee voted unanimously to recommend approval of the E-1 TOU proposal. The details of the meeting are available on the City’s website at the following link:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16203.

ENVIRONMENTAL REVIEW
The City Council’s adoption of the E-1 TOU Rate Plan does not meet the California Environmental Quality Act’s definition of a project, pursuant to Public Resources Code Section 21065. Thus, no environmental review is required.

ATTACHMENTS
Attachment A: Resolution
Attachment B: Rate Schedule E-1 TOU
Attachment C: COSA Study’s E-1 TOU Supplement
APPROVED BY:

Alan Kurotori, Director Utilities
Staff: Lisa Bilir, Senior Resource Planner
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* NOT YET APPROVED *
Attachment A

1 027082825

Resolution No. ____
Resolution of the Council of the City of Palo Alto Approving Utility Rate Schedule E-1 TOU (Residential Electric Time of Use Service)

R E C I T A L S

A. Each year the City of Palo Alto (“City”) adopts Financial Forecasts or Plans for its utilities, to ensure adequate revenue to fund operations with the goal of providing safe, reliable, and sustainable utility services at cost -based rates. Council adopted the FY 2026 Electric Financial Forecast on June 16, 2025.1

B. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges.

C. On September 15, 2025, at a noticed public hearing, the City Council heard and approved the proposed optional electric residential time -of use rate s available for qualified residents.

The Council of the City of Palo Alto does hereby RESOLVE as follows:

SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-1 TOU (Residential Electric Time of Use Service) shall become effective January 1, 2026;

SECTION 2. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.

SECTION 3. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product.

SECTION 4. The Council finds that changing electric rates to introduce an optional Residential Time of Use rate is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Sec. 15273(a).

After reviewing the staff report and all attachments presented to Council, the Council incorporates

1 https://www.paloalto.gov/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2025/june-16/rates-attachments/finalized-attachment-d-exhibit-1-fy26-electric-utility-financial- forecast-and-cip-detail.pdf
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* NOT YET APPROVED *
Attachment A

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these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

City Clerk

Mayor
APPROVED AS TO FORM:

APPROVED:

Assistant City Attorney

City Manager

Director of Utilities

Director of Administrative Services
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RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-1 TOU

CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-1-TOU-1
Effective 1-1-2026
A. APPLICABILITY:

This voluntary Rate Schedule applies to separately metered single-family residential dwellings receiving Electric Service from the City of Palo Alto Utilities (CPAU) who have an Advanced Metering Infrastructure meter installed. This Rate Schedule is not available to Net Energy Metered (NEM) customers and is provided at the sole discretion of CPAU.

B. TERRITORY:

This rate schedule applies everywhere the City of Palo Alto provides Electric Service.

C. UNBUNDLED RATES:

Per kilowatt-hour (per kWh) Commodity Distribution Public Benefits Total Summer Period
Energy Charge
Peak $ 0.23354 $ 0.09351 $ 0.00604 $ 0.33309
Off-Peak 0.08249 0.09351 0.00604 0.18204
Super Off-Peak 0.06690 0.09351 0.00604 0.16645
Winter Period
Energy Charge
Peak $ 0.16705 $ 0.09351 $ 0.00604 $ 0.26660
Off-Peak 0.11033 0.09351 0.00604 0.20988
Super Off-Peak 0.07835 0.09351 0.00604 0.17790
Customer Charge ($/month) 5.15
D. SPECIAL NOTES:

1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.

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RESIDENTIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-1 TOU

CITY OF PALO ALTO UTILITIES
Issued by the City Council
Sheet No E-1-TOU-2
Effective 1-1-2026

2. Definition of Seasonal Periods
Summer Period: Service from June 1 to September 30
Winter Period: Service from October 1 to May 31
SEASONAL RATE CHANGES: When the Billing Period includes use in both Summer and Winter periods, usage will be prorated based on the number of days in each seasonal period, and the Charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.

3. Definition of Time Periods
Peak: 4:00 p.m. to 9:00 p.m. Every day
Off-Peak: 9:00 p.m. to 9:00 a.m. Every day
3:00 p.m. to 4:00 p.m.

Super Off-Peak: 9:00 a.m. to 3:00 p.m. Every day

4. Changing Rate Schedules
Customers electing to be served under E-1 TOU must remain on said Rate Schedule for a minimum of 6 months. Should the Customer so wish, at the end of 6 months, the Customer may request a Rate Schedule change to any applicable City of Palo Alto full-service Rate Schedule as is suitable to their kilowatt-hour usage. However, once a customer elects a rate other than E-1 TOU, they cannot re-elect E-TOU for the next 12 billing cycles. {End}
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16701 NE 80th Street Suite 102 Redmond, WA 98052 425-889-2700 Fax 866-611-3791 www.gdsassociates.com MEMORANDUMTOLisa BilirFROMAmber GschwendDATEApril 1, 2025REElectric Time-of-Use Rate Design for E-1: Residential Customer ClassAs part of the electric cost of service study, a rate design analysis is prepared to support the implementation of time of use (TOU) rates for the E-1 class. It is estimated that over 90% of residential customers will have Advanced Metering Infrastructure (AMI) installed by July 1, 2025, and optional TOU rates could be offered at that time. The proposed rate developed in this memo would be implemented on a voluntary basis. The bill impacts provided at the end of the analysis show that consumers with higher use could benefit from the program. Bills at any usage level can be reduced with changes in behavior.TOU RATE DESIGN BACKGROUNDTime-of-use rate design has many benefits including appropriate price signaling to customers and the potential for customers to modify electric use to fall in periods of lower overall system costs, to reduce bills and utility power costs. Investor-owned utilities (IOUs) in California have defaulted residential customers to TOU rates, with the exception of low-income program customers.1As a voluntary program, it is expected that customers who opt into the TOU rate would be those customers who can modify electric consumption timing, and these customers may be more aware of their energy use profiles in general. Customers with electric vehicles (EV) can benefit by choosing to charge vehicles during lower energy cost periods. Under the current tiered rate, electric vehicle charging would likely fall under the higher Tier 2 electric rate, based on higher household consumption. Therefore, the TOU rate offers the opportunity for EV owners to reduce electric bills without increasing costs for other customers. Additionally, when combined with demand response programs, TOU rates could also incentivize customers to purchase programmable appliance controls (e.g., battery energy storage systems, water heaters) further allowing customers to reduce electric usage during high-priced periods.TOU program participation in the United States, when voluntary, typically ranges from 1% to 10% of the total number of eligible households.2 As of 2023, approximately one in three residential customers in Palo Alto own EVs, therefore, the adoption rate in Palo Alto is likely to be higher. If Palo Alto decides to implement TOU as the default option, while allowing customers to opt back to a tiered rate option, TOU program participation would likely increase to 75-90%. Alternatively, the City may require TOU rate design for all customers in the class, resulting in 100% participation.1 Pirro, Michael. The Evolution and Challenges of Time-of-Use Rate Designs. GridX. August 29, 2024. The Evolution and Challenges of Time-of-Use Rate Designs.2 Eligible households are those with appropriate meeting infrastructure or some other factor as determined by the utility.

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M E MO R AN D U MElectric TOU Rate Design E-1
2 RECOMMENDED PALO ALTO RESIDENTIAL TOU PROGRAMA voluntary E-1 TOU program will provide useful information to the City. Peak demand reduction estimates can be made by comparing E-1 TOU participant demands to standard E-1 class demands over the same period. This information will help the City plan for future program roll-out design as well as reduce its future power costs. Based on PG&E’s program, it is expected that peak demand reduction on the order of 3-6% could be achieved through TOU rate design.3 Note: The residential customer share of Palo Alto’s overall peak demand is estimated at 12%, therefore, a reduction in residential class peak of 3-6% results in an overall system peak reduction of 0.4 to 0.7%.A voluntary program will also help the City determine with greater certainty the impact of TOU rate design on utility revenues and expenses. As customers modify their behavior, it is expected that the revenue collected will decrease and that power supply expenses will also decrease. It is recommended that the TOU program revenues be analyzed annually, and retail rates updated so that the utility remains financially stable. This initial rate design proposal considers the recovery of fixed and variable costs by including fixed cost recovery in rate components that do not vary depending on the time of day energy is used. This design mitigates potential impacts to revenue collection resulting from changed behavior from TOU rate implementation.Table 1 below summarizes the recommended TOU rate design methodology. The balance of the memo describes the data and results of the analysis.TABLE 1: RECOMMENDED TOU RATE DESIGN METHODOLOGYRate ScheduleCurrent Rate DesignRecommended Rate MethodologyResidential Electric ServiceE-1: Not Time of UseInclining Rate with Two TiersBaseline Use (Tier 1) is 450 kWh/month Higher Use (Tier 2) is over 450 kWh/month E-1 TOU: Billing Periods Based on Differential in Marginal Cost, Distribution System Capacity and Peak Demand, Greenhouse Gas Intensity, and Best Practices in Rate DesignCommodity Rate Based on Marginal CostOptional Rate PlanTOU RATES FOR NET ENERGY METERED (NEM) CUSTOMERSDue to technical hurdles associated with the electric billing system, CPAU is currently unable to implement TOU rates for Net Energy Metered (NEM1 and NEM2)customers, who have energy generation and/or storage capacity from solar panels and batteries. When CPAU overcomes NEM2 billing system hurdles, TOU NEM2 will be developed. 3 Rate design and season impacts the peak demand reduction estimates. Pacific Gas and Electric (PG&E) study authors note that peak demand impacts may diminish over time. Reference: Christensen Associates. 2023 Load Impact Evaluation of Pacific Gas and Electric Company’s Residential Time-of-Use Rates Ex Post and Ex-Ante Report. CALMAC Study ID PGE0496. April 1, 2024.https://www.calmac.org/publications/2._PGE_2023_Res_TOU_Rpt_PUBLIC.pdf Item 2
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M E MO R AN D U MElectric TOU Rate Design E-1
3 REVENUE REQUIREMENTThe rate level for E-1 TOU is based on the FY2026 budget. The FY2026 budget is the FY2025 budget plus a 1% increase to power supply expenses, and an 11% increase for distribution expenses for an average adjustment of 5% overall. Therefore, the proposed rates are equal to the FY2025 cost of service analysis plus 5%. For E-1, the total revenue target for FY2026 is $29.4 million compared with $27.9 million for FY2025. This is equivalent to 17% of the total electric utility retail revenue target of $172.9 million.TOU COST JUSTIFICATIONTOU rate design is recommended to promote the efficient use of electricity by providing more accurate cost-based pricing.1. TOU rates are based on the marginal cost of electrical energy and electrical capacity at the time of usage, reflecting accurate market price signals.2. TOU rate design may lower the impact of increased EV charging on distribution feeder and transformer loadings, by providing customer incentives to reduce or shift energy use away from higher-priced periods.3. TOU rates will provide customers with the opportunity to take advantage of lower-cost time periods for EV charging or other electric use.4. TOU rates support electrification by not penalizing high energy use if it occurs during lower market priced periods.Typically, the goal of TOU rate design is to provide more accurate cost-based pricing to retail customers. In addition to this goal, TOU may also be used as a program to reduce overall power supply costs to the utility and, to the extent possible, lower the peak load on the distribution system infrastructure. These lowered costs are then passed to consumers through updated rate studies. A reduction in power costs may be realized if customers conserve energy during high-priced periods, or if customers shift their energy use to lower-priced periods. Similarly, reducing the peak loading of the distribution system will lower the need for system upgrades and will also result in lower system energy losses. DETERMINATION OF APPROPRIATE TOU PERIODSAs noted in Table 1, TOU periods are designed with consideration of several factors including:1. Marginal cost of energy2. Distribution system capacity and peak demand3. Greenhouse gas intensity of market energy4. Best practices in ratemaking.Each of these considerations is described below.Marginal Cost of EnergyThe primary goal of the rate design is to accurately reflect the cost of service depending on the time of day energy is used. Typically, higher-priced energy results from the combination of high electricity demands and constrained resource output, which occurs after the sun sets when lower-cost solar resources are no longer producing energy. The marginal cost of energy for the City is considered to be the hourly market prices at the NP15 (North of Path 15) trading hub, adjusted for the Palo Alto service area location. Hourly prices are commonly referred to as Default Load Aggregation Point (DLAP). The NP15 trading hub is the closest wholesale market transacting location. This pricing data is utilized in other areas Item 2
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M E MO R AN D U MElectric TOU Rate Design E-1
4 of the City’s utility planning and ratemaking and is the appropriate marginal cost metric for electric TOU rate design.Because of the large penetration of solar resources in the California markets, the highest priced periods typically occur in the evening. This is demonstrated in the average hourly market pricing data shown in Figure 1.4 These market prices are the marginal cost of electricity. In case of resource production surpluses or shortages, the City would sell or purchase energy at these prices.Figure 1 illustrates the average hourly market pricing for the 3-year period August 2021-July 2024. This period is the most relevant to the analysis since it is the most recent data available. While the natural gas shortage in winter 2023 inflated pricing in that period, removing that data from the analysis did not result in significant differences. This is because the shape of the pricing curves is more important than the pricing levels.Figure 1 shows three periods for pricing. The red shaded period (peak) is the highest priced period between 4 pm and 9 pm, averaging $95/MWh annually. The lowest priced period is between 9 am and 3 pm daily at $49/MWh on average (super off-peak). The average price for the remaining hours (off-peak) is $65/MWh. The relative prices in these three periods are used to determine commodity rates.FIGURE 1: AVERAGE HOURLY MARKET PRICES: 8/2021-7/2024 The recommended rate design has the same pricing periods for winter and summer seasons. Keeping the time of day pricing periods the same year-round is simpler from the customer perspective and follows Bonbright’s criteria of desirable rate structure where he emphasizes simplicity and understandability of 4 Average hourly prices for NP15 (DLAP Palo Alto), August 2021-July 2024.$0$20$40$60$80$100$120Hour BeginningOff PeakSuper Off PeakPeak Item 2
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M E MO R AN D U MElectric TOU Rate Design E-1
5 rate design.5 A more complicated rate design with multiple TOU periods would more precisely reflect marginal costs, but it would also be more difficult for customer understanding and implementation. For this reason, a simpler rate design is recommended. Distribution System Capacity and Peak DemandThe second consideration for the TOU periods is the peak at the distribution system level. This peak is the maximum peak achieved when combining customer electric demands. A peak can be analyzed in various ways such as system total (all City loads) or a subset of customers such as those being served from a particular asset (substation, feeder, transformer). The peak on the distribution system drives distribution system investments. Therefore, managing peak demands on the system can defer or avoid investments in system expansion.Typically, the distribution system peak coincides with the timing of higher-priced electricity. To test this, the 12 monthly peaks (maximum demand) for the City’s entire system were analyzed. The three highest monthly peaks on the system occur within the 4 pm to 9 pm time period. While the system peaks during this time period, each class of customer contributes to that peak differently. Class system peaks help define the capacity requirements across the distribution system. If the residential class peak were to occur during a low marginal cost period for energy, the recommended TOU rate design could result in increased distribution system costs. Shifting loads toward the residential class peak could result in an increase to the distribution system capacity needs. To ensure that the recommended TOU rate periods do not place undue upgrade costs on the distribution system, EES analyzed residential class load profile data. At the time of this analysis, the City does not have hourly load profile data available for its residential class. The City is currently installing AMI, which will provide usage data for future cost analysis and rate making. Because hourly meter data is unavailable, EES evaluated hourly usage data for substation feeders: Hopkins feeder 5 (HO5) and Hopkins feeder 7 (HO7). These feeders serve a total of 1,208 customers. Of these, 1,200 customers are residential. Based on the customer count data, the hourly data from these feeders should be a good approximation for residential load profiles for the City of Palo Alto. To further test this theory, the hourly data from these feeders was compared with PG&E residential load profiles for PG&E’s baseline territory “T.” This territory is adjacent to the City of Palo Alto and similar in climate. The comparison further validates that the hourly Palo Alto feeder data is appropriate Palo Alto residential TOU rate design.Figure 2 compares the average hourly load shape for the 12 months beginning September 2022 for both Hopkins feeders, and a similar-climate load shape from PG&E dynamic load profile data. The average is calculated by averaging electric demand over the entire year for each hour ending (1-24). Figure 2 shows normalized kW which is equal to kW in each hour divided by the average. Normalizing each curve makes the curves comparable even if the data sets have different means.5 Bonbright, James C. Principles of Public Utility Rates. Columbia University Press, 1961 (Reprinted 2005). Page 291.powellgoldstein-bonbright-principlesofpublicutilityrates-1960-10-10.pdf Item 2
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6 FIGURE 2: RESIDENTIAL HOURLY LOAD PROFILE AVERAGE: 9/2022-8/2023 Using the feeder data, an analysis of monthly peaks indicated that the 4 pm to 9 pm period captures the two maximum feeder peaks (August and September for HO5 and December and September for HO7). This is also supported in Figure 2 where the average daily peak occurs in the same window. Therefore, both the system and feeder peak analyses support an on-peak period in the later afternoon/evening.Palo Alto’s overall system peak, across all customer classes also occurs between 4 pm and 9 pm in the highest 9 monthly peaks. This also supports setting the peak period between 4 pm and 9 pm. Greenhouse Gas (GHG) ContentThe third consideration for TOU periods is the carbon content of market purchases during lower-cost periods. While not perfectly correlated, marginal cost, system peak demands, and high GHG content are all highest during the same evening period. Figure 3, on the next page, shows the average hourly emission intensity by month for energy transactions located within the management area of the California Independent System Operator (CAISO). Emissions data are represented as metric tons (MT) of carbon dioxide equivalent (CO2e) per megawatt hour (MWh) of electricity. The highest emission intensities are between 7 pm and 7 am, when solar resources are not generating. The emission intensity data supports a third TOU period during the day that represents the lower costs associated with both the low GHG intensity and low marginal cost.

0.000.010.020.030.040.050.060.07PG&EHO5 2022HO7 2022Hour Beginning Item 2
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8 Best PracticesThe last consideration for TOU periods is based on ratemaking best practices. First, it has been shown that consumers are more able to shift energy use to lower priced periods when the high-priced period is shorter in duration. As such, there is a trade-off in cost-based rates between peak usage pricing that is significantly higher than off peak but for a shorter period versus smaller price differentials over a longer period. The recommended peak period is from 4 pm to 9 pm. This 5-hour period captures high marginal energy costs, high average GHG intensity, and the timing of both the distribution system peak and residential class peak demand.TOU RATE RECOMMENDATIONSIt is recommended that TOU rates be calculated for two seasons: summer and winter. The recommended summer season is from June 1 through September 30. This choice of season is based on the annual system peak typically in August or September and the local capacity requirement (determined by the annual peak). Additionally, the seasonal rate design is necessary to pass through the differences in marginal costs between seasons. In particular, the months of June through September are the peak cooling months where the impact of solar on marginal costs is slightly less compared to winter. The recommended seasonal definition results in a larger difference in pricing during summer hours as demonstrated by the higher peak and lower troughs in Figure 4. Winter hours are priced closer together.FIGURE 4: AVERAGE HOURLY MARKET PRICES BY SEASON: 8/2021-7/2024$0$20$40$60$80$100$120$140$160 Summer June-SeptWinter Oct-MayHour BeginningOff PeakSuper Off PeakPeak Item 2
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9 Based on the above analysis, the following TOU periods are recommended:TABLE 2: RECOMMENDED TOU RATE PERIODS Time of DaySummer: June 1 – September 30 and Winter: October 1 – May 31Peak 4 pm to 9 pmOff-Peak9 pm to 9 am and 3 pm to 4 pmSuper Off-Peak 9 am to 3 pmBased on these TOU periods, marginal cost data, and the seasonal rate period, the recommended rate differentials are developed. During the summer season, peak period prices average 85% higher than off-peak prices. In winter, October 1 through May 31, the peak period prices average 23% higher than off-peak prices. Super off-peak prices coincide with the time of day with the lowest marginal cost and lowest greenhouse gas emission intensity. Prices during super off-peak periods during the summer are 19% lower than off-peak summer prices and prices during super off-peak periods during the winter are 29% lower than winter off-peak prices.Table 3 summarizes the marginal cost data for the 3-year period analyzed, August 2021-July 2024. This data was also analyzed by excluding the high winter prices in 2023 caused by natural gas shortages. This event was unusual; however, the resulting price differentials between the recommended TOU periods were not significantly different when the event is excluded. Note that the marginal cost is not used directly for rate-setting. The marginal cost levels are adjusted to reflect the utility’s actual all-in power costs; however, the ratio of peak, off-peak, and super off-peak prices is maintained.6 By maintaining the relative cost of power, the resulting rates reflect the marginal cost attributes while collecting the power supply costs allocated to residential customers in the cost of service study.6 This methodology differs from the Export Electricity Compensation rate (EEC) used to credit excess generation value to Net Energy Metering (NEM) customers. The EEC rate considers the marginal cost of energy plus other costs avoided when customers generate electricity locally.

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10 TABLE 3: TOU MARGINAL COST: COMMODITYAverage DLAP1 Price $/MWhDifference from Seasonal Off Peak PriceSummer: June 1 – September 30Peak: 4 pm to 9 pm$99.98+ 85%Off-Peak: 9 pm to 9 am and 3 pm to 4 pm$53.960%Super Off-Peak: 9 am to 3 pm$43.76-19%Winter: October 1 - May 31Peak: 4 pm to 9 pm$88.49+23%Off-Peak: 9 pm to 9 am and 3 pm to 4 pm$72.170%Super Off-Peak: 9 am to 3 pm$51.25-29%1. DLAP or Default Load Aggregation Point is the industry name for hourly wholesale electricity prices for the relevant trading point. In this case, the PG&E delivery point is the appropriate trading node.The commodity rates for E-1 TOU are developed such that the pricing differentials in Table 3 are maintained for the energy-related portion of the rate. The commodity costs that are demand-related are added to the peak commodity rates. Demand-related commodity costs are spread evenly across summer and winter seasons and applied only to peak commodity rates. Finally, because local capacity costs are based on peak demand, 72% of these costs occur in summer, while 28% occur in the winter and these costs are correspondingly included in the summer and winter volumetric rates. Table 4 summarizes the cost components in each TOU commodity rate.TABLE 4: TOU RATE DESIGN COST COMPONENTSCommodity Cost ComponentEnergy RelatedDemand RelatedSummer Peak187% of Off Peak Price72% of Local Capacity CostsSummer Demand CostsSummer Off-PeakMarginal Cost Scaled Based on Embedded Power Costs (Calculated in COSA)NoneSummer Super-Off Peak84% of Off Peak PriceNoneWinter Peak121% of Off Peak Price28% of Local Capacity CostsWinter Demand CostsWinter Off-PeakMarginal Cost Scaled Based on Embedded Power Costs (Calculated in COSA)NoneWinter Super Off-Peak73% of Off Peak PriceNoneLOAD CHARACTERISTICSThe billing determinants for each TOU pricing period are estimated from the load profile data obtained from the HO5 and HO7 feeders. Table 5 summarizes the estimated share of annual energy within each TOU period. For the average customer using 450 kWh per month (5,400 kWh/year), 31.6% or 1,706 kWh are consumed in the winter off peak period.

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11 TABLE 5: RESIDENTIAL LOAD SHARE BY TOU PERIODShare of Annual EnergySummer: June 1 – September 30Peak: 4 pm to 9 pm8.0%Off-Peak: 9 pm to 9 am and 3 pm to 4 pm9.2%Super Off-Peak: 9 am to 3 pm 14.2%Winter: October 1 - May 31Peak: 4 pm to 9 pm15.7%Off-Peak: 9 pm to 9 am and 3 pm to 4 pm31.6%Super Off-Peak: 9 am to 3 pm 21.3%Table 6 compares the recommended E-1 TOU rate with the standard E-1 rate adjusted for FY2026. The commodity rates are developed by scaling the marginal costs for the TOU periods (Table 3) so that when combined with the billing determinants resulting from Table 5, the revenue collected equals the commodity revenue requirement. The fixed customer charge is the same as the recommended fixed customer charge for the E-1 class. The distribution costs for FY2026 are estimated at $14.1 million (11% increase from FY2025 distribution costs). After an 11% increase in the customer charge, the remaining distribution costs are $12.4 million. This translates to $0.09351/kWh. This distribution rate is the same between E-1 and E-1-TOU.7 The Public Benefits Charge (PBC) is also the same across time periods and across the Tiered E-1 rate compared to the E-1-TOU rate.TABLE 6: RECOMMENDED RESIDENTIAL TOU RATE FY2026 (PRICES PER KWH UNLESS OTHERWISE STATED)CommodityDistributionPBCTotalE-1Customer Charge, $/month$5.15Tier 1 (up to 450 kWh)$0.10373 $0.09593 $0.00604 $0.20569 Tier 2 (> 450 kWh)$0.13372 $0.08968 $0.00604 $0.22944 E-1-TOUCustomer Charge, $/month$5.15Summer (June 1 to Sept 30) Peak: 4 pm to 9 pm$0.23354$0.09351$0.00604$0.33309 Off Peak: 9 pm to 9 am and 3 pm to 4 pm$0.08249 $0.09351 $0.00604 $0.18204 Super Off Peak: 9 am to 3 pm $0.06690$0.09351$0.00604$0.16645Winter (Oct 1 to May 31) Peak: 4 pm to 9 pm$0.16705$0.09351$0.00604$0.26660 Off Peak: 9 pm to 9 am and 3 pm to 4 pm$0.11033 $0.09351 $0.00604 $0.20988 Super Off Peak: 9 am to 3 pm $0.07835$0.09351$0.00604$0.177907 The average distribution rate of $0.09351/kWh is required to recover the $12.4 million in residential class distribution system costs. The Standard E-1 Rate is based on a tiered rate design which results in the same collection of $12.4 million in revenues.

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12 The FY2026 average annual volumetric rate for both for E-1 and E-1 TOU is $0.21486/kWh. If all residential customers select the E-1 TOU rate plan, and did not modify behavior, the revenue collected would total $29.4 million. BILL IMPACTSThe bill impacts from switching from E-1 to E-1-TOU will depend on the monthly electric use. Higher usage in any month will make the TOU rate more attractive to customers. Average monthly use is estimated at 450 kWh, the Tier 1 baseline. Table 7 compares residential monthly bills under two rate plans at the same average monthly use. In every month, the E-1 rate results in a lower bill. The annual difference is $37.96. This suggests that customers near the average use, and with a usage profile consistent with the feeder data, should prefer to stay on the E-1 rate unless they plan to change their usage patterns.TABLE 7: BILL IMPACTS: AVERAGE USEMonthAverage Use kWhBill: E-1-TOUBill: E-1Difference(E-1 TOU bill – E-1 bill)1408$92.05$89.07 $2.982440 $98.38 $95.66 $2.723385$86.90$84.34 $2.564388 $87.81 $84.96 $2.855436$98.16$94.83 $3.336438 $98.59 $95.24 $3.357619$138.83$136.49 $2.348523 $119.46 $114.46 $5.009523$117.50$114.23 $3.2710418 $94.52 $91.13 $3.3911407$91.80$88.87 $2.9312417 $93.96 $90.72 $3.24Total$1,217.96$1,180.00$37.96Table 8 shows the same analysis for the case where 200 kWh per month is added to the 450 kWh/month usage. It is assumed that this use is due to electrification (such as electric vehicle charging). We assume a 50/50 split between off-peak and super off-peak period usage for the additional kWh. Table 8 demonstrates that for EV charging timed to avoid the peak cost period, the E-1-TOU rate is beneficial, saving customers approximately $55 per year.

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13 TABLE 8: BILL IMPACTS: AVERAGE USE PLUS 200 KWH EV CHARGING MonthAverage Use kWhBill: E-1-TOUBill: E-1Difference1653$130.83$133.96 -$3.142689 $137.16 $141.31 -$4.143627$125.68$128.69 -$3.014631 $126.59 $129.37 -$2.785684$136.94$140.39 -$3.456687 $133.44 $140.85 -$7.417888$173.68$182.38 -$8.698781 $154.31 $160.35 -$6.049781$152.35$160.12 -$7.7710664 $133.30 $136.26 -$2.9611652$130.58$133.73 -$3.1512663 $132.74 $135.80 -$3.06Total$1,667.59$1,723.20-$55.61Finally, Table 9 shows a range of potential bill impacts for low, average, and high levels of monthly kWh use. Even with no changes in behavior to avoid peak cost periods, residential customers with higher use could potentially reduce their bills by switching to the TOU rate option. The analysis assumes that customer usage profiles are consistent with the feeder data. Refer back to Table 5 for the share of annual energy consumption in each seasonal TOU period. This profile is used to calculate monthly bills at different levels of consumption ranging from 200 kWh/month to 1,600 kWh/month.TABLE 9: BILL IMPACTS: LOW, AVERAGE, AND HIGH USAGE LEVELSBill: E-1 TOUBill: E-1Difference200 kWh$47.96$46.29$1.68450 kWh (Tier 1 Baseline)$101.48 $97.71 $3.77600 kWh$133.59$132.13$1.46800 kWh$176.41 $178.02 -$1.611,600 kWh$347.66$361.57-$13.91 Item 2
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: September 15, 2025
Report #:2507-4958
TITLE
Finance Committee Recommendation for City Council to Direct Staff to Follow the Reasonable- Cost Analysis Required by Proposition 26 for the Gas Cost of Service Analysis and Collaborate with the Utilities Advisory Commission to Develop Revised Gas Rate Schedules Effective January 2026, Based on Five Design Principles; CEQA – Not a Project

RECOMMENDATION
The Finance Committee recommends that the Council direct staff to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to develop revised gas rates effective January 2026, based on the following design principles:

2. The COSA should involve a review of all existing rate schedules for applicability in the COSA.

3. The impact of any proposed changes on low-income customers should be evaluated in alignment with state law, including, without limitation, Public Utilities Code sections 890 and 898.

4. Determine the proper allocation of fixed and variable costs and how those can be implemented in various rate designs.

5. Review non-rate revenue sources that may be available for rate discounts or rebates.

EXECUTIVE SUMMARY
Article XIII C of California Constitution (often referred to as Proposition 26) requires voter approval for municipal electric and gas rates that exceed the reasonable costs to the utility of providing service. The City Council can adopt cost-based utility rates without voter approval.

Public agencies rely on ratemaking consultants to determine the costs of providing service and to design rates that accurately recover those costs; this is referred to as a “cost of service analysis”, or COSA.

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As outlined during the spring 2025 discussion, one step of a routine cost of service analysis includes a kick-off process affirming any guiding principles for the study, while always ensuring adherence to California’s Proposition 26. This action forwards the Finance Committee’s recommendation that Council direct staff to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to recommend revised gas rates effective January 2026, based on the following design principles:

2. The COSA should involve a review of all existing rate schedules for applicability in the COSA.

3. The impact of any proposed changes on low income customers should be evaluated in alignment with state law, including, without limitation, Public Utilities Code sections 890 and 898.

4. Determine the proper allocation of fixed and variable costs and how those can be implemented in various rate designs.

5. Review non-rate revenue sources that may be available for rate discounts or rebates.

BACKGROUND
COSAs took on greater significance for California publicly owned utilities following the passage of Proposition 26 in 2010. Proposition 26 added provisions to the California Constitution defining every local government fee or charge as a tax requiring voter approval, unless one of seven exceptions applies.1 A rate set at a level “which does not exceed the reasonable costs to the local government of providing the service”2 is an exception to the voter approval requirement and can be approved by Council. The City bears the burden to prove that a rate is not a tax, the amount is no more than necessary to cover the reasonable costs of providing service, and the manner in which those costs are allocated to ratepayers bears a fair or reasonable relationship to the ratepayer’s burdens on, or benefits received from, the governmental activity.3 COSAs completed with the assistance of ratemaking consultants are designed to ensure that the City meets its burden to set rates accurately. Staff drafted a 2025 COSA and received guidance from the Finance Committee on May 7, 2025 through a unanimous vote (3-0) to return to the UAC to further review the 2025 Gas COSA assumptions and principles. Additionally, Council further directed staff through its vote on June 16, 2025 (5-1-1, Lythcott-Haims no, Stone absent) to return to the UAC to consider the issue of a one-time climate credit along with the revised Gas COSA.
1 CA. Const. Article XIII C(1)(e).
2 CA. Const. Article XIII C(1)(e)(2).
3 CA. Const. Article XIII C(1)(e).

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ANALYSIS
On July 9, 2025, staff proposed to the UAC7 that the UAC recommend that Council accept design principles that would apply to both the City’s gas and electric rates 8. Further details on these Design Principles are available in the UAC staff report 2505-4722.9 As an additional reference, the City Council approved prior gas COSA guidelines on November 14, 2016 (Staff Report 741610).

During its July meeting, the UAC considered design principles which included some policy preferences to guide staff and the City’s ratemaking consultants on future gas and electric COSAs in alignment with California’s Constitutional requirements. The Commission considered whether revising them could provide clearer guidance for staff and the ratemaking consultant in developing the new 2026 Gas COSA. During the discussion, staff emphasized that the primary and overriding guiding principle is Proposition 26, which requires that rates be based on cost and does not address other policy considerations. Courts look to constitutional requirements when a public agency’s rates are challenged and have held that rates which incentivize policy choices must remain cost-based. The UAC explored crafting an additional set of principles, but ultimately as a body decided on reliance on Proposition 26.

The UAC voted 6-1 to recommend: 1) relying on Proposition 26 as the only design principle for the Gas COSA and 2) forming a UAC subcommittee to work with staff and the ratemaking consultant to develop the 2026 Gas COSA and provide regular report-outs to the full UAC to ultimately support a recommendation to the City Council.

On September 2, 2025, the Finance Committee considered the UAC’s recommendation and discussed the design guidelines from 2016 in greater detail as well as the design guidelines proposed by staff in the July report to the UAC. After deliberating the pros and cons of each possible guideline, and receiving guidance from staff and legal counsel, the Finance Committee voted unanimously to recommend that Council direct staff to Support the UAC recommendation to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to recommend revised gas rates effective January 2026, but added the following design principles:

1. Rates must be based on the reasonable cost to serve customers. This is the overriding principle for the cost of service analysis (COSA); all other rate design considerations are subsidiary to this basic premise.
7 Utilities Advisory Commission Staff Report 2505-4722, July 9, 2025 meeting, Item 3, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17717 8 A different constitutional provision, commonly referred to as Proposition 218, applies to the City’s water, wastewater and refuse rates, which are deemed “property-related fees”. While property-related fees must also be cost-based to avoid the voter approval requirement, the substantive and procedural rules for these fees differ from those applicable to electric and gas rates and are outside the scope of these rate design principles. 9 Utilities Advisory Commission Staff Report 2505-4722, July 9, 2025 meeting, Item 3, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17717 10 City Council Staff Report 7416, November 14, 2016:
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutesreports/reports/city-manager-reports- cmrs/year-archive/2016/final-staff-report-id-7416_gas-cost-of-service-and-rate-design-guidelines.pdf Item 3
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2. The COSA should involve a review of all existing rate schedules for applicability in the COSA.

3. The impact of any proposed changes on low income customers should be evaluated in alignment with state law, including, without limitation, Public Utilities Code sections 890 and 898.

4. Determine the proper allocation of fixed and variable costs and how those can be implemented in various rate designs.

5. Review non-rate revenue sources that may be available for rate discounts or rebates.

The Committee expressed appreciation for the UAC work, as well as the dedication of a subcommittee to aid in a deeper dive of the COSA with staff as part of this process.

Tentative Timeline & UAC Review
When Council directed the UAC to review the 2025 Gas COSA, some Councilmembers expressed an intent to complete the new COSA and implement new gas rates by early 2026. In order to minimize the impact on the project completion date and allow for thorough development and legal review of the proposed gas rates, staff’s estimate the fastest process possible under ideal conditions would reflect the following; actual timing may shift depending on requested analysis:
September/October: UAC subcommittee to review (see below for details) and provide report outs to the full UAC verbally
November (week 1): UAC review and discuss proposed 2026 Gas COSA study results for recommendation to Finance Committee and City Council
November (week 3): Finance Committee review and discuss proposed 2026 Gas COSA study results and rate changes for recommendation to City Council December: City Council review and adoption of final 2026 Gas COSA study results and rate changes including Public Hearing
Gas rates effective on or around January 1, 2026 depending on the complexity and timeline necessary to implement rate changes.

The use of a UAC subcommittee15 permits a subset comprised of less than a quorum of the UAC to engage in detailed and candid discussion with staff and the City’s ratemaking experts, followed by verbal reports to the full UAC to facilitate discussion and recommendation to Council on the proposed 2026 Gas COSA. During UAC Subcommittee Meetings, the subcommittee reviews draft materials and provides input and feedback to staff and the ratemaking consultant on several key topics. These include the design of fixed and variable customer charges, as well as an analysis of whether to subdivide the current G-2 customer class. This analysis will explore the potential creation of a distinct customer class comprised of multi-family master-metered customers, or other appropriate cost-based reclassifications.
15 A temporary advisory committee composed solely of less than a quorum of the legislative body that serves a limited or single purpose, that is not perpetual, and that will be dissolved once its specific task is completed is not subject to the Brown Act. (Cal. Gov. Code sec. 54952(b).) Item 3
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FISCAL/RESOURCE IMPACT
The work associated with this project will be absorbed using existing staff and contract budgets.

Staff may need to push back other rate-related work to later in the fiscal year. If additional subcommittee meetings or other meetings are required, or substantive additional models and analysis is requested during the final stages of drafting the Gas COSA report, the schedule and cost will be impacted. This will mean the effective date of new rates will be later in 2026 and there will be additional costs to the City of working with the expert consultants.

STAKEHOLDER ENGAGEMENT
The UAC and staff received numerous communications expressing a variety of concerns about the gas utility. Those letters and all of the public letters to the UAC for the July 9, 2025 meeting are available for viewing.17 The Finance Committee reviewed this item on September 2, 2025 and voted unanimously to recommend that Council direct staff to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to recommend revised gas rates effective January 2026, based on the design principles outlined above.

Two members of the public spoke at the Finance Committee meeting on September 2, 2025 and two members of the public wrote a letter to the Finance Committee, each recommending that the City keep the 2016 gas COSA design principles in place for the 2026 Gas COSA with certain modifications. Public review and feedback as part of this next process will be available and advertised through the public review at the UAC, Finance Committee, and City Council.

ENVIRONMENTAL REVIEW
A recommendation that Council direct staff to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to recommend revised gas rates effective January 2026 based on the five principles described above does not meet the definition of a project, under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, thus no environmental review is required.

APPROVED BY:

Alan Kurotori, Director of Utilities
17 Link to public letters to the UAC from the July 9, 2025 agenda:
http://www.paloalto.gov/files/assets/public/v/2/agendas-minutesreports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2025/07-july/public-letters-touac-7.09.25-v2.pdf Item 3
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Attorney
Meeting Date: September 15, 2025
Report #:2508-5109
TITLE
Authorization to Execute Amendment to Legal Services Agreement S25193131 with Diepenbrock Elkin Dauer McCandless to Increase Amount by $1,086,000 for Total Not-to- Exceed Amount of $1,171,000; CEQA Status – Not a Project.

RECOMMENDATION
Authorize the City Attorney or designee to amend the agreement for claim defense services with the law firm of Diepenbrock Elkin Dauer McCandless (Agreement S25193131) to increase the Agreement amount by $1,086,000 for a total not-to-exceed amount of $1,171,000.

BACKGROUND
Diepenbrock Elkin Dauer McCandless is a law firm representing cities in a variety of areas, including matters involving public works projects.

In October 2024, the City entered into a three-year agreement (S25193131) with Diepenbrock Elkin Dauer McCandless for defense services regarding disputes arising from construction of the Public Safety Building. Staff now seeks authority to increase the Agreement amount by $1,086,000 which will bring the new not to exceed amount to $1,171,000. This amendment is based on estimates for legal representation through and including arbitration of outstanding claims and disputes arising from construction of the Public Safety Building.

FISCAL/RESOURCE IMPACT
Funding for this amendment will be provided through an adjustment to increase the New Public Safety Building project (PE-15001) in Report #2506-4870, offset by a reduction in the Infrastructure Plan Reserve which sets aside funding for unknown costs related to Infrastructure Plan projects. This action has no impact on the fund balance of the Capital Improvement Fund.

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STAKEHOLDER ENGAGEMENT
The City Attorneys Office works closely with the City Manager and the Department of Public Works on public works construction matters.

ENVIRONMENTAL REVIEW
Amendment of a legal services agreement is not a project requiring environmental review under the California Environmental Quality Act (CEQA) (See CEQA Guidelines 15378(b)(5), administrative activities that will not result in direct or indirect physical changes in the environment).

APPROVED BY:

Molly Stump, City Attorney
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Library
Meeting Date: September 15, 2025
Report #:2506-4846
TITLE
Approval of Contract Amendment Number 1 to Contract C21177635B with Ingram Library Services in the amount of $255,000 for Print Materials and Services for a new not-to-exceed (NTE) of $455,000; and Contract Amendment Number 1 to Contract C21177635C with Midwest Tape in the amount of $53,000 for Media and Digital Materials and Services for a new not-to- exceed (NTE) of $753,000; CEQA Status – Not a Project.

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager, or designee, to execute:
Amendment No. 1 to Contract C21177635B with Ingram Library Services (Attachment A), increasing the not-to-exceed (NTE) amount by $255,000, for a new total NTE of $455,000, to support the acquisition of print materials and services. Amendment No. 1 to Contract C21177635C with Midwest Tape (Attachment B), increasing the NTE amount by $53,000, for a new total NTE of $753,000, to support the acquisition of media and digital materials and services.

EXECUTIVE SUMMARY
Staff recommends amending the City’s contracts with Ingram Library Services and Midwest Tape. These amendments will reallocate funds from Baker & Taylor’s contract to vendors that have demonstrated consistent, timely service. Staff have faced consistent and significant performance issues with Baker & Taylor—originally the City’s primary vendor for print materials. This adjustment ensures the community’s continued access to print, media, and digital materials without increasing the total cost among the City’s vendors for these services.

BACKGROUND
In 2020, the Library issued a Request for Proposals (RFP) to identify qualified vendors for the acquisition and delivery of print, media, and digital library materials and related services. The Item 5
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RFP resulted in three six-year contracts, approved by City Council on June 22, 2020.1 All three contracts have a six-year term of July 1, 2020 to June 30, 2026. Contract C21177635A – Baker and Taylor
oTotal NTE for six years = $2,000,000
Contract C21177635B – Ingram Library Services
oTotal NTE for six years = $200,000
Contract C21177635C – Midwest Tape
oTotal NTE for six years = $700,000
Following the RFP process, Baker & Taylor was selected as the primary vendor for print, media and digital materials and services, with Ingram and Midwest Tape designated as secondary vendors.

Over the course of FY25, Baker & Taylor’s performance declined significantly, with numerous orders delayed or unfulfilled. In March, the vendor abruptly canceled over 1,000 backordered items without notice, depriving the Palo Alto community of timely access to new and popular materials. In response, staff worked with Ingram and Midwest Tape to replace the canceled items. Both vendors fulfilled the replacement orders promptly and reliably.

ANALYSIS
To ensure uninterrupted service to the community and continued access to new and high- demand books and media, staff recommends reallocating $308,000 in funds from Baker & Taylor’s contract (C21177635A) as follows:
$255,000 to Contract C21177635B – Ingram Library Services $53,000 to Contract C21177635C – Midwest Tape
This reallocation ensures continued access to high-demand materials, reflects vendor performance and maintains service quality. The current contracts, which were competitively awarded, are in their sixth and final year and will expire on June 30, 2026. Staff will initiate a new RFP process in advance of that date.

This adjustment results in net zero fiscal impact, and the total not-to-exceed (NTE) amount of $2,900,000 across all three contracts remains unchanged, as shown in this table:
1 City Council, June 22, 2020, agenda item 26, staff report # 11398, https://portal.laserfiche.com/Portal/DocView.aspx?id=57607&repo=r-704298fc&searchid=d68ce02a-f768-4a04- a9f3-e3d190743a01
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Staff does not plan to formally amend the Baker & Taylor contract to reflect this decrease but will instead manage the spending at a staff level. These contracts themselves do not obligate the City to pay any amount of money to the vendors — the City is charged only for the orders it places under the contract. Staff plans to place no more than $50,000 worth of orders with Baker & Taylor in FY26.

FISCAL/RESOURCE IMPACT
Funding for these contract amendments is available in the Library’s Fiscal Year 2026 Operating Budget and does not require additional appropriations. The proposed reallocation of $308,000 from Baker & Taylor’s contract reduces its not-to-exceed (NTE) amount and increases the NTEs for Ingram Library Services and Midwest Tape accordingly. This adjustment results in a net zero fiscal impact, as the total NTE across all three contracts remains unchanged.

STAKEHOLDER ENGAGEMENT
Library staff worked closely with Ingram and Midwest Tape as well as with the ASD Purchasing Division during the development of this contract amendment.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because approval of this contract amendment—related to the procurement of library materials—is an administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5)).

ATTACHMENTS
Attachment A: Contract Amendment Number 1 to C21177635B Ingram Library Services Attachment B: Contract Amendment Number 1 to C21177635C Midwest Tape APPROVED BY:

Gayathri Kanth, Library Director
6 Years
NTE orginalDecreaseNTE amendedNTE orginalIncreaseNTE amendedNTE orginalIncreaseNTE amendedYear 1 - FY21 (July 1 '20 to June 30 '21)$210,000 $210,000$20,000 $20,000$110,000 $110,000 Year 2 - FY22 (July 1 '21 to June 30 '22)$358,000 $358,000$36,000 $36,000$118,000 $118,000 Year 3 - FY23 (July 1 '22 to June 30 '23)$358,000 $358,000$36,000 $36,000$118,000 $118,000 Year 4 - FY24 (July 1 '23 to June 30 '24)$358,000 $358,000$36,000 $36,000$118,000 $118,000 Year 5 - FY25 (July 1 '24 to June 30 '25)$358,000 $358,000$36,000 $36,000$118,000 $118,000 Year 6 - FY26 (July 1 '25 to June 30 '26)$358,000$308,000$50,000$36,000$255,000$291,000$118,000$53,000$171,000 TOTAL life of contract$2,000,000 $1,692,000$200,000 $455,000$700,000 $753,000 Contract C21177635A - BAKER & TAYLORContract C21177635B - INGRAM Contract C21177635C - MIDWEST TAPE Item 5
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AMENDMENT NO. 1 TO CONTRACT NO. C21177635B

BETWEEN THE CITY OF PALO ALTO AND

INGRAM LIBRARY SERVICES, LLC

This Amendment No. 1 (this “Amendment”) to Contract No. C21177635B (the “Contract” as defined below) is entered into as of September 8, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INGRAM LIBRBARY SERVICES, LLC, a Tennessee corporation, located at One Ingram Blvd., La Verne, TN 37086 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of print material and services, as detailed therein.

B. The Parties now wish to amend the Contract in order to increase total not- to-exceed compensation by Two Hundred and Fifty -Five Thousand Dollars ($255,000), from Two Hundred Thousand Dollars ($200,000) to Four Hundred Fifty-Five Thousand Dollars ($455,000), 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” shall mean Contract No. C21177635B between CONSULTANT and CITY, dated July 1, 2020.

b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows:
“The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Four Hundred Fifty -Five Thousand Dollars (455,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. Annual Not-to-Exceed amounts are:

$20,000.00 in year 1 (July 1, 2020 through June 30, 2021) $36,000.00 in year 2 (July 1, 2021 through June 30, 2022) $36,000.00 in year 3 (July 1, 2022 through June 30, 2023) $36,000.00 in year 4 (July 1, 2023 through June 30, 2024) $36,000.00 in year 5 (July 1, 2024 through June 30, 2025) $291,000.00 in year 6 (July 1, 2025 through June 30, 2026)

The applicable rates and schedule of payment are set out at Exhibit “C -1”, entitled “SCHEDULE OF RATES,” Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5
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which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY.

Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”.”

SECTION 3. 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. 1” ( AMENDED, REPLACES

PREVIOUS)

b. Exhibit “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO. 1” (AMENDED, REPLACES

PREVIOUS)

SECTION 4. 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 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.

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SIGNATURES OF THE PARTIES

IN WITNESS WHEREOF, the P arties have by their duly authorized representatives executed this Amendment effective as of the date first above written.

CITY OF PALO ALTO

City Manager

APPROVED AS TO FORM:

City Attorney or designee

INGRAM LIBRARY SERVICE, LLC

Officer 1

By:

Name:

Title:

Officer 2

By:

Name:

Title:

Attachments:

Exhibit “C”: C0MPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Exhibit “C-1”: SCHEDULE OF RATES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS)

Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F VP Ingram Library Services
Carolyn Morris
CFO
Brian Dauphin
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EXHIBIT “C”
COMPENSATION, AMENDMENT NO. 1
(AMENDED, REPLACES PREVIOUS)

The CITY agrees to compensate the CONSULTANT for professional 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 hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below.

CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement.

BUDGET SCHEDULE NOT TO EXCEED AMOUNT
Year 1
(July 1, 2020 through June 30, 2021)
$20,000.00
Year 2
(July 1, 2021 through June 30, 2022)
$36,000.00
Year 3
(July 1,2022 through June 30, 2023)
$36,000.00
Task 4
(July 1, 2023 through June 30, 2024)
$36,000.00
Task 5
(July 1, 2024 through June 30, 2025)
$36,000.00
Task 6
(July 1, 2025 through June 30, 2026)
$291,000.00
Sub-total Basic Services $455,000.00
Reimbursable Expenses $0.00

Total Basic Services and
Reimbursable expenses

$455,000.00
Maximum Total Compensation $455,000.00

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EXHIBIT “C-1”
SCHEDULE OF RATES, AMENDMENT NO. 1
(AMENDED, REPLACES PREVIOUS)

Discount Schedule

Trade Hardcover 45.0%
Trade/Quality Paperback 40.0%
Mass Market Paperback 38.0%
Library Bindings 24.0%
Pre-binds 24.0%
Graphic Novels 35.0%
University Press 8.0%
Short discount titles 8.0%
Spoken Word Audio, trade 45.0%
Spoken Word Audio, non-trade 8.0%
DVD and Blu-ray 28.0%
Music 5.0%
Video Games 5.0%
Net Titles 0.0%

Discount Details:
• Discounts apply to Adult, Young Adult, and Juvenile materials. • Spanish and other World Language materials receive these same discounts. • Continuations and Standing Order/New Title Notification Program titles, backorders, and re- orders receive the same discount schedule as firm orders. • There are no hidden fees when ordering from Ingram.
• Ingram does not apply service charges for Net titles, for special orders, or for titles requiring prepayment from the publisher.
• Experience has shown that Ingram Library Services provides more titles at full trade discounts than any other distributor in the industry. • During the term of the agreement, we are happy to provide pricing for any new formats, materials, or services that may become available or have not been previously quoted.
•
Our discount schedule will remain firm for the initial contract period. Discounts are applied to the publisher’s current list price.

List prices of individual library materials are set by the publishers/manufacturers and not by Ingram as distributor. Therefore, we cannot guarantee that the retail/list price of an item will not change during the term of the contract, as the publisher/manufacturer can change their list prices without notice. Prior to placing an order, the Library can determine a title’s estimated discount by utilizing the “Price this List” or Quotation features on ipage, as described in this proposal.

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In determining which titles receive less than full trade discounts, Ingram has utilized its best efforts to categorize books for pricing purposes by considering the binding, cost of acquisition, general marketing categories, publisher’s discount, and other factors as defined by the Definitions of Binding Types and Presses provided. Ingram reserves the right to be the sole and final determinant of the pricing category.

Ingram bases pricing upon several factors including dollar value of commitment, actual expenditure, number of accounts and shipping locations. Ingram reserves the right to offer pricing and services to any customer based solely on Ingram management criteria.

Definitions of Binding Types and Presses

Trade Hardcover: High demand fiction and nonfiction books published with a glued binding and a hardcover. These titles are typically for the general consumer and produced by widely distributed publishers. Trade bindings may also be referred to as retail trade editions, trade books, hardbound books, hardback books, cloth bound books or cloth cover books. Publishers normally produce these titles in larger print runs. *

Quality Paperback: High demand fiction and nonfiction books with paper covers and generally no size restriction. Any illustrations or graphics may be placed throughout the book; both paper and printing are high quality. These titles are typically for the general consumer and produced by widely distributed publishers. This binding may also be referred to as trade paper or trade paperback.

Mass Market Paperback: High demand books with paper covers that are produced in a size to fit a standard retail store display and generally deal with subjects of mass appeal.

Any illustrations are grouped together in one section of the book. *

Library Bindings: Books of higher quality publisher bindings, usually fanned and glued, and may also be sewn. Books may be identified as Library Bindings on ipage.

University Press: The binding types may vary for these titles (i.e. Hardcover and/or Paperback), but all are published by a University Press.

Short Discount/Non-Trade: Lower demand, small print-run books in various bindings, and includes legal, technical, reference, scientific, and medical titles as defined by Ingram subject categories. Titles are generally published by small or university presses.

Also included are print and audiobook titles purchased at lower than full trade discount; titles with limited sales volume; and/or titles from publishers not in compliance with Ingram’s purchasing requirements. Ingram is pleased to make this broad base of titles available to our customers with no service charges.

Large Print: Ingram does not recognize the large print title as a separate binding type for discount purposes. Large print titles will receive discounts according to the binding/press assigned to the ISBN ordered as outlined above.

Graphic Novels: A narrative work in which the story is conveyed to the reader using comic form. The term is employed in a broad manner, encompassing nonfiction works and Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5
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thematically linked short stories as well as fictional stories across a number of genres.

Picture Books, Board Books, Easy Readers, and Big Books: These juvenile genre categories are not discounting categories used by Ingram. These books will receive the discount appropriate to the specific binding/press ordered as outlined above. We estimate that at least 80% would receive the full trade discount.

Prebound Books: Paperback books bound into a hardback edition. Our inventory also includes over 17,500 prebound titles from Perfection Learning and San Val (Turtleback Books), and are identified on ipage as Prebound-Sewn or Prebound-Glued.

World Language Materials: Ingram does not recognize Spanish language (or any world languages) as a discounting category. These books will receive the discount appropriate to the specific binding/press ordered as outlined above.

Net: Low demand, small print run books in various binds upon which Ingram receives minimal or no purchase discount. This category of book will receive a 0% discount. Ingram is pleased to make this broad base of titles available to our customers with no service charges.
*See Short Discount for explanation on titles that may fall outside of this discount category.

ipage
ipage is Ingram’s web-based title selection, ordering, and account management tool.

Libraries recognize ipage as an integral timesaving tool whose collection development and acquisitions capabilities, along with its various account management tools, make day-to-day ordering and receiving tasks virtually hassle- free. ipage can be accessed at https://ipage.ingramcontent.com.

Through ipage, Library users can access our entire inventory, including active titles and extended database.

• PACL will continue to receive a free subscription to ipage, with easy-to-use ordering capabilities and all other features at no cost for unlimited concurrent users.
• PACL staff can receive ipage training at no charge.
• ipage includes review citations and full text reviews for print titles from several journals including, but not limited to, Booklist, Library Journal, and Publisher’s Weekly.

If the Library wishes to view full-text reviews, there is a nominal fee of $350.00 per year for that additional service. The Library also has the option of paying in installments of $35.00 per month. Fee for reviews is subject to review and change on an annual basis with notice.
• Complimentary selection lists, curated by our professional library staff, are available for no charge on ipage.
• Additional collection development tools including catalogs, Ingram Sendr, and marketing materials are available at no charge through ipage.

Collection Development Fees
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Complimentary Curation Services: ipage collection development tools including ipage lists and standing order/New Title Notification programs, are provided free of charge.

Custom Collection Development Custom Opening Day Collection Lists are complimentary. Costs for ongoing custom lists will be quoted on a list -by-list basis, and fees are based on the library’s specifications including level of customization, number of lists required annually, and whether it is for a special project or an ongoing list requiring regular updates. Any future programs we may offer for customized collection development services may have standard charges. iCurate Core and Coming Soon:
• iCurate Coming soon lists are $775 per year for each of Adult, Teen, and Children’s Lists. • Subscribe to all three lists iCurate Coming Soon lists and save ~10% at $2,100 per year (12 months.) Plus, the bonus one-step deduping feature is included free with any subscription.
• Each set of iCurate Core lists (Adult, Teen, Children’s) costs $1,000, or you can get all three for $2,800.

Edelweiss+Analytics
Please contact your Ingram Sales Representative for details and pricing on E+A.

Cataloging and Processing

Print Books:

Barcodes (1) (Ingram supplied) Property Stamp (1)
Clear Corner Pocket RFID – Customer-supplied tag, programmed and applied
Colored Tape Spine Label
Genre Labels BookMARC Record
Additional Labels, e.g. “New” CIP Record Upgrades
Label Protector(s) – up to two Original Cataloging
Mylar Jacket-Taped Z39.50 Title Search
Property Label (1)

For multi-vendor award, the bundled fee will be $6.25 per unit, to include the same cataloging and processing components.

Freight Terms
Items picked, packed, and shipped together count as an individual shipment. The qualifying unit quantity is subject to change with notice. Distribution center designation may be modified at Ingram’s discretion based on order volume or when a requested service is only provided from a specific distribution center.

Ingram shall primarily use UPS ground service as the carrier to transport shipments; however, Ingram reserves the right to choose the most cost-effective shipping method.

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Shipments of 15 or more units from Library’s primary and secondary distribution center with Ingram will ship with Ingram Paid Freight and receive a fuel surcharge fee of $2.50.

Shipments of 1-14 units will be charged a flat freight fee of $6.00 in addition to the $2.50 fuel surcharge fee. The surcharge fee will appear as part of “Shipping and Handling” charge on Ingram invoices and is subject to change with notice.

All shipments shall be FOB Destination. Ingram retains full responsibility and risk of loss or damage until items are delivered to the Library’s designated receiving locations. Upon confirmed delivery, all liabilities shall transfer to the Library. When freight charges on an individual account surpass 2.5% of the account's expenditures, Ingram reserves the right to change the shipping settings. Changes to account settings such as one warehouse for shipments or shipment timetables and order consolidation levels are examples of such alterations. Ingram will work closely with the Library to ensure if changes are made, it is in the best interests of both parties.

When requested by the Library, and if the carrier's operating conditions permit, the carrier may perform inside delivery. Inside delivery is defined as the carrier will get the freight inside the door or onto a dock. The Library is responsible for transferring the items to other desired destinations. The Library will specify inside delivery when establishing/updating their account(s) with Ingram. Inside delivery will be clearly designated on the shipper’s bill of lading but not on the Ingram shipping label.

Payment Terms
Payment terms under this offer shall be Net 30 Days. Payment is required for invoices within these terms even when a purchase order has not been completed. Ingram does not invoice for items until they have been shipped.

While other vendors demand payment from invoice date, Ingram’s terms are calculated on statement date at the end of each month. With payment due 30 days from statement date, the customer’s payment is due an average of 45 days from invoice (30-59 days). Ingram reserves the right to assess a late charge on all past due invoices.

Ingram has multiple payment methods, including Electronic Funds Transfer (online payment through ipage via bank account), payment via credit card (account set for automatic charge) or by check.

Financial Information on ipage
The Library’s ipage Administrator can designate which staff members have access to view account - specific accounting items such All Open Accounting Items, Open Invoices, and Open Credit Memos. Closed invoices and credit memos are available for viewing for 90 days. Through ipage, the Library can also look at its last statement and view the last six payments received by Ingram plus review recent and pending electronic payment.

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Vers.: Aug. 5, 2019

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AMENDMENT NO. 1 TO CONTRACT NO. C21177635C

BETWEEN THE CITY OF PALO ALTO AND

MIDWEST TAPE, LLC

This Amendment No. 1 (this “Amendment”) to Contract No. C21177635C (the “Contract” as defined below) is entered into as of July 29, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MIDWEST TAPE, LLC, an Ohio corporation, located at1417 Timberwolf Drive, Holland, Ohio, 43528 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of media and digital materials and services, as detailed therein.

B. The Parties now wish to amend the Contract in order to Increase total not-to-exceed compensation by Fifty-Three Thousand Dollars ($53,000), from Seven Hundred Thousand Dollars ($700,000) to Seven Hundred and Fifty-Three Thousand Dollars ($753,000), 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” shall mean C ontract No. C21177635C between CONSULTANT and CITY, dated July 1, 2020.

b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows:

The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Seven Hundred Thousand Dollars (700,000.00).

CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. Annual Not-to-Exceed amounts are:

$110,000.00 in year 1 (July 1, 2020 through June 30, 2021) $118,000.00 in year 2 (July 1, 2021 through June 30, 2022) $118,000.00 in year 3 (July 1, 2022 through June 30, 2023) $118,000.00 in year 4 (July 1, 2023 through June 30, 2024) $118,000.00 in year 5 (July 1, 2024 through June 30, 2025) $171,000 in year 6 (July 1, 2025 through June 30, 2026)

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The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY.

Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”.

CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described at Exhibit “A”.

a. Exhibit “ C” entitled “ COMPENSATION, AMENDMENT NO. 1 ”, AMENDED, REPLACES PREVIOUS.

SECTION 4. 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 5. 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

City Manager

APPROVED AS TO FORM:

City Attorney or designee

MIDWEST TAPE, LLC

Officer 1

By:

Name:

Title:

Officer 2

By:

Name:

Title:

Attachments:

Exhibit C: COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: C0355533-3C81-48D1-B243-A6AA634E043F Jeff Jankowski
Vice President
Sue Bascuk
Vice President
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EXHIBIT “C” COMPENSATION, AMENDMENT NO. 1
(AMENDED, REPLACES PREVIOUS)

The CITY agrees to compensate the CONSULTANT for professional 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 hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below.

BUDGET SCHEDULE NOT TO EXCEED AMOUNT
Year 1
(July 1, 2020 through June 30, 2021)
$110,000.00
Year 2
(July 1, 2021 through June 30, 2022)
$118,000.00
Year 3
(July 1,2022 through June 30, 2023)
$118,000.00
Task 4
(July 1, 2023 through June 30, 2024)
$118,000.00
Task 5
(July 1, 2024 through June 30, 2025)
$118,000.00
Task 6
(July 1, 2025 through June 30, 2026)
$171,000.00
Sub-total Basic Services $753,000.00
Reimbursable Expenses $0.00

Total Basic Services and
Reimbursable expenses

$700,000.00
Maximum Total Compensation $753,000.00

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REIMBURSABLE EXPENSES

The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in -house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: None

All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0 shall be approved in advance by the CITY’s project manager.

ADDITIONAL SERVICES

The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to
commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: September 8, 2025
Report #:2506-4870
TITLE
Approval of 1) Amendment No. 8 to Contract No. C16163034A with Cumming Management Group, Inc. to Add $208,528, Increasing the Not-to-Exceed Amount to $10,683,771, for Additional Construction Management Services; 2) Professional Services Contract No.

S26195542 with 4Leaf, Inc. in the Amount of $150,579 to Provide Inspector of Record Services; and 3) Amendment to the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund to Support the New Public Safety Building Capital Improvement Program Project (PE- 15001); CEQA Status - Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772)

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute Amendment No. 8 to Contract No. C16163034A with Cumming Management Group, Inc. to add $208,528, increasing the not to exceed amount to $10,683,771 for Construction Management Services for the New Public Safety Building project (PE-15001);

2. Approve and authorize the City Manager or their designee to execute Professional Services Contract No. S26195542 with 4Leaf, Inc. in the Amount of $150,579 to Provide Inspector of Record services for the New Public Safety Building project (PE-15001); and

3. Amend the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund by (requires a 2/3 vote):
a. Decreasing the Infrastructure Plan Reserve by $1,200,000; b. Decreasing the Capital Fund Infrastructure Reserve by $2,000,000; and c. Increasing the New Public Safety Building project (PE-15001) appropriation by $3,200,000.

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BACKGROUND
Now with move-in and final construction-related activities underway, the New Public Safety Building (PSB) is one of ten key projects included in the 2014 Council Infrastructure Plan. The PSB was identified as the plan’s highest priority project, and its environmental impacts were analyzed with the 350 Sherman Avenue parking garage project for the purposes of complying with the California Environmental Quality Act (CEQA). The parking garage opened in December 2020. On February 1, 2021, Council approved the award of the construction contract for the PSB to Swinerton Builders (Swinerton) and authorized execution and delivery of one series of Certificates of Participation in an amount not to exceed $120 million to finance PSB construction; ultimately, only $101 million in debt was issued.1 On June 13, 2016, Council authorized a contract with Nova Partners, Inc. (Nova) for program management and construction management services for the Infrastructure Plan projects implementation.2 Several amendments were subsequently approved for additional services and time for completion. 3, 4, 5, 6 In July 2024, Nova merged with Cumming Management Group, Inc. (“CMGI”) and CMGI assumed all duties and obligations of Nova. On December 9, 2024, Amendment No. 8 to CMGI’s contract added construction management services for the PSB.7 On February 26, 2020, the City released a formal Request for Proposal (RFP177994) for on-call contract administration services by Development Services and 4LEAF was one of six contracts approved by Council on June 22, 2020.8 4Leaf, Inc. (4Leaf) has served as the City’s primary inspector of record for the PSB since construction began. That contract has now expired, and all available funds have been exhausted. However, inspection services are still required to complete the project and obtain final building permit sign-off. In November 2024, the City Manager approved an exemption to competitive solicitation for design services with 4Leaf, Inc. under PAMC Section 2.30.360(b).

ANALYSIS
1 City Council, February 1, 2021; Agenda Item #3, SR #11752 https://portal.laserfiche.com/Portal/DocView.aspx?id=97913&repo=r-704298fc 2 City Council, June 13, 2016; Agenda Item #5, SR #6809 https://portal.laserfiche.com/Portal/DocView.aspx?id=51191&repo=r-704298fc 3 City Council, November 27, 2017; Agenda Item #7, SR #8561 https://portal.laserfiche.com/Portal/DocView.aspx?id=50867&repo=r-704298fc 4 City Council, December 10, 2018; Agenda Item #15, SR #9688 https://portal.laserfiche.com/Portal/DocView.aspx?id=99464&repo=r-704298fc 5 City Council, February 1, 2021; Agenda Item #3, SR #11752 https://portal.laserfiche.com/Portal/DocView.aspx?id=97913&repo=r-704298fc 6 City Council, February 26, 2024; Agenda Item #6, SR #2310-2130 https://portal.laserfiche.com/Portal/DocView.aspx?id=70485&repo=r-704298fc 7 City Council, December 9, 2024, Agenda Item #11, SR#2410-3658 https://portal.laserfiche.com/Portal/DocView.aspx?id=115880&repo=r-704298fc 8 City Council, June 22, 2020, SR# 11255
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The PSB is one of the most complex projects that the City has constructed to date. Since the construction contract was awarded in early 2021, a series of change orders have been necessary to address unforeseen site conditions, owner-directed modifications, design clarifications, and revisions required by the authorities having jurisdiction (AHJ), which are agencies that are responsible for enforcing codes and regulations.

Due to the extended construction timeline, additional funding is needed to continue construction management and inspector of record services provided by the City’s consultants, CMGI and 4Leaf. Staff recommends approval of Amendment No. 8 to CMGI’s Contract No.

C16163034A (Attachment A), which would provide funding for construction management services through project close-out. This amendment includes $189,571 for base services and $18,957 for additional services. Staff also recommends approval of Professional Services Contract No. S26195542 with 4Leaf (Attachment B), which allocates funding for inspector of record services. The contract includes $136,890 for base services and $13,689 for additional services.

Construction-related activities at the Public Safety Building are nearly complete, with final building items and inspections in progress. Initial building occupancy has begun, with full operational use to follow.

In addition to the recommended contract approvals, supplemental funding is necessary to complete the remaining scopes of work including items requested by the AHJ, including dual sump pumps, additional smoke detection and miscellaneous items to be completed by contractors other than Swinerton. Additional legal services are also needed to represent the City in complex construction claims. The City Attorney’s Office is separately bringing forward an amendment to the agreement with Diepenbrock Elkin Dauer McCandless to provide for these legal services. Staff recommends a budget amendment to support all of these final project needs, as outlined in the Fiscal Impact section below.

FISCAL/RESOURCE IMPACT
Staff recommends increasing the Fiscal Year 2026 budget appropriation for the New Public Safety Building project (PE-15001) by $3.2 million, of which $2.0 million will be funded by the Capital Fund Infrastructure Reserve and $1.2 million will be funded by the Infrastructure Plan Reserve. The $2.0 million from the Capital Fund Infrastructure Reserve consists entirely of FY 2025 savings from bids coming in under the engineer’s estimate for the Newell Road/San Francisquito Creek Bridge Replacement project (PE-12011). This additional appropriation will allow the City to award the attached contracts and additional contracts needed to complete the remaining work. The $1.2 million from the Infrastructure Plan Reserve will support a contract with Diepenbrock Elkin Dauer McCandless for outside counsel services (Report #2508- 5109) and will reduce available funds in that reserve from $5.0 million to $3.8 million. If the recommended budget amendment is approved, the revised project budget for the New Public Safety Building (excluding salaries and benefits) will total $122,632,064.

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STAKEHOLDER ENGAGEMENT
Public Works has coordinated with key staff from departments involved with the PSB.

ENVIRONMENTAL REVIEW
An Environmental Impact Report for the PSB and the New California Avenue Area Parking Garage was prepared and certified by Council on June 11, 2018 (ID #8967), by adoption of Resolution No. 9772.17

ATTACHMENTS
Attachment A: Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8 Attachment B: 4Leaf, Inc. Contract No. S26195542
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
17 Resolution 9772
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AMENDMENT NO. 8 TO CONTRACT NO. C16163034A

BETWEEN THE CITY OF PALO ALTO AND
CUMMING MANAGEMENT GROUP, INC.

This Amendment No. 8 (this “Amendment”) to Contract No. C16163034A (the “Contract” as defined below) is entered into as of September 8, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CUMMING MANAGEMENT GROUP, , INC. , a California corporation, located at 25220 Hancock Avenue, Suite 440 , Marietta, CA 92562 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing Project and Program Management Services to complete the infrastructure plan for nine major projects approved by City Council in 2014 (“Project”), as detailed therein.

B. The CITY and NOVA Partners, Inc. entered into the Contract (defined below). Pursuant to the Consent to Novation (detailed below) executed between NOVA Partners, Inc., Cumming Management Group, Inc., and CITY, wherein Cumming Management Group, Inc. was transferred the obligations of the CONSULTANT under the Contract and Cumming Management Group, Inc. thereby became the CONSULTANT under the Contract.

C. The Parties entered into Amendment No. 1 to add Construction Management (CM) services for the Fire Station 3 Replacement Project to the scope of services and to increase the compensation by Three Hundred Fifty-Nine Thousand Two Hundred Sixty-Four Dollars ($359,264) from Four Million Two Hundred Thousand Four Hundred Seventy-One Dollars ($4,200,471) to Four Million Five Hundred Fifty -Nine Thousand Seven Hundred Thirty-Five Dollars ($4,559,735), as detailed therein.

D. The Parties entered into Amendment No. 2 to include the Hourly Rate Schedule for years 2018 and 2019, as detailed therein.

E. The Parties entered into Amendment No. 3 to add Construction Management (CM) services for the New California Avenue Area Parking Garage Project to the scope of services and to increase the compensation by One Million Two Hundred Forty-Nine Thousand One Hundred Ninety-Three Dollars ($1,249,193), from Four Million Five Hundred Fifty-Nine Thousand Seven Hundred Thirty-Five Dollars ($4,559,735) to a new not-to-exceed amount of Five Million Eight Hundred Eight Thousand Nine Hundred Twenty-Eight Dollars ($5,808,928), as detailed therein.

F. The Parties entered into Amendment No. 4 to add Construction Management (CM) services for the New Public Safety Building Project to the scope of services and to increase the compensation by Three Million Seventy-One Thousand Nine Hundred Seventy-Eight Dollars ($3,071,978), from Five Million Eight Hundred Eight Thousand Nine Hundred Twenty-Eight Dollars ($5,808,928) to a new total not-to-exceed amount of Eight Million Eight Hundred Eighty Thousand Nine Hundred Six Dollars ($8,880,906), as detailed therein.

G. In accordance with Palo Alto Municipal Code section 2.30.290, the Parties entered into Amendment No. 5 to extend the contract term for six months, through January 31, 2024 at no additional cost to the City, as detailed therein.

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H. The Parties entered into Amendment No. 6 to extend the contract term for eighteen months through July 31, 2025 and increase compensation by Seven Hundred Sixty-Six Thousand Nine Hundred Nineteen Dollars ($766,919) from Eight Million Eight Hundred Eighty Thousand Nine Hundred Six Dollars ($8,880,906) to a new not-to-exceed amount of Nine Million Six Hundred Forty-Seven Thousand Eight Hundred Twenty-Five Dollars ($9,647,825) in order to provide continued services to manage the Public Safety Building, as detailed therein.

I. The Parties entered into Amendment No. 7 to increase compensation by Eight Hundred Twenty- Seven Thousand Four Hundred Eighteen Dollars ($827,418) from Nine Million Six Hundred Forty-Seven Thousand Eight Hundred Twenty -Five Dollars (9,647,825) to a new not -to-exceed amount of Ten Million Four Hundred Seventy-Five Thousand Two Hundred Forty-Three Dollars ($10,475,243) in order to provide continued services to manage the Public Safety Building, as detailed therein.

J. The Parties now wish to amend the Contract to (1) increase compensation by Two Hundred Eight Thousand Five Hundred Twenty-Eight Dollars ($208,528) from Ten Million Four Hundred Seventy-Five Thousand Two Hundred Forty-Three Dollars ($10,475,243) to a new not-to-exceed amount of Ten Million Six Hundred Eighty- Three Thousand Seven Hundred Seventy-One Dollars ($10,683,771); and (2) extend the contract term through December 31, 2026 in order to provide continued services to manage the Public Safety Building, 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” shall mean Contract No. C16163034A between CONSULTANT and CITY, dated June 13, 2016, as assigned to Cumming Management Group, Inc . pursuant to the Consent to Novation to Contract No. C1616034A between NOVA Partners, Inc., Cumming Management Group, Inc., and CITY, wherein Cumming Management Group, Inc. was transferred the obligations of the C ONSULTANT under the Contract and Cumming Management Group, Inc thereby became the CONSULTANT under the Contract, as amended by:

Amendment No.1, dated November 27, 2017
Amendment No.2, dated February 21, 2018
Amendment No.3, dated December 10, 2018
Amendment No.4, dated February 1, 2021
Amendment No.5, dated July 31, 2023
Amendment No. 6, dated February 26, 2024
Amendment No. 7, dated December 2, 2024

a. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SECTION 2. Section 4, “NOT TO EXCEED COMPENSATION,” of the Contract is hereby amended to read as follows:

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“The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit “C,” entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Nine Million Seven Hundred Twelve Thousand Five Hundred Nineteen Dollars ($9,712,519) . The hourly schedule of rates, if applicable, is set out in Exhibit “C-1,” entitled “SCHEDULE OF RATES,” Exhibit “C-2,” entitled “SCHEDULE OF RATES, AMENDMENT NO.3,” or Exhibit “C -3,” entitled “SCHEDULE OF RATES, AMENDMENT NO.4,” as applicable. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

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

In addition to the not -to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Nine Hundred Seventy-One Thousand Two Hundred Fifty-Two Dollars ($971,252) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit “C,” shall not exceed Ten Million Six Hundred Eighty-Three Thousand Seven Hundred Seventy-One Dollars ($10,683,771), as detailed in Exhibit “C.”

“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A,” entitled “SCOPE OF SERVICES”; Exhibit “A-1”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 1”; Exhibit “A-2”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 3, ADDED”; and Exhibit “A-3”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 4, ADDED” (collectively, also referred to in this Agreement as the “Basic Services”). CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit “A-1,” entitled “PROFESSIONAL SERVICES TASK ORDER”.

Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit “C,” the hourly rates set forth in Exhibit “C-1,” entitled “SCHEDULE OF RATES”, Exhibit “C-2,” entitled “SCHEDULE OF RATES, AMENDMENT NO.3,” or Exhibit “C -3,” entitled “SCHEDULE OF RATES, AMENDMENT NO.4,” as applicable, or a negotiated lump sum provided such a sum is less costly to the CITY.

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

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a. Exhibit “B” entitled “EXHIBIT B -3 SCHEDULE OF PERFORMANCE, AMENDMENT N O. 8”, AMENDED, REPLACES PREVIOUS.

b. Exhibit “ C” entitled “ EXHIBIT C COMPENSATION, AMENDMENT NO. 8 ”, AMENDED, REPLACES PREVIOUS.

SECTION 4. 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 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.

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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

_____________________________
City Manager

APPROVED AS TO FORM:

_____________________________
City Attorney or Designee

CUMMING MANAGEMENT GROUP,
INC.

Officer 1

By:___________________________

Name:________________________

Title:__________________________

Officer 2

By:____________________________

Name:_________________________

Title:___________________________

Attachments:

Exhibit “B” entitled “ EXHIBIT B-3 SCHEDULE OF PERFORMANCE, AMENDMENT No. 8 ”, (AMENDED, REPLACES

PREVIOUS)
Exhibit “C” entitled “EXHIBIT C COMPENSATION, AMENDMENT NO. 8” (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Senior Vice President
Robert Olson, Senior Vice President
A. Al Jajeh, CFO
CFO
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EXHIBIT “B-3”
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 8
(AMENDED-REPLACES PREVIOUS)

CONSULTANT shall commence performance of Task 5.3 (Construction Management Services for the New Public Safety Building) of Exhibit “A-3”, upon issuance of Notice to Proceed through the duration of the project unless earlier terminated by CITY in its sole discretion. For information purposes, Task 5.3 is expected to be performed from January 1, 2021 through December 31, 2026 and consist of a total duration of 72 months from commencement of construction; however, that timeframe may be modified by CITY as project needs require.

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EXHIBIT “C”
COMPENSATION, AMENDMENT NO. 8
(AMENDED, REPLACES PREVIOUS)

The CITY agrees to compensate the 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 schedule of rates attached as Exhibit “C-1”, Exhibit “C-2”, and/or Exhibit “C-3,” as applicable, up to the not to exceed budget amount for each task set forth below.

CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including specified reimbursable expenses, and the total compensation for Additional Services, do not exceed the amounts set forth in Section 4 of this Agreement.

REIMBURSABLE EXPENSES

The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost up to the not-to-exceed amount of: $36,000. Expenses for which CONSULTANT shall be reimbursed are:

A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees.

B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost.

All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $1,000 shall be approved in advance by the CITY’s project manager.

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BUDGET SCHEDULE: NOT-TO-EXCEED COMPENSATION

BASIC SERVICES Year 1 Year 2 Year 3 Amend 4 Amend 6 Amend 7 Amend 8 Total Task 1.1: Project Management,
Planning, and Coordination
(Projects 1-9)
$140,898 $140,898 $140,898 $0 $0 $0 $0 $422,694
Task 1.2: Project Management
System (Projects 1-9)
$175,000 $100,000 $100,000 $0 $0 $0 $0 $375,000
Task 2: Acquisition and
management of project
consultants (Projects 1-3)
$144,975 $144,975 $144,975 $0 $0 $0 $0 $434,925
Task 3: Design/Document
reviews (Projects 1-3)
$206,762 $206,762 $206,762 $0 $0 $0 $0 $620,286
Task 4: Pre-Construction services
(Projects 1-3)
$283,650 $283,650 $283,650 $0 $0 $0 $0 $850,950
Task 5.1: Construction
Management services for Fire
Station 3 Replacement
$0 $326,604 $0 $0 $0 $0 $0 $326,604
Task 5.2: Construction
Management services for New
California Avenue Area Parking
Garage
$0 $0 $1,135,630 $0 $0 $0 $0 $1,135,630
Task 5.3: Construction
Management services for New
Public Safety Building
$0 $0 $0 $2,792,707 $697,199 $752,198 $189,571 $4,431,675 Task 6: Budget and schedule
management (Projects 1-9)
$63,985 $63,985 $63,985 $0 $0 $0 $0 $191,955
Task 7.1: On-call services for
Transportation Projects
$333,400 $253,400 $0 $0 $0 $0 $0 $586,800
Task 7.2: On-call services
(allowance)
$100,000 $100,000 $100,000 $0 $0 $0 $0 $300,000
TOTAL BASIC SERVICES $1,448,670 $1,620,274 $2,175,900 $2,792,707 $697,199 $752,198 $189,571 $9,676,519 REIMBURSABLE EXPENSES $12,000 $12,000 $12,000 $0 $0 $0 $0 $36,000

TOTAL BASIC SERVICES

AND REIMBURSABLES
$1,460,670 $1,632,274 $2,187,900 $2,792,707 $697,199 $752,198 $189,571 $9,712,519 ADDITIONAL SERVICES –
10% OF ABOVE
$146,067 $163,227 $218,790 $279,271 $69,720 $75,220 $18,957 $971,252

TOTAL NOT-TO-EXCEED AMOUNT $1,606,737 $1,795,501 $2,406,690 $3,071,978 $766,919 $827,418 $208,528 $10,683,771

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Professional Services
Rev. Oct 16,2024

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CITY OF PALO ALTO CONTRACT NO. S26195542

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND 4LEAF, INC.

This Agreement for Professional Services (this “Agreement”) is entered into as of the 8th day of September, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and 4LEAF, INC., a California corporation, located at 2126 Rheem Drive, Pleasanton, CA 94588 (“CONSULTANT”).

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

RECITALS

A. CITY is constructing a new Public Safety Building located at 250 Sherman Avenue , Palo Alto, CA 94306 (the “Project”) and desires to engage a consultant to provide Inspector-of-Record (IOR) services in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

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

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

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

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

SECTION 2. TERM. The term of this Agreement shall be from the effective date of this agreement through December 31, 2026 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

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

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

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SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Thirty- Six Thousand Eight Hundred Nine ty Dollars ($136,890.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

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

In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Thirteen Thousand Six Hundred Eighty -Nine Dollars ($13,689.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C , shall not exceed One Hundred Fifty Thousand Five Hundred Seventy-Nine Dollars ($150,579.00), as detailed in Exhibit C.

“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A . CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional S ervices in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section . Additional Services , if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the S ervices performed and the applicable charges (including, if Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6
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applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C -1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below and [email protected].

CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this A greement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time . CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any c hange order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.

SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.

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pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities re lated to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT . The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder wit hout the prior written approval of the C ity Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcon tractors authorized by CITY to perform work on this Project are:

CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Traci Caton as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day -to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s P roject Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

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CITY’s Project Manager is Gloria Yu, Public Works Department, Engineering Division, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: 650-329-2484. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 1 4. OWNERSHIP OF MATERIALS . All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the C ity Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’ s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction.

[Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6
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or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’ s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or parti al exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primar y coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT , CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6
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evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT ’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.

19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination , CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination.

19.2. In event of suspension or termination, CONSULTANT wi ll deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).

19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s S ervices provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion . The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.

19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers).

SECTION 20. NOTICES.

All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows:

To CITY: Office of the City Clerk
City of Palo Alto
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Post Office Box 10250
Palo Alto, CA 94303

With a copy to the Purchasing Manager

To CONSULTANT: Attention of the P roject Manager at the address of CONSULTANT recited on the first page of this Agreement.

CONSULTANT shall provide written notice to CITY of any change of address.

SECTION 21. CONFLICT OF INTEREST.

21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services.

21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest.

CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Al to Municipal Code and the Government Code of the State of California, as amended from time to time . CONSULTANT agrees to notify CITY if any conflict arises.

21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time.

SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.

22.1. As set forth in Palo Alto Municipal Code S ection 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section

2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment.

22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6
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this Agreement.

SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with t he CITY’s Environmentally Preferred Purchasing policies which are available at CITY ’s Purchasing Department , hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste ; and, third, recycling or composting waste. In particular, C ONSULTANT shall comply with the following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to C ITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwi se approved by CITY ’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by C ONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT , at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed.

SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE .

CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) h ours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060.

SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code , as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This S ection shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.

SECTION 2 6. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.

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performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j).

26.1. This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations.

CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq. ), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.) , as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E , entitled “ DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance , including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR.

SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS” . For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. ( Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects , certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.

This Project is not a 9204 Public Works Project.

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SECTION 28. CONFIDENTIAL INFORMATION.

28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose.

CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information.

Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreeme nt and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.

28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code S ection 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY.

28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.

28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.

28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT.

28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.

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SECTION 29. MISCELLANEOUS PROVISIONS.

29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions.

29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.

29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties.

29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time.

29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect.

29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control.

29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.

29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement.

29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement.

SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein:

EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
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EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204

PUBLIC WORKS PROJECTS

THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.

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CONTRACT No. S26195542

SIGNATURE PAGE

IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.

CITY OF PALO ALTO

____________________________
City Manager

APPROVED AS TO FORM:

__________________________

4LEAF, INC.

Officer 1

By: ________________________________

Name: ______________________________

Title: _______________________________

Officer 2

By: ________________________________

Name: ______________________________

Title: _______________________________

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Kevin Duggan, Secretary
President
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EXHIBIT A

SCOPE OF SERVICES

CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “ SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualific ations, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project.

CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications.

CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services.

The CONSULTANT will provide Inspector-of-Record (IOR) services for the construction of the Public Safety Building (“PSB”), an essential facility, located at 250 Sherman Avenue, Palo Alto, CA 94306. The IOR will act as an agent of the City at the project site and will report to the Chief Building Official (City) or his/her designee and coordinate with the City’s Construction Manager to ensure that the project is constructed in accordance with the Essential S ervices Buildings Seismic Safety Act (ESBSSA), the approved building permit plans, specifications, and change orders.

The IOR services include but are not limited to:

a. Availability during construction hours, which are allowed from 8 am – 6 pm Monday - Friday and/or 9 am – 6 pm Saturday. IOR is expected to be full time, and may be asked to be onsite during off hours or weekend hours as deemed necessary by the City or Construction Manager.
b. Be familiar with the permit plans, specifications, change orders, and the contractor’s operations during all phases of the project.
c. Observe, check and measure items used in the project for compliance with the applicable codes & ordinances, plans, specifications, change orders, and technical instructions from the Architect.
d. Attend project meetings requested by the City or Construction Manager such as billing meetings, pre-installation meetings, progress meetings and unique meetings scheduled to resolve specific issues which arise during the course of construction. e. Maintain log of deferred submittals schedule and approval. f. Maintain a daily inspection report/log describing the general work performed by the contractor, noting problems, rejections of materials or work and unusual events. All reports and records created or maintained by the IOR shall be distributed to the City a nd Construction Manager on a weekly basis and shall be City’s sole property. The inspection report will also include equipment, personnel, and site conditions. g. Create and maintain an extensive photo library, readily identifiable by date and easily referenced to the daily inspection report.

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h. Supervise on-site testing and ensure that all required tests are performed by a competent testing laboratory, contractor or engineer as specified in the Contract Documents. Check and report to the City, Construction Manager, Architect and testing inspector indicating defective materials or other problems. IOR may be requested to review invoices for testing to verify correct billing for testing. Maintain a daily log of inspection by testing lab. i. Report to the City, Construction Manager, and the Architect verbally and in writing: (1) poor performance by the contractor; (2) acts prejudicial to the City’s interest; and, (3) work performed or materials used which are not in conformance with the permit Contract Documents and building code.
j. Accompany City personnel, Construction Manager, Architect and/or other consultants when any of them are observing construction work. Ensure any verbal instructions during field inspections are written in the Daily Report/Log for that day. k. Attempt to foresee methods or materials which will not be acceptable and immediately bring these facts to the contractor’s attention in order to avoid removal of work already in place.
l. Assist Construction Manager to anticipate the contractor’s problems and review with City and Construction Manager anticipated schedules and work involved prior to the commencement of a new trade on the job.
m. Sign Time & Material Request acknowledgements.
n. Review Requests for Information (RFI’s), revisions, and Change Order Requests. o. Review submittals and deferred submittals.
p. Attempt to foresee the need for all required tests and inspections. q. Review Progress Billing and As-Builts
r. Join inspections by the Board of State and Community Corrections (BSCC) for the temporary holding facilities.
s. Refuse to allow any related work to be installed until shop drawings, samples, and mock- ups have received final approval from the Architect.
t. Collaborate with the City, Construction Manager and the Architect in the final inspection and project acceptance phase.
u. Assist in the completion of LEED documentation as required. v. Assist in project close out documents as required.
w. IOR will be required to utilize construction program management software. x. IOR shall keep at the project a copy of all applicable building codes and regulations necessary to perform required inspections and have ready access to City Guidelines and Procedures.

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________

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

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________

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

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

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

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

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

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

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EXHIBIT B

SCHEDULE OF PERFORMANCE

CONSULTANT shall perform the Services so as to complete each milestone within timeline specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement.

Milestones Completion

1. Inspector of Record Services through October 2025

2. Administrative Support through October 2025

Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on- call agreements per Section 1 or agreements with Additional Services per Section 4.)

The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.

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EXHIBIT C

COMPENSATION

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 E xhibit 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

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.

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EXHIBIT C-1

SCHEDULE OF RATES

CONSULTANT’s schedule of rates is as follows:

Description Hourly Rate
Inspector-on-Record $144
Administration $54

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EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE

CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY

STATUTORY

STATUTORY STATUTORY STATUTORY
YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000

$1,000,000

YES

AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED, HIRED,

NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000

$1,000,000

YES

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND

OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT

PERFORMANCE
ALL DAMAGES $1,000,000
YES

THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST

AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM

OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.

II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: [email protected]

III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,

INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR

CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

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B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER

THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE

INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE

INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON

OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:

[email protected]

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EXHIBIT E
DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS (not applicable)

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EXHIBIT F
CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS

PROJECTS

The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 related to the Services performed under this Agreement.

1. Claim Definition. “Claim” means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:

(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City.
(B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City.

2. Claim Process.

(A) Timing. Any Claim must be submitted to City in compliance with the requirements of this Exhibit no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within four teen (14) days will result in its being deemed waived.

(B) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Exhibit, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events.

Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost.

Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts.

(C) Review . Upon receipt of a Claim in compliance with this Exhibit, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Cla im is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2.

(D) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45- day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

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(E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply.

3. Disputed Claims

(A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Exhibit within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement.

(B) Mediation . Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Cl aim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws.

(i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation.

Any mediation utilized shall conform to the timeframes in this section.

(ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.

4. City’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Exhibit or to otherwise meet the time requirements of this Exhibit shall result in the Claim being deemed rejected in its entirety. A Claim that is de nied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor.

5. Interest. Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum.

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6. Approved Subcontractor Claims . If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a low er tier subcontractor on behalf of the subcontractor.

The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.

7. Waiver of Provisions . A waiver of the rights granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.

Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6
Attachment B - 4Leaf, Inc.

Contract No. S26195542

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: September 15, 2025
Report #:2504-4567
TITLE
Approval of the Third Amended and Restated Purchase Order Number 4521000199 with Altec Industries, Inc., to Increase the Purchase Order Amount by $365,983 to a New Not-to-Exceed Amount of $1,073,075, including a Contingency Amount of $51,099, for the Purchase of Two 2025 Peterbilt 548 Hydraulic Digger Derricks; and Amend the FY 2026 Budget in the Vehicle Replacement and Maintenance Fund and the Electric Fund; CEQA Status – Exempt, Not a Project

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to amend Purchase Order No. 4521000199 with Altec Industries, Inc., to increase the previously approved Purchase Order amount by $365,983, for a new total not-to-exceed amount of $1,073,075, which includes a 5% contingency in the amount of $51,099 for unforeseen cost increases, for the purchase of two 2025 Peterbilt 548 Hydraulic Digger Derricks, utilizing a cooperative purchase agreement via Sourcewell, a cooperative purchasing agency serving government and not-for-profit organizations; and

2. Amend the Fiscal Year 2026 Budget Appropriation (by a 2/3 vote) for a. the Utilities Electric Fund by:
i. Increasing the transfer to the Vehicle Replacement and Maintenance Fund in the amount of $365,983; and
ii. Decreasing the Electric Distribution Reserve in the amount of $365,983; and b. the Vehicle Replacement and Maintenance Fund by:
i. Increasing the transfer from the Utilities Electric Fund to the Scheduled Vehicle and Equipment Replacement Fiscal Year 2020 project (VR-20000) by $365,983; and
ii. Increasing the expense appropriation for the Scheduled Vehicle and Equipment Replacement Fiscal Year 2020 project (VR-20000) by $365,983.

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BACKGROUND
On January 11, 2021, Council approved Purchase Order 4521000199 with Altec Industries, Inc. (Altec) in the amount of $633,866 for two new Digger Derrick Peterbilt crane trucks to replace units 7602 and 7603 (ID# 11582).1 The January 11, 2021 staff report describes the function of the trucks and the justification for their replacement. On November 29, 2021, Council approved Amendment #1 to Purchase Order 4521000199 with Altec Industries Inc., increasing the total by $33,202. This established a revised not-to-exceed amount of $667,068 for the procurement of two new trucks (ID #13652).2 This increase was primarily due to the rise in materials costs as a result of the Covid pandemic.

On February 9, 2022, Altec reached out to Public Works Fleet staff again and indicated that the rise in materials costs had continued, and that Peterbilt had discontinued the 348 model, as originally specified, due to supply chain issues. Peterbilt replaced the 348 model with the more expensive 548 model and secured two 548 chassis build slots for the City. On June 6, 2022 Council approved Amendment #2 for Purchase Order 4521000199 providing a $40,024 increase to cover costs and resulting in a new total purchase cost of $707,092 (ID# 14193).3 Subsequent to Council approval, staff worked with the manufacturer through a variety of supply chain and model adequacy issues. As a result, staff recommends a modified purchase specification.

While the City has established a long-term goal of fleet electrification, electric alternatives for this class of heavy-duty digger derrick trucks are not currently available on the market. The specialized functions of these trucks—such as supporting pole setting, line work, and heavy lifting—require significant payload and power capacity that electric technology has yet to meet.

Leasing was considered as a potential short-term solution to avoid committing to a diesel purchase; however, due to limited availability of such specialized units and the high costs associated with long-term lease arrangements, leasing is not a viable option. Proceeding with this diesel purchase is therefore recommended to ensure service reliability while the City continues to monitor technological advancements in heavy-duty electric utility vehicles.

ANALYSIS
On July 22, 2025, the City received updated quotes for two Digger Derricks on the 548 chassis (Attachment A). The upgraded chassis is equipped with dual-rear axles to support the additional 1 City Council, January 11, 2021, Agenda Item #5, SR# 11582 https://portal.laserfiche.com/Portal/DocView.aspx?id=192215&repo=r-704298fc 2 City Council, November 29, 2021; Agenda Item #5; SR# 13652 https://portal.laserfiche.com/Portal/DocView.aspx?id=61761&repo=r-704298fc&searchid=be0edcd1-e89c-4a3b- 9e03-e15e3632a4fb
3 City Council, June 6, 2022; Agenda Item #4; SR# 14193; https://portal.laserfiche.com/Portal/DocView.aspx?id=59506&repo=r-704298fc&searchid=be0edcd1-e89c-4a3b- 9e03-e15e3632a4fb
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weight capacity needed. The $365,983 price increase is primarily a result of this chassis upgrade, but also includes increases related to enhanced equipment specifications on the newer DH50E and D3060E models, high volatility in material costs affecting manufacturing, and 24-month delivery timelines (incorporating inflationary adjustments). Additionally, a contingency of $51,099 is requested to mitigate unforeseen cost fluctuations given current market conditions. The revised not-to-exceed amount of $1,073,075 allows for the purchase of two properly sized chassis‘ to accommodate the addition of the DH50E and D3060E model derricks with utility bodies.

Procurement Process
Palo Alto Municipal Code section 2.30.360 (j) allows the use of cooperative purchasing agreements in lieu of conducting a competitive solicitation. Altec was awarded a contract by Sourcewell, a cooperative purchasing agency serving governmental, higher education, K-12 education, not-for-profit, tribal government, and other public agencies. Sourcewell conducted a Request for Proposals under which Altec Capital was an awarded vendor. Altec’s contract with Sourcewell was subsequently amended to allow Altec to increase its contract pricing.

Staff recommends that Council approve the purchase order with Altec Industries, Inc. (Attachment B) for the purchase of two 2025 Peterbilt 548 Hydraulic Digger Derricks. Staff has considered alternatives and believes this remains the most cost-effective means of procuring the required equipment. If this request is not approved, the City will forfeit the two 2025 Peterbilt 548 chassis that are designated for this build. Staff would then have to request a new specification and quote for a later year model chassis and return to Council for approval. This would further increase the purchase cost and delay the delivery of these new vehicles.

FISCAL/RESOURCE IMPACT
To fund the purchase recommended in this report, the Fiscal Year 2026 budget will be amended by increasing the transfer from the Electric Fund to the Vehicle Replacement and Maintenance Fund and decreasing the Electric Distribution Reserve by $365,983 and increasing both expense and revenue in the Scheduled Vehicle and Equipment Replacement Fiscal Year 2020 Project (VR-20000) by $365,983. The purchases of the two 2025 Peterbilt 548 Hydraulic Digger Derrick trucks were planned in the Fiscal Year 2020 Scheduled Vehicle and Equipment Replacement Capital Improvement Project (VR-20000). As a result of all the changes, each truck’s cost is now estimated at $510,988, when originally, they were estimated at $316,933 in 2021.

STAKEHOLDER ENGAGEMENT
Requests for vehicle replacements are presented to the Fleet Review Committee (FRC) for approval during the development of the proposed budget and any deviation from these plans is also reviewed by the FRC. The FRC is comprised of executive leadership representatives from the Public Works and Administrative Services Departments and the City Manager’s Office.

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Additionally, Fleet staff review proposed vehicle replacements with the departments using the vehicles.

ENVIRONMENTAL REVIEW
This purchase is exempt from the provisions of the California Environmental Quality Act (CEQA) under Sections 10560 and 10561.

ATTACHMENTS
Attachment A: Sourcewell Quote
Attachment B: Purchase Order
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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Quote Number: 1512085
Opportunity Number: 23081082
Sourcewell Contract #: 110421-ALT
Date: 7/22/2025

REFERENCE ALTEC MODEL
Sourcewell
Price
50' Fully Hydraulic derrick, rear mount $329,955
(A.)
1 DH50-E 50' Electric / Hydraulic Derrick, Rear Mount (DH50E) $5,451 (A1.)
1 RADIO RADIO REMOTE CONTROLS (Required with Platfrom) $16,414 2 BOSL Boom Out of Stow Indicator for Lower Boom $385
3 UHPP UHPP – Hydraulic pole puller. Used to pull poles for replacement.Comes with 7’ of 1/2” high tensile chain and a base. Powered bylower tool circuit at 8 gpm. $2,592 4 HRS
HOSE REEL. Spring Loaded for Mounting 25’ Conductive Hoses with HTMA Quick Couplings that Come with the Lower Tool Circuit. When it is an available option, Lower Tool Circuit Must be Ordered Separately.
$2,088
5 POP1 Plastic Outrigger Pad, 24" x 24" x 1" (Pair) $597 6 SPOT4 SIX (6) POINT STROBE SYSTEM (LED) $1,220
7 DLB2 Directional Light Bar (Amber, 42"L, Super-LED) $2,254 8 SPOT6 Remote Spot Light, LED, Permanent Mount, With Wireless Dash Mounted Controls And Programmable Wireless Remote $1,066
PSWI2 Inverter with minimum 3000W 120V @ 25A pure sine wave output, hardwired to outlets and 12VDC input. $3,766
BATSTOR Deep Cycle Auxiliary Battery for Vented Applications & Remote Steel Enclosure $2,154 VRI 120 Volt GFCI Receptacle, Includes Weather-Resistant Enclosure (3) $1,095 VCAM Backup Camera System $1,313
PTO-HM PTO Hour Meter Digital with 10,000 Hour Display $182 SOURCEWELL OPTIONS TOTAL: $370,532
(B.)
1 UNIT Custom Unit Options $13,151
2 UNIT & HYDRAULIC ACC Unit/Hydraulic Custom options $8,163 3 BODY Custom body ILO standard body $27,938
4 BODY & CHASSIS ACC Custom body & chassis accessories $10,867 5 ELECTRICAL Custom electrical options $6,223
6 FINISHING Paint, Non-skid, Inbound Freight, & Inspection $25,436 7 CHASSIS MY27 Peterbilt 548 $55,095
8 OTHER $0
OPEN MARKET OPTIONS TOTAL: $146,873
SUB-TOTAL FOR UNIT/BODY/CHASSIS: $517,405.00
Delivery to Customer: $715.00
Estimated Taxes (Delivery non-taxable): TBD
FET: TBD
CA Doc/Admin/Tire Fees: $542.50
Extended Warranty: $12,160.00
Sentry Training $4,552.96
TOTAL FOR UNIT/BODY/CHASSIS: $535,375.46
BUILD LOCATION: TBD
WARRANTY: Standard Altec Warranty for Aerials and Derricks - One (1) year parts warranty One (1) year labor warranty Ninety (90) TRADE-IN: Please ask your Altec Account Manager for more information CHASSIS: Per Altec Commercial Standard
DELIVERY: No later than ___24__ months ARO, FOB Customer Location TERMS: Net 30 days
BEST VALUE: Altec boasts the following "Best Value" features: Altec ISO Grip Controls for Extra Protection, Only Lifetime Warranty on Structural Components in Industry, Largest Service Network in Industry (Domestic and Overseas), Altec SENTRY Web/CD Based Training, Dedicated/Direct Gov't Sales Manager, In-Service Training with Every Order.

TO ORDER: To order, please contact the Altec Account Manager listed above. **Pricing valid for 45 days**
NOTES
PAINT COLOR: White to match chassis, unless otherwise specified Quoted by: Allyson Day
Altec Account Manager: Michael Russell
Email: [email protected]
PRICING: Altec will make every effort to honor this quotation, subject to the following provisions. Prices for equipment with production start dates 12 months and beyond are budgetary only due to irregular cost inflation and market volatility. These prices will be reviewed based on market conditions and confirmed closer to the production date. Quotes and orders with chassis model year beyond the current open order bank, should be considered estimates only. Altec's turn-key pricing is subject to change in accordance with chassis pricing received from the OEM. Chassis model year, specifications and price will be reviewed and confirmed when specific model year information becomes available from the OEM and that chassis price difference will be passed through to the customer.

Altec Industries, Inc.

SOURCEWELL OPTIONS ON CONTRACT (Unit)
SOURCEWELL OPTIONS ON CONTRACT (General)
OPEN MARKET ITEMS (Customer Requested)
DH50
Quoted for: City of Palo Alto
Customer Contact: Danitra Bahlman
Phone: / Email: 650-496-5920 / [email protected] City of Palo Alto DH50E Sourcewell Q1512085-7- Peterbilt Chassis Item 7
Attachment A - Sourcewell
Quote

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Quote Number: 1666173
Opportunity Number: 24118673
Sourcewell Contract #: 110421-ALT
Date: 7/22/2025

REFERENCE ALTEC MODEL
Sourcewell
Price
60' Digger Derrick $353,741
(A.)
1 D3060E-JIB 10ft. Material Handling Jib $1,584
(A1.)
1 BOSL Boom Out of Stow Indicator for Lower Boom $385
2 BOSU Boom Out of Stow Inficator for Upper Boom $385
3 MCR1 JIB ADAPTER. Jib adapter is for Altec 4.1" x 4.1" Square Jibs (Square to Round Conversion) $871
4 UA18 18” Diameter Dirt Auger Full Flight $1,912
5 UHPP UHPP – Hydraulic pole puller. Used to pull poles for replacement.Comes with 7’ of 1/2” high tensile chain and a base. Powered bylower tool circuit at 8 gpm. $2,592 6 RBS Rubber Belted Step $546
7 POP1 Plastic Outrigger Pad, 24" x 24" x 1" (Pair x2) $1,194 8 CH-R Cone Holder,Ring Style (qty 2) $628
9 SPOT4 SIX (6) POINT STROBE SYSTEM (LED) $1,220
10 DLB2 Directional Light Bar (Amber, 47"L, Super-LED) $2,254 11 SPOT6 Remote Spot Light, LED, Permanent Mount, With Wireless Dash Mounted Controls And Programmable Wireless Remote $1,066
12 VCAM Backup Camera System $1,313
13 PSWI2 Inverter with minimum 3000W 120V @ 25A pure sine wave output, hardwired to outlets and 12VDC input. $3,766
14 BATSTOR Deep Cycle Auxiliary Battery for Vented Applications & Remote Steel Enclosure (2) $4,308 15 VRI 120 Volt GFCI Receptacle, Includes Weather-Resistant Enclosure (3) $1,095 16 PTO-HM PTO Hour Meter Digital with 10,000 Hour Display $182 SOURCEWELL OPTIONS TOTAL: $379,042
(B.)
1 UNIT Custom unit options $8,130
2 UNIT & HYDRAULIC ACC Unit/Hydraulic Custom options $11,278 3 BODY Custom body ILO preferred body $15,244
4 BODY & CHASSIS ACC Custom body & chassis accessories $6,336 5 ELECTRICAL Custom electrical options $4,879
6 FINISHING Paint, non-skid, inbound freight, & inspection $27,251 7 CHASSIS Peterbilt 548 MY2027 ILO Freightliner M2-106 $21,023 OPEN MARKET OPTIONS TOTAL: $94,141
SUB-TOTAL FOR UNIT/BODY/CHASSIS: $473,183.00
Delivery to Customer: $715.00
Estimated Taxes (Delivery non-taxable): TBD
FET: TBD
CA Doc/Admin/Tire Fees: $542.50
Extended Warranty: $12,160.00
TOTAL FOR UNIT/BODY/CHASSIS: $486,600.50
Altec Industries, Inc.

SOURCEWELL OPTIONS ON CONTRACT (Unit)
SOURCEWELL OPTIONS ON CONTRACT (General)
OPEN MARKET ITEMS (Customer Requested)
D3060E
Quoted for: City of Palo Alto
Customer Contact: Danitra Bahlman
Phone: / Email: 650-496-5920 / [email protected] **Pricing valid for 45 days**
NOTES
PAINT COLOR: White to match chassis, unless otherwise specified Quoted by: Allyson Day
Altec Account Manager: Michael Russell
Email: [email protected]
PRICING: Altec will make every effort to honor this quotation, subject to the following provisions. Prices for equipment with production start dates 12 months and beyond are budgetary only due to irregular cost inflation and market volatility. These prices will be reviewed based on market conditions and confirmed closer to the production date. Quotes and orders with chassis model year beyond the current open order bank, should be considered estimates only. Altec's turn-key pricing is subject to change in accordance with chassis pricing received from the OEM. Chassis model year, specifications and price will be reviewed and confirmed when specific model year information becomes available from the OEM and that chassis price difference will be passed through to the customer.

BUILD LOCATION: TBD
WARRANTY: Standard Altec Warranty for Aerials and Derricks - One (1) year parts warranty One (1) year labor warranty Ninety (90) TRADE-IN: Please ask your Altec Account Manager for more information CHASSIS: Per Altec Commercial Standard
DELIVERY: No later than ___24__ months ARO, FOB Customer Location TERMS: Net 30 days
BEST VALUE: Altec boasts the following "Best Value" features: Altec ISO Grip Controls for Extra Protection, Only Lifetime Warranty on Structural Components in Industry, Largest Service Network in Industry (Domestic and Overseas), Altec SENTRY Web/CD Based Training, Dedicated/Direct Gov't Sales Manager, In-Service Training with Every Order.

TO ORDER: To order, please contact the Altec Account Manager listed above.

City of Palo Alto Sourcewell - D3060E -Q1666173-2
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Quote

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"This Third Amended and Restated Purchase Order with Altec Industries, Inc., effective as of 09/18/25 SR #2504-4567 hereby amends and restates the Amended and Restated Purchase Order No. 4521000199 dated 12/06/2021 with Altec I ndustries, Inc. This Third Amended and Restated Purchase Order hereby supersedes that Amended and R estated P urchase Order dated 05/23/2022." Item 10 to add 191,765 Value: $311,494.00 New Value: $503,259 Item 40 to add $142,990 Old Value $311,494.00 New Value:
$454,484
Item 80 to add $31,229. Old Value: $19,870 New Value: $51,099 New NTE : $1,073,076
"This Second Amended and Restated Purchase Order with Altec Industries, Inc., effective as of 05/23/ 2022, hereby amends and restates the Amended and R estated P urchase Order No. 4521000199 dated 12/06/2021 with Altec I ndustries, Inc. This Second Amended and Restated Purchase Order hereby supersedes that Amended and R estated P urchase Order dated 12/06/2021."
"This Purchase Order is issued under NJPA contract #012418-ALT." "This Purchase Order hereby attaches and incorporates into this Purchase Order the following attachments by reference as though fully set forth herein:
- NJP A Contract # 012418-ALT
Vendor Address

ALTEC INDUSTRIES INC
325 I NDUSTRIAL WAY
DIXON CA 95620
Tel: 707-678-0800 Fax: 707-678-1038
Bill To:

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

Equipment Management Division
City of P alo Alto
3201 E ast Bayshore R oad
P alo Alto CA 94303
Item Material/Description Quantity UM Net Price Net Amount ______________________________________
Chief Procurement Officer
THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purcha se Order.

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

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

City of Palo Alto
Purchasing and Contract Administration
P .O.Box 10250
P alo Alto CA 94303
Tel:(650)329-2271 Fax:(650)329-2468
Purchase Order
P.O. NUM BER M UST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING

PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER
PO Number 4521000199
Date 11/19/2020
Vendor No. 100455
Payment Terms Payment Due 30 days
FOB Point F.O.B. Palo Alt o
Ship via Vendor to ship bestway
Required Date 06/30/2022
Buyer/Phone R enee Howard / 650-496-5900
Email [email protected]
DE L IVE R IE S ACCE P TE D ONL Y B E TWE E N 7:00 AM & 3:00 P M UNL E SS OTHE R

ARRANGEMENTS ARE INDICATED HEREIN

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Order

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- NJPA Contract 5th year extension
- NJP A Contract # 012418-ALT # Contract Acceptance and Award - 012418-ALT P rice Information
- Quote Number: 694090-1 Dated 03/14/2022
- Contract amendment to NJP A contract #012418-ALT,dated 9-14-2021
- City of Palo Alto Purchase Order Terms and Conditions(Goods)" 0010
50' Derrick w crane Model 548 - 7604 503,259 USD 1.00 503,259.00 P urchase new 2022 Altec Hydraulic Derrick Digger w Crane Sourcewell Contract: 012418-ALT Quote #: 694090-1 dated 3/14/2022
SUB-TOTAL FOR UNIT/BODY/CHASSIS:
$287,399 + P eterbilt Chassis Surcharge 2021: $4,960 & Altec Material Surcharge: $9,924 + P eterbilt Mandated Model Update 348 to 548: $7,951 - Chasis Simplication: $2,240 + P eterbilt Chassis Surcharge 2022: $3,500
Delivery: 12-15 months after receipt of PO
new unit 7604 (replaces 7602) Utils-E lec
Unit price not to exceed $687,221
Vendor Address

ALTEC INDUSTRIES INC
325 I NDUSTRIAL WAY
DIXON CA 95620
Tel: 707-678-0800 Fax: 707-678-1038
Bill To:

Equipment Management Division
City of P alo Alto
3201 E ast Bayshore R oad
P alo Alto CA 94303
Ship To:

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

ARRANGEMENTS ARE INDICATED HEREIN

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Order

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P roject Manager: Danitra Bahlman 650-496-5920
FLE E T MANAGE R : Danitra Bahlman 650-496-5920
[email protected]
SEND INVOICE TO: EQUIPMENT MANAGEMENT
0020 DMV docs - 7604 125 USD 1.00 125.00
Vendor shall handle DMV registration
0030 delivery 3,568 USD 1.00 3,568.00
0040 50' Derrick w crane Model 548 - 7606 454,484 USD 1.00 454,484.00 P urchase new 2022 Altec Hydraulic Derrick Digger w Crane Sourcewell Contract: 012418-ALT Quote #: 694090-1 dated 3/14/2022
SUB-TOTAL FOR UNIT/BODY/CHASSIS:
$287,399 + P eterbilt Chassis Surcharge 2021: $4,960 & Altec Material Surcharge: $9,924 + P eterbilt Mandated Model Update 348 to 548: $7,951 - Chasis Simplication: $2,240 + P eterbilt Chassis Surcharge 22: $3,500
Vendor Address

ALTEC INDUSTRIES INC
325 I NDUSTRIAL WAY
DIXON CA 95620
Tel: 707-678-0800 Fax: 707-678-1038
Bill To:

Equipment Management Division
City of P alo Alto
3201 E ast Bayshore R oad
P alo Alto CA 94303
Ship To:

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

ARRANGEMENTS ARE INDICATED HEREIN

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Order

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Delivery: 12-15 months after receipt of PO
new unit 7606 (replaces 7603) Utils-E lec
0050 DMV docs - 7606 125 USD 1.00 125.00
Vendor shall handle DMV registration
0060 delivery 3,568 USD 1.00 3,568.00
0070 Sales Tax 56,848 USD 1.00 56,848.00
SUBTOTAL $687,221.00
0080 contingency 51,099 USD 1.00 51,099.00
Contingency of $19,870 for any unexpected increases to price. -------------------------
Sub-Total 1,073,076.00
*** O R D E R I N G V I A E M A I L ***
**** P R I C E H A S B E E N Q U O T E D ****
Vendor Address

ALTEC INDUSTRIES INC
325 I NDUSTRIAL WAY
DIXON CA 95620
Tel: 707-678-0800 Fax: 707-678-1038
Bill To:

Equipment Management Division
City of P alo Alto
3201 E ast Bayshore R oad
P alo Alto CA 94303
Ship To:

Equipment Management Division
City of P alo Alto
3201 E ast Bayshore R oad
P alo Alto CA 94303
Item Material/Description Quantity UM Net Price Net Amount ______________________________________
Chief Procurement Officer
Total 1,073,076.00
THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purcha se Order.

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

ARRANGEMENTS ARE INDICATED HEREIN

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Order

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CITY OF PALO ALTO
GDS R ev. 06/22/2016

TERMS AND CONDITIONS OF PURCHASE
PAGE 1 OF 3
ACCEPTANCE/AGREEMENT: City of P alo Alto (City) reserves the right to reject any and all quotations, to waive any informalities, and, unless otherwise specified by Seller, to accept any item in a quotation. By accepting or filing this Purchase Order (P.O.), Seller agrees to the terms and conditions herein which shall prevail over any inconsistent provision in any form or other paper submitted by Seller. All shipments or services performed shall be deemed to have been made pursuant hereto. No other terms are acceptable. This P.O., including all specifications and drawings, shall constitute the entire agreement between the parties unless modified in writing by City.

CITY'S PROPERTY: Seller agrees that the information, tools, jigs, dies, or materials, and drawings, patterns, and specification supplied or paid for by City shall be and remain City property and shall be held by Seller for City unless directed otherwise. Seller shall account for such items and keep them protected, insured, and in good working conditions without expense to City.

DELIVERY: The terms of delivery are as stated on the reverse side hereof. The obligation of Seller to meet the delivery dates, specifications, and quantities set forth herein is of the essence of this P.O. No boxing, packing, or cartage charge will be allowed unless authorized by this P.O. Deliveries are to be made both in quantities and at times specified herein or, if not, such quantities and times are specified pursuant to City's written instruction. Items not delivered may be canceled without penalty to City. Shipments in greater or lesser quantity that ordered may be returned at Seller's expense unless written authorization is issued by City.

PRICES: The price which Seller charges in filling this P.O. shall not be higher than Seller's most recent quote or charge to City for such materials, supplies, services and/or installations unless City expressly agrees otherwise in writing. Notwithstanding the prices set forth the P.O. City shall receive the benefit of any general reduction in the price of any item(s) listed herein which may be made by Seller at any time prior to the last delivery of goods or services covered by this P.O.

TERMINATION: City shall have the right to terminate this P.O. or any part thereof upon ten (10) days notice in writing to Seller.
(1)
Without Cause. City may terminate all or any part of this P.O. without cause. Any claim by Seller for damages due to termination without cause must be submitted to City within thirty (30) days after effective date of termination. (2)
For Cause. If Seller fails to make any delivery in accordance with the agreed delivery date, delivery schedule, or otherwise fails to observe or comply with any of the other instructions, terms, conditions or warranties applicable to this P.O., City may, in addition to any other right or remedy provided by this P.O. or by law, terminate all or any part of this P.O. in writing without any liability of City with respect to Seller at any time during the term of this P.O. In the event of termination for cause, City may purchase supplies or services elsew here on such terms or in such manner as City may deem appropriate and Seller shall be liable to City for any cost and other expenses incurred by City, which is charged to City.

CHANGES: City shall have the right at any time by written notice via P.O. Change Order to Seller to make changes in the specifications, the quantity of items called for, delivery schedules, and requirements covering testing, packaging, or destination. Any claim by Seller for adjustment under this clause shall be deemed waived unless made in writing with then (10) days after receipt by Seller of notice of such change. Price increases or extensions of time for delivery shall not be binding on City unless evidenced by a P.O. Change Order issued by City's Purchasing Manager.

INSPECTION: City shall have the right to inspect and approve or reject any materials, supplies, services and/or installations upon arrival of notice of completion prior to payment without regard to the manner of shipment, completion, or any shipping or price terms contained in this P.O. All materials, supplies, services and/or installations must be furnished as specified.
(1) Defective, damaged, and nonconforming materials and/or supplies may be returned for credit or refund, at Seller's expense. City may charge Seller for all expenses of unpacking, examining, repacking and reshipping of such materials and/or supplies. (2) Defective, incorrect and nonconforming services and/or installations may be returned for credit or refund, at Seller's expense.

All of the above notwithstanding prior payment by
City.

WARRANTY: Seller expressly w arrants that all materials, supplies, services and/or installations covered by this P.O. shall:
(1) conform to the specifications, drawings, samples, or other descriptions specified by City or if none are so specified, to Seller's standard specification or the standards of the ASTM or ANSI or other national standard organizations;
(2) be new and unless specified to the contrary on the face hereof, will be free from defects in material and workmanship and will be free of all liens and encumbrances and will conform to any affirmation of facts made on the container or label; (3) be adequately contained, packaged, marked, labeled and/or provided in compliance with all applicable federal and state laws and regulations (including materials deemed hazardous);
(4) be performed within the rules and regulations of the Occupational Safety and Health Act of 1970 (as amended);
(5) be produced or transferred or disposed of as required by federal and state laws and regulation under the conditions of the Toxic Substances Control Act; the Hazardous Materials Control and Hazardous Waste Regulations; and other toxic laws and programs.

Seller further expressly agrees to protect, indemnify, and hold harmless City, its employees and agents for any loss, damage, fine, liability, fee (including reasonable charges and fees) or expense arising in connection with or resulting from Seller's failure to furnish materials or supplies or perform services that conform with any warranty contained herein. (6) have good marketable title.

GOVERNING LAW: This P.O. shall be governed by the law s of the State of California.

INDEPENDENT CONTRACTOR, INSURANCE: Seller certifies, by acceptance, that he/she is an independent contractor. Seller shall protect, defend, and indemnify and hold City harmless against all damages, liability, claims, losses and expenses (including attorney's fees) arising out of , or resulting in any way from Seller's negligence in providing the goods or services purchased hereunder or from any act or omission of Seller, its agents, employees, or subcontractors, Seller shall maintain such public liability insurance, including contractual liability, automobile and general public liability, (including non-owned automobile liability) Worker's Compensation, and employer's liability insurance as well adequately protect City against such damage, liabilities, claims, losses, and expenses (including attorney's fees).

Seller agrees to submit certificates of insurance, evidencing its insurance coverage when requested by City.

EQUAL OPPORTUNITY CLAUSE: By acceptance of this P.O., Seller certifies it is in compliance with the E qual Opportunity Clause required by E xecutive Order 11246, as amended, and the Palo Alto Municipal Code, as amended, including Affirmative Action Compliance Programs for Veterans; Handicapped; and Minority Business, and other equal opportunity programs.

FORCE MAJEURE: City may delay delivery or acceptance occasioned by causes beyond its control. Seller shall hold such materials, supplies, services and or installations at the direction of City and shall deliver them when the cause affecting the delay has been removed. City shall be responsible only for Seller's direct additional costs in holding the goods or delaying performance of this P.O. and City's request. Seller shall also be excused if delivery is delayed by unforeseen events beyond its reasonable control, provided Seller notifies City as soon as they occur. City may cancel this P .O. if such delay exceeds thirty (30) days from the original delivery date. Seller shall use its best efforts to grant preference to this P.O. over those of other customers, which were placed after this P.O.

AUTHORITY OF AGENT OR FACTOR: Seller represents that, w henever it executes this P.O. on behalf of a third party as an agent or factor, it shall disclose the existence of the agency or factor relationship to City. Seller shall be deemed to have the legal authority to enter into this P .O. with City on behalf of the third party.

INTERPRETATION OF CONTRACT DOCUMENTS: In the event of a conflict between the terms of this P .O. and the attached specification with respect to any obligation of Seller, the provision which impose the greater obligations upon Seller shall prevail.

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CITY OF PALO ALTO
GDS R ev. 06/22/2016

TERMS AND CONDITIONS OF PURCHASE
PAGE 2 OF 3
ENV IRONM ENTALLY PREFERRED PURCHASING REQUIREM ENTS: Seller agrees to comply with the City's Environmentally Preferred Purchasing Requirements. (1) Hazardous Waste:

Seller shall take-back all spent or otherwise discarded hazardous products sold to the City by the Seller if the spent or discarded products are classified as hazardous or universal wastes by State or Federal regulations. Seller shall provide convenient collection and recycling services (or disposal services if recycling technology is unavailable) for all universal wastes, which originate from the Vendor. Hazardous waste manifests or bills of lading must be provided to City staff upon request. Recycling and reuse of hazardous wastes must occur within the United States. Universal w aste lists and information are available www.dts c.ca .gov/H a z a rdousWaste/UniversalWaste/. A hazardous waste list is available at http://www.ca lre cycle .ca .gov/L E A/Tra ining/wa s te cla s s /ye p.htm. Additiona l informa tion ca n be obtained by contacting the City of Palo Alto Hazardous Waste Department at ( 650) 496-6980.
(2)
Zero Waste and Pollution Prevention:

Per Palo Alto City Council policy, the City is targeting to achieve Zero Waste by 2021. The City must also meet Municipal Regional Stormwater Permit requirements requiring no visible impact from litter via stormdrains by 2022. To that end the ve ndor, manufacturer and or contractor must individually or collaboratively comply with the waste reduction, reuse and recycling requirements of the City's Zero Waste and Pollution Prevention Programs. Seller acknowledges and agrees that if Seller fails to fully and satisfactorily comply with these requirements, the City will suffer, as a result of Seller's failure, substantial damages which are both extremely difficult and impracticable to ascertain. Therefore, the Seller agrees that in addition to all other damages to which the City may be entitled, in the event Seller fails to comply with the below requirements Seller shall pay City as liquidated damages the amounts specified below. The liquidated damage amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer as a result of such non-compliance.

Sellers shall adhere to the standard that all printed materials provided to the City that are generated from a personal computer and printer including, proposals, quotes, invoices, reports, and public education materials shall be double-sided, printed on a minimum of 30% post-consumer content paper or greater unless otherwise approved by the City's E nvironmental Services Division (650) 329-2117. Materials printed by a professional printing company shall be a minimum of 30% post-consumer material or greater and printed with vegetable based inks. Liquidated damages of $30 per document w ill be assessed by City for failure to adhere to this requirement.

All paper packaging must be Forest Stewardship Council (FSC) Certified.

All primary, secondary and shipping (tertiary) packaging be minimized to the maximum extent feasible while protecting the product being shipped.

All primary, secondary and shipping packaging shall be recyclable in the City's recycling program. A complete list of items accepted for recycling are found at www.z e rowa s te pa loa lto.org or by calling (650) 496-5910. If any portion is received that does not meet this requirement, liquidated damages of $235 or a minimum of $50 if the combined product and shipping cost is $235 or less w ill be assessed by City for failure to adhere to this requirement.

Expanded foam plastics (e.g., foam or cushion blocks, trays, packing 'peanuts'), such as but not limited to polystyrene (aka Styrofoam[tm]), polypropylene, or polyurethane shall not be used as primary, secondary or tertiary/shipping packaging with the following exceptions:
o Primary packaging made from these materials may be used if the vendor, manufacturer, contractor individually or collaboratively does one of the following:
(a) takes the material back at the City's convenience and at no cost to the City, or (b) pays the City of Palo Alto's disposal costs via payment of liquidated damages of $235, or a minimum of $50 if the combined pr oduct and shipping cost is $ 235 or less. o Bioplastics that meet ASTM D6400 standards for compostab ility may be accepted with approval from the City's Environmental Services Division subject to local municipal compost facility requirements.
o If approved by the City's Environmental Services Division, a packaging requirement may be waived if no other viable packaging alternative exists.

Reusable/returnable pallets shall be used and taken back by the Seller, at no additional cost to the City. Seller shall provide documentation upon request ensuring reuse of pallets and/or recycling of broken pallets. Liquidated damages of $262 or a minimum of $50 if the combined product and shipping cost is $262 or less w ill be assessed by City for failure to adhere to this requirement.
(3)
Energy and Water Efficiency:

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

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

Hazardous Waste Program (Public Works)
(650) 496-6980
Zero Waste Program (Public Works)
(650) 496-5910
Watershed Protection
(650) 329-2117
Energy Efficiency
(650) 496-2244
(4)
Liquidated Damages:

Seller agrees that failure to comply with the City's E nvironmentally P referred P urchasing Requirements will result in Liquidated Damages, according to the table marked Liquidated Damages on page 3 of this P.O.

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Event of Non-Performance
Recycled Paper Use
Failure to use 30% recycled content paper
Recyclable Packaging Materials
Failure of Seller to use secondary and shipping packaging that is recyclable in the City's recycling program.

Expanded Foam Plastics
Unapproved use of expanded foam plastics for secondary or shipping packaging
Pallet Use
Failure of Seller to take-back and reuse pallets, recycling only broken pallets, at no additional cost to the City.

Acceptable Performance Level
(Allow ed events per Fiscal Year)
1 1
0 1
Liquidated Damage Amount
$30 per each document
$235 or a minimum of $50 if the combined product
and shipping cost is $250 or less will be incurred if
this is not adhered to.
$235 or a minimum of $50 if the combined product
and shipping cost is $235 or less
$262 or a minimum of $50 if the combined product
and shipping cost is $2 or less

CITY OF PALO ALTO
GDS R ev. 06/22/2016

TERMS AND CONDITIONS OF PURCHASE
NONCOMPLIANCE WITH ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS, LIQUIDATED DAMAGES:

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

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: September 15, 2025
Report #:2504-4566
TITLE
FIRST READING: Adoption of Four Ordinances, as Recommended by the Retail Committee, to Amend and Reorganize Stormwater and Wastewater Management Requirements by Amending PAMC Chapter 16.09 (Sewer Use Ordinance), Amending Chapter 16.11 (Stormwater Pollution Prevention), Adding New Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease), and Adding New Chapter

16.66 (Hauled Liquid Waste); Adoption of Two Resolutions Establishing Regulations to Implement PAMC Chapters 16.11 and 16.13; Adoption of a Resolution Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC; CEQA Status – Exempt under CEQA Guidelines Section 15308

RECOMMENDATION
The Retail Committee and Staff recommend that City Council adopt the:

1. Ordinance amending PAMC Chapter 16.09 (Sewer Use Ordinance) (Attachment B);

2. Ordinance amending PAMC Chapter 16.11 (Stormwater Pollution Prevention) (Attachment C);

3. Resolution creating regulations to implement PAMC Chapter 16.11 (Attachment D);

4. Ordinance adding new PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease) (Attachment E);

5. Resolution creating regulations to implement PAMC Chapter 16.13 (Attachment F);

6. Ordinance adding new PAMC Chapter 16.66 (Hauled Liquid Waste) (Attachment G); and

7. Resolution amending and restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC (Attachment H).

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EXECUTIVE SUMMARY
The City’s Public Works Watershed Protection team oversees regulatory compliance for sewer use and stormwater permits, including enforcing the San Francisco Bay Regional Water Quality Control Board permit requirements for businesses, industry, and residents to prevent illicit discharges of pollutants into creeks and the San Francisco Bay. The City’s requirements for stormwater and wastewater management are currently codified in Chapters 16.09 (Sewer Use Ordinance) and 16.11 (Stormwater Pollution Prevention) of the PAMC.

This item primarily consists of edits to simplify and reorganize existing requirements into four separate PAMC chapters for easier use and reference, updates that formalize existing City processes and align with new state regulations and permit requirements, and recommended changes based on staff experience and best practices in the field of stormwater and FOG management. Proposed major and new changes to each PAMC Chapter are summarized in the Analysis section below, and additional detail is captured in Attachment A: Summary of Proposed Changes to all Chapters. Those items are identified in this report. Finally, staff has compiled regulatory handbooks to help local businesses who are required to comply with regulations in Chapters 16.11 and 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG).

Public feedback was solicited through extensive outreach and five public meetings. Staff also presented the proposed Ordinance changes at the June 18, 2025 Retail Committee meeting.

Several comments were received from public meetings and during the public comment process that resulted in clarifying edits to the proposed revisions for Chapter 16.09 (Sewer Use Ordinance); no significant comments were received on the other proposed PAMC Chapters.

On August 20, 2025 the Retail Committee heard this item and unanimously recommended that Council adopt the Staff recommendation.1

BACKGROUND
The City of Palo Alto owns and operates the Regional Water Quality Control Plant (RWQCP) that treats wastewater collected from Palo Alto, Mountain View, Stanford University, Los Altos, Los Altos Hills, and the East Palo Alto Sanitary District. Wastewater from these jurisdictions is treated by the RWQCP prior to discharge to the San Francisco Bay (Bay). Stormwater in Palo Alto flows directly to creeks and/or the Bay without treatment. Both wastewater and stormwater discharges are regulated by the United States Environmental Protection Agency via National Pollutant Discharge Elimination System (NPDES) permits issued by the San Francisco Bay Regional Water Quality Control Board (Water Board) and associated regulations. In addition, management of fats, oils, and grease (FOG) is also regulated by the California Plumbing Code. The City is charged with enforcing permit and other regulatory requirements to 1 Retail Committee voted (3) in support of recommending City Council approval; https://www.paloalto.gov/Departments/City-Clerk/City-Council-Committees/Retail-Ad-Hoc-Committee Item 8
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keep pollution from entering the receiving waters through the storm drain and sanitary sewer systems.

Current requirements for sewer use, management of FOG, and hauled liquid waste are captured in PAMC Chapter 16.09 (Sewer Use Ordinance).3 Stormwater pollution prevention requirements are captured in both the existing Sewer Use Ordinance and PAMC Chapter 16.11 (Stormwater Pollution Prevention).4 Updates to these PAMC Chapters are required at this time to ensure City compliance with current state and federal regulations and best practices in the fields of stormwater and FOG management, to codify existing City practices, and to improve clarity and organization of the various requirements in the PAMC.

ANALYSIS
To make it easier for regulated businesses to understand the regulations that impact them, the proposed revisions would result in four separate PAMC Chapters for easier use and reference:
Amended PAMC Chapter 16.09: Sewer Use Ordinance;
Amended PAMC Chapter 16.11: Stormwater Pollution Prevention; Proposed new PAMC Chapter 16.13: Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG; and
Proposed new PAMC Chapter 16.66: Hauled Liquid Waste.

Proposed major and new changes to each PAMC Chapter are summarized below, and additional detail is captured in Attachment A: Summary of Proposed Changes to all Chapters.

Chapter 16.09: Sewer Use Ordinance (Attachment B)
The Sewer Use Ordinance (Chapter 16.09) regulates industrial and commercial users’ discharges into the sanitary sewer system. Proposed revisions to the existing PAMC Chapter 16.09 (Sewer Use Ordinance) include:
Removal of existing requirements for stormwater pollution prevention (now in PAMC

16.11), FOG (now in PAMC 16.13), and hauled liquid waste (now in PAMC 16.66); Incorporation of requirements and recommendations from a 2022 RWQCP Pretreatment Program audit conducted by the State Water Resources Control Board; Incorporation of recommendations of the United States Environmental Protection Agency’s Model Pretreatment Ordinance that meets federal requirements; and 3 Palo Alto Municipal Code, Chapter 16.09, Sewer Use Ordinance, July 22, 2010; https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-71241#JD_Chapter 16.09 4 Palo Alto Municipal Code, Chapter 16.11, Stormwater Pollution Prevention Ordinance, July 4, 2019; https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-72096 Item 8
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Clarification, consolidation, and reorganization of text to codify current City implementation practices and enhance use.

Significant changes from the current PAMC Chapter 16.09 include:
Addition of ability of City to use general discharge permits in place of individual discharge permits under proposed Section 16.09.075, Discharge Permit Required; Addition of provisions for federal requirements, non-significant categorical industrial users, and electronic reporting under proposed Section 16.09.120, Reporting & Certification Requirements for Industrial Users;
Replacement of five-day reporting requirement with a 30-day advance notice of changes under proposed Section 16.09.130, Reports of Changed Conditions & Final Closure; and Addition of provisions for pools less than 20,000 gallons to discharge without a permit under proposed Section 16.09.180, Requirements for Exceptional Waste.

Chapter 16.11: Stormwater Pollution Prevention (Attachment C) Business, industry, and residents help reduce pollutants entering the City’s storm drain system, creeks, and the Bay by complying with stormwater pollution prevention requirements. Chapter

16.11 codifies requirements for stormwater pollution prevention, including requirements issued by the Water Board in the 2022 Municipal Regional Stormwater National Pollutant Discharge Elimination System Permit (MRP). Proposed revisions to the existing PAMC Chapter

16.11 (Stormwater Pollution Prevention) include:
Addition of existing requirements for stormwater pollution prevention that were removed from PAMC Chapter 16.09;
Incorporation of requirements from the 2022 MRP issued by the San Francisco Bay Regional Water Quality Control Board and additional requirements and procedures that further support permit compliance; and
Creation of related regulations for clarification of text and to codify current City implementation practices. The proposed regulatory handbook, entitled “Palo Alto Regulations for Stormwater Pollution Prevention” is available for review at the link below and will be available on the City’s website upon adoption. 4 The proposed resolution adopting the regulations is Attachment D to this report. 4 Proposed Palo Alto Regulations for Stormwater Pollution Prevention; https://www.paloalto.gov/files/assets/public/v/1/city-clerk/staff-report-links/stormwater-management- regulations-0290172.pdf
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Significant changes from the current PAMC Chapter 16.11 include the following new requirements necessary for the City to comply with the MRP (see Attachment A for a summary of changes):
Proposed Section 16.11.300, Mobile Businesses (in alignment with the MRP), clarifies that mobile businesses and those businesses and residents that contract with them are responsible for their non-stormwater discharges to City streets and the City storm drain system. Identified responsible parties may be required to cover City costs for conducting clean-ups and disposal of discharges and may be subject to citations, particularly for continued non-compliance;
Proposed Section 16.11.320, Trash Load Reductions (in alignment with the MRP), requires that properties with private stormwater drainage systems connected directly to the City’s storm drain system establish controls to prevent discharges of trash. Existing business may comply by implementing trash control practices like sweeping and trash pick-up, or by installing and maintaining a trash capture device in each private inlet.

Compliance will be evaluated by City inspectors; and
Proposed Section 16.11.320, Trash Load Reductions (proposed by City staff to further MRP compliance regarding trash control), also requires that all development projects with private stormwater drain systems install trash capture devices during construction.

This generally applies to commercial and multi-family properties with parking lots or large structures.

Where compliance with the requirements of Chapter 16.11 would be infeasible, the Public Works Director may approve an alternate compliance plan on a case-by-case basis.

Chapter 16.13: Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG (Attachment E)
Chapter 16.13 consolidates FOG management requirements for local restaurants and other food facilities in a single new chapter. It includes existing and new requirements that reduce stormwater pollution and FOG discharges into the sanitary sewer system, which can cause sanitary sewer overflows. Proposed revisions to requirements currently codified in PAMC Chapter 16.09 (Sewer Use Ordinance) include:
Creation of a new PAMC Chapter (16.13) consolidating requirements for the management of FOG generated from food facilities;
Incorporation of requirements from the 2022 MRP issued by the San Francisco Bay Regional Water Quality Control Board and additional requirements that further support permit compliance; and
Creation of related regulations for clarification of text and to codify current City implementation practices. The proposed regulatory handbook, entitled “Palo Alto Item 8
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Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease” is available for review at the link below and will be available on the City’s website upon adoption.5 The proposed resolution adopting the regulations is Attachment F to this report.

Significant changes to the current FOG requirements in PAMC Chapter 16.09 include the following (see Attachment A for a summary of changes):
Proposed Section 16.13.140, Requirements for Installing or Replacing Existing Grease Control Devices (GCDs), establishes requirements for the devices that remove FOG from wastewater to prevent clogged private plumbing and discharges to the sanitary sewer system. A primary update is that major food facility development projects will be required to connect all kitchen and bar fixtures to one or more GCDs (i.e., the number of GCDs will be determined by the allowed configuration of an individual food facility); Proposed Section 16.13.170, Waste Oil Storage Requirements for Food Facilities, requires secondary containment for waste oil (e.g., used fryer oil) containers stored outdoors, as waste oil is considered hazardous once it comes in contact with the environment. This proposed change would address community requests for cleaner commercial areas that reduce favorable conditions for rodents and address unsightly and odorous FOG storage and would protect sensitive creek environments from FOG- related sanitary sewer overflows. This requirement is in line with the California Fire Code and Palo Alto Municipal Code Title 17, Hazardous Materials Storage and would go into effect July 1, 2026; and
The associated regulations include requirements that would apply to projects that require installing a new GCD or replacing an existing GCD. Such requirements include prohibiting sharing of new GCDs, requiring wastewater discharge through GCDs only by means of gravity, requiring two-way GCD lateral cleanouts, prohibiting materials that are susceptible to corrosion in low pH environments, and new sizing requirements for hydromechanical grease interceptors. These changes are consistent with emerging FOG management practices and are recommended based on staff experience addressing sewer backups and overflows due to GCDs that do not meet these standards. They would be implemented through local amendments to the CA Plumbing Code during the fall 2025 update of the City’s Building Regulations (Title 16). It is anticipated that they will be effective January 1, 2026.

Where compliance with the requirements of Chapter 16.13 would be infeasible, the Public Works Director may approve an alternate compliance plan on a case-by-case basis. 5 Proposed Palo Alto Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease; http://paloalto.gov/files/assets/public/v/1/city-clerk/staff-report-links/fog-regulations- 0290173-corrected.pdf
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Chapter 16.66: Hauled Liquid Waste (Attachment G)
Businesses that pump out septic tanks or portable toilet waste (i.e., liquid waste) must comply with proper discharge requirements at the Regional Water Quality Control Plant. Chapter 16.66 is a new chapter for haulers of liquid waste. Proposed revisions to current hauled liquid waste requirements in the current PAMC Chapter 16.09 (Sewer Use Ordinance), include:
Creation of a new PAMC Chapter (16.66) consolidating requirements related to discharge of hauled liquid waste at the Regional Water Quality Control Plant; Inclusion of existing requirements for hauled liquid waste that were removed from PAMC Chapter 16.09;
Incorporation of recommendations of the United States Environmental Protection Agency’s Model Pretreatment Ordinance; and
Clarification, consolidation, and reorganization of text to codify current City implementation practices and enhance use.

Significant changes from the current hauled liquid waste requirements in PAMC Chapter 16.09 include the addition of the following new sections that codify current City implementation practices and are not anticipated to result in programmatic changes:
Section 16.66.060, Hauled Liquid Waste Discharge Permit Application Procedure; Section 16.66.110, Insurance;
Section 16.66.120, Hauled Liquid Waste Discharge Permit Modification; Section 16.66.130, Hauled Liquid Waste Discharge Permit Suspension or Revocation; Section 16.66.140, Hauled Liquid Waste Discharge Permit Denial, Suspension, or Revocation Hearing;
Section 16.66.150, Personnel Orientation;
Section 16.66.170, Charges and Fees; and
Section 16.66.180, Closure of Receiving Station.

Proposed changes to these PAMC chapters require amendment of the City’s Administrative Penalty Schedule to adjust the referenced chapter sections as well as list the appropriate penalties for these PAMC chapter sections (Attachment H).

FISCAL/RESOURCE IMPACT
There are no anticipated fiscal/resource impacts to the City from these proposed ordinance changes. Proposed changes to PAMC Chapters 16.09 (Sewer Use Ordinance) and 16.66 (Hauled Item 8
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Liquid Waste) are not anticipated to result in additional costs to facilities or companies governed by these ordinances.

Proposed changes to PAMC Chapter 16.11 (Stormwater Pollution Prevention) will require properties with private storm drain systems connected directly to the City storm drain system to establish trash controls to prevent trash from being discharged. Costs associated with this requirement will include trash control practices or trash capture devices and associated maintenance. It is anticipated that fewer than 10 existing properties will be impacted. The City will not charge property owners inspection fees for trash capture systems.

Proposed changes to PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG) may result in food facility development projects incurring costs if new kitchen and/or bar fixture connections to GCDs are added or if GCDs are deemed non-operable and must be replaced to prevent discharges of FOG to the City’s sanitary sewer system. Requirements for secondary containment for waste cooking oil are expected to be a one-time cost of approximately $1,500 per food facility.

STAKEHOLDER ENGAGEMENT
Staff conducted extensive public outreach to solicit feedback about the proposed Ordinance changes via the City website; residential and commercial utility bill inserts; hand-delivered information to restaurants on California Avenue, University Avenue, and El Camino Real; the City’s Business Connect, Sustainability and Utilities newsletters; and direct mailers. Emails were also sent to RWQCP partners, permitted industrial facilities, haulers of liquid waste, and food facilities.

Staff presented the proposed Ordinance changes to the Retail Committee in June 2025,6 and a total of five public meetings were held: three were held during the week of March 24, 2025 for businesses and residents, and two were held in June 2025 - one for the California Avenue Merchants Meeting and one for the Downtown/University Avenue Stakeholder Meeting.

Approximately 25 stakeholders in total attended these five meetings. Staff received seven comments on proposed edits to PAMC Chapter 16.09 (Sewer Use Ordinance), all focused on clarifying text or implementation approaches. Four of those comments resulted in minor clarifying edits to the proposed ordinance. Staff received one comment on proposed edits to PAMC Chapter 16.11 (Stormwater Pollution Prevention), which requested stormwater runoff fees be made proportional to impermeable service area. This did not result in changes to the proposed ordinance, because the Palo Alto Municipal Code does not set Stormwater Management Fee charges. Staff received one comment on the proposed PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG) that requested clarification on the need for the FOG program; this comment did not result 6 Retail Committee, June 18, 2025; Agenda Item #1 SR# 2505-4693 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17543 Item 8
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in changes to the proposed ordinance. No comments were received on the proposed PAMC Chapter 16.66 (Hauled Liquid Waste). Presented all four proposed ordinance revisions to the Retail Committee meeting on August 20, 2025 and received clarifying questions on how the four ordinance revisions relate to each other and how they protect the environment.

ENVIRONMENTAL REVIEW
Council action on this item is exempt from CEQA review under section 15308 of the CEQA Guidelines because it is an action taken by the City as a regulatory body for the protection of the environment.

ATTACHMENTS
Attachment A: Summary of Proposed Changes to all Chapters Attachment B: Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance) Attachment C: Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention) Attachment D: Resolution Adopting Regulations for Stormwater Pollution Prevention Attachment E: Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease) Attachment F: Resolution Adopting Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease
Attachment G: Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste) Attachment H: Resolution Amending and Restating Administrative Penalty Schedule APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
Item 8
Item 8 Staff Report

Item 8: Staff Report
Pg.
9 Packet Pg. 136 of 445

Objectives:

Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Ordinance
Section(s)
Model
Ordinance
Section(s)
Federal
Requirement(s) - 40
CFR Section(s)
Proposed Ordinance Revision(s)

16.09.005 Purpose and Applicability 16.09.005 1.1
Not federally
required to be in
ordinance.

Minor text clarifications to better align with EPA Model Pretreatment Ordinance.

16.09.010 Abbreviations Not in existing
ordinance. 1.3
Not federally
required to be in
ordinance.

New section added per EPA Model Pretreatment Ordinance to aid in reading SUO.

16.09.015 Definitions 16.09.010 1.4 403.3, 403.12, &
403.8
Revised per EPA Model Pretreatment Ordinance and reformatted to make future revisions easier.

Consolidated definitions that were throughout the SUO into this section.

Removed definitions for average concentration, cesspool, contaminated groundwater, contaminated water, County, enforcement response plan, exceptional waste, grease, loading dock, metal fabrication facility, plant, point of discharge, root control chemicals, sanitary sewer overflow, secondary containment, seepage pit, sewage treatment plant, significant noncompliance, storm drains, unpolluted water, and wet sanding.

Added definitions for Clean Water Act, composite sample, dental amalgam, dental discharger, detection limit, discharge permit, existing source, fixer solution, grab sample, industrial user, instantaneous limit, local limit, multiple-family use, POTW, reasonable control measures, and zinc-containing floor finishes.

Replaced categorical discharger with categorical industrial user, definition remained the same.

Replaced superintendent definition with director and redefined as City's Director of Public Works (or designee) instead of RWQCP Plant Manager (or designee).

16.09.020 Responsibility of the Director 16.09.015 1.2
Not federally
required to be in
ordinance.

Allows Director to delegate powers and duties to City employees

16.09.025 Confidentiality 16.09.020 8 403.14 Minor text clarifications to align with EPA Model Pretreatment Ordinance and Public Information Request Act.

16.09.030 Alternate Materials and Methods 16.09.025
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Minor text clarifications including the switch of Chief Building Official to Director.

PAMC PROPOSED CHAPTER 16.09 CHANGES - SEWER USE ORDINANCE 1) Remove hauled liquid waste requirements (16.09.070) from the City 's Sewer Use Ordinance (SUO) contained in Chapter 16.09 of the Palo Alto Municipal Code (PAMC), and house those requirements in a new Hauled Liquid Waste Ordinance contained in PAMC Chapter 16.66.
2) Remove stormwater requirements (16.09.165, 16.09.170, & references throughout) from the City's SUO and house those in a revised Stormwater Ordinance contained in PAMC Chapter 16.11. 3) Remove fats, oils, and grease (FOG) requirements for food establishments (16.09.075) from the City's SUO and house those in a FOG Ordinance contained in PAMC Chapter 16.13. 4) Incorporate required changes identified during the State Water Resources Control Board 2022 Audit of the City's Pretreatment Program. 5) Incorporate recommendations of the 2007 EPA Model Pretreatment Ordinance (Model Ordinance). 6) Clarify, consolidate, and reorganize text. Including removal of specific sections outlining BMPs, limits, and permit requirements for vehicle service facilities (16.09.225), photographic processing (16.09.215), and machine shops (16.09.230) as they fall under proposed sections that capture those requirements for all industrial users. 1 of 5
Item 8
Attachment A - Summary of Proposed Changes
to all Chapters

Item 8: Staff Report
Pg.
10 Packet Pg. 137 of 445

Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Ordinance
Section(s)
Model
Ordinance
Section(s)
Federal
Requirement(s) - 40
CFR Section(s)
Proposed Ordinance Revision(s)

16.09.035 Limitations on Point of Discharge 16.09.030
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Minor text clarifications including specifying exception under Exceptional Waste Discharge Permit.

16.09.040 Prohibited Discharge Standards

16.09.035,

16.09.040(f)-(i), (k)-
(p), 16.09.200, &

16.09.215

2.1 403.5(a)-(b) &
403.12(p)
Revised per EPA Model Pretreatment Ordinance ((a) and (b)(1) - (b)(8) are required by federal requirement, (b)(9) - (b)(19) are optional).

Moved prohibitions of zinc-containing floor finish and fixer solutions from previous SUO Sections 16.09.200 and 16.09.215 respectively into this section.

16.09.045 National Categorical Pretreatment
Standards

16.09.130 2.2 403.8(f)(1)(ii) Revised per EPA Model Pretreatment Ordinance.

Added ability to use alternative limits (i.e., combined wastestream formula) when applicable.

16.09.050 Standards for Other Wastes 16.09.060
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Minor text clarifications.

16.09.055 Local Limits 16.09.040,

16.09.045 2.4 403.5(c)-(d)
Revised per EPA Model Pretreatment Ordinance, including moving some text out of this section (e.g., dilution, pH prohibition, records of hazardous waste disposal, etc.) and into more relevant sections.

No changes to the numerical limits.

Removed organic solvent limit as it is covered under total toxic organics and single toxic organic limits.

Consolidated limits that were throughout the SUO into this section.

Clarified type of samples limits apply to.

Added subset sampling for compliance with TTO limit based on pollutants reasonably expected to be present.

16.09.060 City's Right of Revision Not in existing
ordinance. 2.5
Not federally
required to be in
ordinance.

New section added per EPA Model Pretreatment Ordinance.

Allows City to establish more stringent requirements on a permit-by-permit basis as needed to comply with purpose of SUO.

16.09.065 Dilution

16.09.040(a) &

16.09.115 2.6 403.6(d) Revised per EPA Model Pretreatment Ordinance.

Consolidated associated text out of other sections and into this one.

16.09.070 Unpolluted Water 16.09.055 2.1B(12)
Not federally
required to be in
ordinance.

Moved text regarding cooling water into relevant section on cooling system requirements (Section 16.09.175)

16.09.075 Discharge Permit Required 16.09.080

4.2, 4.4,

4.6, 5.1, &

5.2 403.8(f)(1)(iii)-(iv)
Revised per EPA Model Pretreatment Ordinance.

Added general discharge permits as alternative to individual discharge permits when applicable.

Moved text regarding changes in discharge quantity and quality to separate section on reporting those changes (Section

16.09.130).

Moved text regarding decline to issue or reissue into permit application section (Section 16.09.085).

Moved text for exceptional waste discharge permits into separate section (Section 16.09.180)

16.09.080 Discharge Permit Application
Procedure 16.09.085 4.5, 4.7,

4.8, 5.3 403.8(f)(1)(i)
Revised per EPA Model Pretreatment Ordinance.

Changed required file date of application from 60 to 90 days prior to discharge to be consistent with federal regulation (40 CFR 403.12(b)).

Replaced text on application approval with text on application denial.

Clarified current City practices.
2 of 5
Item 8
Attachment A - Summary of Proposed Changes
to all Chapters

Item 8: Staff Report
Pg.
11 Packet Pg. 138 of 445

Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Ordinance
Section(s)
Model
Ordinance
Section(s)
Federal
Requirement(s) - 40
CFR Section(s)
Proposed Ordinance Revision(s)

16.09.085 Discharge Permit Modification 16.09.095 5.4 403.8(f)(1)(i) Revised per EPA Model Pretreatment Ordinance.

Moved revocation and suspension text to enforcement section (Section 16.09.200)

16.09.090 Inspection and Sampling 16.09.110 &

16.09.105 7.1 & 7.2
403.8(f)(1)(v),
(f)(2)(v), (f)(2)(vii), &
403.12(o)(2)
Revised per EPA Model Pretreatment Ordinance.

Consolidated associated text out of other sections and into this one.

Added provision to allow Director to seek search warrants when denied access.

Added provision requiring dischargers with security personnel to make appropriate accomodations.

Added provision granting Director authority to set up sampling equipment on discharger premises.

16.09.095 Self-Monitoring 16.09.120 6.4, 6.10,

6.11, & 7.1
403.8(f)(1)(iv) &
403.12(g)
Revised per EPA Model Pretreatment Ordinance.

Added provision for monitoring facilities to be maintained.

Clarified use of different types of sampling and minimum samples needed for baseline and 90-day compliance reports.

Removed TOMP requirements but maintained ability to sample for subset of toxics reasonably expected to be present in discharge.

No changes to pH and flow calibration frequencies.

16.09.100 Monitoring Waiver
Not in existing
ordinance.

6.4B 403.8(f)(1)(iii)(B)(4)
& 403.12(e)(2)
New section added per EPA Model Pretreatment Ordinance.

Allows reduced monitoring for industrial user when applicable.

16.09.105 Pretreatment Facilities 16.09.040(o)(1) &

16.09.125 3.1
Not federally
required to be in
ordinance.

Revised per EPA Model Pretreatment Ordinance.

Added provision requiring necessary pretreatment facilities be operated and maintained at industrial user's expense.

Added details for common pretreatment faciliites.

Added authority of Director to restrict IU flow and/or require installation of equalization equipment.

Added cross-reference to new PAMC Chapter 16.13 on Fats, Oils, and Grease

16.09.110 Personnel Orientation 16.09.185
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Minor text clarifications and moved location of section

16.09.115 Accidental Discharge Prevention 16.09.190 3.3 Not federally
required to be in
ordinance.

Minor text clarifications and moved location of section Added provision allowing Director to require industrial user to develop, submit, and implement slug control plan when applicable.

16.09.120 Reporting and Certification
Requirements for Industrial Users 16.09.135 4.7, 6.4, &

6.14 403.3(v)(2),
403.6(a)(2)(ii), &
403.12(b)-(e), (h),
(l), (g)(6)
Added provision subjecting all industrial users to reporting and certification requirements of federal regulation (40 CFR 403.12). Simplified text by referring to federal regulation.

Added provision for non-significant categorical industrial user.

Added provision for electronic reporting requirements.

16.09.125 Reports from Unpermitted Users Not in existing ordinance. 6.7
Not federally
required to be in
ordinance.

New section added per EPA Model Pretreatment Ordinance.

Requires reports from unpermitted dischargers when deemed necessary.

16.09.130 Reports of Changed Conditions and
Final Closure

16.09.110(d),

16.09.125, &

16.09.140(d)-(e)

6.5 403.8(f)(2)(vi) &
403.12(j)
Revised per EPA Model Pretreatment Ordinance.

Consolidated associated text out of other sections and into this new section.

Replaced 5-day reporting requirement to 30-day advance notice of any changes that may affect wastewater. 3 of 5
Item 8
Attachment A - Summary of Proposed Changes
to all Chapters

Item 8: Staff Report
Pg.
12 Packet Pg. 139 of 445

Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Ordinance
Section(s)
Model
Ordinance
Section(s)
Federal
Requirement(s) - 40
CFR Section(s)
Proposed Ordinance Revision(s)

16.09.135 Reports of Potential Problems and
Accidental Discharges 16.09.140(c) 6.6 403.12(f) & (p), 403.8(f)(2)(vi)
Revised per EPA Model Pretreatment Ordinance.

No change to 5-day reporting requirement.

Updated and clarified current reporting procedures.

16.09.140 Reports of Noncompliance 16.09.140 6.8 403.12(g)(2) Revised per EPA Model Pretreatment Ordinance.

Consolidated associated text out of other sections and into this new section.

16.09.145 Falsification of Information 16.09.150 11.3
Not federally
required to be in
ordinance.

Minor text clarifications including addition of regulatory citations.

16.09.150 Date of Receipt of Reports 16.09.155 6.12
Not federally
required to be in
ordinance.

No significant changes.

16.09.155 Retention of Records 16.09.040(j) &

16.09.160 6.13 403.12(o)
Revised per EPA Model Pretreatment Ordinance.

No change to length of record retention (3 years).

Added text for application of provision to electronic records.

16.09.160 Requirements for Sinks and Drains 16.09.175 &

16.09.185
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Removed stormwater requirements.

Consolidated associated text out of other sections and into this one.

Expanded restriction of materials stored above sinks to apply to all chemicals, not just hazardous materials.

16.09.165
Requirements for Newly
Constructed, Remodeled, Improved,
or Converted Commercial and
Industrial Facilities

16.09.180
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Removed stormwater requirements.

Moved requirements for multiple-family use residential properties to new dedicated section (16.09.170).

Moved fire sprinkler flush testing to exceptional waste discharge section (Section 16.09.180).

16.09.170
Requirements for Newly
Constructed, Remodeled, Improved,
or Converted Multiple-Family Use
Residential Properties

16.09.180
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

New section added to separate requirements from commercial and industrial facilities for clarity.

No significant changes from current requirements.

16.09.175
Requirements for Cooling Systems,
Pools, Spas, Fountains, Boilers, and
Heat Exchangers

16.09.205
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Removed stormwater requirements.

Consolidated associated text out of other sections and into this one.

Moved text for limits to local limits section (Section 16.09.055).

16.09.180 Requirements for Exceptional Waste

16.09.045(c),

16.09.080(b)-(c), &

16.09.180(b)(13)
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

New section added for clarity.

Consolidated associated text out of other sections and into this one.

Added provision to discharge pools smaller than 20,000 gallons without discharge permit.

16.09.185 Root and Pest Control Chemical Use 16.09.210
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Removed stormwater requirements.

Minor text clarifications to reflect current City practices.

Added provision restricting use of copper sulfate.

16.09.190 Requirements for Dental Facilities 16.09.220
Not in
Model
Ordinance
441
Moved definitions into definitions section (Section 16.09.015).

Moved alternative copper limit to local limits section (Section 16.09.055) Changed frequency of reporting from annual to as established by the Director.

Added details to reflect that waste management practices are BMPs and updated BMPs. 4 of 5
Item 8
Attachment A - Summary of Proposed Changes
to all Chapters

Item 8: Staff Report
Pg.
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Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Ordinance
Section(s)
Model
Ordinance
Section(s)
Federal
Requirement(s) - 40
CFR Section(s)
Proposed Ordinance Revision(s)

16.09.195 Publication of Users in Significant
Noncompliance 16.09.235 9 403.8(f)(2)(viii) Revised per EPA Model Pretreatment Ordinance.

Added all regulatory text defining the different ways to be in significant noncompliance.

16.09.200 Enforcement and Penalties

16.09.095,

16.09.100, &

16.09.245-285

10.1,

10.4-10.8,
& 11.1-11.4
403.8(f)(1)(iv) & (vi)
Consolidated all enforcement sections.

Minor text clarifications to reflect current City practices.

Revised civil penalties to remove text covered by PAMC Chapters 1.08, 1.12 and 1.16.

Added new subsection on injunctive relief per EPA Model Pretreatment Ordinance.

Updated authorized employee positions to exercise authority under CA Penal Code section 836.5 to reflect current City organization.

16.09.205 Permit Denial, Modification,
Suspension, or Revocation Hearing 16.09.100
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Minor text clarifications to reflect current City procedures and clarify exemptions.

No change to length of notice of intent to deny, modify, suspend, or revoke permit (10 days).

16.09.210 Affirmative Defenses to Discharge
Violations: Upset
Not in existing
ordinance. 13.1
Not federally
required to be in
ordinance.

New section added per EPA Model Pretreatment Ordinance.

Clarifies requirements for affirmative defenses to upsets.

16.09.215
Affirmative Defenses to Discharge
Violations: Prohibited Discharge
Standards
Not in existing
ordinance. 13.2
Not federally
required to be in
ordinance.

New section added per EPA Model Pretreatment Ordinance.

Clarifies requirements for affirmative defenses to prohibited discharge standards.

16.09.220 Affirmative Defenses to Discharge
Violations: Bypass
Not in existing
ordinance. 13.3
Not federally
required to be in
ordinance.

New section added per EPA Model Pretreatment Ordinance.

Clarified requirements for affirmative defenses to bypasses.

16.09.225 Pretreatment Charges and Fees Not in existing ordinance. 15.1
Not federally
required to be in
ordinance.

New section added per EPA Model Pretreatment Ordinance.

Captures current City practices for adoption of reasonable fees for reimbursement of costs.

16.09.230 Obstruction, Damage or Impairment
to POTW 16.09.275
Not in
Model
Ordinance
Not federally
required to be in
ordinance.

Minor text clarifications.
5 of 5
Item 8
Attachment A - Summary of Proposed Changes
to all Chapters

Item 8: Staff Report
Pg.
14 Packet Pg. 141 of 445

Objectives:

Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Code Section(s) Proposed Ordinance Revision(s) Stormwater Regulations Reference (if applicable)

16.11.010 Purpose and Intent 16.11.010 Minor changes to clarify focus of chapter requirements and provide background of regulatory requirements. Stormwater Regs Section 1: Purpose and Intent

16.11.020 Definitions 16.11.020 Added and deleted definitions for clarification. Stormwater Regs Section 5: Definitions and Acronyms

16.11.030 Administration 16.09.015 Minor changes to ensure code consistency. Stormwater Regs Section 1: Purpose and Intent

16.11.040 General Obligation Not in current code. New language to establish responsibility for compliance. N/A

16.11.050 Conflicts with Other Laws Not in current code. New language to alleviate conflicts with other laws. N/A

16.11.060 Alternate Means and Methods 16.09.025 Minor changes to clarify focus of chapter requirements. Stormwater Regs Section 3: Alternate Means and Methods

16.11.070
through

16.11.100
Prohibited Discharges, Discharge Exemptions,
Conditionally Exempt Discharges, Prohibition of
Illicit Connections

16.09.165 Expanded and revised to meet requirements of MRP and align with City practices.

Stormwater Regs Section 8 (Prohibited Discharges), 9 (Discharge Exemptions), 10 (Conditionally Exempt Discharges), and 14 (A) (Illicit Discharge Detection and Elimination and Illicit Connections)

16.11.110 Authority to Inspect 16.11.040 Expanded and revised to meet requirerments of MRP and align with City practices. Stormwater Regs Section 6: Inspection Authority and Types of Required Inspections

16.11.120 Enforcement and Penalties

16.09.240, 16.09.245, 16.09.250,

16.09.255, 16.09.260, 16.09.265,

16.09.270, and 16.11.060
Revised to be consistent requirements of the MRP and City's Enforcement Response Plan and to align with City practices. Stormwater Regs Section 7: Required Corrective Actions

16.11.130 Fees and Charges 16.11.070 Minor changes to clarify focus of chapter requirements. Stormwater Regs Section 4: Fees and Charges

16.11.140 Obstruction, Damage or Impairment to City Storm Drain System and Rights-of-Way

16.09.005 Clarifies responsibilities of dischargers in the case of obstruction, damage, or impairment. Stormwater Regs Section 11: Obstruc􀆟􀆟on, Damage or Impairment to City Storm Drain System and Right-of-Way

16.11.150 Regulated Projects 16.11.030 (a)
Clarifies and expands requirements to align with requirements of the MRP for regulated projects, including new development, redevelopment, new or widening road projects, road reconstruction, utility trenching projects, and large detached single-family home projects.

Stormwater Regs Section 12 (A): Development Project Requirements (Regulated Projects)

16.11.160 Source Control Measures for Regulated Projects 16.11.030 (c) Aligned with requirements of the MRP. Stormwater Regs Section 12 (B): Development Project Requirements (Source Control Measures for Regulated Projects)

16.11.170 Site Design Measures for Regulated Projects 16.11.030 (c) Aligned with requirements of the MRP. Stormwater Regs Section 12 (C): Development Project Requirements (Site Design Measures for Regulated Projects)

16.11.180 Stormwater Treatment Measures for Regulated
Projects

16.11.030 (c) and (d) and

16.11.034 Expanded and revised to meet requirements of MRP and align with City practices. Stormwater Regs Section 12 (D): Development Project Requirements (LID Stormwater Treatment Measures for Regulated Projects)

16.11.190 Certification of Compliance for Regulated Projects 16.11.030 (f) Expanded and revised to meet requirements of MRP and align with City practices. Stormwater Regs Section 12 (H): Development Project Requirements (Certification of Compliance for Regulated Projects)

16.11.200 Green Infrastructure Design and Construction
Requirements Not in current code. Addition to align with City practices. Stormwater Regs Section 12(I): Development Project Requirements (Green Infrastructure Design and Construc􀆟􀆟on Requirements)

16.11.210
Required Hydromodification Management
Measures for Regulated Projects 16.11.031 Aligned with requirements of the MRP. Stormwater Regs Section 12 (J): Development Project Requirements (Required Hydromodifica􀆟􀆟on Management Measures for Regulated Projects)

16.11.220
Operation and Maintenance of Stormwater
Treatment Measures and Hydromodification
Management Measures

16.11.040 Expanded and revised to meet requirements of MRP and align with City practices.

Stormwater Regs Section 12 (K): Development Project Requirements (Operation and Maintenance of Stormwater Treatment Measures and Hydromodification Management Measures)
1) Moved and revised Storm Drain Prohibited Discharges from 16.09.165 to new sections 16.11.070 through 16.11.100. 2) Moved and revised Construction Requirements from 16.09.170 to new section 16.11.280. 3) Incorporate required changes required by the California Regional Water Quality Control Board San Francisco Bay Region, Municipal Regional Stormwater (MRP) NPDES Permit Order No. R2-2022-0018, NPDES Permit No. CAS612008 (May 11, 2022).

PROPOSED PAMC UPDATED CHAPTER 16.11 - Stormwater Pollution Prevention 1 of 2
Item 8
Attachment A - Summary of Proposed Changes
to all Chapters

Item 8: Staff Report
Pg.
15 Packet Pg. 142 of 445

Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Code Section(s) Proposed Ordinance Revision(s) Stormwater Regulations Reference (if applicable)

16.11.230
Low Impact Development Source Control and Site
Design Measures for Projects Other Than
“Regulated Projects”

16.11.036 Expanded and revised to meet requirements of MRP and increase use of these meaures at Non- Regulated projects.

Stormwater Regs Section 12 (L): Development Project Requirements (Low Impact Development Source Control and Site Design Measures for Projects Other Than “Regulated Projects” Under Section 16.11.160)

16.11.240 Requirements for All Development Projects 16.09.165 (f), 16.09.180 Revised and expanded to meet requirements of MRP and align with City practices.

Stormwater Regs Section 12 (M): Development Project Requirements (Requirements for All Development Projects)

16.11.250 Requirements for Loading Docks 16.09.165 (e), 16.09.175 (k), and

16.09.180 (b) Expanded and revised to meet requirements of MRP and align with City practices. Stormwater Regs Section 12 (O): Development Project Requirements (Requirements for Loading Docks)

16.11.260 Drainage Design Standards for Development
Projects Not in current code. Addition to align with City practices. Stormwater Regs Section 12 (P): Development Project Requirements (Drainage Design Standards for Development Projects)

16.11.270 Requirements for Construction Sites and Activities 16.09.170 Expanded and revised to meet requirements of MRP. Stormwater Regs Section 12 (Q): Development Project Requirements (Requirements for Construction Sites and Activities)

16.11.280
Minimum Best Management Practices for All
Dischargers

16.09.065 Expanded and revised to meet requirements of MRP and align with City practices. Stormwater Regs Section 13: Required Best Management Practices for All Dischargers

16.11.290 Spill Containment and Notification of Non-
Stormwater Discharges

16.09.175 (spill containment)
Notification for non-Stormwater
discharge not included in
previous code section for
stormwater.

Spill Containment: Expanded and revised to meet requirerments of MRP.

Notification: Addition to meet requirements of MRP.

Stormwater Regs Section 14 (B): Illicit Discharge Detection and Elimination and Illicit Connections

16.11.300 Mobile Businesses Not in current code. Addition to meet requirements of MRP and align with City practices. Stormwater Regs Section 14 (C)

16.11.310 Pesticides Toxicity Control Not in current code. Addition to meet requirements of MRP and align with City practices. Stormwater Regs Section 15: Pesticides Toxicity Control

16.11.320 Trash Load Reductions Not in current code. Addition to meet requirements of MRP and align with City practices. New requirement for development projects to install trash capture devices in private storm drain inlets. Stormwater Regs Section 16: Trash Load Reduction

16.11.330 Mercury Controls Not in current code. Addition to meet requirements of MRP. Stormwater Regs Section 17: Mercury Controls

16.11.340 and

16.11.350
Polychlorinated Biphenyls Controls and
Management of PCBs During Building Demolition
Activities

16.11.080 Minor changes to align with the MRP. Stormwater Regs Section 18: Polychlorinated Biphenyls (PCBs) Controls 2 of 2
Item 8
Attachment A - Summary of Proposed Changes
to all Chapters

Item 8: Staff Report
Pg.
16 Packet Pg. 143 of 445

Objectives:

Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Code Section(s) Proposed Ordinance Revision(s) FOG Regulations Reference (if applicable)

16.13.010 Purpose and Intent 16.09.005 Minor changes to clarify focus of chapter requirements. FOG Regulations Part 1: Purpose, Applicability, and Definitions

16.13.020 Definitions 16.09.010 and 16.09.075 (a)
Added, edited and deleted definitions for clarification including new definition of Food Facility to replace prior term of Food Service Establishment, to parallel the changes in the California Health and Safety Code, Part 7, California Retail Food Code. Various other definitions added.

FOG Regulations Part 1: Purpose, Applicability, and Definitions

16.13.030 Administration 16.09.015 Minor changes to ensure code consistency. FOG Regulations Part 1: Purpose, Applicability, and Definitions

16.13.040 Applicability 16.09.005 Minor changes to clarify focus of chapter requirements. FOG Regulations Part 1: Purpose, Applicability, and Definitions

16.13.050 Conflicts with Other Laws Not in current code. New language to alleviate conflicts with other laws. N/A

16.13.060 Alternate Means and Methods 16.09.025 Minor changes to clarify focus of chapter requirements. FOG Regulations Part 1: Purpose, Applicability, and Definitions

16.13.070 Retention of Records 16.09.075 (p) and 16.09.160 Minor changes for clarification, align with City practices, and ensure Code consistency. FOG Regulations Part 11: Retention of Records

16.13.080
Obstruction, Damage, or Impairment to Storm
Drain and Sanitary Sewer Treatment Systems and
Rights-of-way

16.09.275 Updated language to clarify legal authority of City to assess charges for damage to its infrastructure related to this chapter. N/A

16.13.090 Authority to Inspect 16.09.015 and 16.09.110 Updated language to clarify legal authority of the City to inspect and to enforce the Municipal Regional Stormwater Permit (MRP). FOG Regulations Part 2: Inspections and Corrective Actions

16.13.100 Authority to Require Corrective Actions 16.09.015 and 16.09.240-270 Updated language clarifies legal authority of the City to require corrective action. FOG Regulations Part 2: Inspections and Corrective Actions

16.13.110 Fees and Charges Not in current code specifically related to FOG.

New language to clarify that City may adopt reasonable fees and charges for reimbursement. N/A

16.13.120 Prohibited Discharges 16.09.050 and 16.09.075 (b) and (h)
Updated language for clarification and to better align with City practices. FOG Regulations Part 3: Discharges, Devices, and Connections

16.13.130 Prohibited Devices, Equipment, and Connections 16.09.075 (b) and (e) Updated language for clarification and to better align with City practices. FOG Regulations Part 3: Discharges, Devices, and Connections

16.13.140 Requirements for Installing or Replacing Existing Grease Control Devices 16.09.075 (m) Major changes, references the City's Regulation for Food Facilities, where Grease Control Device requirements are specified. FOG Regulations Part 4: Installation and Replacement of Grease Control Devices

16.13.150 Grease Control Device Maintenance Requirements 16.09.075 (f), (g), and (n) Updated language, references the City's Regulation for Food Facilities, where Grease Control Device requirements are specified. FOG Regulations Part 5: Maintenance of Grease Control Devices

16.13.160 Requirements for Installing or Replacing Existing Rooftop Grease Containment Systems Not in current code. New language, references the City's Regulation for Food Facilities, where Rooftop Grease Containment system requirements are specified.

FOG Regulations Part 6: Requirements for Installing or Replacing Rooftop Grease Containment Systems

16.13.170 Waste Oil Storage and Management Requirements for Food Facility Development Projects 16.09.075 (o) and (q) Updated language referencing the City's Regulation for Food Facilities, where Waste Oil Storage and Management requirements are specified.

FOG Regulations Part 8: Waste Oil Storage and Management Requirements for Food Facilities

16.13.180
Waste Oil Storage and Management Requirements
for Existing Food Facilities 16.09.075 (o) Updated language referencing the City's Regulation for Food Facilities, where Waste Oil Storage and Management requirements are specified.

FOG Regulations Part 8: Waste Oil Storage and Management Requirements for Food Facilities

16.13.190
Requirements for Fats, Oils, and Grease Spill
Response Activities Conducted at and Associated
with Food Facilities

16.09.075 (k), (o), and (p)
Updated language referencing the City's Regulation for Food Facilities, whereRequirements for Fats, Oils, and Grease Spill Response Activities Conducted at and Associated with Food Facilities requirements are specified.

FOG Regulations Part 9: Requirements for Spill Response Activities Conducted at and Associated with Food Facilities.

16.13.200 Best Management Practices for Existing Facilities 16.09.075 (k) and (l) Updated language referencing the City's Regulation for Food Facilities, where Food Facility Best Management Practices are specified. FOG Regulations Part 10: Best Management Practices (BMPs) for Existing Food Facilities 1) Moved and revised fats, oils, and grease (FOG) requirements for food establishments from 16.09.075 to new Chapter 16.13. 2) Incorporated changes required by the California Regional Water Quality Control Board San Francisco Bay Region, Municipal Regional Stormwater (MRP) NPDES Permit Order No. R2-2022-0018, NPDES Permit No. CAS612008 (May 11, 2022). 3) Developed regulations to serve as a reference document to clarify ordinance requirements. 4) Align FOG requirements with City practices.

PROPOSED PAMC NEW CHAPTER 16.13 - Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease (FOG) 1 of 2
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Proposed
Ordinance
Section
Proposed Ordinance Section Title Existing Code Section(s) Proposed Ordinance Revision(s) FOG Regulations Reference (if applicable)

16.13.210 Mobile Food Facilities Not in current code. New language referencing the City's Regulation for Food Facilities, where Food Facility Best Management Practices are specified. FOG Regulations Part 12: Mobile Food Facilities

16.14.220 Food Facility Closure or Change of Ownership 16.09.075 (n)(1)(H) Updated language that details requirements for cleaning and/or abandoning Grease Control Device. Also references further discussion in the City's Regulation for Food Facilities. FOG Regulations Part 13: Food Facility Closure or Change of Ownership 2 of 2
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Objectives:

Proposed
Ordinance
Section
Proposed Ordinance Section Title(s) Existing Ordinance
Section(s) Proposed Ordinance Revision(s)

16.66.010 Purpose 16.09.005 Updated language to describe purpose of this new Chapter.

16.66.020 Definitions 16.09.010 Added new definitions for clarification.

16.66.030 Responsibility of the Director 16.09.015 Updated language to be consistent with proposed SUO. Replaced superintendent with director. Replaced designee of RWQCP manager with designee of director of public works.

16.66.040 Discharge of Hauled Liquid Waste 16.09.070(a) Expanded language clarifies the waste types allowed for discharge at the RWQCP receiving station. Removes prohibition on combining loads of different waste types, which was previously codified at 16.09.070(d). Meets suggested requirements from 2007 EPA Pretreatment Model Ordinance.

16.66.050 Hauled Liquid Waste Discharge Permit
Required 16.09.070(a)
Expanded language pertaining to the director’s authority to decline to issue/reissue a hauled liquid waste discharge permit; conditions of permit transferability; and conditional privilege established by issuance of a hauled liquid waste discharge permit.

16.66.060 Hauled Liquid Waste Discharge Permit
Application Procedure
Not in existing ordinance New language to better align with current City practices and SUO.

16.66.070 Approved Vehicles 16.09.070(a) New language clarifying that entry shall be granted only to vehicles possessing a valid permit issued by the Santa Clara County Department of Environmental Health in addition to valid hauled liquid waste discharge permit.

16.66.080 Waste Monitoring 16.09.070(d)
Expanded language consistent with proposed SUO. Grants City the authority to inspect, surveil, and sample loads from waste haulers to verify compliance. Grants the director authority to require a waste analysis for any load prior to discharge. Meets suggested requirements from 2007 EPA Pretreatment Model Ordinance.

16.66.090 Reporting Requirements for Waste Haulers 16.09.070(d) Expanded language establishes the director’s authority to require waste haulers to submit reports and other information to document compliance with the provisions of this Chapter. Establishes director’s authority to establish and require use of an electronic document submittal program consistent with proposed SUO. Meets suggested requirements from 2007 EPA Pretreatment Model Ordinance.

16.66.100 Retention of Records 16.09.070(d) Updated language to be consistent with proposed SUO and federal pretreatment recordkeeping requirements.

16.66.110 Insurance Not in existing ordinance New language to be consistent with current City practices.

16.66.120 Hauled Liquid Waste Discharge Permit
Modification Not in existing ordinance
New language to be consistent with current City practices and proposed SUO. Specifies conditions under which director may modify a permit, including but not limited to, new regulatory requirements; changes at the POTW; violations; and information indicating the permitted discharge poses a threat to POTW, City personnel, or receiving water.

16.66.130 Hauled Liquid Waste Discharge Permit
Suspension or Revocation Not in existing ordinance
New language to be consistent with current City practices and SUO. Specifies conditions under which director may suspend a permit, including but not limited to, failure to complete an application, misrepresentation or failure to fully disclose relevant facts, falsifying reports, tampering of monitoring equipment, and disposal of waste originating outside of RWQCP service area. 1) Remove hauled liquid waste requirements from the City 's Sewer Use Ordinance (SUO) contained in Chapter 16.09 of the Palo Alto Municipal Code (PAMC), and house those requirements in a new Hauled Liquid Waste Ordinance contained in PAMC 16.66.
2) Clarify and codify waste hauler requirements to better protect the City and the Palo Alto Regional Water Quality Control Plant, better align with SUO requirements, and 2007 EPA Pretreatment Model Ordinance.

PAMC PROPOSED NEW CHAPTER 16.66 - HAULED LIQUID WASTE ORDINANCE 1 of 2
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Proposed
Ordinance
Section
Proposed Ordinance Section Title(s) Existing Ordinance
Section(s) Proposed Ordinance Revision(s)

16.66.140 Hauled Liquid Waste Discharge Permit Denial,
Suspension, or Revocation Hearing Not in existing ordinance New language to be consistent with proposed SUO. Specifies conditions under which an applicant or permit holder may request a hearing before the city manager or their designee.

16.66.150 Personnel Orientation Not in existing ordinance New language to be consistent with current City practices and proposed SUO.

16.66.160 Enforcement and Penalties 16.09.240-16.09.270 Updated language that is consistent with proposed SUO.

16.66.170 Charges and Fees Not in existing ordinance Updated language that is consistent with current City practices and conditions for City to seek reimbursement to cover program costs.

16.66.180 Closure of Receiving Station Not in existing ordinance New section that establishes director’s authority to halt discharge of hauled liquid waste at the receiving station as deemed necessary for good cause.
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Ordinance No.

Ordinance of the Council of the City of Palo Alto Amending Chapter 16.09 (Sewer Use Ordinance) of Title 16 of the Palo Alto Municipal Code to Update the Regulations Related to Use of the Sanitary Sewer System

The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and Declarations. The City Council finds and declares as follows:

A. In order to protect the public health and environment, including the City’s sanitary sewer system, the Palo Alto Regional Water Quality Control Plant, and San Francisco Bay, the City has developed and implements a water quality control program;

B. Protection of the City’s sanitary sewer system, the Palo Alto Regional Water Quality Control Plant, and San Francisco Bay requires strict control of industrial wastewater discharges;

C. The adoption of this Sewer Use Ordinance is a component of the City’s water quality control program and establishes the City’s authority to implement state and federally required industrial wastewater pretreatment programs and standards to control industrial pollutants that may pass through or interfere with publicly owned treatment works or contaminate sewage sludge.

SECTION 2. Chapter 16.09 (Sewer Use Ordinance) of Title 16 (Building Regulations) is hereby repealed and replaced in its entirety to read as follows:

Chapter 16.09

SEWER USE ORDINANCE

Sections:

16.09.005 Purpose and Applicability.

16.09.010 Abbreviations.

16.09.015 Definitions.

16.09.020 Responsibility of the Director.

16.09.025 Confidentiality.

16.09.030 Alternate Materials and Methods.

16.09.035 Limitations on Point of Discharge.

16.09.040 Prohibited Discharge Standards.

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16.09.045 National Categorical Pretreatment Standards.

16.09.050 Standards for Other Wastes.

16.09.055 Local Limits.

16.09.060 City’s Right of Revision.

16.09.065 Dilution.

16.09.070 Unpolluted Water.

16.09.075 Discharge Permit Required.

16.09.080 Discharge Permit Application Procedure.

16.09.085 Discharge Permit Modification.

16.09.090 Inspection and Sampling.

16.09.095 Self-Monitoring.

16.09.100 Monitoring Waiver.

16.09.105 Pretreatment Facilities.

16.09.110 Personnel Orientation.

16.09.115 Accidental Discharge Prevention.

16.09.120 Reporting and Certification Requirements for Industrial Users.

16.09.125 Reports from Unpermitted Users.

16.09.130 Reports of Changed Conditions and Final Closure.

16.09.135 Reports of Potential Problems and Accidental Discharges.

16.09.140 Reports of Noncompliance

16.09.145 Falsification of Information.

16.09.150 Date of Receipt of Reports.

16.09.155 Retention of Records.

16.09.160 Requirements for Sinks and Drains.

16.09.165 Requirements for Newly Constructed, Remodeled, Improved, or Converted Commercial and Industrial Facilities.

16.09.170 Requirements for Newly Constructed, Remodeled, Improved, or Converted Multiple-Family Use Residential Properties.

16.09.175 Requirements for Cooling Systems, Pools, Spas, Fountains, Boilers, and Heat Exchangers.

16.09.180 Requirements for Exceptional Waste.

16.09.185 Root and Pest Control Chemical Use.

16.09.190 Requirements for Dental Facilities.

16.09.195 Publication of Users in Significant Noncompliance.

16.09.200 Enforcement and Penalties.

16.09.205 Permit Denial, Modification, Suspension, or Revocation Hearing

16.09.210 Affirmative Defenses to Discharge Violations: Upset.

16.09.215 Affirmative Defenses to Discharge Violations: Prohibited Discharge Standards.

16.09.220 Affirmative Defenses to Discharge Violations: Bypass.

16.09.225 Pretreatment Charges and Fees.

16.09.230 Obstruction, Damage or Impairment to POTW.

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16.09.005 Purpose and Applicability.

This Chapter sets forth uniform requirements for users of the Palo Alto Regional Water Quality Control Plant, a Publicly Owned Treatment Works (POTW), and enables the City and the POTW to comply with all applicable State and Federal laws, including the Clean Water Act (33 United States Code [U.S.C.] Section 1251 et seq.) and the General Pretreatment Regulations (Title 40 of the Code of Federal Regulations [CFR] Part 403), and the water quality requirements set by the San Francisco Bay Regional Water Quality Control Board and/or the California State Water Resources Control Board. The objectives of this Chapter are:

(a) To prevent the introduction of pollutants into the POTW that will interfere with its operation;

(b) To prevent the introduction of pollutants into the POTW that will pass through the POTW, inadequately treated, into receiving waters, or otherwise be incompatible with the POTW;

(c) To protect both POTW personnel who may be affected by wastewater and sludge in the course of their employment and the general public;

(d) To promote reuse and recycling of wastewater and sludge from the POTW; and

(e) To enable the POTW to comply with its National Pollutant Discharge Elimination System (NPDES) permit conditions, sludge use and disposal requirements, and any other Federal or State laws to which the POTW is subject.

It is the intent of the City to update and modify this Chapter as needed to continue to provide a program for protection of the POTW which is approved by Federal and State regulatory agencies.

Therefore, this Chapter is designed to be no less stringent than the Clean Water Act and the Effluent Guidelines and Standards published at Title 40 CFR Chapter I, Subchapter N as applicable, and as such regulations may be amended from time to time. If any provision of this Chapter conflicts with applicable Federal or State requirements, as amended or updated, the more stringent and environmentally protective provision shall apply.

This Chapter shall apply to all users of the POTW, including but not limited to, persons within the City of Palo Alto and persons outside the City who are, by contract with the City, users of the POTW. This Chapter authorizes the issuance of individual wastewater discharge permits and general discharge permits; provides for monitoring, compliance and enforcement activities; establishes administrative review procedures; and requires industrial user reporting.

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16.09.010 Abbreviations.

The following abbreviations, when used in this Chapter, shall have the designated meanings:

BOD – Biochemical Oxygen Demand
BMP – Best Management Practice
BMR – Baseline Monitoring Report
CFR – Code of Federal Regulations
CIU – Categorical Industrial User
COD – Chemical Oxygen Demand
EPA – United States Environmental Protection Agency
gpd – gallons per day
gpm – gallons per minute
IU – Industrial User
mg/L – milligrams per liter
NPDES – National Pollutant Discharge Elimination System NSCIU – Non-Significant Categorical Industrial User
PAMC – Palo Alto Municipal Code
POTW – Publicly Owned Treatment Works
PRCC – Periodic Report of Continued Compliance
RCRA – Resource Conservation and Recovery Act
RWQCP – Palo Alto Regional Water Quality Control Plant
SIU – Significant Industrial User
SNC – Significant Noncompliance
STO – Single Toxic Organic
TDS – Total Dissolved Solids
TSS – Total Suspended Solids
TTO – Total Toxic Organics
U.S.C. – United States Code

16.09.015 Definitions.

The following terms and phrases, whenever used in this Chapter, shall be as defined herein.

Terms and phrases used in this Chapter not otherwise defined shall be as defined or interpreted or used in Title 40 of the CFR.

(a) “A” definitions:

(1) “Amalgam process wastewater” means any wastewater generated and discharged by a dental discharger through the practice of dentistry that may contain dental amalgam.

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(2) “Amalgam separator” is a device that employs filtration, settlement, centrifugation, or ion exchange to remove amalgam and its metal constituents from a dental office vacuum system before it discharges to the sanitary sewer system; has been certified under the International Organization for Standardization’s standard for amalgam separators as capable of removing a minimum of ninety-five percent of dental amalgam at flow rates comparable to the flow rate of the actual vacuum suction system in operation; and does not have any automatic flow bypass.

(3) “Amalgam waste” means and includes non-contact amalgam (amalgam scrap that has not been in contact with the patient); contact amalgam (including, but not limited to, extracted teeth containing amalgam); amalgam sludge captured by chair-side traps, vacuum pump filters, screens, and other amalgam trapping devices; used amalgam capsules; and leaking or unusable amalgam capsules.

(4) “Annual average concentration” means the average concentration of a substance measured over any twelve- (12-) month period of time.

(5) “Authorized representative” means an authorized or duly authorized representative of the industrial user as defined below:

(A) If the user is a corporation:

(i) The president, secretary, treasurer, or a vice-president of the corporation in charge of a principal business function, or any other person who performs similar policy or decision-making functions for the corporation; or

(ii) The manager of one or more manufacturing, production, or operating facilities, provided the manager is authorized to make management decisions that govern the operation of the regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiate and direct other comprehensive measures to assure long-term environmental compliance with environmental laws and regulations; can ensure that the necessary systems are established or actions taken to gather complete and accurate information for discharge permit requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures.

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(B) If the user is a partnership or sole proprietorship: a general partner or proprietor, respectively.

(C) If the user is a Federal, State, or local governmental facility: a director or highest official appointed or designated to oversee the operation and performance of the activities of the government facility, or their designee.

(D) The individuals described in subsections (A) through (C), above, may designate a Duly Authorized Representative if the authorization is in writing, the authorization specifies the individual or position responsible for the overall operation of the facility from which the discharge originates or having overall responsibility for environmental matters for the organization, and the written authorization is submitted to the Director.

(6) “Average Daily Blowdown” means the result of dividing the total cooling system blowdown volume from May 1 through September 30 by the number of days of operation for the same period.

(b) “B” definitions:

(1) “Berm” means a ridge, lip, or other raised barrier to the flow of liquid which is not rendered ineffective by the liquid and is sufficiently high to contain anticipated fluid amounts, or which causes sufficient grade to prevent migration of anticipated fluid amounts.

(2) “Sewer Best Management Practices” or “BMPs” means schedules of activities, prohibitions of practices, maintenance procedures, and other management practices to implement the prohibitions in this Chapter. BMPs include treatment requirements, operating procedures, and practices to control plant site runoff, spillage or leaks, sludge or waste disposal, or drainage from materials storage.

(3) “Biochemical oxygen demand” or “BOD” means the quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedures for five (5) days at 20 degrees centigrade, usually expressed as a concentration (e.g., mg/L).

(1) “Categorical industrial user” means an industrial user subject to a categorical pretreatment standard.

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(2) “Categorical pretreatment standard” means any regulation containing pollutant discharge limits promulgated by EPA that apply to a specific category of industrial users and that appear in 40 CFR Chapter I, Subchapter N, Parts 405-471.

(3) “City” means the City of Palo Alto located in the State of California.

(4) “Clean Water Act” means the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. Section 1251 et seq.

(5) “Collection system” means the pipelines, pump stations, junction boxes, channels, and other conveyance apparatus used to move wastewater.

(6) “Composite sample” means a series of samples taken over a given period of time that accurately represents the average pollutant concentration during said period of time.

(7) “Cooling system blowdown” means water routinely discharged from a cooling water system to maintain efficient operation of the system.

(8) “Cooling water” means water which is used to cool fluids or equipment in commercial or industrial processes or air conditioning systems.

(9) “Cooling water system” means the pipes, heat exchangers, and other appurtenances used to convey cooling water in cooling towers, direct contact cooling systems, and similar fixed cooling systems. Multiple units of a cooling water system serving a building or piece of equipment are considered as one system if the cooling water distribution system units are physically connected.

(10) “Cycles of concentration” means the flow rate of water added to a cooling tower water system divided by the flow rate of water discharged from the cooling tower water system.

(d) “D” definitions:

(1) “Dental amalgam” means an alloy of elemental mercury and other metal(s) that is used in the practice of dentistry.

(2) “Dental discharger” means a facility where the practice of dentistry is performed, including, but not limited to, institutions, permanent or temporary offices, clinics, home offices, and facilities owned and operated by Federal, State or local governments, that discharges wastewater to the sanitary sewer system.

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(3) “Detection limit” means the minimum concentration of an analyte (substance) that can be measured and reported with ninety-nine percent (99%) confidence that the analyte concentration is greater than zero as determined by the procedures set forth in 40 CFR Part 136, Appendix B.

(4) “Director” means the City’s director of public works, his or her designee or such other person as may be designated by the city manager.

(5) “Discharge” means the introduction of pollutants into the POTW from any nondomestic source.

(6) “Discharge permit” or “wastewater discharge permit” means a legal document, used as a control mechanism, which grants revocable permission and authorization to discharge wastewater into the sanitary sewer system. Discharge permits can be issued either to an individual industrial user or applied broadly to a set of industrial users as a general discharge permit.

(7) "Discharger" means any person or entity who has the potential to or who discharges, causes, or permits the discharge of any pollutant or of any industrial or commercial process flows into the sanitary sewer system. Discharger is inclusive of industrial user.

(e) “E” definitions:

(1) “Environmental Protection Agency” or “EPA” means the United States Environmental Protection Agency, or where appropriate, the Regional Water Management Division Director, the Regional Administrator, or other duly authorized official of said agency.

(2) “Existing source” means any source of discharge that is not a new source.

(f) “F” definitions:

(1) “Fail-safe valve” means a gravity, spring loaded or electrically driven valve that is normally closed. The valve can be opened by continuously applying pressure or depressing a switch mechanism that automatically closes the valve when not in use or depressed.

(2) “Fixer solution” means a solution containing silver used in the photographic processing of dental x-rays, x-rays, and photographs.

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(g) “G” definitions:

(1) “Grab sample” means a sample that is taken from a wastestream on a one- time basis with no regard to the flow of the wastestream, taken over a period not to exceed fifteen (15) minutes.

(h) “H” definitions:

(1) “Hazardous material” means any material so designated by Title 17 of this code.

(2) “Hazardous waste” means a material designated as a hazardous waste by Federal, State, or local regulations.

(i) “I” definitions:

(1) “Industrial user” means a discharger of industrial waste to the POTW.

(2) “Industrial waste,” “process wastewater”, or “process waste stream” means the waste or wastewater from any production, manufacturing, research/development, groundwater remediation, or processing operation of any nature including institutional and commercial. Industrial waste shall not include sewage.

(3) “Instantaneous limit” means the maximum concentration of a pollutant allowed to be discharged at any time, determined from the analysis of any discrete or composited sample collected, independent of the industrial flow rate and the duration of the sampling event.

(4) “Interference” means a discharge that, alone or in conjunction with a discharge or discharges from other sources, inhibits or disrupts the POTW, its treatment processes or operations or its sludge processes, use or disposal; and therefore, is a cause of a violation of the City’s NPDES permit (including an increase in the magnitude or duration of a violation) or of the prevention of sewage sludge use or disposal in compliance with any of the following statutory/regulatory provisions or permits issued thereunder, or any more stringent State or local regulations:

Section 405 of the Clean Water Act; the Solid Waste Disposal Act, including Title II commonly referred to as the Resource Conservation and Recovery Act (RCRA); any State regulations contained in any State sludge management plan prepared Item 8
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pursuant to Subtitle D of the Solid Waste Disposal Act; the Clean Air Act; the Toxic Substances Control Act; and the Marine Protection, Research, and Sanctuaries Act.

(j) “J” definitions: Reserved

(k) “K” definitions: Reserved

(l) “L” definitions:

(1) “Local limit” means specific discharge limits developed and enforced by the City upon industrial or commercial facilities to implement the general and specific discharge prohibitions listed in 40 CFR 403.5(a)(1) and (b).

(m) “M” definitions:

(1) “Machine shop” means a fixed facility which cuts, grinds, polishes, deburrs, or machines metal parts but does not conduct metal finishing as that term is defined by the EPA in 40 CFR Part 433.

(2) “Multiple-family use” shall be as defined in Title 18 of this code.

(n) “N” definitions:

(1) “New source” means any building, structure, facility, or installation from which there is (or may be) a discharge of pollutants, the construction of which commenced after the publication of proposed Pretreatment Standards under section 307(c) of the Clean Water Act that will be applicable to such source if such pretreatment standards are thereafter promulgated in accordance with that section, provided that:

(A) The building, structure, facility, or installation is constructed at a site at which no other source is located; or

(B) The building, structure, facility, or installation totally replaces the process or production equipment that causes the discharge of pollutants at an existing source; or

(C) The production or wastewater generating processes of the building, structure, facility, or installation are substantially independent of an existing source at the same site. In determining whether these are substantially independent, factors such as the extent to which the new facility is integrated with the existing building, structure, facility, or Item 8
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installation, and the extent to which the new facility is engaged in the same general type of activity as the existing source, should be considered.

(2) “Noncontact cooling water” means water used for cooling that does not come into direct contact with any raw material, intermediate product, waste product, or finished product.

(o) ”O” definitions:

(1) “Oil-water separator” means a receptacle designed and constructed to intercept, separate, and prevent the passage of oils and sediments into the sanitary sewer system.

(2) “Once-through cooling system” means a cooling system through which water passes only once before discharge to the sanitary sewer system, including laboratory bench top cooling systems.

(3) “Organic solvent” means any solvent which contains carbon in its molecular structure.

(p) ”P” definitions:

(1) “Pass through” means a discharge which exits the POTW into waters of the United States in quantities or concentrations which, alone or in conjunction with a discharge or discharges from other sources, is a cause of a violation of any requirement or provision of the City's NPDES permit, including an increase in the magnitude or duration of a violation.

(2) “Person” means any individual, partnership, co-partnership, firm, company, corporation, association, joint stock company, trust, estate, governmental entity, or any other legal entity; or their legal representatives, agents, or assigns. This definition includes all Federal, State, and local government entities.

(3) “Pretreatment” means the reduction of the amount of pollutants, the elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater prior to, or in lieu of, introducing such pollutants into the POTW. This reduction or alteration can be obtained by physical, chemical, or biological processes; by process changes; or by other means, except by diluting the concentration of the pollutants unless allowed by an applicable pretreatment standard.

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(4) “Pretreatment requirement” means any substantive or procedural requirement related to pretreatment imposed on an industrial user other than a pretreatment standard.

(5) “Pretreatment standards” means prohibited discharge standards, categorical pretreatment standards, and local limits.

(6) “Pretreatment system” means a treatment system at an industrial or commercial facility that is designed to reduce the amount of pollutants, eliminate pollutants, or alter the nature of the pollutant properties in the wastewater prior to discharge to the sanitary sewer system

(7) “Publicly Owned Treatment Works” or “POTW” means a treatment works, as defined by section 212 of the Clean Water Act (33 U.S.C. Section 1292), which is owned by the City. This definition includes any devices or systems used in the collection, storage, treatment, recycling, and reclamation of sewage or industrial wastes of a liquid nature and any conveyances, which convey wastewater to a treatment plant.

(q) “Q” definitions: Reserved

(r) “R” definitions:

(1) “Reasonable Control Measures” or “RCMs” means control technologies, BMPs, source control practices, and waste minimization procedures which prevent or reduce the introduction of pollutants to the sanitary sewer system, and are determined by the Director to be cost effective for particular industry groups, business types, or specific industrial and commercial processes.

(s) “S” definitions:

(1) “Sampling location” means an access box, valve, spigot, or similar structure from which samples representative of an industrial or commercial wastewater discharge from a particular process or processes, piece of equipment, activity, building, or facility may be collected.

(2) “Sanitary sewer system” means the collection system, all sewers, treatment plants and other facilities owned or operated by the city for carrying, collecting, storing, treating, reclaiming and disposing of sanitary sewage and industrial wastes.

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(3) “Sewage” means human excrement and gray water (household showers, dishwashing operations, etc.).

(4) “Sewer” means a pipe or conduit for carrying wastewater.

(5) “Significant industrial user” means, except as provided in (C) and (D):

(A) An industrial user subject to categorical pretreatment standards; or

(B) An industrial user that:

(i) Discharges an average of twenty-five thousand (25,000) gpd or more of process wastewater to the POTW (excluding sanitary, noncontact cooling, and boiler blowdown wastewater);

(ii) Contributes a process wastestream which makes up five (5) percent or more of the average dry weather hydraulic or organic capacity of the POTW treatment plant; or

(iii) Is designated as such by the Director on the basis that it has a reasonable potential for adversely affecting the POTW’s operation or for violating any pretreatment standard or requirement.

(C) The Director may determine that an industrial user subject to categorical pretreatment standards is a non-significant categorical industrial user rather than a significant industrial user on a finding that the industrial user never discharges more than 100 gpd of total categorical wastewater (excluding sanitary, non-contact cooling, and boiler blowdown wastewater, unless specifically included in the pretreatment standard) and the following conditions are met:

(i) The industrial user, prior to the Director’s finding, has consistently complied with all applicable categorical pretreatment standards and requirements;

(ii) The industrial user annually submits the certification statement required in 40 CFR 403.12(q) together with any additional information necessary to support the certification statement; and

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(iii) The industrial user never discharges any untreated concentrated wastewater.

(D) Upon a finding that an industrial user meeting the criteria in subsection (B) of this part has no reasonable potential for adversely affecting the POTW’s operation or for violating any pretreatment standard or requirement, the Director may at any time, on his or her own initiative or in response to a petition received from an industrial user, determine that such industrial user should not be considered a significant industrial user.

(6) “Simple payback period” means the number of years required to recover the cost of an investment in water pollution control.

(7) “Single toxic organic” or “STO” shall mean the highest quantifiable value for any individual toxic organic compound.

(8) “Slug discharge” means any discharge of a non-routine, episodic nature, including but not limited to an accidental spill or a non-customary batch discharge which has a reasonable potential to cause interference or pass through, or in any other way violate the City’s discharge permit conditions, local limits, or regulations.

(t) “T” definitions:

(1) “Total toxic organics” or “TTO” means the summation of all quantifiable toxic organic compound concentrations greater than 0.01 mg/L.

(2) “Toxic organic compound” means any organic pollutant listed in 40 CFR 433.11(e) unless otherwise defined by an applicable categorical pretreatment standard.

(3) “Treatment plant” means that portion of the POTW which is designed to provide treatment of municipal sewage and industrial waste.

(u) “U” definitions: Reserved

(v) “V” definitions:

(1) “Vehicle” means a mode of transporting people or things. Vehicles include, but are not limited to, airplanes, automobiles, boats, buses, forklifts, motorcycles, recreational vehicles, tractors, and trucks.

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(2) “Vehicle service facility” means a commercial or industrial facility that conducts one or more of the following operations with respect to vehicles or components of vehicles: vehicle repair, fuel dispensing, vehicle fluid replacement, engine and parts cleaning, body repair, vehicle salvage and wrecking, or vehicle washing.

(w) “W” definitions:

(1) “Wastewater” means liquid and water-carried industrial wastes and sewage from residential dwellings, commercial buildings, industrial and manufacturing facilities, and institutions, whether treated or untreated, which are contributed to the POTW.

(x) “X” definitions: Reserved

(y) “Y” definitions: Reserved

(z) “Z” definitions:

(1) “Zinc-containing floor finishes” means floor finish solutions containing greater than 0.01% zinc by weight;

16.09.020 Responsibility of the Director.

The Director shall administer, implement, and enforce the provisions of this Chapter. The Director shall be responsible for promulgating such orders, rules, and requirements as are necessary to accomplish the purpose of this Chapter, in accordance with the regulations that are or may be promulgated by the EPA, the California State Water Resources Control Board, the San Francisco Bay Regional Water Quality Control Board, the California Department of Public Health, or other duly authorized boards or agencies. Any powers granted to or duties imposed upon the Director may be delegated by the Director to a duly authorized City employee.

16.09.025 Confidentiality.

(a) Information and data on an industrial user obtained from reports, surveys, wastewater discharge permit applications, individual wastewater discharge permits, general discharge permits, and monitoring programs, and from the Director’s inspection and sampling activities, shall be available to the public without restriction, unless the industrial user specifically requests, and is able to demonstrate to the satisfaction of the Director, that the release of such information would divulge information, processes, or methods of production entitled to Item 8
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protection as trade secrets under applicable State law. Any such request must be asserted at the time of submission of the information or data by stamping the words “confidential business information” on each page containing such information. When requested and demonstrated by the discharger furnishing a report that such information should be held confidential, the portions of a report which might disclose trade secrets or secret processes shall not be made available for inspection by the public, but shall be made available immediately upon request to governmental agencies for uses related to the NPDES program or pretreatment program, and in enforcement proceedings involving the person furnishing the report. Wastewater constituents and characteristics and other effluent data, as defined at 40 CFR 2.302 shall not be recognized as confidential information and shall be available to the public without restriction.

(b) This Section does not permit a discharger to refuse to disclose information required pursuant to this Chapter to the Director. A discharger may be prohibited from discharging a substance unless its composition is made known to the Director.

16.09.030 Alternate Means and Methods.

(a) The Director is authorized to modify any of the provisions of this Chapter upon application in writing by the owner, a lessee or an authorized representative of the discharger where there are practical difficulties in the way of carrying out the provisions of this Chapter, provided that the purpose of this Chapter, as set forth in Section 16.09.005, shall be complied with, and substantial justice done. The particulars of any such modification and the decision of the Director shall be entered upon the records of the POTW and a signed copy shall be furnished to the applicant.

(b) The Director, upon application in writing by the owner, a lessee, or an authorized representative of the discharger, and on notice to the Director, is authorized to approve alternate materials or methods, provided that the Director finds that the proposed design, use, or operation satisfactorily complies with the intent of this Chapter and that the material, method of work performed, or operation is, for the purpose intended, at least equivalent to that prescribed in this Chapter in quality and effectiveness in meeting the purposes of this Chapter. Approvals under the authority herein contained shall be subject to the approval of the Director whenever the alternate material or method involves matters regulated by this Chapter. The particulars of any such approval made by the Director shall be entered upon the records of the POTW and a signed copy shall be furnished to the applicant.

16.09.035 Limitations on Point of Discharge.

No person shall discharge any substances directly into a manhole or other opening in a City sewer or storm drain system, other than through a City-approved sewer connection or as authorized by an Exceptional Waste Discharge Permit per Section 16.09.180 of this Chapter.

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16.09.040 Prohibited Discharge Standards.

(a) General prohibitions. No discharger shall introduce or cause to be introduced into the POTW any pollutant or wastewater which causes pass through or interference. These general prohibitions apply to all dischargers to the POTW whether or not they are subject to categorical pretreatment standards or any other National, State, or local pretreatment standards or requirements.

(b) Specific prohibitions. No discharger shall introduce or cause to be introduced into the POTW the following pollutants, substances, or wastewater:

(1) Pollutants which create a fire or explosive hazard in the POTW, including, but not limited to, wastestreams with a closed-cup flashpoint of less than 140 degrees Fahrenheit (60 degrees Centigrade) using the test methods specified in 40 CFR 261.21;

(2) Wastewater having a pH less than 5.0 or greater than 11.0, or otherwise causing corrosive structural damage to the POTW or equipment;

(3) Solid or viscous substances in amounts which may cause obstruction of the flow in the POTW but in no case solids greater than one-half inch in any dimension;

(4) Pollutants, including oxygen-demanding pollutants (BOD, etc.), released in a discharge at a flow rate and/or pollutant concentration which, either singly or by interaction with other pollutants, will cause interference with the POTW;

(5) Wastewater which will inhibit the biological activity in the treatment plant resulting in interference, but in no case wastewater which causes the temperature at the introduction into the treatment plant to exceed 104 degrees Fahrenheit (40 degrees Centigrade);

(6) Petroleum oil, nonbiodegradable cutting oil, or products of mineral oil origin, in amounts that will cause interference or pass through;

(7) Pollutants which result in the presence of toxic gases, vapors, or fumes within the POTW in a quantity that may cause acute worker health and safety problems;

(8) Trucked or hauled pollutants, except at discharge points designated by the Director in accordance with Title 16.66 of this code;

(9) Noxious or malodorous liquids, gases, solids, or other wastewater which, either singly or by interaction with other wastes, are sufficient to create a public nuisance or a hazard to life, or to prevent entry into the sewers for maintenance or repair;

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(10) Wastewater which imparts color which cannot be removed by the treatment process, such as, but not limited to, dye wastes and vegetable tanning solutions, which consequently imparts color to the treatment plant’s effluent, thereby violating the City’s NPDES permit;
(11) Wastewater containing any radioactive wastes or isotopes except in compliance with applicable State or Federal regulations;

(12) Sludges, screenings, or other residues from the pretreatment of industrial wastes;

(13) Wastewater causing, alone or in conjunction with other sources, the treatment plant’s effluent to fail a toxicity test;

(14) Detergents, surface-active agents, or other substances which may cause excessive foaming in the POTW;

(15) Any substance which, if otherwise disposed of, would be considered a hazardous waste;

(16) Any zinc-containing floor finish or a stripper solution that has been used for the stripping of a zinc-containing floor finish, except when the solutions have been treated in a pretreatment unit approved by the Director for removal of zinc; or

(17) Fixer solution without prior pretreatment to meet all applicable limits per Section 16.09.055 of this Chapter.

(c) Pollutants, substances, or wastewater prohibited by this Section shall not be processed or stored in such a manner that they could be discharged to the sanitary sewer system.

16.09.045 National Categorical Pretreatment Standards.

(a) Industrial users shall comply with the categorical pretreatment standards found at 40 CFR Chapter I, Subchapter N, Parts 405-471. In the event of any apparent conflicts between this Chapter and State or Federal regulations, the most stringent provisions shall apply.

(b) When wastewater subject to a categorical pretreatment standard is mixed with wastewater not regulated by the same standard, the Director shall impose an alternate limit in accordance with 40 CFR 403.6(e).

16.09.050 Standards for Other Wastes.

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The Director may establish standards for any wastes not specifically referred to in this Chapter.

These standards shall be published and shall be made available to any person upon request.

16.09.055 Local Limits.

(a) The Director is authorized to establish local limits pursuant to 40 CFR 403.5(c).

(b) The Director may develop best management practices (BMPs), by promulgation of regulations, in individual wastewater discharge permits, or in general discharge permits, to implement local limits and the requirements of this Chapter. The Director may require the implementation of BMPs and require submission of information to evaluate the implementation and effectiveness of BMPs.

(c) The following pollutant limits are established to protect against pass through and interference. Unless otherwise specified in this Chapter, no person shall discharge wastewater containing in excess of the following:

0.1 mg/L Arsenic

5.0 mg/L Barium

0.75 mg/L Beryllium

1.0 mg/L Boron

0.1 mg/L Cadmium

1.0 mg/L Chromium, Hexavalent

2.0 mg/L Chromium, Total

1.0 mg/L Cobalt

0.25 mg/L Copper

0.5 mg/L Cyanide

0.1 mg/L Dissolved Sulfides
65 mg/L Fluoride

5.0 mg/L Formaldehyde

0.5 mg/L Lead

1.0 mg/L Manganese

0.1 mg/L Mercaptans

0.01 mg/L Mercury

0.75 mg/L Methyl Tertiary Butyl Ether (MTBE)

0.5 mg/L Nickel
20 mg/L Oil & Grease
200 mg/L Oil & Grease, Total

1.0 mg/L Phenols

1.0 mg/L Selenium

0.25 mg/L Silver
5,000 mg/L Total Dissolved Solids (TDS) – composite
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10,000 mg/L Total Dissolved Solids (TDS) – grab

0.75 mg/L Toxic Organic, Single (STO)

1.0 mg/L Toxic Organics, Total (TTO)
3,000 mg/L Total Suspended Solids (TSS) – composite
6,000 mg/L Total Suspended Solids (TSS) – grab

2.0 mg/L Zinc

(d) The limits established in subsection (c) of this Section are instantaneous limits, unless indicated otherwise, and shall apply to all discharges to the POTW at appropriate sampling locations determined by the Director. All concentrations for metallic substances are for total metal unless indicated otherwise. The Director may impose mass limitations in addition to the concentration-based limitations established in subsection (c) of this Section.

(e) The Director may verify compliance with the TTO limit established in subsection (c) of this Section by sampling and analyzing for only those toxic organic compounds that the Director has determined may be reasonably expected to be present in an industrial user’s discharge.

(f) For industrial users with average daily discharges greater than 50,000 gpd through any single sampling location, pollutant limits shall be one-half of the limit established in subsection (c) of this Section, with the exception of copper, mercury, MTBE, nickel, and silver, for which the pollutant limits shall remain 0.25 mg/L, 0.01 mg/L, 0.75 mg/L, 0.5 mg/L, and 0.25 mg/L, respectively, regardless of flow.

(g) The limit for copper established in subsection (c) of this Section shall apply to all industrial users, except that:

(1) The maximum copper limit shall be 2.0 mg/L for discharges from cooling systems with an average daily blowdown less than or equal to 2,000 gpd, photographic materials processing, dental facilities, vehicle service facilities, and machine shops.

(A) The copper limit for cooling systems with an average daily blowdown greater than 2,000 gpd shall be 2.0 mg/L for the first twelve months of operation. The copper limit shall be reduced to

0.25 mg/L after the first twelve months of operation.
(B) The Director may impose a higher alternative copper limit for cooling towers when the cycles of concentration routinely exceed ten. The alternative requirement may consist of an alternative concentration limit, a mass limit, a specified maintenance program, or a combination of these.

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(2) Industrial users subject to regulation under 40 CFR Part 413 or 40 CFR Part 433 shall meet either subdivision (A) or (B) of this subsection. These alternative copper limitations shall apply to discharges from process operations involving copper solutions or materials prior to mixing with wastewater not regulated by 40 CFR Part 413 or 40 CFR Part 433.

(A) The annual average concentration of copper discharged shall not exceed 0.40 mg/L. In addition, all reasonable control measures established by the Director shall be installed and implemented; or (B) The annual average mass of copper discharged shall not exceed an amount specified by the Director in an individual wastewater discharge permit, which is based upon a waste minimization study conducted or approved by the Director. The limitation shall be based upon implementation of those reasonable control measures having a simple payback period of five years or less. The annual average mass of copper discharged shall be calculated as a “rolling” measurement, by multiplying the average daily copper mass for all samples taken during any twelve-month period by 365.

The annual average copper mass limit may be increased or decreased by the Director in proportion to increases or decreases in production at the industrial user’s facility.

(h) The limit for zinc established in subsection (c) of this Section shall not apply to vehicle service facilities. The maximum zinc limit for vehicle service facilities shall be 4.0 mg/L.

16.09.060 City’s Right of Revision.

The City reserves the right to establish, by ordinance or in individual wastewater discharge permits, or in general discharge permits, more stringent standards or requirements on discharges to the POTW to carry out the purpose of this Chapter. No revision of standards or requirements hereunder shall subject the City to civil liability or penalty for interference with a vested right of any discharger.

16.09.065 Dilution.

Except where expressly authorized to do so by the Director or an applicable pretreatment standard or requirement, no industrial user shall ever increase the use of process water, or in any way, dilute or attempt to dilute a discharge as a partial or complete substitute for adequate treatment to achieve compliance with a pretreatment standard or requirement or any other provision of this Chapter. The Director may impose mass limitations on industrial users which are using dilution to meet applicable pretreatment standards or requirements, or in other cases when the imposition of mass limitations is appropriate.

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16.09.070 Unpolluted Water.

Unpolluted water shall not be discharged through direct or indirect connection to the sanitary sewer system unless specifically authorized in writing by the Director. As used in this Section, unpolluted water includes, but is not limited to, stormwater, surface water, groundwater, artesian well water, and subsurface drainage which meets all State, Federal, and local requirements for discharge to surface waters of the United States. The Director may approve the discharge of such water to the sanitary sewer system only when no reasonable alternative method of disposal is available.

16.09.075 Discharge Permit Required.

(a) Significant industrial users must obtain an individual wastewater discharge permit to discharge process wastewater into the POTW.

(b) The Director may require other industrial users to obtain individual wastewater discharge permits or general discharge permits as necessary to carry out the purpose of this Chapter.

(c) Any violation of the terms and conditions of an individual wastewater discharge permit or a general discharge permit shall be deemed a violation of this Chapter and subjects the permittee to the enforcement provisions set forth in this Chapter. Obtaining an individual wastewater discharge permit or a general discharge permit does not relieve a permittee of its obligation to comply with all Federal and State pretreatment standards or requirements or with any other requirements of Federal, State, and local law, including those that become effective during the term of the discharge permit.

(d) Any industrial user required to obtain an individual wastewater discharge permit or a general discharge permit who proposes to begin or recommence discharging into the POTW must obtain such permit prior to the beginning or recommencing of such discharge. An application for an individual wastewater discharge permit or general discharge permit, in accordance with Section 16.09.080 of this Chapter, must be filed at least ninety (90) calendar days prior to the date upon which any discharge will begin or recommence.

(e) The Director may use general discharge permits to control industrial waste discharges to the sanitary sewer system if the following conditions are met. All facilities to be covered by a general discharge permit must:

(1) Involve the same or substantially similar types of operations;

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(2) Discharge the same types of wastes;

(3) Require the same effluent limitations;

(4) Require the same or similar monitoring; and

(5) In the opinion of the Director, are more appropriately controlled under a general discharge permit than under individual wastewater discharge permits.

(f) An individual wastewater discharge permit or general discharge permit shall include such conditions as are deemed reasonably necessary by the Director to prevent pass through or interference, protect the quality of the water body receiving the treatment plant’s effluent, protect worker health and safety, facilitate sludge management and disposal, ensure compliance with this Chapter and applicable State and Federal law, and protect against damage to the POTW. Individual wastewater discharge permits or general discharge permits may include, but are not limited to the following conditions:

(1) An effective date and expiration date. The expiration date is not to exceed five (5) years from the effective date of the permit. An individual wastewater discharge permit or general discharge permit may be issued for a period less than five years from the effective date of the permit, at the discretion of the Director;

(2) Requirements for the installation and maintenance of pretreatment technology, pollution control, or construction of appropriate containment devices, designed to reduce, eliminate, or prevent the introduction of pollutants into the POTW and compliance schedules for meeting these requirements;

(3) Effluent limitations, including BMPs, based upon applicable pretreatment standards or requirements;

(4) Self-monitoring, sampling, reporting, notification, and record keeping requirements. These requirements shall include implementation requirements for best management practices, identification of pollutants to be monitored, sampling location, sampling frequency, and sample type based on Federal, State, and local law;

(5) Prohibition of discharge of certain wastewater components;

(6) Installation and maintenance of inspection, sampling, and flow measurement equipment and facilities;

(7) Limits on average and/or maximum rate of discharges, time of discharge, and/or requirements for flow regulation and equalization; Item 8
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(8) Requirements to control slug discharge, if determined by the Director to be necessary;

(9) Requiring payment of additional charges to defray increased costs of the City created by the wastewater discharge;

(10) Implementation of BMPs, specific investigations, or studies to determine methods of reducing pollutants in the discharge;

(11) The process for seeking a waiver from monitoring and any grant of a monitoring waiver issued by the Director for a pollutant neither present nor expected to be present in the Discharge in accordance with Section 16.09.100 of this Chapter.

(12) Statement of non-transferability pursuant to subsection (g); and

(13) Statement of applicable civil and criminal penalties for violation of Pretreatment Standards and Requirements, and any applicable compliance schedule.

(g) No individual wastewater discharge permit or coverage under a general discharge permit is transferable without prior written consent of the Director. A change of ownership (including a transfer of the majority of shares in a corporate discharger) of the waste generating facility requires submittal of a new discharge permit application and payment of applicable fees.

16.09.080 Discharge Permit Application Procedure.

(a) An applicant for a discharge permit shall complete and submit a discharge permit application form established by the Director. The Director may require information in addition to that required on the discharge permit application form as deemed reasonable or necessary to evaluate the discharge permit application.

(b) All wastewater discharge permit applications and industrial user reports must contain certification statements signed by an authorized representative.

(c) Completed discharge permit applications shall be filed by the discharger not less than ninety (90) calendar days in advance of commencing or recommencing discharge. The discharger shall not commence or recommence discharge prior to obtaining a discharge permit without specific, interim approval from the Director to discharge during the permitting process.

Discharge permit applications for exceptional waste and root and pest control, as specified in Sections 16.09.180 and 16.09.185 of this Chapter, are not subject to the ninety (90) calendar day requirement of this subsection.

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(d) Any industrial user with an expiring individual wastewater discharge permit or general discharge permit shall apply for permit reissuance by submitting a complete discharge permit application, in accordance with Section 16.09.080 of this Chapter, not less than ninety (90) calendar days prior to the expiration of the industrial user’s existing individual wastewater discharge permit or general discharge permit.

(e) The Director may deny any application for an individual wastewater discharge permit or coverage under a general discharge permit for good cause, including, but not limited to, the following reasons:

(1) The application contains false or misleading information;

(2) The issuance of the discharge permit would result in a discharge of such quantity or strength that the public health, safety, or public or private property are endangered;

(3) The issuance of the discharge permit would cause the POTW to violate any NPDES permit conditions, or any Federal, State, or local laws or regulations;

(4) The applicant has not provided adequate information to establish that its discharge will comply with all requirements of this Chapter and with such other terms and conditions as the Director may deem necessary to include in the applicant's discharge permit;

(5) The applicant has not provided plans for sufficient protection from accidental discharges to the land, storm drain system, or sanitary sewer system; or

(6) The applicant has failed to pay or has outstanding fees, fines, or penalties owed to the City.

(f) If the Director denies a permit application, application fees shall not be returned to the applicant unless the Director has ascertained that a permit is not required to discharge the wastewater for which the permit application is made.

(g) Incomplete or inaccurate applications will not be processed.

(h) The Director shall post applications for wastewater discharge permits by significant industrial users on a City web page. Interested parties and other members of the public may comment on the issuance of a permit within forty-five (45) days of issuance. The permit effective date shall not be postponed solely because of the submittal of comments, however comments shall be considered by the Director for incorporation into future permit modification(s).

16.09.085 Discharge Permit Modification.

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(a) The Director may modify any individual wastewater discharge permit or general discharge permit for good cause, including, but not limited to, the following reasons:

(1) To incorporate any new or revised Federal, State, or local pretreatment standards or requirements;

(2) To address significant alterations or additions to the discharger's operation, processes, or wastewater volume or character since the time of the wastewater discharge permit issuance;

(3) A change in the POTW that requires either a temporary or permanent reduction or elimination of the authorized discharge;

(4) Information indicating that the permitted discharge poses a threat to the POTW, City personnel, or the receiving waters;

(5) Violation of any terms or conditions of the wastewater discharge permit;

(6) Misrepresentations or failure to fully disclose all relevant facts in the wastewater discharge permit application or in any required reporting;

(7) Revision of or a grant of variance from categorical pretreatment standards;

(8) To correct typographical or other errors in the wastewater discharge permit;

(9) To reflect a transfer of the facility ownership or operation to a new owner or operator where requested in accordance with Section 16.09.075(g) of this Chapter; or

(10) To implement programs or policies required or requested of the City by appropriate Federal, State, or local regulatory agencies.

16.09.090 Inspection and Sampling.

(a) The Director may conduct all inspection, surveillance, sampling, records examination and copying, and monitoring necessary to assure compliance with applicable Federal, State, and local regulations.

(b) The Director shall have the right to enter, without unreasonable delay, the premises of any discharger for the purposes of inspection, surveillance, sampling, monitoring, Item 8
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records examination and copying, and for performance of any additional duties to assure compliance with this Chapter and applicable Federal, State, and local regulations. Unreasonable delays in allowing the Director access to the discharger’s premises shall be a violation of this Chapter.

(c) If the Director has been refused access to a building, structure, or property, or any part thereof, and is able to demonstrate probable cause to believe that there may be a violation of this Chapter, or that there is a need to inspect and/or sample as part of a routine inspection and sampling program of the City designed to verify compliance with this Chapter or any permit or order issued hereunder, or to protect the overall public health, safety, and welfare of the community, the Director may seek issuance of a warrant from the Superior Court of California.

(d) Where a discharger has security measures in force which require proper identification and clearance before entry into its premises, the discharger shall make necessary arrangements with its security personnel so that, upon presentation of suitable identification, the Director shall be permitted to enter without delay for the purposes of performing specific responsibilities.

(e) The Director may require dischargers to provide and maintain one or more sampling locations or volume and flow measuring points approved by the Director which will allow the separate measuring and sampling of industrial waste and sewage. Sampling locations shall be so located that they are safe and accessible to the Director at any reasonable time during which discharge may occur.

(f) The Director shall have the right to set up on the discharger’s property, or require installation of, such devices as are necessary to conduct sampling and/or metering of the discharger’s operations.

16.09.095 Self-Monitoring.

(a) The Director may require a discharger to conduct a wastewater sampling and analysis program of a frequency and type sufficient to demonstrate compliance with the requirements of this Chapter. The Director shall specify the minimum frequency, type, and number of samples as well as flow monitoring, measuring, and sample analyses to be conducted by the discharger in the discharge permit. Monitoring not specified in a discharge permit may be required by the Director as deemed reasonable or necessary to ensure compliance with the provisions of this Chapter. The Director may also require self-monitoring for facilities for which a discharge permit has not been issued.

(b) Samples collected to satisfy reporting requirements must be based on data obtained through appropriate sampling and analysis and must be representative of the discharger’s discharge. Wastewater monitoring and flow measurement facilities shall be properly Item 8
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operated, kept clean, and maintained in good working order at all times. The failure of an industrial user to keep its monitoring facility in good working order shall not be grounds for the industrial user to claim that sample results are unrepresentative of its discharge.

(c) Except as indicated in subsections (d) and (e) below, the industrial user must collect wastewater samples using 24-hour flow-proportional composite sampling techniques, unless time-proportional composite sampling or grab sampling is authorized by the Director.

Where time-proportional composite sampling or grab sampling is authorized by the Director, the samples must be representative of the discharge. Using protocols (including appropriate preservation) specified in 40 CFR Part 136 and appropriate EPA guidance, multiple grab samples collected during a 24-hour period may be composited prior to the analysis as follows: for cyanide, total phenols, and sulfides the samples may be composited in the laboratory or in the field; for volatile organics and oil and grease, the samples may be composited in the laboratory. Composite samples for other parameters unaffected by the compositing procedures as documented in approved EPA methodologies may be authorized by the Director, as appropriate.

(d) Samples for oil and grease, temperature, pH, cyanide, total phenols, sulfides, and volatile organic compounds must be obtained using grab collection techniques.

(e) For sampling required in support of baseline monitoring and 90-day compliance reports, a minimum of four (4) grab samples must be used for pH, cyanide, total phenols, oil and grease, sulfide, and volatile organic compounds for facilities for which historical sampling data do not exist; for facilities for which historical sampling data are available, the Director may authorize a lower minimum. For PRCCs, the industrial user is required to collect the number of grab samples necessary to assess and assure compliance with applicable pretreatment standards and requirements.

(f) The Director may authorize an industrial user to sample for a subset of toxic organic compounds to verify compliance with the TTO limit established in Section 16.09.055 of this Chapter based on what the Director has determined may be reasonably expected to be present in an industrial user’s discharge.

(g) The Director may specify the type of sampling, pH, and flow monitoring equipment that must be installed by the discharger and used for discharger self-monitoring. Flow monitoring devices shall be calibrated at a frequency of at least once per year or at an alternative frequency specified by the Director. pH monitoring devices shall be calibrated at a frequency of at least once every six months or more frequently if recommended by the manufacturer or at an alternative frequency as specified by the Director.

(h) All pollutant analyses, including sampling techniques, to be submitted as part of a discharge permit application or report shall be performed in accordance with the techniques prescribed in 40 CFR Part 136 and amendments thereto, unless otherwise specified in an Item 8
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applicable categorical pretreatment standard. If 40 CFR Part 136 does not contain sampling or analytical techniques for the pollutant in question, or where the EPA determines that the Part 136 sampling and analytical techniques are inappropriate for the pollutant in question, sampling and analyses shall be performed by using validated analytical methods or any other applicable sampling and analytical procedures suggested by the Director or other parties approved by the EPA. Samples shall be obtained and analyzed at the discharger’s expense. Samples shall be analyzed by a laboratory accredited by the California State Water Resources Control Board for the pollutant or pollutant properties being analyzed.

(i) The detection limit used by the discharger for those substances reported as non- detectable shall be no greater than one-tenth the lowest applicable pretreatment standard.

(j) Records of self-monitoring shall include the following:
(1) Sample Collection Information: date, location, method, preservation, time, and the name of individual collecting the samples;

(2) Analytical Information: dates, names of analysts, techniques or methods used, and the results of such analyses.

(k) All records generated pursuant to this Section shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter.

16.09.100 Monitoring Waiver.

(a) The Director may authorize an industrial user subject to categorical pretreatment standards to forego sampling of a pollutant regulated by a categorical pretreatment standard if the industrial user has demonstrated through sampling and other technical factors that the pollutant is neither present nor expected to be present in the industrial user’s discharge, or is present only at background levels from intake water and without any increase in the pollutant due to activities of the industrial user. This authorization is subject to the following conditions:

(1) The waiver may be authorized where a pollutant is determined to be present solely due to sanitary wastewater discharged from the facility provided that the sanitary wastewater is not regulated by an applicable categorical pretreatment standard and otherwise includes no process wastewater.

(2) The monitoring waiver is valid only for the duration of the effective period of the individual wastewater discharge permit, but in no case longer than five (5) years. The industrial user must submit a new request for the waiver before the waiver can be granted for each subsequent individual wastewater discharge permit.

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(3) In making a demonstration that a pollutant is not present, the industrial user must provide data from at least one sampling of the facility’s process wastewater prior to any treatment present at the facility that is representative of all wastewater from all processes.

(4) The request for a monitoring waiver must be signed by an authorized representative of the industrial user and include the certification statement in 40 CFR 403.6(a)(2)(ii).

(5) Non-detectable sample results may be used only as a demonstration that a pollutant is not present if the EPA approved method from 40 CFR Part 136 with the lowest minimum detection level for that pollutant was used in the analysis.

(6) Any grant of the monitoring waiver by the Director must be included as a condition in the industrial user’s discharge permit. The reasons supporting the waiver and any information submitted by the industrial user in its request for the waiver shall be maintained by the Director for a period of three (3) years after expiration of the waiver.

(7) Upon approval of the monitoring waiver and revision of the industrial user’s discharge permit by the Director, the industrial user must certify on each report that there has been no increase in the pollutant in its wastestream due to activities of the industrial user, in accordance with the reporting requirements in 40 CFR 403.12(e)(2)(v).

(8) In the event that a waived pollutant is found to be present or is expected to be present because of changes that occur in the industrial user’s operations, the industrial user shall immediately notify the Director and shall monitor for the waived pollutant at least once during each PRCC reporting period or more frequently if directed by the Director.

(b) This Section does not supersede certification processes and requirements established in categorical pretreatment standards, except as otherwise specified in the categorical pretreatment standard.

16.09.105 Pretreatment Facilities.

(a) Industrial users shall provide wastewater pretreatment as necessary to comply with this Chapter and shall achieve compliance with all categorical pretreatment standards, local limits, and the prohibitions contained in Section 16.09.040 of this Chapter within the time limitations specified by EPA, the State, or the Director, whichever is most stringent. Industrial users shall, at all times, properly operate and maintain all facilities and systems of treatment, disposal, monitoring, and control (and related appurtenances) which are installed or used by the industrial user to achieve compliance with this Chapter and/or their wastewater discharge permit. Any facilities necessary for compliance shall be provided, operated, and maintained at the industrial user’s expense. All required facilities and systems of treatment and operations and Item 8
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maintenance procedures shall be described in detailed plans, operations and maintenance manuals, and standard operating procedures. Plans, operations and maintenance manuals, and standard operating procedures shall be submitted to the Director for review, and shall be acceptable to the Director before such facilities and/or procedures are constructed and/or implemented. The review of such plans and operating procedures shall in no way relieve the industrial user from the responsibility of modifying such facilities and/or procedures as necessary to produce a discharge acceptable to the City under the provisions of this Chapter. Industrial users shall keep in a state of readiness all systems installed to achieve compliance with the provisions of this Chapter and/or their wastewater discharge permit. All systems, both those in service and reserve, shall be inspected and maintained on a regular basis.

(b) Inspection and maintenance records for process and pollution control and monitoring systems shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter.

(c) It shall be unlawful to tamper with, divert flow from, or render inaccurate any monitoring device or equipment installed or operated to comply with pretreatment standards or requirements, this Chapter, or a discharge permit. Doing so constitutes falsification of information as described in Section 16.09.145 of this Chapter.

(d) Whenever deemed necessary, the Director may require industrial users to restrict their discharge during peak flow periods, designate that certain wastewater be discharged only into specific sewers, relocate and/or consolidate points of discharge, separate sewage wastestreams from industrial wastestreams, and such other conditions as may be necessary to protect the POTW and determine the industrial user’s compliance with the requirements of this Chapter.

(e) The Director may require any person discharging into the POTW to install and maintain, on their property and at their expense, a suitable storage and flow-control facility to ensure equalization of flow. An individual wastewater discharge permit may be issued solely for flow equalization.

(f) The Director may require any discharger to install settling chambers or equivalent pretreatment systems where necessary to prevent the entry of inert solids into the sanitary sewer system. For the purposes of this Section, “inert solids” shall mean solid substances including, but not limited to: sand, rocks, dirt, glass, metal, wood, bone, or plastic;

(g) Grease, oil, and sand interceptors shall be provided by the discharger when, in the opinion of the Director, they are necessary for the proper handling of wastewater containing excessive amounts of grease and oil, or sand; except that such interceptors shall not be required for residential users. All interception units shall be of a type and capacity approved by the Director and shall be so located to be easily accessible for cleaning and inspection. Such Item 8
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interceptors shall be inspected, cleaned, and repaired at the discharger’s expense in accordance with guidelines established by the Director. This subsection shall apply in addition to any applicable requirements of Chapter 16.13 of this Code.

16.09.110 Personnel Orientation.

(a) Dischargers shall take necessary steps to inform appropriate personnel of the provisions of this Chapter and specifically, any operations and maintenance manuals and standard operating procedures required by this Chapter. Such personnel shall include, but not be limited to, workers, contractors, supervisors, and managers whose duties or responsibilities pertain in any manner to the production, treatment, or disposal of wastes regulated by this Chapter.

(b) Steps to inform such personnel shall include, but not be limited to:

(1) Orientation of newly employed or assigned personnel prior to commencement of work and at least annually thereafter;

(2) Posting of signs at work areas indicating approved methods for disposition of wastes and reporting requirements and instructions for accidental spills and increased loadings; and

(3) Posting of signs visible from each drainage area (sink, cup sink, floor drain, etc.) not connected to appropriate treatment indicating “NOTICE – DO NOT DISPOSE OF CHEMICALS IN THIS DRAIN” or equivalent.

(c) All signs shall be translated into the primary language(s) of personnel whose duties or responsibilities pertain in any manner to the production, treatment or disposal of wastes regulated by this Chapter, unless the primary language of all personnel is English.

16.09.115 Accidental Discharge Prevention.

(a) Industrial users shall provide adequate protection to prevent accidental discharge of hazardous or prohibited materials, slugs, or other wastes regulated by this Chapter. Where directed by the Director the industrial user shall install retention basins, dikes, storage tanks, or other facilities in conformance with Title 17 of this code designed to eliminate, neutralize, offset or otherwise negate the effects of prohibited materials or wastes which may be accidentally discharged in violation of Chapter 16.09.

(b) Each industrial user shall notify the City immediately of any changes at its facility affecting the potential for a slug discharge as required by Section 16.09.135 of this Chapter.

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(c) The Director may require any industrial user to develop, submit, and implement a slug control plan or take such other action that may be necessary to control slug discharges. A slug control plan shall contain, at a minimum, the following:

(1) Description of discharge practices, including non-routine batch discharges;

(2) Description of stored chemicals;

(3) Procedures for immediately notifying the Director of slug discharges, as required by Section 16.09.135 of this Chapter; and

(4) Procedures to prevent adverse impact from any accidental or slug discharge. Such procedures include, but are not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site runoff, worker training, building of containment structures or equipment, measures for containing toxic organic pollutants, including solvents, and/or measures and equipment for emergency response.

16.09.120 Reporting and Certification Requirements for Industrial Users.

(a) Industrial users are subject to the reporting and certification requirements contained in Title 40 CFR Part 403.

(b) Industrial users shall submit PRCCs to the Director every six months, on January 15th and July 15th of each calendar year. The Director may require more frequent reporting for individual industrial users as deemed reasonable or necessary to ensure compliance with the provisions of this Chapter.

(c) All PRCCs must be signed by an authorized representative and contain appropriate certification statements. If the designation of an authorized representative is no longer accurate because a different individual or position has responsibility for the overall operation of the facility or overall responsibility for environmental matters for the company, a new written authorization satisfying the requirements of this Section must be submitted to the Director prior to or together with any reports to be signed by an authorized representative.

(d) PRCCs shall be completed according to guidelines established by the Director. In cases where a pretreatment standard requires compliance with a BMP or pollution prevention alternative, the industrial user must submit documentation required by the Director or the categorical pretreatment standard necessary to determine the compliance status of the industrial user.

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(e) The Director may require information on facility operations in addition to that required on PRCC forms as deemed necessary to evaluate industrial user compliance during the reporting period.

(f) If an industrial user subject to the reporting requirements in this Chapter monitors any regulated pollutant at an appropriate sampling location more frequently than required and in accordance with the techniques prescribed in 40 CFR Part 136 and amendments thereto, the results of this monitoring shall be reported in the industrial user’s PRCC.

(g) A discharger determined to be a non-significant categorical industrial user by the Director pursuant to Section 16.09.015(s)(5)(C) of this Chapter must annually submit the signed certification in accordance with 40 CFR 403.3(v)(2) and an alternative PRCC required by the Director.

(h) The Director may establish an electronic submittal program for submission of reports, documents, and data pursuant to 40 CFR Part 3.

(i) Industrial users that send electronic (digital) documents to the Director to satisfy the requirements of this Section must meet all Federal, State, and local electronic signature requirements. Electronic data shall be in a format required by the Director. The Director may require reporting in both digital and traditional format.

(j) Industrial users that send electronic documents to the Director to satisfy the requirements of this Section must register for the system online and submit a signed subscriber agreement to the Director. An electronic submission shall be deemed to have been properly received by the Director when it is received by the electronic system, accessible by RWQCP staff and a confirmation is sent to the signatory making the submission. When the sender receives confirmation and can fully review the submitted materials, the report and related data shall be considered received.

(k) Electronic submittal of reports, documents, and data by any person under an electronic submittal program established by the Director is subject to the following requirements:

(1) A person is subject to any appropriate civil or criminal penalties, or other remedies under Federal, State or local law for failure to comply with a reporting requirement if the person does not comply with the applicable provisions of the established electronic submittal program;

(2) In the event that any submittal under the established electronic submittal program bears an electronic signature, the electronic signature has the same effect under this Item 8
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Section as if the submitting person had instead submitted a paper document with a wet signature;

(3) Proof that a particular electronic signature device was used to create an electronic signature included in reports, documents or data submitted under the established electronic submittal program shall be sufficient to establish that the individual uniquely entitled to use the electronic signature device at the time of signature did so with the intent to sign the electronic report, document or data and thereby validate and give effect to the electronic submittal; and

(4) Nothing in the established electronic submittal program limits the use of the electronically submitted reports, documents, or data or any information contained therein as evidence in enforcement proceedings.

(l) Failure to submit required reports by the specified due date shall be considered a violation of the provisions of this Chapter. The Director may allow submission of required reports on the following business day in instances where the due date falls on a weekend or a holiday.

16.09.125 Reports from Unpermitted Users.

Dischargers not required to obtain an individual wastewater discharge permit or coverage under a general discharge permit shall provide reports to the Director as deemed reasonable or necessary by the Director.

16.09.130 Reports of Changed Conditions and Final Closure.

Each industrial user shall notify the Director of any significant changes to the industrial user’s operations or system which might alter the nature, quality, or volume of its wastewater, including but not limited to facility or process closure, at least thirty (30) calendar days before the change.

(a) The Director may require the industrial user to submit such information as may be deemed necessary to evaluate the changed condition, including the submission of a wastewater discharge permit application under Section 16.09.080 of this Chapter.

(b) The Director may issue an individual wastewater discharge permit or a general discharge permit under Section 16.09.075 of this Chapter or modify an existing individual wastewater discharge permit or a general discharge permit under Section 16.09.085 of this Chapter in response to changed conditions or anticipated changed conditions.

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(c) For the purposes of this Section, “final closure” means closure of an industrial or commercial facility when an entire building is being vacated by the current discharger, or when a discharger’s use of an entire building will no longer include use of hazardous materials. Prior to final closure of any industrial or commercial facility, the Director may require cleaning, inspection, and/or testing of the facility’s sanitary sewer lines, appurtenances, and/or devices at the discharger’s expense to ensure that the integrity of the sewer lines has not been compromised and to determine the quantity and pollutant content of sediments. Inspection and/or testing to ensure the integrity of sewer lines may be required at the discharger’s expense when the discharger’s discharge history at that facility includes pH fluctuations, or when past discharges may have compromised or call into question the integrity of the sewer lines.

Inspection and/or testing to determine the quantity and pollutant content of sediments may be required when the discharger’s type of operations and pollutant content of discharges make the presence of contaminated sediments likely. Inspection and testing may include, but not be limited to, pressurized testing, smoke testing, video camera inspection, and/or analytical testing of sediments for pollutants regulated by the discharger’s discharge permit. Where contaminated sediments or compromised sewer lines are identified, responses may include, but are not limited to, requiring replacement of compromised sewer lines and requiring removal of contaminated sediments from sewer lines at discharger’s expense. In lieu of analytical testing, facilities may elect to remove sediments from sewer lines in a manner approved by the Director.

16.09.135 Reports of Potential Problems and Accidental Discharges.

(a) In the case of any discharge, including, but not limited to, accidental discharges, discharges of a nonroutine, episodic nature, a noncustomary batch discharge, or a slug discharge that might cause problems for the POTW, the discharger shall immediately telephone and notify the Director of the incident at (650) 329-2122 or (650) 329-2598. If the discharger is unable to reach a live person at the POTW, the industrial user shall immediately notify the City by calling the City of Palo Alto 24-hour Dispatch Center at (650) 329-2413. This notification shall include the location of the discharge, type of waste, concentration and volume, if known, and corrective actions taken by the discharger.

(b) The discharger shall immediately take action to stop, contain, and cleanup unauthorized discharges or otherwise stop the noncompliance with this Chapter, and correct the problem.

(c) Unless directed otherwise by the Director, as soon as practicable and throughout the incident, the discharger shall collect representative samples at the point of release and at any impacted sampling location(s) and provide analytical results to the Director.

(d) Within five (5) business days following such discharge, the discharger shall, unless waived by the Director, submit a detailed written report describing the cause(s) of the discharge and the measures to be taken by the discharger to prevent similar future occurrences. Such Item 8
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notification shall not relieve the discharger of any expense, loss, damage, or other liability which might be incurred as a result of damage to the POTW, natural resources, or any other damage to person or property; nor shall such notification relieve the discharger of any fines, penalties, or other liability which may be imposed pursuant to this Chapter.

(e) A notice shall be permanently posted on the discharger’s bulletin board or other prominent place advising employees who to call in the event of a discharge described in subsection (a), above. Employers shall ensure that all employees, who could cause such a discharge to occur, are advised of the emergency notification procedure.

(f) Significant industrial users are required to notify the Director immediately of any change at its facility affecting the potential for a slug discharge.

16.09.140 Reports of Noncompliance.

(a) Noncompliance with the provisions of this Chapter, or the provisions of any discharge permit issued pursuant to this Chapter shall be reported to the Director within twenty-four (24) hours of becoming aware of the noncompliance. Reports of noncompliance related to discharge that might cause potential problems for the POTW are to be reported pursuant to section 16.09.135 of this Chapter. If the noncompliance is related to sampling performed by an industrial user, the industrial user shall repeat the sampling and analysis and submit the results of the repeat analysis to the Director within thirty (30) calendar days after becoming aware of the noncompliance. Resampling by the industrial user is not required if the City performs sampling at the industrial user’s facility at least once a month, or if the City performs sampling at the industrial user’s facility between the time when the initial sampling was conducted and the time when the industrial user or the City receives the results of this sampling, or if the City has performed the sampling and analysis in lieu of the industrial user.

(b) Such notification shall not relieve the discharger of any expense, loss, damage, or other liability which might be incurred as a result of damage to the POTW, natural resources, or any other damage to person or property; nor shall such notification relieve the discharger of any fines, penalties, or other liability which may be imposed pursuant to this Chapter.

16.09.145 Falsification of Information.

It shall be unlawful for any person to make any false statements, representations, or certifications in any application, record, report, plan, or other documentation filed, or required to be maintained, pursuant to this Chapter, an individual wastewater discharge permit, general discharge permit, or order issued hereunder, or who falsifies, tampers with, diverts flow from, or knowingly renders inaccurate any monitoring device or method required under this Chapter. A person who knowingly makes any such false statements, representations, or certifications shall be subject to:

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(a) The provisions of 18 U.S.C. Section 1001 relating to fraud and false statements;

(b) The provisions of Section 309(c)(4) of the Clean Water Act (33 U.S.C. Section 1319(c)(4) as amended, governing false statements, representations or certification;

(c) The provisions of Section 309(c)(6) of the Clean Water Act (33 U.S.C. Section 1319(c)(6) regarding responsible corporate officers; and

(d) Enforcement under Section 16.09.200 of this Chapter.

16.09.150 Date of Receipt of Reports.

Written reports will be deemed to have been submitted on the date postmarked. For reports that are not mailed, postage prepaid, into a mail facility serviced by the United States Postal Service, the date of receipt of the report shall govern.

16.09.155 Retention of Records.

Industrial users subject to the reporting requirements of this Chapter shall retain, and make available for inspection and copying without unreasonable delay, all records of information obtained pursuant to this Chapter including, but not limited to, any required monitoring activities, any additional records of information obtained pursuant to monitoring activities undertaken by the industrial user independent of such requirements, hazardous waste manifests, and documentation associated with BMPs. This includes electronic data and information records maintained and/or submitted in accordance with Section 16.09.120 of this Chapter. Records shall include the date, exact place, method, and time of sampling, and the name of the person(s) taking the samples; the dates analyses were performed; who performed the analyses; the analytical techniques or methods used; and the results of such analyses. All records required to be maintained by this Chapter shall remain available for a period of at least three (3) years. This period shall be automatically extended for the duration of any unresolved litigation concerning the industrial user or the City, or where the industrial user has been specifically notified of a longer retention period by the Director.

16.09.160 Requirements for Sinks and Drains.

(a) Interior (indoor) floor drains may not be placed in areas where hazardous materials, hazardous wastes, industrial wastes, industrial process water, lubricating fluids, vehicle fluids, or vehicle equipment cleaning wastewater are used or stored. The Director may allow an exception to this requirement under the following circumstances:

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(1) When the drain is connected to a wastewater treatment unit approved by the Director;

(2) When the drain is protected from spills by a berm system;

(3) When secondary containment is provided for all such materials and equipment;

(4) For safety showers: When the drain is installed with a temporary plug which remains closed except when the shower is in use, or when the drain is protected from spills by either a covered sump or berm system;

(5) For industrial process equipment: If the equipment does not contain hazardous materials or hazardous waste and if all floor drains are equipped with fail-safe valves which shall be kept closed during periods of operation.

(b) Exterior (outdoor) drains may be connected to the sanitary sewer system only if the area in which the drain is located is covered and protected from rainwater run-on by berms and/or grading, and appropriate wastewater pretreatment approved by the Director is provided.

(c) Aspirators connected to laboratory sink faucets are prohibited. Aspirators designed and used for transferring acids and bases from stationary, permanent laboratory sinks to treatment facilities shall be allowed.

(d) No chemicals or hazardous material shall be stored above a sink that is connected to the sanitary sewer system. Laboratory countertops and laboratory sinks shall be separated by a berm which prevents hazardous materials spilled on the countertop from draining to the sink.

(e) Sewer traps below laboratory sinks shall be made of glass or other approved transparent materials to allow inspection and to determine frequency of cleaning. Alternatively, a removable plug for cleaning the trap may be provided, in which case a cleaning frequency shall be established by the Director. The Director may grant an exception to this requirement for areas where mercury or mercury-containing equipment will not be stored or used; provided, that in the event such an exception is granted and mercury or mercury-containing equipment is subsequently stored or used in the area, the sink trap shall be retrofitted at the discharger’s expense to meet this requirement prior to storage or use of mercury or mercury-containing equipment.

16.09.165 Requirements for Newly Constructed, Remodeled, Improved, or Converted Commercial and Industrial Facilities.

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(a) The following requirements apply, where applicable or necessary to effectuate the objectives of this Chapter, to new construction, remodels, improvement, or conversions of commercial and industrial facilities that require a planning entitlement or building permit from the City:

(1) Dischargers of industrial waste shall be in full compliance with the provisions of this Chapter prior to commencement of discharge into the sanitary sewer system;

(2) Upon request of the Director, dischargers shall complete a waste minimization study in accordance with guidelines established by the Director;

(3) Industrial waste shall be separated from sewage by means of separate plumbing prior to a point determined acceptable by the Director for location of industrial waste pretreatment and/or monitoring equipment;

(4) Sinks as well as exterior and interior drains are subject to the requirements of and shall be in compliance with Section 16.09.160 of this Chapter;

(5) Copper, copper alloys, lead, and lead alloys, including brass, shall not be used in sewer lines, connectors, or seals coming in contact with sanitary sewage except for domestic waste sink traps and short lengths of associated connecting pipes where alternate materials are not practical;

(6) Sacrificial zinc anodes are not permitted to be in contact with the water supply in a water distribution system;

(7) Discharge drains for pools, spas, and fountains shall not be connected directly to the storm drain system or to the sanitary sewer system.

(8) If installed, parking garage floor drains on interior levels shall be connected to an oil-water separator prior to discharging to the sanitary sewer system. The oil-water separator shall be cleaned at a frequency of at least once every twelve (12) months or more frequently if recommended by the manufacturer or required by the Director. Installation, certification, and maintenance records shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter. Oil-water separators shall have a minimum capacity of 100 gallons;

(9) Mercury switches shall not be installed in sewer or storm drain sumps;

16.09.170 Requirements for Newly Constructed, Remodeled, Improved, or Converted Multiple-Family Use Residential Properties.

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(a) The following requirements apply, where applicable or necessary to effectuate the objectives of this Chapter, to newly constructed, remodeled, improved, or converted multiple- family use residential properties that require a planning entitlement or building permit from the City to the extent that the portion of the property to be constructed, remodeled, or converted is related to the subject of the requirement:

(1) Sinks as well as interior and exterior drains are subject to the requirements of and shall be in compliance with Section 16.09.160 of this Chapter;

(2) Copper, copper alloys, lead, and lead alloys, including brass, shall not be used in sewer lines, connectors, or seals coming in contact with sanitary sewage except for domestic waste sink traps and short lengths of associated connecting pipes where alternate materials are not practical;

(3) Sacrificial zinc anodes are not permitted to be in contact with the water supply in a water distribution system;

(4) Discharge drains for pools, spas, and fountains shall not be connected directly to the storm drain system or to the sanitary sewer system. When draining is necessary the discharge to the sanitary sewer system will be allowed pursuant to permitting requirements under Section 16.09.180.

(5) If installed, parking garage floor drains on interior levels shall be connected to an oil-water separator prior to discharging into the sanitary sewer system. The oil-water separator shall be cleaned at a frequency of at least once every twelve (12) months or more frequently if recommended by the manufacturer or required by the Director. Installation, certification, and maintenance records shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter. Oil-water separators shall have a minimum capacity of 100 gallons;

(6) Newly constructed, remodeled or converted multiple-family use residential properties and residential development projects with 25 or more units shall provide a covered area for occupants to wash their vehicles. A drain shall be installed to capture all vehicle washwaters and shall be connected to an oil-water separator prior to discharge to the sanitary sewer system. The oil-water separator shall be cleaned at a frequency of at least once every twelve (12) months or more frequently if recommended by the manufacturer or required by the Director. Oil-water separators shall have a minimum capacity of 100 gallons. The area shall be graded or bermed in such a manner as to prevent the discharge of stormwater to the sanitary sewer system. This requirement can be exempted if no washing is allowed on-site via rental/lease agreement, any hose bibs are to be fitted with lock-outs or other connection controls, and signage is posted indicating that car washing is not allowed;

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(7) Mercury switches shall not be installed in sewer or storm drain sumps;

16.09.175 Requirements for Cooling Systems, Pools, Spas, Fountains, Boilers, and Heat Exchangers.

(a) Once-through cooling water from systems using potable water as a coolant shall not be discharged to the sanitary sewer system except in the following instances:

(1) Emergency;
(2) For once-through cooling water used for bench top reflux or distillation or other similarly sized activity; or
(3) For short term use only, upon the determination that the use is for a research activity for which another source of cooling is not readily available.

(b) No person shall add to cooling systems, pools, spas, fountains, boilers, or heat exchangers, any substance that contains any of the following:

(1) Chromium in excess of 2.0 mg/L;

(2) Copper in excess of 2.0 mg/L;

(3) Zinc in excess of 2.0 mg/L;

(4) Tributyltin in excess of 0.1 mg/L or

(5) Molybdenum in excess of 2.0 mg/L.

The above limits shall apply to any of the above-listed substances pri to dilution in the cooling system, pool, spa, fountain, boiler, or heat exchanger.

(d) Devices using electricity to dissolve copper or silver into water distribution systems, cooling systems, pools, spas, or fountains must be authorized by the Director in writing.

16.09.180 Requirements for Exceptional Waste.

(a) A discharger may submit a discharge permit application form established by the Director to request to discharge prohibited wastes not in conformance with this Chapter or wastes containing concentrations of substances or characteristics in excess of those permitted Item 8
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by this Chapter. Discharge originating within the City of Palo Alto of such wastes shall not be allowed without first obtaining a discharge permit from the Director.

(b) Exceptional wastes, as used in this Section, are aqueous wastes that may include, but are not limited to:

(1) Construction site dewatering wastewater where soil or groundwater contamination is or may be present;

(2) Groundwater contaminated with organic solvents generated as a result of pump tests in preparation for a groundwater cleanup and wastewater generated during sampling activities;

(3) Aqueous wastes generated by either permanent or mobile hazardous waste treatment units used to treat hazardous wastes at the generator’s site;

(4) Aqueous wastes generated as a result of site cleanup activities;

(5) Pool drainage greater than 20,000 gallons. Pools that are 20,000 gallons or less may be drained with a hose or other temporary system or a fixed pipe with an air gap an receiving sink to a discharger’s sanitary sewer cleanout pursuant to Section 16.09.170 without an Exceptional Waste Discharge Permit if done so during dry weather and at a rate of 30 gpm or less; or

(6) Fire sprinkler system flush, test, or drain water discharged at a rate greater than 30 gpm. Fire sprinkler system flush, test, or drain water discharged at a rate less than 30 gpm may be drained to a discharger’s sanitary sewer cleanout without an Exceptional Waste Discharge permit.

16.09.185 Root and Pest Control Chemical Use.

(a) No person shall discharge, dispose of or add to the sanitary sewer system any substance intended to control roots or pests without first obtaining a discharge permit from the Director. Applicants for a discharge permit shall submit a completed discharge permit application form established by the Director.

(b) The Director may impose terms and conditions in the discharge permit which the Director deems reasonable or necessary to carry out the purpose of this Chapter.

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(c) No person shall discharge, dispose of, or add to the sanitary sewer system any substance containing greater than five percent copper by weight, or copper sulfate in any amount, to control roots.

(d) The provisions of this Section shall not apply to discharges from residential properties.

16.09.190 Requirements for Dental Facilities.

(a) Except as provided in Subsection (b) below, no person shall discharge, cause, allow, or permit any discharge to the sanitary sewer system from a dental vacuum system, unless such discharge has first been processed through an amalgam separator as defined by Section

16.09.015 of this Chapter.

(b) A dental vacuum system may be operated without an amalgam separator provided that the system is not used in connection with the removal or placement of fillings that contain dental amalgam except in limited emergency or unplanned, unanticipated circumstances, and the system is used exclusively by the following types of dental practices:

(1) Oral Pathology;

(2) Oral and Maxillofacial Radiology;

(3) Oral and Maxillofacial Surgery;

(4) Orthodontics;

(5) Periodontics; or

(6) Prosthodontics.

(d) Dental dischargers that remove or place dental amalgam shall comply with the following BMPs:

(1) Amalgam separators shall be maintained in accordance with manufacturer recommendations. Installation, certification, and maintenance records shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter;

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(2) Amalgam separator(s) shall be inspected in accordance with the manufacturer’s operating manual to ensure proper operation and maintenance of the separator(s) and to confirm that all amalgam process wastewater is flowing through the amalgam retaining portion of the amalgam separator(s). In the event that an amalgam separator is not functioning properly, the amalgam separator must be repaired consistent with manufacturer instructions or replaced with a compliant unit within ten (10) business days after the malfunction is discovered by the dental discharger;

(3) Amalgam retaining units shall be replaced in accordance with the manufacturer’s schedule as specified in the manufacturer’s operating manual or when the amalgam retaining unit has reached the maximum level, as specified by the manufacturer in the operating manual, at which the amalgam separator can perform to the specified efficiency, whichever comes sooner;

(4) Dental office personnel who handle amalgam and amalgam waste shall be trained in the proper handling, management, and disposal of mercury-containing materials.

Training records shall be maintained and made available for inspection and copying in accordance with Section 16.09.155 of this Chapter;

(5) Amalgam waste including, but not limited to dental amalgam from chair- side traps, screens, vacuum pump filters, dental tools, cuspidors, or collection devices shall not be discharged to the sanitary sewer system. Amalgam waste shall be stored, managed and disposed in accordance with applicable Federal, State, and local regulations including the following;
(A) Store and dispose of used chair-side traps, vacuum pump filters, screens, and their contents with amalgam waste.
(B) Store amalgam waste in airtight, structurally sound, and appropriately labeled containers.

(6) Oxidizing or acidic cleaners, including but not limited to bleach, chlorine, iodine, and peroxide, that have a pH lower than 6 or greater than 8 shall not be used to disinfect dental unit water lines, chair-side traps, and vacuum lines that discharge amalgam process wastewater to the sanitary sewer system; and

(7) The use of bulk mercury is prohibited. Only pre-capsulated dental amalgam is permitted.

(e) Records required to be kept pursuant to this Section shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter.

16.09.195 Publication of Users in Significant Noncompliance.

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The Director shall publish at least annually, in a newspaper of general circulation that provides meaningful public notice within the jurisdictions served by the POTW, a list of the industrial users which, at any time during the previous twelve (12) months, were in significant noncompliance with applicable pretreatment standards and requirements. For the purposes of this Section, a significant industrial user (or any industrial user that violates subsections (c), (d), or (h) of this Section) is in significant noncompliance if its violation meets one or more of the following criteria:

(a) Chronic violations of wastewater discharge limits, defined here as those in which sixty-six percent (66%) or more of all of the measurements taken for the same pollutant parameter during a six- (6-) month period exceed (by any magnitude) a numeric pretreatment standard or requirement, including instantaneous limits, as defined by 40 CFR 403.3(l);

(b) Technical review criteria (TRC) violations, defined here as those in which thirty- three percent (33%) or more of all of the measurements taken for the same pollutant parameter during a 6-month period equal or exceed the product of the numeric pretreatment standard or requirement including instantaneous limits, as defined by 40 CFR 403.3(l) multiplied by the applicable TRC (TRC=1.4 for BOD, TSS, fats, oil, and grease, and 1.2 for all other pollutants except pH);

(c) Any other violation of a pretreatment standard or requirement as defined by 40 CFR 403.3(l) (daily maximum, long-term average, instantaneous limit, or narrative standard) that the Director determines has caused, alone or in combination with other discharges, interference or pass through (including endangering the health of City personnel or the general public);

(d) Any discharge of a pollutant that has caused imminent endangerment to human health, welfare, or to the environment or has resulted in the POTW’s exercise of its emergency authority under 40 CFR 403.8(f)(1)(vi)(B) to halt or prevent such a discharge;

(e) Failure to meet, within ninety (90) days after the scheduled date, a compliance schedule milestone contained in an individual wastewater discharge permit or a general discharge permit or enforcement order for starting construction, completing construction, or attaining final compliance;

(f) Failure to provide, within forty-five (45) days after the due date, required reports such as baseline monitoring reports, ninety- (90-) day compliance reports, periodic self- monitoring reports (PRCC), and reports on compliance with compliance schedules;

(g) Failure to accurately report noncompliance; or

(h) Any other violations or group of violations, which may include a violation of BMPs, which the Director determines will adversely affect the operation or implementation of the pretreatment program.

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16.09.200 Enforcement and Penalties.

(a) Warning. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may issue verbal or written warnings in response to minor violations of this Chapter. Compliance with warnings does not limit further enforcement action by the City.

Warnings shall not be a prerequisite to any other enforcement action, including permit suspension or revocation as described in subsection c below.

(b) Notice of violation. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may serve upon that discharger a written notice of violation (NOV).

The NOV may include a deadline to correct such violation(s), or to respond with an explanation of the violation(s) and a plan for the satisfactory correction and prevention thereof. Submission of such a plan in no way relieves the discharger of liability for any violations occurring before or after receipt of the NOV. Nothing in this Section shall limit the authority of the Director to take any action, including emergency actions or any other enforcement action, without first issuing a notice of violation.

(c) Permit revocation or suspension. Subject to the procedural requirements of Section 16.09.205 of this Chapter, the Director may revoke or suspend an individual wastewater discharge permit or coverage under a general discharge permit for good cause, including, but not limited to, the following reasons:

(1) Failure to notify the Director of significant changes to the wastewater prior to the changed discharge;

(2) Failure to provide prior notification to the Director of changed conditions pursuant to Section 16.09.130 of this Chapter;

(3) Misrepresentation or failure to fully disclose all relevant facts in the discharge permit application;

(4) Falsifying self-monitoring reports and certification statements;

(5) Tampering with monitoring equipment;

(6) Refusing to allow the Director timely access to the facility premises and records;
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(7) Failure to meet effluent limitations;

(8) Failure to pay fees, fines, sewer charges, or penalties;

(10) Failure to meet compliance schedules;

(11) Failure to complete a discharge permit application;

(12) Failure to provide advance notice of the transfer of business ownership of a permitted facility; or

(13) Violation of any pretreatment standard or requirement, term of the individual wastewater discharge permit, general discharge permit, or provision of this Chapter.

(d) Required installation of capture system. The Director may order that a discharger install, at the expense of the discharger, a temporary system for the capture, treatment, testing, and release (or off-haul) of wastewater, subject to the following:

(1) This requirement will apply to facilities that have produced multiple violations for the same parameter at the same sampling point or repeat violation of permit provisions, when the Director determines that appropriate corrective measures have proved difficult to identify or implement;

(2) This requirement will apply only to those specific areas of a facility from which the Director determines that the discharge or noncompliance may be originating, rather than to the entire flow from the facility, unless there is no reasonable way to determine where the discharge may be originating or to segregate said flows;

(3) If the Director determines that a capture system is impractical, the Director may require an alternative compliance measure of equivalent effectiveness; and

(4) This requirement will be terminated following a demonstration of compliance as determined by the Director. The sampling required to demonstrate compliance for violations of pollutant limits shall be set by the Director and may be up to twenty-one (21) consecutive business days of violation-free self-monitoring by the discharger followed by up to ten (10) days of violation-free sampling by the Director.

(e) Cease and desist orders. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit or order issued hereunder, or any other pretreatment standard or requirement, or that the discharger’s past violations are likely to recur, the Director may issue an Item 8
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order to the discharger directing it to cease and desist all such violations and directing the discharger to:

(1) Immediately comply with all pretreatment requirements and pretreatment standards contained in this Chapter; and

(2) Take such appropriate remedial or preventative action as may be needed to properly address a continuing or threatened violation, including halting operations and/or terminating the discharge. Issuance of a cease and desist order shall not be a bar against, or a prerequisite for, taking any other action against the discharger.

(f) Administrative compliance order. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may issue a compliance order to the discharger in accordance with Chapter 1.16 of this code. If the discharger does not come into compliance within the time provided, sewer service may be discontinued unless adequate treatment facilities, devices, or other related appurtenances are installed and properly operated, in addition to any other relief allowed by Chapter 1.16 or any other law. Compliance orders also may contain other requirements to address the noncompliance, including additional self- monitoring and management practices designed to minimize the amount of pollutants discharged to the sewer. A compliance order may not extend the deadline for compliance established for a pretreatment standard or requirement, nor does a compliance order relieve the discharger of liability for any violation, including any continuing violation. Issuance of a compliance order shall not be a bar against, or a prerequisite for, taking any other action against the discharger.

(g) Administrative citation. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may issue an administrative citation in accordance with Chapter 1.12 of this code. Issuance of an administrative citation shall not be a bar against, or a prerequisite for, taking any other action against the person.

(h) Emergency suspension. The Director may immediately order a discharger to suspend any discharge, after informal notice, whenever such suspension is necessary to stop an actual or threatened discharge, which reasonably appears to present, or cause an imminent or substantial endangerment to the health or welfare of persons. The Director may also immediately order a discharger to suspend any discharge, after notice and opportunity to respond, that threatens to interfere with the operation of the POTW, or which presents, or may present, an endangerment to the environment. Any discharger notified of a suspension shall immediately stop or eliminate its discharge. In the event of a discharger’s failure to immediately comply Item 8
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voluntarily with the suspension order, the Director may take such steps as deemed necessary, including immediate severance of the sewer connection, to prevent or minimize damage to the POTW, its receiving stream, or endangerment to any persons. Such suspension shall be effective immediately, but shall be reviewable pursuant to the hearing process provided in Section

16.09.205 of this Chapter. The Director may allow the discharger to recommence its discharge when the discharger has demonstrated to the satisfaction of the Director that the period of endangerment has passed, unless the emergency termination or permit revocation proceedings in Section 16.09.200 of this Chapter are initiated against the discharger.

(i) Emergency termination of discharge. The City reserves the right to revoke any permit issued pursuant to this Chapter and/or terminate or cause to be terminated sewer service to any premises for noncompliance with the provisions of this Chapter, an individual wastewater discharge permit, a general discharge permit, which reasonably appear to present an imminent endangerment to the health, safety, and welfare of persons. The discharger shall immediately cease any noncompliant discharge, upon verbal and/or written notice of the Director. Such termination shall be effective immediately, but shall be reviewable pursuant to the hearing process provided in Section 16.09.205 of this Chapter.

(j) Injunctive relief. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may petition the Superior Court of California through the City Attorney for the issuance of a temporary or permanent injunction, as appropriate, which restrains or compels the specific performance of the individual wastewater discharge permit, the general discharge permit, order, or other requirement imposed by this Chapter on activities of the discharger. The Director may also seek such other action as is appropriate for legal and/or equitable relief, including a requirement for the discharger to conduct environmental remediation. A petition for injunctive relief shall not be a bar against, or a prerequisite for, taking any other action against a discharger.

(k) Civil penalties.

(1) Any person who has violated, or continues to violate any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement shall be liable to the City for a maximum civil penalty of up to twenty-five thousand dollars ($25,000) per day for each day in which such violation occurs. In the case of a monthly or other long-term average discharge limit, penalties shall accrue for each day during the period of the violation.

(2) The City may petition the Superior Court of California pursuant to Government Code Section 54740 to recover the sums in subsection (k)(1) of this Section as well as reasonable attorneys’ fees, court costs, and other expenses associated with enforcement Item 8
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activities, including sampling and monitoring expenses, and the cost of any actual damages incurred by the City.

(3) Filing a suit for civil penalties shall not be a bar against, or a prerequisite for, taking any other action against a discharger.

(l) Criminal penalties. As provided in Chapter 1.08 of this code, violations of the provisions of this Chapter shall be subject to criminal penalties. The following employee positions are authorized to exercise the authority provided in California Penal Code section 836.5 for violations of this Chapter: manager watershed protection, senior engineer, manager environmental control program, associate engineer, senior industrial waste investigator, industrial waste investigator, industrial waste inspector.

(m) Remedies nonexclusive. The remedies provided for in this Chapter are cumulative and not exclusive, and shall be in addition to the provisions of Chapters 1.08, 1.12, and 1.16 of this code, and all other remedies available to the City under Federal, State, or local law. The Director may take any, all, or any combination of these actions against a noncompliant discharger. Enforcement actions may be taken concurrently.

16.09.205 Permit Denial, Modification, Suspension, or Revocation Hearing.

(a) An applicant or permit holder shall have at its request, a hearing before the city manager, or their designee, before the applicant’s discharge permit application is denied, or before modification, subjugation to additional terms and conditions, reissuance, suspension, or revocation of a discharger’s discharge permit.

(b) The Director, or their designee, shall give the applicant or permit holder ten (10) calendar days written notice of intent to deny the applicant’s discharge permit application or to modify, make subject to additional terms, suspend, or revoke a discharge permit. Permit modifications that are requested by the discharger, that solely entail a permit term extension, or result from facility final closure are not subject to this notification requirement. The notice shall set forth specifically the grounds for the Director’s intention to deny the applicant’s discharge permit application, or to modify, make subject to additional terms, suspend, or revoke a discharge permit and shall inform the applicant or permit holder that they have ten (10) calendar days from the date of receipt of the notice to file a written request for a hearing. The application shall be denied or the permit shall be revoked, modified, or suspended if a hearing request is not received within the ten day period.

(c) If the applicant or permit holder file(s) a timely hearing request, the city manager, or their designee, shall within ten (10) calendar days from the receipt of the request, set a time and place for the hearing. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing on the issues and to be represented by counsel.

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The decision of the city manager, or designee, whether to deny the discharge permit application or to modify, make subject to additional terms, suspend, or revoke the discharge permit shall be final.

(d) Nothing in this Section shall limit the authority of the Director to take any emergency enforcement actions as specified in Section 16.09.200 of this Chapter.

16.09.210 Affirmative Defenses to Discharge Violations: Upset.

(a) For the purposes of this Section “upset” means an exceptional incident in which there is unintentional and temporary noncompliance with categorical pretreatment standards because of factors beyond the reasonable control of the industrial user. An upset does not include noncompliance to the extent caused by operational error, improperly designed treatment facilities, inadequate treatment facilities, lack of preventive maintenance, or careless or improper operation.

(b) An upset shall constitute an affirmative defense to an action brought for noncompliance with categorical pretreatment standards if the requirements of subsection (c), below, are met.

(c) An industrial user who wishes to establish the affirmative defense of upset shall demonstrate, through properly signed, contemporaneous operating logs, or other relevant evidence that:

(1) An upset occurred and the industrial user can identify the cause(s) of the upset;

(2) The facility was at the time being operated in a prudent and workman-like manner and in compliance with applicable operation and maintenance procedures and discharge permit conditions; and

(3) The industrial user has submitted the following information to the Director within twenty-four (24) hours of becoming aware of the upset (if this information is provided orally, a written submission must be provided within five (5) calendar days):

(A) A description of the indirect discharge and cause of noncompliance;

(B) The period of noncompliance, including exact dates and times or, if not corrected, the anticipated time the noncompliance is expected to continue; and

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(d) In any enforcement proceeding, the industrial user seeking to establish the occurrence of an upset shall have the burden of proof.

(e) Industrial users shall have the opportunity for a judicial determination on any claim of upset only in an enforcement action brought for noncompliance with categorical pretreatment standards.

(f) Industrial users shall control production of all discharges to the extent necessary to maintain compliance with categorical pretreatment standards upon reduction, loss, or failure of its treatment facility until the facility is restored or an alternative method of treatment is provided. This requirement applies in the situation where, among other things, the primary source of power of the treatment facility is reduced, lost, or fails.

16.09.215 Affirmative Defenses to Discharge Violations: Prohibited Discharge Standards.

(a) An industrial user shall have an affirmative defense in any action brought against it for noncompliance with the general prohibitions established in Section 16.09.040 of this Chapter and the specific prohibitions established in subsections (b)(3) through (b)(7) and (b)(9) through (b)(17) of Section 16.09.040 of this Chapter if it can prove that it did not know, or have reason to know, that its discharge, alone or in conjunction with discharges from other sources, would cause pass through or interference and that either:

(1) A local limit exists for each pollutant discharged and the industrial user was in compliance with each limit directly prior to, and during, the pass through or interference; or

(2) No local limit exists, but the discharge did not change substantially in nature or constituents from the industrial user’s prior discharge when the City was regularly in compliance with its NPDES permit, and in the case of interference, was in compliance with applicable sludge use or disposal requirements.

16.09.220 Affirmative Defenses to Discharge Violations: Bypass.

(a) For the purposes of this Section the following terms and phrases shall be as defined herein:

(1) “Bypass” means the intentional diversion of wastestreams from any portion of an industrial user’s treatment facility; and

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(2) “Severe property damage” means substantial physical damage to property, damage to the treatment facilities which causes them to become inoperable, or substantial and permanent loss of natural resources which can reasonably be expected to occur in the absence of a bypass. Severe property damage does not mean economic loss caused by delays in production.

(b) An industrial user may allow any bypass to occur which does not cause pretreatment standards or requirements to be violated, but only if the bypass is for essential maintenance to assure efficient operation or there are no feasible alternatives to the bypass.

These bypasses are not subject to the provision of subsections (d) through (f) of this Section.

(c) If an industrial user knows in advance of the need for bypass, it shall submit prior notice to the Director at least ten (10) calendar days before the date of the bypass, or if the need for bypass becomes known less than ten (10) calendar days in advance, as soon as possible prior to the bypass.

(d) An industrial user shall submit oral notice to the Director of an unanticipated bypass that exceeds applicable pretreatment standards within twenty-four (24) hours from the time it becomes aware of the bypass per Section 16.09.135 of this Chapter. A written submission shall also be provided to the Director within five (5) calendar days of the time the industrial user becomes aware of the bypass. The written submission shall contain a description of the bypass and its cause; the duration of the bypass, including exact dates and times, and, if the bypass has not been corrected, the anticipated time it is expected to continue; and steps taken or planned to reduce, eliminate, and prevent reoccurrence of the bypass. The Director may waive the written report on a case-by-case basis if the oral report has been received within twenty-four (24) hours.

(e) Bypass is prohibited, and the Director may take enforcement action against an industrial user for a bypass, unless;

(1) Bypass was unavoidable to prevent loss of life, personal injury, or severe property damage;

(2) There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of untreated wastes, or maintenance during normal periods of equipment downtime. This condition is not satisfied if adequate back-up equipment should have been installed in the exercise of reasonable engineering judgment to prevent a bypass which occurred during normal periods of equipment downtime or preventative maintenance; and

(3) The industrial user submitted notices as required under subsections (c) or (d) of this Section.

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(f) The Director may approve an anticipated bypass, after considering its adverse effects, if the Director determines that it will meet the three conditions listed in subsection (e) of this Section.

16.09.225 Pretreatment Charges and Fees.

The City may adopt reasonable fees for reimbursement of costs of setting up and operating the City’s pretreatment program, which may include:

(a) Fees for discharge permit applications including the cost of processing such applications;

(b) Fees for monitoring, inspection, and surveillance procedures including the cost of collection and analyzing a discharger’s discharge, and reviewing monitoring reports and certification statements submitted by dischargers;

(d) Fees to recover administrative and legal costs (not included in subsection (b) of this Section) associated with the enforcement activity taken by the Director to address discharger noncompliance; and

(e) Other fees as the City may deem necessary to carry out the requirements of this Chapter.

16.09.230 Obstruction, Damage or Impairment to POTW.

Dischargers shall be responsible for and liable to the City for any discharge that causes an obstruction, damage, or any other impairment to the POTW. When a discharge causes an obstruction, damage, or any other impairment to the POTW, the City may assess a charge against the discharger to reimburse the City for costs incurred to clean or repair said obstruction, damage, or impairment.

SECTION 3. This amended ordinance shall apply to all permits currently in effect and all dischargers, whether permitted or not.

SECTION 4. If any Section, Subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or Sections of the Ordinance. The Council hereby declares that it would have adopted the Ordinance and each Item 8
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Section, Subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more Sections, Subsections, sentences, clauses or phrases be declared invalid.

SECTION 5. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15308 of the CEQA Guidelines, because it is an action taken by the City as a regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.

SECTION 6. This ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ City Attorney or Designee City Manager

____________________________
Director of Public Works

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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 16.11 (Stormwater PolluƟon PrevenƟon) of Title 16 (Building Standards) of the Palo Alto Municipal Code

The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and DeclaraƟons. The City Council ﬁnds and declares as follows:

A. Urban Stormwater Runoﬀ is considered a signiﬁcant pathway for Pollutants into local creeks and the San Francisco Bay (Bay). Rain and irrigaƟon from lawns and gardens wash Pollutants oﬀ of Impervious Surfaces like streets, sidewalks, roofs, driveways, and parking lots into Storm Drain Systems and creeks and, ulƟmately, out to the Bay. Water that ﬂows to the Bay from the Storm Drain System and creeks does not receive any treatment and is oŌen Contaminated by Pollutants that can be toxic to ﬁsh, wildlife, and people.

B. ProtecƟon of the City of Palo Alto’s Storm Drain System and local Receiving Waters requires strict regulaƟons for Non-Stormwater Discharges and overall adherence to the Municipal Regional Stormwater Permit (“MRP”) issued by the San Francisco Bay Regional Water Quality Control Board (“Regional Water Board”) (Order R2-2022-0018).

C. In order to beƩer protect public health, local Receiving Waters, and the City’s Storm Drain System from Pollutants, the City now desires to update its Municipal Code to consolidate Stormwater compliance management requirements within the same Chapter 16.11 and facilitate compliance with the current MRP .

D. The update of Chapter 16.11 is a component of the City’s Stormwater compliance management program and supports the City’s authority to implement Stormwater and PolluƟon prevenƟon requirements mandated by the Regional Water Quality Control Board.

E. The City desires to maintain and enhance its leadership in protecƟng Stormwater quality by not only meeƟng minimum MRP requirements, but also expanding upon those MRP requirements for certain businesses and Development Projects to further protect local creeks and the Bay.

SECTION 2. Chapter 16.11 (Stormwater PolluƟon PrevenƟon) of Title 16 (Building RegulaƟons) of the Palo Alto Municipal Code is repealed and replaced in its enƟrety to read as follows:

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Table of Contents
Part 1 Purpose and Intent; DeﬁniƟons

16.11.010 Purpose and Intent

16.11.020 DeﬁniƟons
Part 2 General Provisions

16.11.030 AdministraƟon

16.11.040 General ObligaƟon

16.11.050 Conﬂicts with Other Laws

16.11.060 Alternate Means and Methods

16.11.070 Prohibited Discharges

16.11.080 Discharge ExempƟons

16.11.090 CondiƟonally Exempt Discharges

16.11.100 ProhibiƟon of Illicit ConnecƟons

16.11.110 Authority to Inspect

16.11.120 Enforcement and PenalƟes

16.11.130 Fees and Charges

16.11.140 ObstrucƟon, Damage or Impairment to City Storm Drain System and Rights-of- Way
Part 3 Development Projects

16.11.150 Regulated Projects

16.11.160 Source Control Measures for Regulated Projects

16.11.170 Site Design Measures for Regulated Projects

16.11.180 Stormwater Treatment Measures for Regulated Projects

16.11.190 CerƟﬁcaƟon of Compliance for Regulated Projects

16.11.200 Green Infrastructure Design and ConstrucƟon Requirements

16.11.210 Required HydromodiﬁcaƟon Management Measures for Regulated Projects

16.11.220 OperaƟon and Maintenance of Stormwater Treatment Measures and HydromodiﬁcaƟon Management Measures
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16.11.230 Low Impact Development Source Control and Site Design Measures for Projects Other Than “Regulated Projects” Under SecƟon 16.11.150

16.11.240 Requirements for All Development Projects

16.11.250 Requirements for Loading Docks

16.11.260 Drainage Design Standards for Development Projects

16.11.270 Requirements for ConstrucƟon Sites and AcƟviƟes Part 4 Required Best Management PracƟces for All Dischargers

16.11.280 Minimum Best Management PracƟces for All Dischargers Part 5 Illicit Discharge DetecƟon and EliminaƟon and Mobile Sources

16.11.290 Spill Containment and NoƟﬁcaƟon of Non-Stormwater Discharges

16.11.300 Mobile Businesses
Part 5 PesƟcides Toxicity Control

16.11.310 PesƟcides Toxicity Control
Part 6 Trash Load ReducƟons

16.11.320 Trash Load ReducƟons
Part 7 Mercury Controls

16.11.330 Mercury Controls
Part 8 Polychlorinated Biphenyls (PCBs) Controls

16.11.340 Polychlorinated Biphenyls Controls

16.11.350 Management of PCBs During Building DemoliƟon AcƟviƟes Part 9 Copper Controls

16.11.360 Copper Controls

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Part 1 Purpose and Intent; DeﬁniƟons

16.11.010 Purpose and Intent

The purpose of this Chapter is to control and limit Stormwater Runoﬀ PolluƟon by prevenƟng Pollutants from entering the City of Palo Alto Storm Drain System and Receiving Waters, including the San Francisco Bay (Bay) and local creeks, marshes, wetlands and other natural habitats, as well as to protect human health and the environment. This Chapter is enacted and shall be implemented in a manner consistent with the Porter-Cologne Water Quality Control Act (Water Code SecƟon 13000 et seq.) and the Federal Clean Water Act (33 U.S.C. SecƟon 1251 et seq.) (CWA), and the requirements of the Municipal Regional Stormwater Permit (MRP) issued by the California Regional Water Quality Control Board, San Francisco Bay-Region 2 (Regional Water Board), as amended from Ɵme to Ɵme. This Chapter is intended to be no less stringent than the MRP and in some respects may be more stringent than regional, state or federal regulaƟons, rules, orders and policies. The City intends to update and modify this Chapter as needed to conƟnue to meet Regional Water Board requirements and provide a program for protecƟon of the Bay and other Receiving Waters. If any provision of this Chapter conﬂicts with the MRP , as amended or updated, the more stringent and environmentally protecƟve provision shall apply.

16.11.020 DeﬁniƟons

The following words and phrases, whenever used in this Chapter, shall be as deﬁned herein.

Words and phrases used in this Chapter not otherwise deﬁned in this SecƟon shall be as deﬁned, interpreted or used in the MRP in eﬀect or, if not used in the MRP , so as to give this Chapter its most reasonable applicaƟon.

(a) “A” deﬁniƟons:

(1) “Applicant” means any Person that submits an applicaƟon for a Planning and Land Use EnƟtlement or Building Permit from the City of Palo Alto.

(b) “B” deﬁniƟons:

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(1) “Best Management PracƟces” or “BMPs” mean a combinaƟon of general good housekeeping pracƟces, PolluƟon prevenƟon and educaƟonal pracƟces, operaƟons and maintenance procedures, and other pracƟces and requirements to prevent or reduce to the Maximum Extent PracƟcable Non-Stormwater Discharges directly or indirectly to the Storm Drain System or Receiving Waters. Sources of industry- standard BMPs include but are not limited to the Santa Clara Valley Urban Runoﬀ PolluƟon PrevenƟon Program, the California Stormwater Quality AssociaƟon Stormwater Best Management PracƟce Handbook, the California Department of TransportaƟon ConstrucƟon Site Best Management PracƟces Manual, and the MRP .

Unless otherwise stated, reference to BMPs generally means non-structural BMPs as described in this deﬁniƟon.

(2) “Building” means any structure used or intended for supporƟng or sheltering any use or occupancy.

(3) “Building Permit” means the authorizaƟon provided by the City to build/construct one or more Buildings.

(1) “CASQA” means California Stormwater Quality AssociaƟon, a professional member associaƟon dedicated to the advancement of Stormwater quality management through collaboraƟon, educaƟon, implementaƟon guidance, regulatory review, and scienƟﬁc assessment.

(2) “City” or “The City” means City of Palo Alto, California.

(3) “ConstrucƟon AcƟvity” means any earth- or soil-disturbing acƟvity, including, but not limited to, clearing, grading, paving, landscaping, excavaƟon, stockpiling, material storage, and disturbances to land or ground such as building of a structure, and demoliƟon or removal of structures or paved surfaces.

(4) “ConstrucƟon Site” means any site where ConstrucƟon AcƟvity occurs.

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(5) “ContaminaƟon” shall have the same meaning as deﬁned in California Water Code SecƟon 13050, as amended from Ɵme to Ɵme.

(6) “ConƟguous” means touching or sharing a border and includes project areas interrupted by cross streets or intersecƟons.

(d) “D” deﬁniƟons:

(1) “Detached Single-Family Home Project” means the building of one single new house or the addiƟon and/or replacement of Impervious Surface to one single exisƟng house, which is not part of a larger plan of development.

(2) “Development Project” means new construcƟon or Redevelopment of any public or private project involving ConstrucƟon AcƟvity and within the planning and building authority of the City.

(3) “Director” means the Director of Public Works of the City of Palo Alto and his or her duly authorized designees.

(4) “Discharge” when used as a verb, means to allow a Stormwater or Non-Stormwater substance to enter the Storm Drain System or a Receiving Water from any acƟvity or operaƟon. When used as a noun, “Discharge” means the Stormwater or Non- Stormwater Discharge that is released or conveyed.

(5) “Discharger” means any Person who causes or permits a Discharge.

(e) “E” deﬁniƟons:

(1) “EPA” or “U.S. EPA” means the Environmental ProtecƟon Agency of the United States of America.

(f) “F” deﬁniƟons:

(1) “Full Trash Capture Device or System” means a treatment control, or series of treatment controls, that traps all parƟcles that are 5 mm or greater and has a design Item 8
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treatment capacity that is either: a) of not less than the peak ﬂow rate, Q, resulƟng from a one-year, one-hour storm in the subdrainage area, or b) appropriately sized to, and designed to carry at least the same ﬂows as, the corresponding storm drain.

The device(s) shall also have a trash reservoir large enough to contain a reasonable amount of trash safely without overﬂowing trash into the overﬂow outlet between maintenance events.

(g) “G” deﬁniƟons:

(1) “Green Stormwater Infrastructure” or “GSI” means infrastructure that uses vegetaƟon, soils, and natural processes to manage Stormwater Runoﬀ. At the scale of a city or county, GSI refers to the patchwork of natural areas that provides habitat and manages smaller storms, cleaner air, and cleaner water and eliminates street ponding. At the scale of a neighborhood or project site, GSI refers to Stormwater management systems that mimic the natural hydrologic cycle by soaking up and storing water.

(h) “H” deﬁniƟons:

(1) “Hazardous Material” means any material designated as hazardous by Title 17 of this Code.

(2) “Hazardous Waste” means any material designated as a Hazardous Waste by applicable federal, state or local regulaƟons.

(i) “I” deﬁniƟons:

(1) “Illicit ConnecƟon” means any device, arƟﬁce, method or connecƟon that conveys Non-Stormwater to the Storm Drain System. Examples may include connecƟons from interior ﬂoor drains, HVAC systems, industrial processes, sinks, and toilets. An Illicit ConnecƟon does not include methods of conveyance of groundwater during ConstrucƟon AcƟviƟes in compliance with this Code and as approved by the Director.

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(2) “Illicit Discharge” means any Discharge that is prohibited under local, state, or federal statutes, ordinances, codes, or regulaƟons and this Chapter. Illicit Discharges do not include Discharges that are exempt or condiƟonally exempt under the MRP , regulated by a NPDES Permit other than the MRP , or authorized by the ExecuƟve Oﬃcer of the Regional Water Board or the Director.

(3) “Impervious Surface” means land that has been modiﬁed to reduce or remove the land's natural ability to absorb and inﬁltrate rainfall. Impervious Surfaces include, but are not limited to, rooŌops, pavement, sidewalks, walkways, paƟos, driveways, and parking lots where such surfaces are not constructed with Pervious materials and/or are not designed to inﬁltrate Stormwater.

(j) “J” deﬁniƟons:

(1) “Joint Stormwater Treatment Facility” is a Stormwater treatment facility built to treat the combined runoﬀ from two or more Regulated Projects located adjacent to each other.

(k) “K” deﬁniƟons: Reserved

(l) “L” deﬁniƟons:

(1) “Loading Dock” means a raised or lowered area of a facility designed to accommodate a truck, trailer or other large delivery vehicle for the loading and unloading of equipment or materials. A Loading Dock does not include such an area where the deliveries are limited solely to furniture and non-electronic oﬃce supplies.

(2) “Low Impact Development” or “LID” is a land planning and engineering design approach with a goal of reducing Stormwater Runoﬀ and mimicking a site’s predevelopment hydrology by minimizing disturbed areas and impervious cover and inﬁltraƟng, storing, detaining, evapotranspiring, and/or biotreaƟng Stormwater Runoﬀ close to its source, or onsite.

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(m) “M” deﬁniƟons:

(1) “Mobile Business” means a business whose operaƟons may produce or result in the producƟon of Pollutants and that does not operate from a permanent structure but instead provides mobile services during parƟcular Ɵme periods or upon request at temporary locaƟons. Types of services include cleaning or power washing of vehicles, structures, windows, or parking lots; engine or equipment degreasing; acid cleaning of unpainted trucks or containers; steam cleaning; carpet cleaning; dental and medical care; vehicle repair, servicing, fueling and cleaning; and pet services (including grooming, veterinary care and other miscellaneous services).

(2) “Municipal Code” means the ordinances and laws adopted and enforced by the City of Palo Alto.

(3) “Municipal Regional Stormwater Permit” or “MRP” means the most recently adopted San Francisco Bay Area Municipal Regional Stormwater Permit, a mulƟ- countywide municipal Stormwater NPDES Permit issued by the California Regional Water Quality Control Board, San Francisco Bay Region-Region 2 (Regional Water Board) to regulate Discharges from municipaliƟes and local agencies in Alameda, Contra Costa, San Mateo, and Santa Clara counƟes, and the ciƟes of Fairﬁeld, Suisun City, and Vallejo.

(n) “N” deﬁniƟons:

(1) “Non-Stormwater Discharge” means any Discharge that is not enƟrely composed of Stormwater. Non-Stormwater Discharges include, but are not limited to, polluted groundwater, any Pollutant, Discharges allowed under an NPDES Permit, or an Illicit Discharge.

(2) “NPDES” means NaƟonal Pollutant Discharge EliminaƟon System, which is a naƟonal program for issuing, modifying, revoking and reissuing, terminaƟng, monitoring and enforcing Permits, and imposing and enforcing pretreatment requirements, under SecƟons 307, 402, 318, and 405 of the Federal Clean Water Act.

(o) “O” deﬁniƟons: Reserved
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(p) “P” deﬁniƟons:

(1) “PCB Screening Assessment” means a report prepared by an Applicant for a demoliƟon Permit containing any informaƟon and data (invesƟgaƟons, reports, soil samples, laboratory results, ConstrucƟon Site controls, etc.) reasonably required by the Director regarding the presence of Polychlorinated Biphenyls (PCBs).

(2) “Permit” means any authorizaƟon issued by the City to carry out an acƟon or acƟvity according to the City’s Municipal Code, rules, and regulaƟons.

(3) “Person” means any individual, partnership, ﬁrm, company, corporaƟon, associaƟon, joint venture, joint stock company, trust, estate, governmental enƟty, or any other legal enƟty; or their representaƟves, agents, or designees.

(4) “Pervious” means capable of allowing water to inﬁltrate below the surface. Pervious materials may include, but are not limited to, permeable interlocking concrete pavers, permeable pavers, Pervious concrete and porous asphalt.

(5) “Planning and Land Use EnƟtlement” means approval provided by the City to develop a Building (or Buildings) or a piece of land for a speciﬁc use according to the City’s development standards, rules, and regulaƟons.

(6) "Pollutants” or “Pollutant” means those substances associated with Stormwater Runoﬀ that may cause or contribute to the degradaƟon of water quality of Receiving Waters and are harmful to aquaƟc life, human health and the environment.

Pollutants commonly associated with Stormwater Runoﬀ include, but are not limited to, total suspended solids; sediment; pathogens (e.g., bacteria, viruses, protozoa); heavy metals (e.g., copper, lead, zinc, and cadmium); petroleum products and polynuclear aromaƟc hydrocarbons; syntheƟc organics (e.g., pesƟcides, herbicides, and PCBs); nutrients (e.g., nitrogen and phosphorus ferƟlizers); oxygen-demanding substances (e.g., decaying vegetaƟon and animal waste); liƩer and trash.

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(7) "PolluƟon" means the presence, introducƟon or Discharge into a Receiving Water of a Pollutant that has harmful or poisonous eﬀects on aquaƟc life, ecological habitat, natural processes of creeks and waterbodies, public health and the environment.

(q) “Q” deﬁniƟons: Reserved

(r) “R” deﬁniƟons:

(1) “Receiving Water” means waters of the State, as deﬁned by the Porter-Cologne Water Quality Control Act. Receiving Waters include but are not limited to creeks, marshes, wetlands, shorelines, estuaries, and bays.

(2) “Redevelopment” means any land-disturbing acƟvity that results in the creaƟon, addiƟon, or replacement of exterior Impervious Surface area on a site on which some past development has occurred. This category includes projects on public or private land that fall under the planning and building authority of the City.

(3) "Refuse" means and includes compostable materials, recyclable materials, and solid waste. Solid waste means solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emanaƟng from residenƟal premises or commercial premises including but not limited to garbage, trash, rubbish, ashes, and industrial wastes.

(4) “Refuse Management and Containment Area” means an area such as a room located inside a Building or an enclosed structure located outdoors to keep, manage and contain compostable, recyclable and solid waste.

(5) “Regional Water Board” or “Water Board” means the California Regional Water Quality Control Board, San Francisco Bay-Region 2.

(6) “Regulated Project” means a project described in Chapter 16.11.150, “Regulated Projects.”

(7) “Remodel” is an extension or modiﬁcaƟon of an exisƟng structure. This may include a one or second-story addiƟon that increases the footprint of the structure or an Item 8
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interior reconﬁguraƟon.

(8) “Responsible Party” means any Person who owns, operates, or manages a property, business, facility, or site, or who is otherwise responsible for the acƟviƟes thereon or the Person whose acƟon or omission causes or results in the violaƟon of this Chapter.

(s) “S” deﬁniƟons:

(1) “Sanitary Sewer System” means the collecƟon system, all sewers, treatment plants and other faciliƟes owned or operated by the City for carrying, collecƟng, storing, treaƟng, reclaiming and disposing of sanitary Sewage and industrial wastes (as deﬁned in SecƟon 16.09.015 of Title 16 of the Palo Alto Municipal Code).

(2) “SCVURPPP” or “Santa Clara Valley Urban Runoﬀ PolluƟon PrevenƟon Program” means an associaƟon of ﬁŌeen agencies in Santa Clara Valley that share a common NPDES MRP to Discharge to south San Francisco Bay. Member agencies (also referred to as Co-permiƩees) include the ciƟes or towns of Campbell, CuperƟno, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga, and Sunnyvale, Santa Clara County, and the Santa Clara Valley Water District (Valley Water).

(3) “Sewage” means the wastewater of the community derived from residenƟal, agricultural, commercial, or industrial sources, including domesƟc Sewage, and industrial wastewater, which is required to be conveyed to the Sanitary Sewer System.

(4) “Site Design Measure” means a site planning technique to conserve natural spaces and/or limit the amount of Impervious Surface at Development and Redevelopment Projects in order to minimize runoﬀ and the transport of Pollutants in Stormwater Runoﬀ.

(5) “Source Control Measure” means any BMP that aims to prevent runoﬀ PolluƟon by Item 8
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reducing the potenƟal for contact with rainfall runoﬀ at the source of PolluƟon.

Source control BMPs minimize contact between Pollutants and Stormwater Runoﬀ.

(6) “Special Projects” are a type of Regulated Project that meets criteria based on size, land use type, and density per the MRP . These projects are typically located in high density areas and are centered around transit-oriented development. If criteria determined by the MRP are met, projects are enƟtled to incenƟve LID treatment reducƟon credits approved by the Water Board.

(7) “Storm Drain System” means the storm drain faciliƟes owned, managed, or operated by the City by which Stormwater is collected and/or conveyed to Receiving Waters, including but not limited to streets and roads, guƩers, curbs, inlets, piped storm drains, parking lots, pumping faciliƟes, retenƟon and detenƟon basins, natural and human-made or altered drainage channels, reservoirs, and other drainage structures which are within the City’s jurisdicƟon. The Storm Drain System also includes pipes, underground and surface conveyances, and other components on private property and other property within the City’s limits not owned by the City that connect and/or route Stormwater and Stormwater Runoﬀ to the City’s Storm Drain System.

(8) “Stormwater” means any surface ﬂow, runoﬀ, and drainage consisƟng enƟrely of water that originates from precipitaƟon events.

(9) “Stormwater Runoﬀ” means ﬂow that is created when precipitaƟon falls on Impervious Surfaces or compacted Pervious surfaces that do not allow water to inﬁltrate into the ground.

(10) “Stormwater Run-on” means ﬂow that runs across Impervious Surfaces or compacted Pervious surfaces from one property to another or from one use on a property to another.

(11) “Stormwater Treatment Measure” means any engineered, non-mechanical or constructed system designed to remove Pollutants from Stormwater Runoﬀ by simple gravity seƩling of parƟculate Pollutants, ﬁltraƟon, inﬁltraƟon, biological uptake, media adsorpƟon or any other physical, biological, or chemical process.

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(12) “Structural Retroﬁt Best Management PracƟces” or “Structural Retroﬁt BMPs” means a retroﬁt to a structure, ﬁxed feature, or property to prevent or minimize the potenƟal of a Non-Stormwater Discharge to the Storm Drain System or Receiving Waters, in associaƟon with an enforcement acƟon due to noncompliance with this Chapter.

(t) “T” deﬁniƟons: Reserved

(u) “U” deﬁniƟons: Reserved

(v) “V” deﬁniƟons: Reserved

(w) “W” deﬁniƟons: Reserved

(x) “X” deﬁniƟons: Reserved

(y) “Y” deﬁniƟons: Reserved

(z) “Z” deﬁniƟons: Reserved

Part 2 General Provisions

16.11.030 AdministraƟon

The Director shall be responsible for the administraƟon and enforcement of the provisions of this Chapter and has the authority to promulgate such orders, regulaƟons, rules, condiƟons of approval, and requirements as are necessary to accomplish the purposes of this Chapter. The primary regulatory document implemenƟng this Chapter is Palo Alto RegulaƟons for Stormwater PolluƟon PrevenƟon.

16.11.040 General ObligaƟon

All Dischargers of Non-Stormwater and Persons that engage in acƟviƟes with the potenƟal to Item 8
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cause a Non-Stormwater Discharge to the Storm Drain System and Receiving Waters shall comply with the provisions of this Chapter. ViolaƟons of regulaƟons implemenƟng this Chapter shall be considered violaƟons of this Chapter.

16.11.050 Conﬂicts with Other Laws

In the event of any conﬂict between this Chapter and any federal or state law, regulaƟon, order, or Permit, the requirement that establishes the higher standard for public health or safety shall govern. Nothing in this Chapter shall preclude enforcement of any other applicable law, regulaƟon, order, or Permit. Nothing in this Chapter shall be interpreted to infringe any vested property right.

16.11.060 Alternate Means and Methods

The Director, upon applicaƟon in wriƟng by the owner, a lessee, or an authorized representaƟve of the Discharger, and on noƟce to the Director, is authorized to approve alternate means or methods of compliance with this Chapter, provided that the Director ﬁnds that the proposed design, use, or operaƟon saƟsfactorily complies with the intent of this Chapter and that the material, method of work performed, or operaƟon is, for the purpose intended, at least equivalent to that prescribed in this Chapter in quality and eﬀecƟveness in meeƟng the purposes of this Chapter. As required by the Director, an Applicant must show that compliance with the strict requirements of this Chapter is infeasible, and that the proposed alternate means and methods will meet all applicable regional, state, and federal requirements. The parƟculars of any such approval made by the Director shall be in wriƟng and a signed copy shall be furnished to the Applicant.

16.11.070 Prohibited Discharges

General ProhibiƟon. No Person shall cause, allow, or permit any Non-Stormwater Discharge or the condiƟons under which there is a substanƟal probability for such a Discharge to occur unless such Discharge is exempt under SecƟon 16.11.080 or condiƟonally exempt under SecƟon

16.11.090.

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16.11.080 Discharge ExempƟons

Unless determined by the Director or the Regional Water Board to be sources of Pollutants to Receiving Waters, the following Discharges are exempt from Discharge prohibiƟons established by this Chapter and are allowed to ﬂow into the Storm Drain System and Receiving Waters:

(a) Flows from riparian habitats or wetlands;

(b) Diverted stream ﬂows;

(d) Uncontaminated rising groundwater due to natural processes;

(e) Uncontaminated and unpolluted groundwater inﬁltraƟon;

(f) Pumped groundwater from crawl space pumps and foundaƟon and fooƟng drains of single- family homes. Discharges larger than 2,500 gallons per day shall be treated as condiƟonally exempt Discharges and must meet the requirements of the MRP and City regulaƟons;

(g) Pumped groundwater from drinking water aquifers (excluding well development);

(h) Discharges permiƩed under a NPDES Permit issued to the Discharger and administered by the State of California pursuant to Division 7, Chapter 5.5 of the California Water Code, provided that the Discharger is in compliance with all requirements of the Permit and all other applicable laws and regulaƟons; and

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(i) Any other Discharge exempt from the general prohibiƟon on Discharges to the Storm Drain System under the MRP or permiƩed under another NPDES permit.

If any of the above are idenƟﬁed by the Director or the Regional Water Board as sources of Pollutants to Receiving Waters, such categories or sources shall be treated as condiƟonally exempt Discharges in accordance with SecƟon 16.11.090.

16.11.090 CondiƟonally Exempt Discharges

The following Discharges are condiƟonally exempt, subject to control measures and BMPs set forth in the MRP and City regulaƟons:

(a) Pumped groundwater, foundaƟon drains, and water from crawl space pumps and fooƟng drains not from single-family homes;

(b) Air condiƟoning condensate shall be reused or directed to landscaped areas. If neither is feasible, Discharging to the Storm Drain System shall be allowed per the Director’s approval;

(c) Discharges associated with water and foam generated from emergency response and/or ﬁreﬁghƟng acƟviƟes. BMPs shall be implemented to the Maximum Extent PracƟcable to minimize potenƟal adverse water quality impacts from water, foam, and other Pollutants Discharged during emergency response and ﬁreﬁghƟng acƟviƟes. Such implementaƟon shall not interfere with immediate emergency response operaƟons or impact public health and safety.

(d) Discharges from individual residenƟal car washing;

(e) IrrigaƟon water, landscape irrigaƟon, and discharges from lawn or garden watering; and

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(f) Any Discharge that the Director, the local health oﬃcer, the Regional Water Quality Control Board or state or federal agency determines in wriƟng is necessary for the protecƟon of the public health and safety, as allowed under applicable law.

16.11.100 ProhibiƟon of Illicit ConnecƟons

(a) No Person shall construct, use, maintain, or permit or suﬀer the construcƟon, use, maintenance or conƟnued existence of an Illicit ConnecƟon.

(b) Illicit ConnecƟons shall be immediately removed, permanently plugged, or re-plumbed to a connecƟon point approved by the Director.

(c) The provisions of this SecƟon shall apply to, without limitaƟon, Illicit ConnecƟons established in the past, regardless of whether the connecƟon was permissible under law or pracƟces applicable or prevailing at the Ɵme of connecƟon.

16.11.110 Authority to Inspect

(a) The Director shall have the authority to inspect private and public faciliƟes, sites, structures, drainage systems, and Mobile Businesses, whether exisƟng or under construcƟon, whenever necessary to ensure and conﬁrm compliance with this Chapter, applicable City or State regulaƟons, or the MRP .

(b) The Director shall be authorized to enter, without unreasonable delay, and upon reasonable noƟce, any premises subject to the requirements of this Chapter to conduct inspecƟons and monitoring to assure compliance with this Chapter, applicable City or State regulaƟons, or the MRP . An inspecƟon fee shall be charged for each inspecƟon at the amount listed in the City’s Adopted Municipal Fee Schedule. Records related to compliance with this Chapter, including but not limited to operaƟons and maintenance records and agreements, shall be available to City staﬀ for inspecƟon and copying.

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(c) In the event the owner or occupant of the premises refuses entry aŌer a request to enter and inspect the premises has been made, the City is hereby empowered to seek authorizaƟon from any court of competent jurisdicƟon for such entry.

16.11.120 Enforcement and PenalƟes

(a) ViolaƟons of this Chapter may be enforced as allowed by Title I of the Palo Alto Municipal Code. The Director is authorized to exercise the authority provided in the California Penal Code secƟon 836.5.
(b) The Director may require any Person deemed to have violated this Chapter to take any of the following acƟons:

(1) Ensure that the Discharge be remediated and the aﬀected private and City property and infrastructure, as relevant, be restored within a speciﬁed Ɵme. The Responsible Party shall also be responsible for cleanup or reimbursement of cleanup costs incurred by the City for cleanup acƟviƟes associated with any Discharges that violate this Chapter.

(2) Implement applicable BMPs; for example, to address Pollutant sources associated with outdoor process and manufacturing areas; outdoor material storage areas; outdoor waste storage and disposal areas; outdoor vehicle and equipment storage and maintenance areas; outdoor parking areas and access roads; outdoor areas used by customers and employees; outdoor wash areas; outdoor drainage from indoor areas; rooŌop equipment; Contaminated and erodible surface areas; and other sources that have a reasonable potenƟal to contribute to PolluƟon of Stormwater Runoﬀ.

(3) Install Structural Retroﬁt BMPs to address noncompliance of this Chapter. Structural Retroﬁt BMPs may require review and approval by the City’s Planning and Building Divisions.

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(c) The Director shall implement a Stormwater Enforcement Response Plan to facilitate Ɵmely and eﬀecƟve compliance with the requirements of this Chapter. The Enforcement Response Plan shall contain, at a minimum, the following:

(1) Enforcement procedures;

(2) Enforcement tools and scenarios;

(3) Procedures for Ɵmely correcƟon of potenƟal and actual Discharges; and

(4) Procedures for referral and coordinaƟon with other agencies.

(d) The remedies established in this SecƟon are not exclusive. In addiƟon to any other remedies allowed under the Palo Alto Municipal Code, violaƟons may be subject to penalƟes established by resoluƟon of the Council or any other enforcement mechanism allowed by law.

16.11.130 Fees and Charges

The City may adopt reasonable fees and charges for reimbursement of costs of administering and enforcing this Chapter.

16.11.140 ObstrucƟon, Damage or Impairment to City Storm Drain System and Rights-of- Way

Dischargers shall be responsible for and liable to the City for any obstrucƟon, damage, or impairment to the Storm Drain System and other rights-of-way associated with a Discharge that causes an obstrucƟon, damage, or any other impairment to the Storm Drain System. The City Item 8
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may assess a charge against the Discharger to reimburse the City for costs incurred to clean or repair said obstrucƟon, damage or impairment.

Part 3 Development Projects

16.11.150 Regulated Projects

All projects ﬁƫng the category descripƟons below (hereinaŌer called “Regulated Projects”) must implement Low Impact Development Source Control, Site Design, and Stormwater Treatment Measures. The categories of Regulated Projects are:

(a) New Development Projects or Redevelopment Projects

New Development or Redevelopment projects that create and/or replace 5,000 square feet or more of Impervious Surface (collecƟvely over the enƟre project site). This category includes commercial, industrial, residenƟal housing subdivisions (i.e., Detached Single-Family Home Projects), mulƟ-family aƩached subdivisions (i.e., town homes, condominiums, and apartments), mixed-use, new and reconstructed private roads and private trails, and public projects (other than public road and trail projects), including sidewalks and any other porƟons of the public right-of-way that are developed or redeveloped as part of the projects.

Speciﬁc exclusions that apply to this category are listed in SubsecƟon (e) below. Public Works projects that are addiƟonally excluded from this category – unless they create and/or replace 5,000 ConƟguous square feet or more of Impervious Surface – include the following examples:
sidewalk gap closures, sidewalk secƟon replacement, and Americans with DisabiliƟes Act- compliant curb ramps.

Where a Redevelopment project results in an alteraƟon of 50 percent or more of the Impervious Surface of a previously exisƟng development that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoﬀ from the enƟre Redevelopment project. Where a Redevelopment project results in an alteraƟon of Item 8
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less than 50 percent of the Impervious Surface of a previously exisƟng development that was not subject to this Part, Stormwater Treatment Measures must be designed and sized to treat Stormwater Runoﬀ from the new and/or replaced Impervious Surface of the project.

The calculaƟons in this SubsecƟon shall include porƟons of the public right-of-way that are developed or redeveloped as part of the Regulated Project.

(b) New or Widening Road Projects

Any of the following types of road projects (including both public and private road projects) that create 5,000 square feet or more of newly constructed ConƟguous Impervious Surface, and that fall under the planning and building authority of the City:

(1) ConstrucƟon of new streets or roads, including sidewalks and bicycle lanes built as part of the new streets or roads.

(2) Widening of exisƟng streets or roads with addiƟonal traﬃc lanes.

Where the addiƟon of traﬃc lanes results in an alteraƟon of 50 percent or more of the Impervious Surface of an exisƟng street or road within the project that was not subject to this Part, Stormwater Treatment Measures must be designed and sized to treat Stormwater Runoﬀ from the enƟre street or road that had addiƟonal traﬃc lanes added. Where the addiƟon of traﬃc lanes results in an alteraƟon of less than 50 percent of the Impervious Surface of an exisƟng street or road within the project that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoﬀ from only the new traﬃc lanes. However, if the Stormwater Runoﬀ from the exisƟng traﬃc lanes and the added traﬃc lanes cannot be separated, any onsite treatment system shall be designed and sized to treat Stormwater Runoﬀ from the enƟre street or road. If an oﬀsite treatment system is installed or in-lieu fees paid in accordance with MRP Provision C.3.e or SecƟon

16.11.180(c), the oﬀsite treatment system or in-lieu fees must address only the Stormwater Runoﬀ from the added traﬃc lanes.

(3) ConstrucƟon of Impervious trails that are greater than or equal to 10 feet wide or are creek-side (within 50 feet of the top of bank).

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(4) Speciﬁc exclusions to this SubsecƟon include the following:

(i) Sidewalks built as part of new streets or roads and built to direct Stormwater Runoﬀ to adjacent vegetated areas;
(ii) Bicycle lanes built as part of new streets or roads, but that are not hydraulically connected to the new streets or roads and that direct Stormwater Runoﬀ to adjacent vegetated areas;
(iii) Impervious trails that direct Stormwater Runoﬀ to adjacent vegetated areas, or other non-erodible permeable areas, preferably away from creeks or towards the outboard side of levees, where those areas are at least half as large as the contribuƟng Impervious Surface area;
(iv) Sidewalks, bicycle lanes, or trails constructed as Pervious pavement systems; and
(v) Caltrans highway projects and associated faciliƟes.

Road projects that involve the reconstrucƟon of exisƟng streets or roads, which create and/or replace at least one ConƟguous acre of Impervious Surface and that are public road projects and/or fall under the planning and building authority of the City, including sidewalks and bicycle lanes that are built or rebuilt as part of the exisƟng streets or roads. This Regulated Project category includes uƟlity trenching projects which are - on average, over the enƟre length of the project - greater than or equal to eight (8) feet wide. It also includes public pavement maintenance pracƟces listed in SubsecƟon (e)(3) if they are part of a project that otherwise meets the requirements of this secƟon.

Where the reconstrucƟon project results in an alteraƟon of greater than or equal to 50 percent of the Impervious Surface of an exisƟng street or road within the project that was not subject to this Part, Stormwater Treatment Measures must be designed and sized to treat Stormwater Runoﬀ from the enƟre street or road that was reconstructed. Where the reconstrucƟon project results in an alteraƟon of less than 50 percent of the Impervious Surface of an exisƟng street or road within the project that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoﬀ from only the new and/or replaced Impervious Surface within the project footprint. However, if the Stormwater Runoﬀ from the exisƟng Impervious Surface and the added Impervious Surface cannot be separated, any onsite treatment system shall be designed and sized to treat Stormwater Runoﬀ from the enƟre street Item 8
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or road. If an oﬀsite treatment system is installed or in-lieu fees paid in accordance with MRP Provision C.3.e or SecƟon 16.11.180(c), the oﬀsite treatment system or in-lieu fees must address only the Stormwater Runoﬀ from the added Impervious Surface.

(d) Large Detached Single-Family Home Projects

Detached Single-Family Home Projects that create and/or replace 10,000 square feet or more of Impervious Surface (collecƟvely over the enƟre project site) and are not part of a larger development or Redevelopment plan regulated under “New Development Projects or Redevelopment Projects” – see SubsecƟon (a) above. This Regulated Project category includes the addiƟon of an accessory dwelling unit (ADU) on an exisƟng parcel with one single-family home that is not part of a subdivision or plan.

Where a single-family home project results in an alteraƟon of 50 percent or more of the Impervious Surface of a previously exisƟng project that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoﬀ from the enƟre project. Where a single-family home project results in an alteraƟon of less than 50 percent of the Impervious Surface of a previously exisƟng project that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoﬀ from the new and/or replaced Impervious Surface of the project. The calculaƟons in this SubsecƟon shall include porƟons of the public right-of-way that are developed or redeveloped as part of the Regulated Project.

(e) ExempƟons: For Redevelopment projects and Road ReconstrucƟon Projects:

(1) The following interior and exterior pracƟces are excluded:
(i) Interior Remodels; and
(ii) RouƟne maintenance or repair such as roof or exterior wall surface replacement.
(2) The following pavement maintenance pracƟces are excluded:

(i) Pothole and square cut patching;
(ii) Overlaying exisƟng asphalt or concrete pavement with asphalt or concrete without expanding the area of coverage;
(iii) Shoulder grading;
(iv) Reshaping/regrading drainage systems;
(v) Crack sealing;
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(vi) Pavement preservaƟon acƟviƟes that do not expand the road prism; (vii) Upgrading from a bituminous surface treatment (e.g., chip seal) with an overlay of asphalt or concrete, without expanding the area of coverage; (viii) Applying a bituminous surface treatment to exisƟng asphalt or concrete pavement, without expanding the area of coverage;
(ix) VegetaƟon maintenance; and
(x) Layering gravel over an exisƟng gravel road, without expanding the area of coverage.

(3) The following pavement maintenance pracƟces are not excluded.

(i) Removing and replacing asphalt or concrete pavement to the top of the base course or lower, or repairing the pavement base (including repair of the pavement base in preparaƟon for bituminous surface treatment, such as chip seal), as these are considered replaced Impervious Surfaces; (ii) Extending the pavement edge without increasing the size of the road prism, or paving graveled shoulders, as these are considered new Impervious Surfaces; and
(iii) Resurfacing by upgrading from dirt to gravel, to a bituminous surface treatment (e.g., chip seal), to asphalt, or to concrete; or upgrading from gravel to a bituminous surface treatment, to asphalt, or to concrete, as these are considered new Impervious Surfaces.

(4) For a project consisƟng of a combinaƟon of exempted pavement maintenance pracƟces and non-exempted pavement maintenance and/or pracƟces that fall under any other Regulated Project category, the parts of the project that are not exempt shall be evaluated as a Regulated Project.

16.11.160 Source Control Measures for Regulated Projects

All Regulated Projects shall implement Source Control Measures onsite that, at a minimum, comply with City regulaƟons and the requirements of the MRP .

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16.11.170 Site Design Measures for Regulated Projects

All Regulated Projects must implement Low Impact Development Site Design Measures that, at a minimum, comply with City regulaƟons and the requirements of the MRP .

16.11.180 Stormwater Treatment Measures for Regulated Projects

All Regulated Projects shall implement Stormwater Treatment Measures onsite that, at a minimum, comply with City regulaƟons and the requirements of the MRP . Stormwater Treatment Measures shall not be altered without permission from the Director.

(a) All Regulated Projects shall design, construct, maintain, and operate Stormwater Treatment Measures for the enƟre duraƟon that the project is in use in accordance with the MRP and City regulaƟons. All Regulated Projects, except Special Projects, shall treat one hundred percent of the amount of Stormwater Runoﬀ idenƟﬁed in accordance with MRP Provision C.3.c requirements for the Regulated Project’s drainage area onsite or at a Joint Stormwater Treatment Facility per MRP Provision C.3.c, Chapter 16.11.180, and SCVURPPP and City speciﬁcaƟons. LID Stormwater treatment measures include harvesƟng and use, inﬁltraƟon, evapotranspiraƟon, and biotreatment. Stormwater treatment systems must be sized using one of the hydraulic sizing design criteria approved in MRP C.3.d.i. Any Regulated Project that does not comply with this requirement must meet the requirements for alternaƟve compliance established in accordance with SubsecƟon (c) below.

(b) Special Projects designed in a manner that meets the criteria of the MRP and City regulaƟons shall be allowed to apply for IncenƟve LID Treatment ReducƟon Credits per the Water Board’s process outlined in the MRP .

(c) If a Development Project cannot install Stormwater Treatment Measures in conformance with the requirements of the MRP and this chapter, the Director may approve alternaƟve compliance and allow in-lieu measures and/or fees if made necessary by individual site condiƟons and in accordance with the MRP and City regulaƟons. Projects shall sƟll meet all Regulated Project requirements but may be allowed to do so parƟally onsite or fully oﬀ-site or through payment of in-lieu fees. This approval shall occur prior to issuance of Planning and Land Use EnƟtlement under Title 18 of this Code, or a Building Permit if no EnƟtlement is required, unless the Director allows an excepƟon.

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16.11.190 CerƟﬁcaƟon of Compliance for Regulated Projects

(a) Prior to the issuance of a Planning and Land Use EnƟtlement under Title 18 of this Code, or a Building Permit if no EnƟtlement is required, for a Regulated Project, the Applicant or designee of a Regulated Project shall submit a cerƟﬁcaƟon by a qualiﬁed third-party reviewer acceptable to the Director that the design of the project complies with the requirements of this Chapter, City regulaƟons, the MRP , and any plan review comments provided by the Director.

AŌer the project is constructed, the Applicant or a designee shall submit a wriƩen cerƟﬁcaƟon by a qualiﬁed third-party reviewer acceptable to the Director that a Regulated Project was constructed or installed in accordance with the City-approved plans and drawings and per City regulaƟons and the MRP.

(b) The third-party reviewer shall be an independent civil engineer, licensed architect, or landscape architect registered in the State of California, shall have current training in Stormwater Treatment Measure design and construcƟon, and meet other requirements set forth by the City regulaƟons. The third-party reviewer shall not be any consultant or contractor hired to design and/or construct a Stormwater Treatment Measure for the Regulated Project.

(d) Applicant is responsible for ensuring that the Stormwater Treatment Measure is constructed according to the design approved by the Director.

16.11.200 Green Infrastructure Design and ConstrucƟon Requirements

Regulated Projects shall comply with applicable design and construcƟon guidelines and standard speciﬁcaƟons included in the City’s Green Stormwater Infrastructure Plan and related documents, including design guidelines, standard speciﬁcaƟons, and other requirements as established by the Director.

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16.11.210 Required HydromodiﬁcaƟon Management Measures for Regulated Projects

(a) Applicability. All Regulated Projects that result in the creaƟon and/or replacement of one acre (43,560 square feet) or more of Impervious Surface and result in a net increase in Impervious Surface over the pre-project condiƟon shall implement HydromodiﬁcaƟon Management Measures.

(b) ExempƟon. Projects located in areas designated as exempt from HydromodiﬁcaƟon Management Measure requirements on the HydromodiﬁcaƟon Applicability Map contained in the MRP are exempt from this requirement.
(c) HydromodiﬁcaƟon Management Measures shall be designed and implemented in accordance with City regulaƟons, MRP requirements, and other applicable regulaƟons and policies.

(d) All HydromodiﬁcaƟon Management Measures are subject to inspecƟon and approval by the Director.

16.11.220 OperaƟon and Maintenance of Stormwater Treatment Measures and HydromodiﬁcaƟon Management Measures

All Regulated Projects shall comply with the following:

(a) The property owner(s), its administrators, successors, and any other Persons responsible for the management of the property, including any homeowner's associaƟon, shall take all necessary acƟons to ensure that the Stormwater Treatment and HydromodiﬁcaƟon Management Measures are properly maintained so that all measures conƟnue to operate as originally designed and approved for the life of the project. These measures shall not be removed, replaced, or amended without the Director’s approval.

(b) Before a Building Permit is issued, a maintenance agreement shall be submiƩed to the Director describing all required Stormwater Treatment and HydromodiﬁcaƟon Management Measures, including all informaƟon and documentaƟon required by the Director. This Item 8
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agreement shall be approved by the Director, signed by the City AƩorney or designee and property owner(s), and recorded with Santa Clara County. If property changes ownership at any Ɵme, the new property owner(s) shall take on responsibility for maintenance of any Stormwater Treatment and HydromodiﬁcaƟon Management Measures located on that property and shall adhere to the operaƟons and maintenance agreement.

(c) The operaƟon and maintenance of the Measures shall at all Ɵmes be conducted in accordance with the terms and condiƟons of the approved maintenance agreement.

(d) Any Stormwater Treatment Measure and/or HydromodiﬁcaƟon Management Measure constructed through an alternaƟve compliance opƟon (allowed by the Director per

16.11.180(c)) shall also have a maintenance agreement that complies with this secƟon.

16.11.230 Low Impact Development Source Control and Site Design Measures for Projects Other Than “Regulated Projects” Under SecƟon 16.11.150

Development and Redevelopment Projects that require a Planning and Land Use EnƟtlement or Building Permit from the City but are not Regulated Projects shall implement LID Source Control and Site Design Measures as required by City RegulaƟons and the MRP. The design and implementaƟon of the measures shall be in accordance with the guidelines and technical speciﬁcaƟons established by the Director, City regulaƟons, and the MRP . LID features shall not be altered without permission from the Director.

16.11.240 Requirements for All Development Projects

(a) Applicability. This SecƟon shall apply to any Development Project that requires a Planning and Land Use EnƟtlement review or Building Permit, except for minor projects such as those limited to signs, fences, and parking restriping that have no or minimal potenƟal to create Non-Stormwater Discharges.
(b) Development projects shall meet all applicable requirements of the Palo Alto RegulaƟons for Stormwater PolluƟon PrevenƟon and must be designed to accommodate Best Management PracƟces described in SecƟon 16.11.290 and City regulaƟons, as applicable.

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16.11.250 Requirements for Loading Docks

(a) Applicability. This SecƟon shall apply to any project that includes the construcƟon of a Loading Dock.

(b) The following requirements shall be met for all Loading Docks where applicable:

(1) The Loading Dock and surrounding area shall consist of Impervious paving appropriate for the material(s) that will be loaded/unloaded to avoid leaching into or degradaƟon of paving.

(2) The Loading Dock shall be covered and protected from precipitaƟon, Stormwater Runoﬀ and Stormwater Run-on to minimize potenƟal Non-Stormwater Discharges.

(3) The Loading Dock shall be designed to drain to the Sanitary Sewer System. Drains may be required to be equipped with a fail-safe shut-oﬀ valve, normally closed, or equivalent device according to the type of materials or substances being transferred.

Valve shall be immediately shut oﬀ if a spill of any size occurs and shall not be opened unƟl the spill is complete remediated.

16.11.260 Drainage Design Standards for Development Projects

(a) All new Development Projects shall meet the requirements of the Public Works Drainage Design Standards and the Santa Clara County Drainage Manual in eﬀect at the Ɵme of submission of a complete planning applicaƟon, or if no planning applicaƟon is required for the Development Project, at the Ɵme of submission of a complete applicaƟon for a Building Permit or excavaƟon and grading Permit, whichever occurs ﬁrst.

(b) All Redevelopment projects and Remodels requiring a Building Permit or excavaƟon and grading Permit shall meet the requirements of the Public Works Drainage Design Standards provided by the Public Works Director for the porƟon of the site or facility being constructed, Remodeled, or improved.

(c) Notwithstanding the foregoing provisions of this SecƟon, a project shall not be subject to Item 8
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the requirements of this SecƟon if the project does not include new drainage paƩerns or alter exisƟng drainage paƩerns of the site.

16.11.270 Requirements for ConstrucƟon Sites and AcƟviƟes

(a) All workers, contractors, subcontractors, and superintendents of ConstrucƟon Sites of any size shall follow and implement all applicable provisions of Stormwater management, PolluƟon prevenƟon, and erosion and sediment control plans and ensure that BMPs are in place to prevent potenƟal Pollutants from being tracked, mobilized, carried, transported, or Discharged into the on-site storm drain inlet(s), City’s right-of-way, Storm Drain System, and Receiving Waters, as required by City regulaƟons.

(b) Projects covered under the State of California ConstrucƟon General Permit (CGP) shall also meet the requirements of this SecƟon. Project Applicants shall provide to the City a copy of the NoƟce of Intent and NoƟce of TerminaƟon required under the CGP .

(c) ConstrucƟon BMPs shall be in place unƟl exterior Impervious Surfaces, the Building shell, landscaping, and Stormwater Treatment Measures are in place. In addiƟon to BMPs generally applicable to ConstrucƟon Sites year-round, all ConstrucƟon Sites shall implement site-speciﬁc, seasonally and phase-appropriate BMPs as required by the Director.

(d) The Director is authorized to oversee, inspect, and require expedient compliance with the requirements of this SecƟon at all ConstrucƟon Sites year-round. InspecƟons shall occur at a regular frequency established by the Director.

(e) Contractor/Subcontractor Requirements. The Applicant shall be responsible for ensuring that its contractors and subcontractors comply with this SecƟon.

Part 4 Required Best Management PracƟces for All Dischargers

16.11.280 Minimum Best Management PracƟces for All Dischargers

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(a) Any Person engaged in acƟviƟes or operaƟons that will or may result in a Non-Stormwater Discharge, or who owns or manages a facility or property where such acƟviƟes or operaƟons occur, shall implement and consistently comply with applicable BMPs outlined in the City regulaƟons.

(b) The Director may require compliance with addiƟonal requirements, including Structural Retroﬁt BMPs, if necessary, to achieve the purposes of this Chapter.

Part 5 Illicit Discharge DetecƟon and EliminaƟon and Mobile Sources

16.11.290 Spill Containment and NoƟﬁcaƟon of Non-Stormwater Discharges

(a) Any Responsible Party who has knowledge or informaƟon of any known or suspected release of materials, which has resulted in or may result in a Non-Stormwater Discharge other than that permiƩed by this Chapter shall immediately report to the City and take all necessary steps to immediately cease, contain, and clean up the spill using dry clean-up methods. If a Person cannot idenƟfy the spilled material, the Person shall not aƩempt to clean it up in a manner that may result in a Discharge or harm to human health. The Responsible Party shall adhere to the City regulaƟons and any other direcƟon from the Director or other City representaƟve.

(b) If a spill occurs on private property, the Responsible Party shall be responsible for cleaning the private property and any private sanitary or storm drain components located on said property. The Responsible Party shall seek guidance from City staﬀ before cleaning the private sanitary or storm drain components.

(c) The Responsible Party or representaƟve shall not clean any City infrastructure, including any components of the City’s Storm Drain or Sanitary Sewer Systems, without permission from the Director.

(d) The Director shall conduct an invesƟgaƟon and enforcement per the Enforcement Response Plan unƟl the issue is deemed corrected.

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(e) The Responsible Party and their agents shall adhere to the requirements of Title 17 of this Code with respect to Hazardous Materials and Wastes, and all applicable requirements of the County of Santa Clara and the State of California.

16.11.300 Mobile Businesses

(a) Non-Stormwater Discharges from Mobile Businesses. Mobile Businesses whose acƟviƟes involve the potenƟal Non-Stormwater Discharge shall not allow wash water or any other Non-Stormwater Discharge to Discharge into a storm drain inlet or other component of the Storm Drain System, onto the street, sidewalk, or other paved surface, or directly into a water body. Instead, all wash water and Pollutants shall be disposed of in a cleanout that is connected to the Sanitary Sewer System according to the requirements of the City of Palo Alto Pretreatment Program.

(b) Mobile Businesses shall employ BMPs to prevent Pollutants from Discharging to the Storm Drain System or the Sanitary Sewer Systems without pretreatment, as required by City regulaƟons or otherwise required by the Director.

Part 5 PesƟcides Toxicity Control

16.11.310 PesƟcides Toxicity Control

(a) The Director shall develop, maintain, and implement an Integrated Pest Management Policy and procedures for the use of pesƟcides.
(b) All City employees and contractors shall comply with the Integrated Pest Management Policy and procedures in City operaƟons and on City property.

Part 6 Trash Load ReducƟons

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16.11.320 Trash Load ReducƟons

(a) Requirements for ExisƟng Businesses. By July 1, 2025, private properƟes that generate moderate, high, or very high trash loads, as deﬁned in City regulaƟons, and that Discharge into private storm drain inlets, shall be equipped with Full Trash Capture Systems or be managed with trash Discharge control acƟons equivalent to or beƩer than Full Trash Capture Systems. Property owners must install and maintain trash capture systems in compliance with City regulaƟons and the requirements of the MRP . Property owners shall be responsible for documenƟng maintenance records per requirements of the City regulaƟons.

Maintenance records shall be made available to the Director upon request.

(b) Requirements for Development Projects. All Development Projects that have operable private storm drain inlets on their property that directly Discharge to the City’s Storm Drain System, any creek, or the San Francisco Bay shall install and maintain Full Trash Capture Devices or systems in compliance with City regulaƟons and requirements of the State Water Resources Control Board.

(c) Full Trash Capture Device or System Maintenance Requirements. Full Trash Capture Devices or Systems shall be maintained by the property owner to ensure that they are operaƟng appropriately and have suﬃcient operaƟng capacity to capture trash consistent with the MRP and City regulaƟons. The inspecƟon and maintenance of each Full Capture Device shall be at a frequency suﬃcient to prevent overﬂow or bypassing of trash and plugging or clogging of screen and device's trash reservoir. Full Trash Capture Devices will be inspected by City staﬀ to ensure compliance.

(d) The private property owner shall be responsible for documenƟng maintenance records per requirements of the City regulaƟons. Maintenance records shall be made available to the Director upon request.

Part 7 Mercury Controls

16.11.330 Mercury Controls

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(a) The Director shall implement a mercury control program consisƟng of load reducƟon assessment, PolluƟon prevenƟon, Source Control Measures, treatment control measures, Green Stormwater Infrastructure, and measures to reduce risk to consumers of Bay ﬁsh.

(b) Source Property IdenƟﬁcaƟon and Abatement. The Director shall invesƟgate and idenƟfy properƟes and land areas that likely contribute mercury to the Storm Drain System and take acƟon to abate or cause abatement of the mercury sources or refer the idenƟﬁed properƟes to the Regional Water Board for follow-up measures. Source properƟes referred to the Water Board shall implement interim enhanced operaƟon and maintenance measures as required by the Director.

(c) Designated ProperƟes. ProperƟes in industrial areas and in other zones designated in City regulaƟons shall implement treatment control measures, GSI measures, or other control measures to treat Stormwater per the MRP , regional guidance and City regulaƟons.

Part 8 Polychlorinated Biphenyls (PCBs) Controls

16.11.340 Polychlorinated Biphenyls Controls

(a) The Director shall implement a polychlorinated biphenyls (PCBs) control program consisƟng of an assessment methodology and data collecƟon program to idenƟfy and quanƟfy reducƟons of PCB loads in Stormwater through implementaƟon of PolluƟon prevenƟon, Source Control, and treatment control, Green Stormwater Infrastructure, and other measures.

(b) Source Property IdenƟﬁcaƟon and Abatement. The Director shall invesƟgate and idenƟfy properƟes and land areas that likely contribute PCBs to the Storm Drain System and take acƟon to abate or cause abatement of the PCB sources and/or refer the idenƟﬁed properƟes to the Regional Water Board for follow-up measures. Source properƟes referred to the Water Board shall implement interim enhanced operaƟon and maintenance measures as required by the Director.

(c) Designated ProperƟes. ProperƟes in industrial areas and in other zones designated in City regulaƟons or properƟes otherwise designated by the Director shall implement treatment Item 8
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control measures, GSI measures, or other control measures to treat Stormwater according to the requirements of the MRP , regional guidance, and City regulaƟons.

16.11.350 Management of PCBs During Building DemoliƟon AcƟviƟes

(a) Applicability. This secƟon shall apply to projects that require a DemoliƟon Permit.

DemoliƟons of single-family residences or any wood-framed structures are exempted from this requirement.

(b) PCB Screening Assessment. Any Person undertaking a project that involves the demoliƟon of an enƟre Building constructed or Remodeled between January 1, 1950 and December 31, 1980, inclusive, shall perform a PCB Screening Assessment to determine the presence of PCBs and other hazardous substances at the demoliƟon site and to follow applicable disposal requirements. The PCB Screening Assessment shall be submiƩed prior to issuance of any demoliƟon Permit, in a form and substance prescribed by the Director. The Director may require the PCB Screening Assessment to include any informaƟon reasonably necessary to determine the concentraƟon of PCBs in any primary building materials.

(c) For demoliƟon of Buildings containing materials with PCBs concentraƟons of 50 ppm or greater approved on and aŌer July 1, 2023 idenƟﬁed per required sampling procedures of this PCBs Program, demoliƟon contractors shall noƟfy the City at least two weeks before any demoliƟon is to occur. Applicant shall determine if addiƟonal agency noƟﬁcaƟon or approvals, or addiƟonal sampling for and abatement of PCBs, is required under other applicable laws. Applicant shall comply with all federal and state laws and regulaƟons, including but not limited to health, safety, and environmental laws and regulaƟons, that relate to management and cleanup of any and all PCBs, including but not limited to PCBs in priority building materials, other PCBs-Contaminated materials, PCBs-Contaminated liquids, and PCBs waste. The requirements of this secƟon do not replace or supplant the requirements of state or federal law, including but not limited to the Toxic Substances Control Act, 40 Code of Federal RegulaƟons (CFR) Part 761, and California Code of RegulaƟons (CCR) Title 22. The demoliƟon contractors shall provide noƟﬁcaƟon to the City if it is determined that advance approval from the U.S. EPA is required. If advance approval to U.S. EPA is not required, then the demoliƟon contractors shall submit a Hazardous Waste manifest for the disposal of the PCBs materials to the City within one week of it becoming Item 8
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available. The demoliƟon contractors shall noƟfy the City that the demoliƟon is complete within ﬁve business days of compleƟon.

(d) Applicants shall submit wriƩen noƟﬁcaƟons documenƟng any changes in the informaƟon submiƩed in compliance with this secƟon to the Director when changes in project condiƟons aﬀect the informaƟon submiƩed with the Permit applicaƟon.

(e) Applicants shall conduct onsite PCB control measures described in City regulaƟons and as prescribed by the Director.

(f) The Director shall inspect ConstrucƟon Sites during demoliƟon to verify adequate implementaƟon of ConstrucƟon Site controls and proper disposal of PCB-containing materials.

(g) Recordkeeping. Applicants shall maintain documentaƟon of the results of the priority building materials screening assessment for a minimum of ﬁve years aŌer submiƩal to the City.

Palo Alto City CouncilSeptember 15, 2025

Palo Alto City Council
September 15, 2025